Indian stock market daily morning report (March 10, 2010, Wednesday)
Indian markets declined yesterday due to the weak global markets. The Sensex closed 50 points down as the investors sold metals, PSU and real estate stocks. However, IT stocks provided some support. Market breadth was weak at around 0.6x. Asian markets are moderately down today due to lack of global triggers and flat close of the US markets
US stock market daily report. (March 09, 2010, Tuesday)
In today's market update stocks were on the rise after a rocky start on merger deals and profit reports. Today marks the one year anniversary of the day the stock market began its rally that would bring stocks back from 12-year lows reached during the financial crisis. Last year on March 9, 2009, Dow Jones industrial average ended the day at a low of 6,547.05. Since that day, the Dow has gained 61.2% of those losses taking it to 10,552.52. Along with the Dow, the Standard & Poor's 500 index gained 68%, the index was at its lowest point in 12 1/2 years. The Nasdaq saw a gain of 84%, pulling it off of six-year lows; overall, stocks are still over 25% below their highs of 2007. Analysts say that the rally was one of the market's best rallies since 1930; they say part of the reason why the market started recuperating losses was due to Citigroup announcing they had their best quarterly performance since 2007. That was the day the Dow surged 379 points! In corporate news; Merck and Sanofi-Aventis announced they are combining animal health care businesses to create one of the largest in the world, combined business will have around a 29% market share in a global market worth approximately $19 billion. Texas Instruments announced Monday that they will update its first-quarter profit estimates be between $0.48 and $0.52 a share on revenue of $3.07 billion to #3.19 billion. The Dow was up 21 points with just under an hour left in the trading session, there was some decent trading action in the afternoon. Commodity prices mostly fell, gold fell $2.20 to $1,121.80 and crude oil fell $0.61 to $81.26. Bond prices rose, the yield on the benchmark 10-year note fell to 3.67 from 3.70 Monday.
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World stock markets daily report (March 09, 2010)
Today marks the one-year anniversary of what proved to be the low-point for risk assets in the post Lehman Brothers meltdown. However, as is typical in the wake of a US non-farm payrolls report, markets were pretty subdued overnight. Whilst Asian bourses rallied strongly yesterday in catch-up to Fridays US price action, most key bourses in Europe have closed virtually unchanged Monday as did those in North America (indeed the S&P 500 traded within just a 4 index point range). But sentiment was further helped by a further easing of concerns about Greece. French President Sarkozy made clear that markets should not doubt that Greece could count on the support of France if needed. And overnight, the proposal to create a European Monetary Fund seems to be gaining more traction with German Chancellor Merkel describing the idea as a good one (albeit one that will require a change in the EU Treaty). Greek 2-year bond yields fell another 15bps overnight to 4.62% a 180bps decline over the past two weeks, but still 320bps higher than in early November.
Malaysia stock market and companies daily report (March 10, 2010)
PLUS Expressways has cautioned promoters of the second north-south highway, saying that the project is not viable currently. PLUS MD Noorizah Abd Hamid told the Business Times that the existing North-South Expressway (NSE) was still underutilised and it would be costly to build a second one. The utilisation rate of the NSE was around 50% in the central region and 30-35% in the northern and southern regions at present. OSK Research kept KPJ Healthcare at Buy with unchanged TP RM3.15. We continue to see KPJ as an excellent small cap investment with a sound business model that generates good returns in the immediate term and makes excellent sense in the long term, the brokerage quipped. Kulim plans to dispose its investment property in Johor Baharu for RM105m as part of efforts to realise its investment in properties.
Indian stock market and companies daily report (March 10, 2010, Wednesday)
The Indian markets opened on a flat note and traded in a narrow range in the morning session. After trading in the red for the afternoon session, the markets recovered from the lower level, after junior Finance Minister Namo Narain Meena said the government will continue with economic reforms to strengthen the economy. However, the intraday recovery proved short-lived, as a sharp and sustained sell-off took the indices below their previous close. Overall, weakness in Metal, PSU and Oil & Gas stocks weighed on the benchmark indices, while support from IT stocks helped limit losses. The Sensex and the Nifty closed in the red, with losses of 0.3% and 0.4%, respectively. The BSE Midcap and Small-cap indices underperformed the benchmark indices, and closed with losses of 0.7% each. Among the front-liners, HDFC, HDFC Bank, Maruti Suzuki, Sun Pharma and TCS were up by 1-2%, while JP associates, Tata Motors, Hindalco, Hero Honda and DLF were down by 2-4%. In the mid-cap segment, Whirlpool, Bayer Crop, Anant Raj, Shriram Transport Finance and Sintex were up by 4-8%, while Emami, Asian Star, STC, Gujarat NRE Coke and Phoenix Mills were down by 4-6%.
