Asia: Marts mixed on weak Wall St lead

08-Jan-2014 Intellasia | Business Times | Reuters | AFP | Bloomberg | AP | 8:00 AM Print This Post

Asian markets were mixed yesterday Tuesday January 7, with bargain-hunting lifting some bourses but Tokyo dropping again following heavy losses in the previous session due to a stronger yen.

Wall Street provided another negative lead and Chinese dealers continued to fret about the restart of initial public offerings, which they fear could lead to a share glut.

Tokyo fell 0.59 per cent, or 94.51 points, to 15,814.37 and Sydney closed down 0.15 per cent, or 7.9 points at 5,317.0. Shanghai ended nearly flat, edging up 1.61 points to 2,047.32.

Meanwhile, Seoul rose 0.32 per cent, or 6.16 points, to close at 1,959.44, despite a 0.23 per cent loss for Samsung Electronics shares after the company said it expects a steep drop in its fourth-quarter operating profit.

In Tokyo the Nikkei extended the 2.35 per cent loss it suffered on Monday on profit-taking after the index surged 57 per cent last year.

“Stocks have definitely entered a consolidation phase,” Tatsunori Kawai, chief strategist at Securities, told Dow Jones Newswires.

“The only question is how long it will last.

HONGKONG:  THE Hang Seng Index rose fractionally yesterday, helped by surge of nearly 10 per cent for exporter Li & Fung.
The Hang Seng index finished up 0.1 per cent at 22,712.8 points. The China Enterprises Index of the leading offshore Chinese listings in Hong Kong sank 0.5 per cent.
Footwear retailer Daphne International surged 14 per cent to HK$3.83
Li & Fung posted its biggest daily gain since August 15 on robust volumes after the global supply chain operator described its 2013 performance as “solid”.

SINGAPORE:  THE Straits Times Index (STI) ended 2.94 points, or 0.09 per cent, lower to 3120.88 yesterday, taking the year-to-date performance down by 1.39 per cent.
The FTSE ST Mid Cap Index gained 0.01 per cent while the FTSE ST Small Cap Index rose 0.23 per cent. Of the actives, OCBC shed 1.22 per cent, SingTel was unchanged, DBS advanced 0.12 per cent, Charisma Energy added 7.60 per cent and UOB lost 0.62 per cent.
The FTSE ST Basic Materials rose 1.41 per cent. Of its biggest stocks, Midas Holdings gained 1.98 per cent while Geo Energy Resources was unchanged.

KUALA LUMPUR: SHARES on Bursa Malaysia closed mixed yesterday in line with regional markets following losses on Wall Street overnight, dealers said.
The FTSE Bursa Malaysia KLCI (FBM KLCI) fell 4.07 points to 1,825.11 after opening 3.51 points higher at 1,832.69.
However, market breadth was positive with gainers leading losers 434 to 382, while 295 counters were unchanged, 435 untraded and 21 others suspended.
Volume declined to 1.74 billion shares valued at RM1.88 billion from 1.96 billion shares worth RM1.84 billion on Monday.
On the scoreboard, the Finance Index rose 39.74 points to 16,810.64, the Plantation Index dropped 82.03 points to 8,688.63 and the Industrial Index was 18.8 points lower at 3,085.
The FBM Emas Index fell 22.979 points to 12,644.98, the FBMT100 Index went down 28.021 points to 12,353.93, the FBM ACE improved 27.64 points to 5,812.84 and the FBM 70 dipped 33.79 points to 14,103.11.
Among the actives, Ingenuity Consolidated and Hubline were flat at nine sen and 6.5 sen, respectively, while Sumatec dropped half-a-sen to 29.5 sen.
As for the heavyweights, Maybank gained three sen to RM9.96, Tenaga was flat at RM11.12 and Axiata shed two sen to RM6.78.
Meanwhile, FBM KLCI futures contracts on Bursa Malaysia Derivatives closed mixed in line with the equities market.
Spot month January 2014 and February rose 0.5 point each to 1,828.5 and 1,828, respectively. March 2014 was flat at 1,827 and June 2014 dropped three points to 1,822.5.
Turnover amounted to 8,026 lots while open interest also improved to 47,599 contracts from 46,646 contracts.

