Investors shrug off weak US lead Oct 26

27-Oct-2009 Intellasia | Business Times | Reuters | AFP | Bloomberg | AP | 3:15 PM Print This Post

Asian markets were mostly higher yesterday Monday Oct 26 as optimism about the upcoming third quarter reporting season helped investors brush off a weak lead from Wall Street at the end of last week.

Hong Kong was closed for a public holiday.

TOKYO: Up 0.77 percent. The Nikkei-225 rose 79.63 points to 10,362.62.

“Earnings will likely provide the market with more trading cues,” Tsuyoshi Segawa, equity strategist at Mizuho Securities, told Dow Jones Newswires.

SINGGAPORE: Shares closed flat yesterday as investor doubts over the pace of the global recovery crept in, dealers said.

The blue-chip Straits Times Index gained 1.28 points or 0.05 percent to 2,716.62.

Volume totalled 1.27 billion shares worth S$952 million and there were 189 winners, 252 losers while 906 issues were even.

Southeast Asia’s biggest property developer CapitaLand, due to release its third quarter earnings Tuesday, closed 8 cents higher at S$4.43 while City Developments was 2 cents firmer at S$10.46.

Singapore Airlines dropped 2 cents to S$14.06, Neptune Orient Lines was 1 cent down at S$1.73 and Venture Manufacturing eased 2 cents to S$9.40.

SYDNEY: Down 0.60 percent. The SP/ASX200 fell 29.1 points to 4,830.3.

IG Markets research analyst Ben Potter said the Australian market held up well given the weak lead from the US.

SHANGHAI: Flat. The composite index was up 1.72 points or 0.06 percent to 3,109.57.

“Corporate earnings will be the main focus this week – the earnings reports that have already been released look quite good and this is keeping sentiment buoyant,” Huatai Securities analyst Chen Huiqin said.

SEOUL: Up 1.03 percent. The Kospi ended up 16.94 points at 1,657.11.

“Local shares have moved sideways below the 1,700-mark for about a month because investors feared that earlier stock rallies outpaced the economic recovery,” said Park Seung-Jin, an analyst at Samsung Securities.

TAIPEI: Up 0.25 percent. The weighted index rose 19.12 points to 7,668.40.

“Many stocks have appeared expensive after recent significant gains. It was nothing unusual that any upside led to immediate profit-taking,” Capital Securities analyst Chen Yu-yu said.

BANGKOK: Up 0.43 percent. The composite index rose 3.07 points to close at 711.83, and the blue-chip index was up 2.24 points to 505.64

Therdsak Thaweetheeratham, an analyst from Asia Plus Securities, said the market moved narrowly because investors were cautious due to the fall in oil prices and because of growing tensions in domestic politics.

JAKARTA: Flat. The composite index edged down 0.24 points or 0.01 percent to 2,467.71.

“The market consolidated after Friday’s 1.4 percent gain,” a trader told Dow Jones Newswires.

KUALA LAMPUR: Share prices on Bursa Malaysia consolidated immediately after the unveiling of Budget 2010 last Friday. Overall declining counters overwhelmed advancing counters by 497 to 195.

The Kuala Lumpur Composite Index (KLCI) fell from its intra-day high of 1,267.43 to close at its intra-day low of 1,259.92 yesterday, giving a day-on-day loss of 7.18 points.

MANILA: Up 0.29 percent. The composite index added 8.54 points to 2,941.53 while the all-share index gained 4.51 points or 0.24 percent to 1,852.54.

Dealers said further consolidation was expected in the near term.

MUMBAI: Down 0.42 percent. The Sensex fell 70.31 points to 16,740.5.

VIETNAM:
In the trading session on October 26, both indexes marked impressive gains at the start of session. But, at the end of the session, these indexes fell strongly.
The VN Index closed the session with a fall of 6.34 pts or 1.03% to 609.34 pts. The total trading volume of shares and fund certificates reached 84.27 million valued at nearly four trillion dong.
On the northern bourse, the HNX Index witnessed a fall of 4.5 points or 2.1% to 209.77 pts with the total market trade of 40.144 million shares worth over 1.87 trillion dong. Negotiation transactions reached 1,721,600 shares for over 83.34 billion dong.

