Friday, June 19, 2009

US, European, Asian (including Indian) Stocks Push Higher After Lackluster Week

US investors are shedding some of their caution about the economy. US stocks are rising today, following gains in markets overseas - in Europe and Asia - and a round of buying on Thursday (yesterday). Better than expected economic data is suggesting that the U.S. economy might be in better shape than some investors had feared.

Thursday, June 18, 2009

Asia stocks fall for 4th day; European shares down

Asian markets slide for 4th day as correction starts to take hold; European stocks falter

Asian stocks suffered their fourth straight day of losses Thursday amid a growing belief the markets were due for a reality check after the recent surge. European markets weakened in early trade.

Benchmarks in Tokyo, Hong Kong and elsewhere sputtered over 1 percent apiece in broad-based selling. Oil prices fluctuated around $71 a barrel while the dollar lost more ground against the yen.

Investors have become skeptical recently about the staying power of a massive spring rally amid signs that global industrial production and demand, while stabilizing, may still be far from lifting the economy out of its worst recession in decades.

Overnight weakness on Wall Street, as well as the urge to take some profits after months of gains as the second quarter closes out, only encouraged traders to sell more.

"It's time for the market to have a pause and for people to take stock of reality," said Song Seng Wun, economist at CIMB-GK in Singapore. "Nothing can go in a straight line unless the economy improves in the same straight line, and that's not happening."

Early in European trade, benchmarks in Britain, Germany and France were down by about 0.3 percent each.

Stock futures suggested slight gains Thursday on Wall Street. Dow futures rose 2 points to 8,495 and S&P futures gained 0.5, or 0.1 percent, to 905.80.

Japan's benchmark Nikkei 225 stock average fell 137.13 points, or 1.4 percent, to 9,703.72, and Hong Kong's Hang Seng dropped 307.94, or 1.7 percent, to 17,776.66.

South Korea's Kospi lost 1.1 percent, Australia's key index was down 0.3 percent and Taiwan's benchmark pulled back 0.8 percent.

But Shanghai shares defied the losses, with the benchmark climbing 1.6 percent to a 10-month high, as the World Bank raised its China 2009 economic growth forecast from 6.5 percent to 7.2 percent and the country's premier said the economy was showing "positive changes."

The World Bank said Beijing's stimulus-driven investment boom would help shield the world's third-largest economy from the downturn, but cautioned it was too soon to say a sustained recovery was on the way.

China's ability to prosper as overseas economies slump has been a popular theme among investors, helping drive mainland and Hong Kong shares -- as well as certain commodities -- to huge gains in recent months.

But there are tentative signs that optimism about Chinese growth may be peaking, and that the recent outperformance by emerging market shares may be winding down, according to a Merrill Lynch survey of investment fund managers released Thursday.

Still, the survey reflected a recent shift in confidence, suggesting investment fund managers as a group are more bullish on stocks than at anytime since the crisis began to unfold in December 2007.

In the U.S. Wednesday, Wall Street endured another lackluster session. A cautious forecast from FedEx Corp. and a ratings downgrade of 18 banks were cause for more handwringing among investors.

The Dow Jones industrial average fell 7.49, or 0.1 percent, to 8,497.18 after moving in and out of positive territory during the day. The broader S&P 500 index fell 1.26, or 0.1 percent, to 910.71.

Oil prices lingered near $71 a barrel Thursday in Asia, with benchmark crude for July delivery up 34 cents to $71.37 a barrel. The contract rose 56 cents overnight.

The dollar was lower at 95.65 yen from 95.87 yen. The euro declined to $1.3912 from $1.3970.

Wednesday, June 17, 2009

Asian markets lower as global rally loses steam

Asian markets mostly lower as global rally continues to lose steam; Hong Kong falls over 1 pct

Most Asian stock markets extended their losses Wednesday as the global rally continued to lose steam amid concerns about the pace of any economic recovery.

More signs of economic weakness in the U.S. inspired caution among investors, and softer prices for crude oil and metals in recent days pulled commodity stocks lower.

With some indexes up more than 50 percent since March on expectations of an economic turnaround this year, markets have begun to falter amid worries stock prices have gotten too far ahead of economic fundamentals.

News that American industrial production fell by a bigger-than-expected 1.1 percent last month gave investors in Asia, as in the U.S. overnight, even more reason to hold back. It was the seventh straight monthly drop in industrial production and distracted traders from more upbeat figures on home construction, building permits and inflation.

"The market is losing a little bit of momentum after the rally," said Winson Fong, managing director at SG Asset Management in Hong Kong, which oversees about $2 billion in equities in Asia. "Some sort of the healthy correction is expected in the near term. But I think the economic fundamentals will catch up."

Hong Kong's Hang Seng index lost 239.78, or 1.3 percent, to 17,925.72, and South Korea's Kospi shed 0.8 percent to 1,388.15.

Australia's benchmark fell 1.4 percent, India's Sensex dropped 0.8 percent and Shanghai's stock measure was off 0.7 percent.

Japan bucked the downward trend with the Nikkei 225 stock index gaining 58.06, or 0.6 percent, to 9,810.94.