Singapore stock market and companies daily report (Overseas Union Enterprise, CB Richard Ellis, Lian Beng Group) (March 10, 2010)
The tenuous alliance between Indonesias Riady family and Malaysian tycoon Ananda Krishnan in Overseas Union Enterprise (OUE) has come to an end the Riadys Lippo Group paid some $957m to acquire all of Krishnans stake in the mainboard-listed property group yesterday, raising its total shareholding to 88.52% from 64.67%. OUEs free float after the deal will only slightly exceed 10%, putting it at risk of delisting. A study by CB Richard Ellis (CBRE) shows that the average transaction value of private homes sold in the primary market in the first 2 months of the year rose to $1.78m per unit, as developers released more upmarket projects. Construction company, Lian Beng Group, has won a $144m building contract for a condominium development at Dakota Crescent. The design-and-build contract was awarded by UOL Development (Dakota) and works are due to commence next month and expected to be completed in March 2013.
US stock market opening report (March 09, 2010, Tuesday)
European bourses opened in minor positive territory, however soon lost strength following downbeat comments from Fitch on European sovereign ratings, which provided strength to the USD index due to the risk-averse trade that in turn weighed upon commodity-linked stocks. Comments from Fitch combined with those from Moodys on possible downgrade of some British banks adversely affected the financial sector. Moving into the North American open, European equities are trading in negative territory with financials and basic materials being the worst performing sectors. Fitch said Greece bailout is too uncertain to factor into rating, and Portugal may be downgraded if consolidation is insufficient, however Greek contagion risk to Portugal and Spain is not as great as market believes. Fitch further said that among larger AAA sovereigns, urgency is greatest for UK, Spain and France, and it hasnt seen credible exit strategies from most nations. Fitch also said that US is vulnerable to interest rate shocks, however there is no pressure on US credit rating in short-to-medium term. (BBG/RTRS)
Russian stock market daily evening report (March 09, 2010, Tuesday)
After the holidays growth got suspended at the Russian share market. Following Asia and European trading grounds, along with the drop of oil prices, the domestic indices were correcting down by 1% in the first half of the day. Mainly the oil section was dropping. In the second half of the day the drop suspended, and the market went laterally and continued trading within the psychological 1,500 and 1,400 points of the RTS and MICEX indices respectively.
Indian stock market daily closing report (March 09, 2010)
Markets remained week throughout the day and ended in red. Sensex heavyweight Reliance Ind which closed at Rs 990.2 down 1.5%. The Sensex closed at 17,053 down 50 points or .29% and Nifty shut at 5,102 down 23 points or .44%. Nifty March future ended at 8.4 points discount. The breadth remained week and the markets reported low total turnover of Rs 73,021 cr. Among the Realty, Hdil was down 2.34%, Dlf was down 1.7% and Unitech was down by .66%. In Banking stocks, HDFC Bank up 1.75%, ICICI Bank up .22%, , SBI Bank down by 1.28% and Kotak Bank down by 1.77%.
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| | Commodities |
Nymex crude oil prices closed at $81.38/bbl on Tuesday
Crude Oil declined, albeit marginally on Tuesday and closed at $81.38/bbl as the strong dollar coupled with concerns of rising inventories in US exerted pressure on the prices. Crude oil retreated from a seven week high on Nymex this week.
Spot gold prices closed at $1121.5 after touching a low of $1108.4 on Tuesday
Spot Gold prices declined on Tuesday as the strength in the dollar made the yellow metal look unattractive for holders of other currencies. However, gold prices wiped out early losses during the day to close at $1121.5 after touching an intra day low of $1108.4. The dollar index touched a high of 80.82 yesterday.
Agricultural commodities daily review: India and other countries (March 10, 2010)
Spices complex witnessed some selling pressure particularly in Mentha oil, Pepper and Turmeric in yesterday trading session. Cardamom rose by more than 1% supported by increase in the export demand. Wheat extended its losses for third trading session on hope of record output and increasing arrivals in the physical markets. Chana too traded low as rising arrivals in the physical market depressed sentiments. Guar traded sideways to up on short covering yesterday. Oilseed complex traded subdued on yesterday followed by prices in the international market. Soybean and Cottonseed oil fell by all most 2% on profit booking.