In other markets:

* Taipei rose 0.14 per cent, or 12.29 points, to 8,512.3. Acer rose 3.06 per cent to T$18.55 while Taiwan Semiconductor Manufacturing Co fell 0.49 per cent to T$102.0.

* Wellington slipped 0.12 per cent, or 5.69 points, to 4,759.63. Telecom fell 1.28 per cent to NZ$2.31, Fletcher Building was down 2.76 per cent at NZ$8.45 and Trade Me ended 0.50 per cent higher at NZ$4.03.

* Manila fell 0.64 per cent, or 38.37 points, to 5,947.44.

* Mumbai fell 0.45 per cent to 20,693.24 points. India’s Tata Steel fell 3.29 per cent to 394.80 rupees while local search engine Just Dial fell 5.41 per cent to 1,429.75 rupees.

* Bangkok gained 2.56 per cent to 1,262.36. Airports of Thailand rose 6.32 per cent to 151.50 baht, while Thai Airways added 5.65 per cent to 13.10 baht.

* Jakarta shed 0.64 per cent at 4,175.81. Indah Kiat Pulp & Paper fell 8.95 per cent to 1,170 rupiah, while palm oil producer Astra Agro Lestari lost 2.38 per cent to 21,500 rupiah.

VIETNAM: Vietnamese stocks extended gain today with support from banking shares on the news of raising foreign room in Vietnam banks.
The benchmark VN Index added 1.02 points or 0.2% to 510.12. Volume rose 8.2% to 74.4 million worth of VND1.18 trillion. Put-through trading contributed 2.75 million shares worth of VND148.8 billion.
We saw 1.5 million MSN shares changed hands at VND82,500 each and 0.2 million VIC shares changed hands at the ceiling level of VND70,500 each.
The market breadth was negative with 97 gainers, 110 losers and 72 unchanged.
The VN30 gained 1.85 points or 0.33% to 568.15. Among 30 constituents, 14 gained, 12 fell, 4 stood still.
Market opened in the green with 2.4 million shares changed hands. The market was supported after the new of raising foreign strategic investors’ room in Vietnam banks to 20% stake from Feb 20 from current 15% hit the wire.
Vietnam issued a decree, which takes effect from Feb.20, allowing so-called strategic investors to own up to 20% stake in Vietnam bank,  while the cap for total foreign holdings at any local bank remains at 30%according to a statement posted on the government website late yesterday. The prime minister can on case-by-case basis raise the foreign limits in ailing banks to help them restructure and ensure safety.
All listed banking shares on HOSE (CTG, EIB, MBB, STB, VCB) rose to cheer the news.
Top 5 large caps, which accounted for roughly 50% of market capitalization were mixed, GAS, VIC unchanged, MSN, VCB gained while VNM lost.
Blue chips were mixed, CSM,  GMD, HSG, KDC, PVD gained while FPT, HAG, HCM, HPG, KBC, PPC, SSI were losers.
High beta stocks lost steam, HAR, KMR,  OGC, UDC, VNE, MCG ended lower.
Of note, BSI limited with high demand as traders talked about BIDV listing in very short time.
On the Hanoi Stock Exchange, the HNX gained 0.64 point or 0.93% to 69.47. Trading volume rose 6.8% to 43.3 million shares worth VND405.2 billion.
The breadth was positive with 111 gainers, 83 losers, 79 unchanged and the rest untraded.
The HNX30 gained 1.75 points or 1.35% to 131.49.

EUROPE: European stock markets advanced yesterday as investors welcomed the confirmation of Janet Yellen as head of the US Federal Reserve, alongside brighter eurozone economic data, dealers said.
London’s FTSE 100 index of leading companies added 0.36 per cent to 6,754.89 points and in Paris’ CAC 40 climbed 0.40 per cent to 4,244.54 in midday deals compared with Monday’s closing values.
Frankfurt’s DAX 30 index rose 0.56 per cent to 9,481.22 points, with sentiment helped by upbeat German unemployment data.
“Yellen’s confirmation as the head of the US central bank has put the markets at ease,” said David Madden, market analyst at trading firm IG.
“The new chairwoman is a safe pair of hands and, although she will not allow the markets to dictate her policies, she is unlikely to do anything too drastic in the early stages of her leadership.”

AMERICA:  Stocks rallied Tuesday, ending a slump that had ushered in the New Year.