Overnight, the Dow Jones industrial average fell 107.46, or 1.3 percent, to 8,504.67. The Standard & Poor's 500 index fell 11.75, or 1.3 percent, to 911.97, while the Nasdaq composite index fell 20.20, or 1.1 percent, to 1,796.18.

U.S. stock futures pointed to modest gains Wednesday on Wall Street. Dow futures rose 8 points, or 0.1 percent, to 8,522 and S&P futures gained 2.1, or 0.2 percent, to 909.90.

Oil prices hovered above $70 a barrel Wednesday in Asia, with benchmark crude for July delivery up 35 cents to $70.82. On Tuesday, the contract fell 15 cents.

In currencies, the dollar was higher at 96.61 yen from 96.17 yen. The euro rose to $1.3861 from $1.3813.

Monday, June 15, 2009

News updates...

Obama Financial Reforms Revealed - Reuters

Senior Obama administration officials today said in a newspaper editorial piece that a landmark financial regulation reform plan to be released this week will target capital requirements, securitization and other problem areas blamed for the global financial crisis.

Other News:

# IMF says worst not over for world economy - Reuters

# Oil falls to near $71 as US dollar strengthens - AP

# World stocks down as dollar rise hits commodities - AP

# US Stocks point lower as overseas markets fall - AP

# Obama urges doctors to back his health care plans - AP

# EU: 1.9 million jobs disappeared in Q1 - AP

# Lincoln National to accept US government funds - AP

# US Gas prices up 17 cents in 2 weeks - survey- CNNMoney

# Rain matches aviation gloom at Paris Air Show - AP

Friday, June 12, 2009

IIP nos fail to boost Sensex; Ranbaxy, DLF slip

The Sensex today opened 36 points higher at 15,447 and soon touched the day's high of 15,600. However, around noon it dipped sharply into the negative zone as the April IIP numbers failed to boost investor's sentiments. The index thereafter was volatile and touched a low of 15,174, down 426 points from the day's high.

The index finally ended at 15,238, down 173 points.

The BSE Metal and Oil & Gas indices, however, gained over 1% each to 12,220 and 10,510, respectively.

The market breadth was extremely negative - out of 2,774 stocks traded, 2,020 declined while 706 advanced. The rest were unchanged.

INDEX SHAKERS...

Ranbaxy and DLF plunged 6% each to Rs 282 and Rs 369, respectively.

Reliance Communications dropped 4.5% to Rs 332. Tata Motors, Mahindra & Mahindra and SBI slumped 3.5% each to Rs 357, Rs 786 and Rs 1,637, respectively.

Wipro, Bharti Airtel, HDFC, Larsen & toubro, BHEL, ACC, Grasim, NTPC were down 2-3% each.

Hindustan Unilever, Sun Pharma, Tata Power, TCS, HDFC Bank, Infosys, ICICI Bank, Reliance Infrastructure and Hindalco declined 1% each.

...AND MOVERS

Reliance gained 2.5% at Rs 2,357. Sterlite added 2% to Rs 718.

OTHER PROMINENT LOSERS...

Fortis Healthcare and Rei Agro slumped 8% each to Rs 105 and Rs 73, respectively. Lanco Infratech declined 7.5% to Rs 374.

Hindustan Construction Company, Max India, Andhra Bank, Tech Mahindra, Tulip Telecom, Aditya Birla Nuvo and GVK Power & Infrastructure dropped 6-7% each.

...AND OTHER GAINERS

JSW Steel soared 11% to Rs 707. Hindustan Zinc surged 8% to Rs 665. Sesa Goa rallied 5.5% after aquiring Dempo Group's Goa Mining Assets.

Jindal Steel, Cipla, Sintex Industries, Welspun Gujarat Stahl-Rohren, Union Bank and Cadila Healthcare added 3-5% each.

VALUE & VOLUME TOPPERS

Sesa Goa topped the value chart with a total turnover of Rs 462.03 crore. It was followed by Reliance (Rs 266.74 crore), Reliance Capital (Rs 229.93 crore), Tata Steel (Rs 223.81 crore) and Suzlon (Rs 217.79 crore).

The volume chart was led by Unitech with trades of 22.71 million, followed by Sesa Goa (22.26 million), Ispat Industries (20.24 million), Suzlon (17.68 million) and IFCI (13.75 million).

Saturday, June 6, 2009

Sensex has longest winning streak since August 2005

India’s stocks rose for a second day, on Friday June 5th, driving the benchmark index to its 13th weekly advance, as metal producers gained after copper and aluminum prices jumped.

Sterlite Industries, the nation’s biggest copper and zinc producer, added 2.1 per cent, while Hindalco Industries, the largest aluminum maker, climbed 3.5 per cent.

The benchmark index completed the longest weekly winning streak since August 2005 after the Congress party had its biggest election win in two decades. President Pratibha Devisingh Patil said yesterday the government might allow greater overseas investment and inject capital into lenders to stoke economic growth. Fund inflows surged to a one-year high.

“Those who missed the recent rally are chasing the stocks,” said A N Sridhar at Sahara Asset Management in Mumbai. “Markets are fairly valued at the moment, but high liquidity and budget expectations are driving the stocks up,” he said.