EUROPE:
PARIS: European stocks lost ground in late trade yesterday, down 0.8 percent, as heavyweight energy shares surrendered early gains following a drop in oil prices while the dollar rebounded.

At 1546 GMT, the FTSEurofirst 300 index of top European shares was down 0.8 percent at 1,000.41 points.

Elsewhere, Britain’s FTSE 100 closed down 1 percent to 5,191.74, Germany’s DAX fell 1.7 percent to 5,642.16 and France’s CAC 40 lost 1.7 percent to 3,744.45.

AMERICA:
A strengthening dollar and worries about an overheated market pounded stocks.

The Dow fell 104.22, or 1.1 percent, to 9,867.96. The index fell 109 Friday. The slide is the first consecutive triple-digit loss for the Dow since June 15-16.

The broader Standard & Poor’s 500 index fell 12.65, or 1.2 percent, to 1,066.95. The index, which is the basis for many mutual funds, is down 2.8 percent from its recent peak a week ago.

The Nasdaq fell 12.62, or 0.6 percent, to 2,141.85.

About three stocks fell for every one that rose on the New York Stock Exchange, where consolidated volume came to 5.7 billion shares compared with 4.8 billion Friday.

Stocks fell Friday after a rise in the dollar hurt commodity prices. The Dow lost 0.2 percent last week, while the S&P 500 index fell 0.7 percent.

Bond prices fell. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.56 percent from 3.49 percent late Friday. It was the first time since late August that the yield topped 3.50 percent.

The dollar rose against most other major currencies, while gold fell.

Financial stocks posted some of the biggest losses as an analyst lowered his ratings on some regional banks and as traders worried about what might happen if regulators try to impose rules on the size of financial institutions.

“We’re seeing legislation in Washington drive trading,” said John Brady, senior vice president of global interest rate products at MF Global in Chicago.

Meanwhile, Rochdale Securities bank analyst Richard Bove lowered his ratings on Fifth Third Bancorp, SunTrust Banks Inc. and US Bancorp. Fifth Third fell 82 cents, or 7.9 percent, to $9.52 and SunTrust slid $1.14, or 5.4 percent, to $19.85. US Bancorp fell 80 cents, or 3.2 percent, to $24.15.

Homebuilder stocks fell as investors tried to determine whether Congress will extend a tax credit for first-time homebuyers. Top Democrats in the Senate pushed for a plan that would continue the credit but phase it out over the next year.

An analyst also cut his estimates on several companies in the industry while warning that most companies won’t eke out a small profit until late 2011.

Pulte Homes Inc. fell 38 cents, or 3.8 percent, to $9.70, while Hovnanian Enterprises Inc. slid 23 cents, or 5.4 percent, to $4.07.

Among oil companies, ConocoPhillips sank $1.23, or 2.4 percent, to $50.74.

In other trading, Marvell rose 41 cents, or 2.8 percent, to $14.99, while RadioShack rose $2.49, or 15.9 percent, to $18.15.

The Russell 2000 index of smaller companies fell 7.18, or 1.2 percent, to 593.68.

Benchmark Currency Rates
	USD	EUR	JPY	GBP	CHF	CAD	AUD	HKD
HKD	7.75	11.5113	0.084	12.6244	7.6031	7.2498	7.0968	 
AUD	1.092	1.622	0.0118	1.7789	1.0713	1.0215	 	0.1409
CAD	1.069	1.5878	0.0116	1.7413	1.0487	 	0.9789	0.1379
CHF	1.0193	1.514	0.0111	1.6604	 	0.9535	0.9334	0.1315
GBP	0.6139	0.9118	0.0067	 	0.6023	0.5743	0.5622	0.0792
JPY	92.23	136.992	 	150.238	90.4819	86.2769	84.4569	11.9006
EUR	0.6733	 	0.0073	1.0967	0.6605	0.6298	0.6165	0.0869
USD	 	1.4853	0.0108	1.629	0.981	0.9355	0.9157	0.129
                                                              Bloomberg

 


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