Oil and natural gas daily review (March 10, 2010)
Crude oil futures ended down on Tuesday, dropping from Monday's eight-week high, as the dollar's strength and forecasts that weekly inventory data would show domestic crude stocks rose pressured the market. The American Petroleum Institute said after Tuesday's settlement that U.S. crude stocks jumped 6.5 million barrels, against the forecast in a poll for a 1.9 million-barrel build. The API data showed gasoline stocks fell 3.2 million barrels, against the forecast for a 200,000-barrel increase, while distillate stocks fell a bigger-than-expected 2.8 million barrels.
| | Forex |
The sharp fluctuations in the matter of budget crises in Greece have strong influence on the dynamics of the major currency pairs., 10 March 2010
Currency pairs technical review (March 9, 2010), 9 March 2010
Currency market weekly review (March 1 5, 2010), 8 March 2010
Currency pairs technical review (March 8, 2010), 8 March 2010
Positive European news rendered support to the European currencies against the US dollar, 5 March 2010
Daily Forex Analysis (March 05, 2010), 5 March 2010
The released information, regarding the possibility that Greece could announce of the reduction of the budget deficit, supported the euro., 4 March 2010
Currency pairs technical review (March 4, 2010), 4 March 2010
Political situation in Great Britain resulted in the sharp drop of the sterling, 2 March 2010
Currency pairs technical review (March 2, 2010), 2 March 2010
Currency market weekly review (February 22 26, 2010), 2 March 2010
Currency pairs technical review (March 1, 2010), 1 March 2010
Daily Forex Analysis (February 26, 2010), 26 February 2010
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| Latest Blog Entry |
Technical View on Crude oil. | 6 March 2010
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| Stocks Recommendations |
DQ Entertainment (International) IPO review and analysis by Keynote Capitals, 8 March 2010
DQ Entertainment (International) Ltd. (DQEIL) is an animation producer focused on both global and domestic markets, and carries out production, co-production and global distribution of TV series, direct-to-home videos and feature films. It also creates game art for online, mobile and next-generation consoles, and visual effects, game art and entertainment content. DQEIL has produced / co-produced and distributed titles such as Iron Man (the first 3D animated TV series), Twisted Whiskers, Casper, third season of Mickey Mouse Clubhouse and is now producing properties like Little Prince and Little Nicolas. The core promoter, Mr. Tapaas Chakravarti, has been involved in the animation, media and entertainment industry for over a decade. The original entity viz., DQ Entertainment Ltd. was established in 1987 and moved into animation production in the year 2000. Thus the current entity DQEIL has a track record of around a decade.
DQ Entertainment (International) IPO review and analysis by Nirmal Bang, 8 March 2010
DQ Entertainment was incorporated as gAnimation and Multimedia Pvt. Ltd.h to undertake the production of animation, visual effects, game art and entertainment content for the Indian as well as global media and entertainment industry. Mr. Tapaas Chakravarti, the promoter of the company has an experience of over ten years in the animation, media and entertainment industry. In 2000, the erstwhile DQ Entertainment Ltd established an in]house training centre to train production staff to deliver high quality animation productions to European and North American clients. In 2002, it established traditional 2D animation studio. In 2003]2004, the company established 2D digital pipeline and started securing commissions to produce full animation series.
Tullett Prebon (LON:TLPR) report: Final results: volume pressure and regulatory uncertainty, 8 March 2010
Performance - results show flat revenue y-on-y at 947.7m (-9% constant currency), adj. PBT +1% to 157.0m and adj. EPS +4% to 49.2p. FY DPS +18% to 15.0p. Strong cash conversion, with operating cash flow of 137.9m. Margins - operating margin was -0.6% to 18.0%, reflecting solid cost control. However, this could be flattered by the defection of 77 brokers between August and December '09. Product trends - reduced risk tolerance and industry leverage has resulted in a shift of capital towards flow products, cash products and first order derivatives. Tullett's relative strength in fx, interest rate swaps and government and corporate bonds (flow products) has served it well. Notwithstanding this, there were still significant declines in certain product revenues, notably interest rate derivatives (-22%) and equities (+32%). Post trade service revenue advanced strongly, +32% to 25.1m, but its contribution is not currently material at just 3% of Group total.
RM Group (LON:RM) report: Hull BSF contract confirmed: RMs total now at 16, 8 March 2010
RM confirms that it been awarded the 16.5m contract to provide managed ICT services to 9 schools in the 400m Hull BSF (Building Schools for the Future) programme. RM is part of the Hull Esteem Consortium of Morgan Sindall Investments, Robertson Capital Projects and Sewell Group. RM had previously announced (5th Nov) that Hull Esteem had been appointed selected bidder. Two subsequent phases of the programme will cover a further 14 schools.