The Bombay Stock Exchange’s Sensitive Index, or Sensex, climbed 94.87 points, or 0.6 per cent, to close at 15,103.55. The S&P CNX Nifty Index on the National Stock Exchange added 0.3 per cent to 4,586.90. The BSE 200 Index increased 0.4 per cent to 1,848.04.

The Sensex has advanced 3.3 per cent this week. Indian funds attracted $199 million of inflows in the week ended June 3, a 55-week high, Cambridge, Massachusetts-based research company EPFR Global said in a report dated yesterday.

The Sensex has gained 57 per cent this year, the third-best performer among 90 benchmark indices tracked by Bloomberg worldwide. The index has soared 85 per cent since this year’s low on March 9, on speculation government stimulus spending worldwide will help to end the first global recession since World War II. Shares on the Sensex are valued at 16.1 times their reported earnings, almost double the 8.8 times they fetched in March.

Indian stock valuations may keep “bubbling higher” after a record gain earlier this week as the nation’s election results brightened the outlook for investor sentiment, liquidity and economic growth, UBS AG said on May 20.

Sterlite added 2.1 per cent to Rs 672.35. Hindalco climbed 3.5 per cent to Rs 92.9. National Aluminium Co, India’s second-biggest producer of the metal used to make aircraft and beverage cans, rose 1.3 per cent to Rs 348.20 after it said first-quarter profit will increase from the previous three months, aided by higher production and prices.

Copper and aluminum futures advanced in Shanghai on investors’ optimism that the global recession is easing, while the risk of inflation may be rising. Copper headed for a third weekly gain and aluminum jumped to the highest since November 20.

Larsen & Toubro jumped 4.6 per cent to Rs 1,522.60. India’s biggest engineering company plans to sell its 11.4 per cent stake in Ultratech Cement, according to reports.

Grasim Industries, India’s third-biggest cement producer and a maker of viscose-staple fiber, rose 5.7 per cent to Rs 2,513.35. Grasim holds 50.7 per cent in Ultratech, according to data compiled by Bloomberg.

Friday, June 5, 2009

Despite fewer cuts, US May jobless rate seen rising...

With companies in the US in no mood to hire, the unemployment rate is still rising. But the furious pace of layoffs is easing as the recession loosens its hold on the country.

Wednesday, June 3, 2009

Sensex ends flat amid choppy trade


The Sensex today opened 28 points higher at 14,903, following the positive global cues.

The index touched a nine-month high of 15,046 - up 313 points from the day's low.

Following the subdued opening in the European markets, the Sensex pared its gains and slipped into the negative zone. It touched a low of 14,733 on profit booking in IT and banking stocks.

The BSE IT and Bankex indices were down 1% each at 3,090 and 8,058, respectively.

However, trading was extremely choppy as investors continued with their alternative bouts of buying and selling in the market.

The Sensex snapped the six-day winning streak and finally ended at 14,871, down four points.

The market breadth was positive - out of 2,858 shares traded, 2,016 advanced, 792 declined and 50 were unchanged today.

INDEX MOVERS...

Hindalco and ITC added 6% to Rs 93 and Rs 203, respectively.

Jaiprakash Associates, Grasim and ACC soared 4.5% each to Rs 226, Rs 2,306 and Rs 818, respectively.

Reliance Communications and Tata Motors gained 4% each at Rs 333 and Rs 362, respectively.

Tata Steel, Hindustan Unilever, Sun Pharma, Sterlite and Ranbaxy were up 1-3% each.

...AND THE SHAKERS

Mahindra & Mahindra slumped 4% to Rs 698. Infosys and SBI dropped 2% each to Rs 1,646 and Rs 1,873, respectively.

ICICI Bank, HDFC Bank, Reliance and Reliance Infrastructures were down 1-2% each.

OTHER PROMINENT GAINERS...

Tech Mahindra zoomed 18% to Rs 658. Welspun-Gujarat Stahl Rohren, Aban Offshore, Suzlon Energy, Biacon, Zee Entertainment, Sun TV Network, Glenmark Pharma, Tata Tea, KSK Energy Ventures, Essar oil and United Phosphorus advanced 8-16% each.

...AND THE LOSERS

Jain Irrigation Systems slumped 6% to Rs 630. Rashtriya Chemicals and Fertilizers, NMDC, Mundra Port, Godrej Industries, Indiabulls Real Estate, CESC, Educomp Solutions, Indian Hotels Company, GTL Infrastructures, Indian Bank, Bank of Baroda, Andhra Bank, Cairn India, Pantaloon Retail India, Central Bank and Allahabad Bank declined 3-5% each.

VALUE & VOLUME TOPPERS

Suzlon Energy topped the value chart with a turnover of Rs 392.45 crore followed by Satyam (320.47 crore), Unitech (Rs 291.35 crore), Essar Oil (273.62 crore) and Tata Steel (Rs 264.72 crore).

Satyam Computer led the volume chart with trades of 48 million shares. It was followed by Cals Refineries (42 million), Ispat (38.75 million), Alok Industries (35.54 million) and Suzlon Energy (32.75 million