Asia: Marts mixed after another Wall St rally

24-Apr-2014 Intellasia | Business Times | Reuters | AFP | Bloomberg | AP | 7:45 AM Print This Post

Asian markets were mixed yesterday Wednesday April 23 following another Wall Street rally, while a provisional report showed a slight improvement in Chinese manufacturing activity this month.
Tokyo rose 1.09 per cent, or 157.50 points, to 14,546.27 and Sydney added 0.7 per cent, or 38.5 points, to 5,517.8. Seoul lost 0.19 per cent, or 3.85 points, to end at 2,000.37. Shanghai fell 0.26 per cent, or 5.45 points, to 2,067.38.
HSBC said its preliminary purchasing managers index for China came in at 48.3 in April, up from 48 in March.
“Domestic demand showed mild improvement and deflationary pressures eased, but downside risks to growth are still evident as both new export orders and employment contracted,” HSBC economist Qu Hongbin said in a statement.
Eyes are now on the release of early PMI figures for Europe and the United States later in the day after recent figures have pointed to a pick-up in the global economy.

HONGKONG: SHARES sank 0.97 per cent yesterday despite another rally on Wall Street and a survey showing a slight improvement in China’s manufacturing activity in April.
The benchmark Hang Seng Index lost 221.04 points at 22,509.64.
China Mobile dropped 2.57 per cent to HK$70, China Construction Bank dropped 1.29 per cent HK$5.34 while Tencent Holdings rose 0.86 per cent to HK$529.
Galaxy Entertainment gained 1.54 per cent to HK$69.10 and insurer AIA dropped 2.3 per cent to HK$38.20.

SINGAPORE: THE Straits Times Index lost 19.52 points, or 0.60 per cent, to 3,258.01 on profit-taking.
The FTSE ST Mid Cap Index sank 0.37 per cent while the FTSE ST Small Cap Index fell 0.67 per cent.
Among the top actives, CapitaMalls Asia added 0.45 per cent, DBS sank 0.59 per cent, SingTel fell 0.80 per cent, Keppel Corp lost 3.45 per cent and UOB dipped 0.89 per cent.
Of the outperforming sectors, the FTSE ST Consumer Goods Index lost 0.06 per cent. Of its two biggest stocks, Wilmar International rose 0.58 per cent and Thai Beverage dropped 1.64 per cent.

KUALA LUMPUR: Malaysia’s blue chips upward trend lost momentum at midday on Wednesday as profit taking picked up pace and the broader market turn negative, weighed down by losses in Public Bank but this was somewhat offset by the surge in YTL Corp.
At 12.30pm, the FBM KLCI was just up 0.1 of a point to 1,866.52 after briefly dipping into the red earlier.
The turnover on Bursa Malaysia was 1.16 billion shares valued at RM918.81mil. However, the profit taking activities pared down the early gains, with declining stocks beating advancers 421 to 321 while 326 counters were unchanged.
Dealers said most retail investors were on the sidelines on Wednesday while funds were taking profit on recent gainers.
Genting Bhd added nine sen to RM9.74 and pushed the KLCU up 0.71 point.
YTL Corp was in focus, adding nine sen to RM1.63 with 22.67 million shares and chalked up 1.73 points on the KLCI.
The sudden interest was sparked off by CIMB Equities Research’s coverage with an Add rating and a target price of RM2. The research house added a group-wide privatisation exercise could act as a key catalyst for the stock.
Sarawak-based Hock Seng Lee added 13 sen to RM1.95. BAT added four sen to RM61.54.
Crude palm oil for third-month futures fell RM24 to RM2,659. However, PPB Group rose four sen to RM16.20 and Sime Darby two sen to RM9.29 but KL Kepong fell eight sen to RM23.92, FGV four sen to RM4.56 and IOI Corp two sen to RM4.82.
Among the banks, Hong Leong Bank rose two sen to RM14.10, AMMB and CIMB eked out one sen each to RM7.25 and RM7.52 but Public Bank fell 14 sen to Rm20.24.
Fitters was in focus, adding six sen to RM1.12 with 14.51 million shares done as interest resumed in the company’s proposed pipe making business.
The ringgit weakened against the US dollar to 3.2706 from 3.2671.
KPLM has lost 5 percent since April 16 when it reported a 5percent drop in first-quarter net profit compared with a year earlier.
“Results came in weaker than expected, so (Keppel’s) share prices have actually been off since,” said an analyst with Maybank Kim Eng.

