Markets recover as investors hunt bargains

Global stock markets recovered Tuesday as investors hunted for bargains a day after sharp losses caused by heightened concerns for the US economy and in particular its ailing auto sector.

TOKYO: Down 1.54%. The Nikkei-225 shed 126.55 points to 8,109.53. Although the index spent most of the day in positive territory, a late-session bout of profit-taking pushed down the market.

SYDNEY: Down 0.62%. The S&P/ASX 200 eased 22.3 points. Investors were buoyed by positive commentary from Australia’s central bank flagging an economic recovery towards the end of the year, with signs that China was beginning to bounce.

SHANGHAI: Up 0.64%. The Shanghai Composite Index, which covers A and B shares, closed up 15.17 points at 2,373.21. The market was in negative territory for most of the day after regulators released rules for a long-waited Nasdaq-style board.

HONG KONG: Share prices closed 0.89% higher yesterday as investors hunted for bargains following a steep decline in the previous session, dealers said. The benchmark Hang Seng Index closed up 119.69 points at 13,576.02 having hit an intraday high of 13,696.69. Turnover was HK$49.04 billion. Mainland Chinese banks were boosted by comments from China Construction Bank that its major foreign investors were not planning significant sell-downs.

SINGAPORE: SHARES closed 1.60% higher yesterday as investors hunted for bargains following a steep fall in the previous day, dealers said. The blue-chip Straits Ti-mes Index rose 26.85 points to 1,699.99 on volume of 1.32 billion shares worth S$1.24 billion. Gainers led losers 246 to 161, with 862 issues unchanged.

TAIPEI: Up 0.09%. The weighted index edged up 4.79 points to 5,210.84. “The negative news was already reflected in the previous trading,” during which the market lost 3.43%, said Mars Hsu of Grand Cathay Securities.

SEOUL: Up 0.74%. The KOSPI ended up 8.80 points at 1,206.26. “The market needed to take a breather for a while amid lingering uncertainties over economic fundamentals. But there also seems to be appetite for bargain hunting,” Lee Woo-hyun of KTB Securities told Dow Jones Newswires.

KUALA LUMPUR: Share prices on Bursa Malaysia consolidated in tandem with the regional stock markets yesterday. Its overall advancing counters over-numbered its declining counters by 280 to 179. The Kuala Lumpur Composite Index (KLCI) rebounded from its intra-day low of 867.09 to its intra-day high of 874.07 yesterday. The KLCI closed at 872.55 points, giving a day-on-day gain of 3.21 points, or 0.37%.

BANGKOK: Up 0.44%. The SET index rose 1.90 points to close at 431.50. “The market rose today (Tuesday) simply due to a technical rebound after it plunged on Monday,” said Konson Paramaputi, a market analyst at Bua Luang Securities.

JAKARTA: Up 1.06%. The Jakarta Composite Index jumped 14.98 points to 1,434.07. “Overall sentiment remained cautious amid lingering concerns over the outlook of the automotive and financial sectors in the US,” a trader said.

MANILA: Down 1.82%. The composite index gave up 36.89 points to 1,986.22. Ayala Land fell 5% to 5.70 pesos, while Philippine Long Distance Telephone Co. rose 0.5% to 2,195.

MUMBAI: Up 1.47%. The benchmark 30-share Sensex index rose 140.36 points to 9,708.50.

EUROPE: European shares closed higher yesterday, with miners gaining on stronger metals prices and heavyweight banks recovering ground lost on Monday. The pan-European FTSEurofirst 300 index of top shares rose 3.5% to close at 733.69 points, following a 3.9% fall on Monday. As European bourses were closing, the Dow Jones, S&P 500 and Nasdaq Composite were up between 1.5 and 1.7%. Across Europe, the FTSE 100 index closed up 4.3%. Germany’s DAX and France’s CAC 40 rose 2.4 and 3.2% respectively.

AMERICA: The first quarter on Wall Street was so extreme it included a bear market and a bull market all its own — moves that sometimes take years or more. Now investors head for spring still unsure which side is in control.
Traders work on the floor of the New York Stock Exchange, Tuesday, March 31, 2009 in New York. From the second week of the year to early March, the Dow Jones industrial average lost more than a quarter of its value, plunging from just above 9,000 to below 6,550. Retirement accounts were suddenly worth half what they were in 2007.

Then came a rally that left investors’ heads spinning. Over just 13 trading days, the Dow soared 21%, bouncing back almost to 8,000. When the dust settled, the stock market was left with its sixth straight quarter of declines, the first time that’s happened since 1969 and 1970. For the Dow, it was the worst start to the year since 1939.

On Tuesday, the Dow finished at 7,608.92, a gain of more than 1% for the day, still looking a lot better than the lows of early March. Just a day earlier, the market showed its fragility: The Dow plunged 254 points after President Barack Obama rejected the restructuring plans of General Motors and Chrysler.

 

Category: Stocks