Avacta (LON:AVCT) report: Trading update, 8 March 2010
Avacta issued a trading update this morning indicating that the group looks forward to reporting on a period of continued growth at its Interim Results on April 30th. Contract service revenues remain on target and Avacta's flagship product Optim has generated significant commercial interest industry wide. Although the timing of specific Optim sales is difficult to accurately predict, the Board remains confident that market expectations will be achieved.
Balrampur Chini Mills review and analysis by Angel Broking, 6 March 2010
Sugar prices have been spiralling over the last one year owing to reduction in the area under cane cultivation and low global and domestic inventory. We expect sugar prices to rule firm in SY2010E, which will result in higher switch over from ethanol to sugar in Brazil as well as increase in cane acreage in India. Hence, supply would ease and prices are expected to soften globally in SY2011E. In case of Balrampur Chini Mills (BRCM), it is the most efficient player in the Indian Sugar industry considering its long Profitability trend compared to peers. However, at current levels the stock is available at fair valuations of 4.8x EV/EBITDA, 1.6x P/B and 1.5x Enterprise Value/Invested Capital on SY2011E Earnings. Hence, we Initiate Coverage with a Neutral view on the stock.
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| Global Outlook |
Mr. Market, 10 March 2010
Ben Graham, my friend and teacher, long ago described the mental attitude toward market fluctuations that I believe to be most conducive to investment success. He said that you should imagine market quotations as coming from a remarkable accommodating fellow named Mr. Market who is your partner in private business. Without fail, Mr. Market appears daily and names a price at which he will either buy your interest or sell you his. Even though the business that the two of you own may have economic characteristics that are stable, Mr. Markets quotations will be anything but. For, sad to say, the poor fellow has incurable emotional problems. At times he feels euphoric and can see only the favorable factors affecting the business. When in that mood, he names a very high buy-sell price because he fears that you will snap up his interest and rob him of imminent gains. At other times he is depressed and can see nothing but trouble ahead for both the business and the world. On these occasions he will name a very low price, since he is terrified that you will unload your interest on him.
Unlocking the jobs dilemma, 10 March 2010
Productive, private-sector jobs - the lifeblood of a sound economy - are under assault by politicians in the United States and Western Europe, who have unwittingly taken a number of steps that make future job losses a foregone conclusion. In the 1980s, as a Member of the UK Parliament and elected Chairman of the Conservative Small Business Committee, I led discussions on the issue of job creation. At that point, the British labor market was dealing with technological advances that threatened traditional industries and an influx of highly competitive Eastern European workers who drifted westward in the waning days of the Cold War. Pushing back against those who wanted to preserve an untenable status quo, the Conservatives recognized that defensive measures like excessive regulation, high taxes, and favored bidding for government contracts were antithetical to business growth. Fortunately, Margaret Thatcher was Prime Minister. Her understanding of economics, combined with her ability to communicate and lead, resulted in the adoption of pro-business polices. The British economy soon flourished, creating many profitable new jobs.
U.S. jobs data propels crude oil above $80 a barrel, 8 March 2010
Jobs data indicating that U.S. economic recovery might be picking up steam finally pushed crude oil futures decisively over the stubborn $80 a barrel threshold. Nymexs benchmark West Texas Intermediate settled Friday at $81.50 a barrel, a seven-week high, after topping $82 in intraday trading. An unchanged unemployment rate of 9.7% and a smaller-than-expected drop in payrolls propelled both stocks and commodities higher on Friday. Earlier in the week, industry job data also came out better than expected, pushing crude just above the $80 a barrel mark. Any improvement in the labor market would translate into more commuter driving, more vacation driving this summer and generally greater energy demand, analysts said.
Iraqi elections likely to fuel ethnic tensions, further delay access to kirkuk's reserves, 5 March 2010
The elections in Iraq on March 7, 2010, are likely to serve as an important indicator of the prospects for a resolution of the long-running dispute over the administration of the ethnically mixed and resource-rich province of Kirkuk in the north of the country. The Iraqi Kurds have repeatedly called for Kirkuk to be transferred to the control of the semi-autonomous Kurdistan Regional Government (KRG), which already administers three provinces in the predominantly Kurdish north of Iraq. The other ethnic groups in Iraq including the Arab-dominated government in Baghdad are equally insistent that Kirkuk should remain under central control and that any oil or gas revenues should be divided between the entire population of the country rather than all going to the KRG. The failure to resolve the issue of the eventual status of Kirkuk threatens not only prospects for permanent political stability in Iraq but also hopes of extracting the provinces huge reserves and building new oil and gas pipelines from Kirkuk to Turkey, and from there to energy-hungry Western markets.
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