In other markets:
* Bangkok added 0.59 per cent or 8.34 points to 1,423.39. Airports of Thailand gained 2.33 per cent to 197.50 baht, while hospital firm Bangkok Dusit Medical Services rose 5.30 per cent to 139 baht.
* Jakarta closed down 0.10 per cent, or 5.06 points, to 4893.15. Sinar Mas Agro Resources lost 1.52 per cent to 6,500 rupiah, while Indorama Synthetics climbed 10.42 per cent to 795 rupiah.
* Mumbai rose 0.52 per cent to 22,876.54 points. It had touched a new high of 22,912.52 points briefly during the session. Mangalore Refinery & Petrochemicals jumped 16.17 per cent to 63.95 rupees, while Future Retail rose 6.17 per cent to 120.40 rupees.
* Taipei fell 0.20 per cent, or 17.79 points, to 8,956.92. Taiwan Semiconductor Manufacturing Co was off 0.41 per cent at T$121 while Fubon Financial Holdings shed 1.33 per cent to T$40.75.
* Wellington rose 0.74 per cent, or 37.98 points, to 5,142.92. Telecom was up 0.38 per cent at NZ$2.635 and Fletcher Building climbed 1.46 per cent to NZ$9.74.
* Manila closed 0.23 per cent lower, giving up 15.43 points to 6,769.52. Philippine Long Distance Telephone ended 0.62 per cent down at 2,876.00 pesos, Ayala Land dropped 0.49 per cent to 30.55 pesos and LT Group finished 0.43 per cent off at 18.68 pesos.

VIETNAM: Vietnamese stocks resumed their losing string today as investors stayed cautious after a single positive day, liquidity fell.
The benchmark VN Index lost 0.51 point or 0.09% to 569.36. Volume fell to 71.2 million shares worth of VND1.2 trillion.
Put-through trading contributed 8 million shares worth of VND154.46 billion. We saw 1.4 million HAG shares changed hands and 3.9 million VNG shares changed hands. In the past 2 straight sessions, VNG were traded heavily on put-through and at the ceiling prices.
The market breadth turned negative with 77 gainers, 152 losers and 55 unchanged.
The VN30 lost 1.1 points or 0.17% to 629.78. Among 30 constituents 5 gained, 20 fell and 5 stood still.
On the Hanoi Stock Exchange, the HNX lost 0.96 point or 1.19% to 79.9 Trading volume fell to 55.5 million shares worth VND522 billion.
The breadth was negative with 78 gainers, 135 losers, 54 unchanged and the rest untraded.
The HNX30 lost 3.1 points or 1.89% to 160.94

EUROPE: Europe’s main stock markets fell yesterday as poorly-received Chinese economic data offset some strong numbers out of the eurozone, analysts said.
London’s FTSE 100 stock index slipped 0.18 per cent to stand at 6,669.63 points in midday deals.
Frankfurt’s DAX 30 shed 0.31 per cent to 9,570.36 points and the CAC 40 in Paris lost 0.40 per cent to 4,466.09, compared with Tuesday’s closing level.
“It hasn’t all been doom and gloom in Europe, in fact there’s been plenty to be encouraged by, although this clearly isn’t filtering through to investors at the moment,” said Craig Erlam, market analyst at traders Alpari.
“The PMI readings from the eurozone have actually been quite good, despite the small miss in the French readings.”

AMERICA: Stocks edged mostly lower Wednesday, breaking a six-day winning streak, as investors reacted to another round of quarterly earnings reports from U.S. companies.

Telecommunication companies were also hit following quarterly results from AT&T, while airline stocks rose, helped by Delta Air Lines.

A worse-than-expected economic report on the housing market also weighed on the broader market. Homebuilder stocks fell broadly.

The Standard & Poor’s 500 index lost 4.16 points, or 0.2 percent, to 1,875.39. The Dow Jones industrial average lost 12.72 points, or 0.1 percent, to 16,501.65 and the Nasdaq composite fell 34.49 points, or 0.8 percent, to 4,126.97.

The S&P 500 had risen six days in a row before Wednesday. It is not unusual for the stock market to pause after such a rally.

“The market, even with those six days of gains, is still struggling to choose a direction,” said Joseph Tanious, a global market strategist with J.P. Morgan Funds.

Once again, the high-flying biotechnology and technology stocks were among the hardest hit.

Surgical robot maker Intuitive Surgical fell the most in the S&P 500, plunging $48.40, or 12 percent, to $373.93. The company reported a 77 percent drop in first-quarter earnings and sold half has many robots as it did in the same period a year earlier. The company warned two weeks ago that earnings would come in far below expectations, causing its stock to fall sharply from a recent high of $540.63 reached April 3.

Amgen fell 5 percent after it also reported a steep drop in quarterly earnings, missing analysts’ expectations.

One bright spot in biotechnology was Gilead Sciences. The drugmaker rose $1, or 1.4 percent, to $73.86 after the company reported a surge in first-quarter earnings. Gilead’s drug Sovaldi, a new treatment for Hepatitis C, had $2.3 billion in sales in the first quarter alone, which beat the record for any drug in its first whole year on the market. While Sovaldi has a 90 percent success rate in curing Hepatitis C, the drug has a price of $1,000 per pill, or around $84,000 for a typical course of treatment.

AT&T, despite posting quarterly results that beat analysts’ expectations, wasn’t able to impress investors this quarter. The Dow member’s shares fell $1.37, or 4 percent, to $34.92. The company reported earnings of 71 cents a share, one cent ahead of analysts’ expectations, and quarterly sales of $32.48 billion, which also beat expectations.

Other telecom stocks also fell. Verizon fell 49 cents, or 1 percent, to $47.43 while T-Mobile US lost $1.28, or 3.8 percent, to $29.81.

Airline stocks were among the biggest advancers. Delta Air Lines rose $2.14, or 6 percent, to $37.09. Delta’s first-quarter earnings climbed after the company filled more seats on planes and paid less for fuel. Delta was the biggest gainer in the S&P 500.

Plane maker Boeing rose $3.08, or 2.4 percent, to $130.63. Its quarterly earnings beat expectations as its commercial jet production increased.

U.S. company earnings have been generally coming in better than what investors had expected. But expectations are low this quarter, investors said, because the harsh winter earlier this year slowed business activity across the country. Earnings in the S&P 500 are expected to be down 1.5 percent from a year ago, according to FactSet.

“When you set the bar so low, U.S. companies are able to walk right over them,” Tanious said.

In other company news:

— Netflix sank $19.40, or 5 percent, to $353.50. Time Warner and Amazon.com announced that HBO’s award-winning shows such as “The Sopranos” and “Six Feet Under” would be available exclusively for Amazon Prime subscribers, a big loss for Netflix. HBO had been one of the biggest holdouts in bringing its content to streaming video services. Time Warner rose $1.08, or 2 percent, to $66.

Benchmark Currency Rates

USD

1.3817 0.0098 1.6785 1.1318 0.9066 0.9292 0.1290

EUR

0.7238 0.0071 1.2148 0.8192 0.6561 0.6726 0.0934

JPY

102.5300 141.6400 172.0770 116.0310 92.9220 95.2680 13.2232

GBP

0.5958 0.8232 0.0058 0.6743 0.5400 0.5536 0.0768

CHF

0.8835 1.2207 0.0086 1.4830 0.8009 0.8210 0.1140

CAD

1.1032 1.5242 0.0108 1.8517 1.2487 1.0252 0.1423

AUD

1.0762 1.4869 0.0105 1.8063 1.2180 0.9753 0.1388

HKD

7.7531 10.7122 0.0756 13.0135 8.7753 7.0278 7.2046 – 

 

Source: Bloomberg

 


Category: FinanceAsia

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