The Standard and Poor’s 500 index climbed the most in three weeks, led by gains for health care stocks. UnitedHealth Group, the nation’s largest health insurer, and Johnson & Johnson both climbed on recommendations for brokerage firms.

After three straight declines, the S&P 500 would have matched its worst opening of a year since 1978 had it closed lower for a fourth day. The stock market’s slow start to 2014 contrasts with last year’s exceptional performance, when the S&P 500 climbed to record levels after surging almost 30 percent.

“To me the trend still looks up, even though we’ve been chopping around,” said Bill Stone, chief investment strategist at PNC Wealth Management Group. The economy “seems to be in the mode that you would expect corporate earnings to continue to grow.”

The S&P 500 rose 11.11 points, or 0.6 percent, to 1,837.88, the biggest gain since Dec. 18. Nine of the 10 sectors that make up the index rose.

The Dow Jones industrial average climbed 105.84 points, or 0.6 percent, to 16,530.94 The Nasdaq composite gained 39.50 points, or 1 percent, to 4,153.18.

UnitedHealth group gained $2.27, or 3.1 percent, to $76.51 after analysts at Deutsche Bank said they expected the nation’s largest health insurance company to charge customers more in premiums this year.

Johnson & Johnson climbed $1.96, or 2.1 percent, to $94.29 after analysts at RBC Capital raised their outlook on the stock to “outperform,” in part due to optimism on sales of the diabetes drug Invokana.

Investors were also encouraged by the easy passage in a Senate vote late Monday of Janet Yellen’s nomination to take the helm at the Federal Reserve. The vote puts an economist in the post who has backed the Fed’s recent efforts to stimulate the economy with low interest rates and huge bond purchases.

The confirmation is a reminder that the Fed’s policies of stimulating the economy will likely continue, said Kristina Hooper, U.S. Investment Strategist at Allianz Global Investors.

“It’s just a nice little halo effect,” said Hooper.

Investors will get more insight into the Fed’s thinking when minutes from the Federal Open Market Committee are released on Wednesday. The Fed announced after its last meeting that it would begin winding down its monthly $85 billion bond-buying program. That stimulus was a major support for last year’s rally in stocks.

Despite Tuesday’s gains, stocks have started the year off on uncertain footing. Materials companies have declined 1.6 percent so far this year, led by Cliffs Natural Resources. The mining company, which was the second-biggest loser in the S&P 500 last year as commodities prices slumped, is extending its losses.

In government bond trading, the yield on the 10-year Treasury note fell to 2.94 percent from 2.96 percent Monday.

The most important piece of economic news to be released this week will come on Friday when the Labor Department releases its jobs report for December. The report will influence the Fed’s decision on how quickly it will reduces its bond purchases in the coming months.

Among the biggest losers on Tuesday was Netflix.

The online video streaming company, the biggest gainer in the S&P 500 last year, fell $20.07, or 7.8 percent, to $339.50, after analysts at Morgan Stanley cut their outlook on the stock to “underweight.” The brokerage says the online video service will face increasing competition from services such as Hulu Plus, Amazon Prime and HBO GO.

Mattel also dropped. The toy maker fell 58 cents, or 1.2 percent, to $46.04, after analysts at Goldman Sachs advised their clients to sell the stock. Goldman is predicting that the company’s earnings will struggle to match expectations as sales stagnate.

In commodities trading, the price of oil rose 24 cents, or 0.3 percent, to $93.67 a barrel. Gold fell $8.40, or 0.7 percent, to $1,229.60 an ounce.

Benchmark Currency Rates



1.3616 0.0096 1.6396 1.1003 0.9280 0.8924 0.1290


0.7345 0.0070 1.2042 0.8080 0.6816 0.6556 0.0947


104.6900 142.5400 171.6450 115.1760 97.1420 93.4380 13.5007


0.6099 0.8304 0.0058 0.6710 0.5659 0.5444 0.0787


0.9090 1.2375 0.0087 1.4904 0.8436 0.8112 0.1172


1.0777 1.4672 0.0103 1.7669 1.1855 0.9619 0.1390


1.1204 1.5255 0.0107 1.8370 1.2327 1.0397 0.1445


7.7539 10.5576 0.0741 12.7136 8.5308 7.1950 6.9201

Source: Bloomberg


Category: FinanceAsia

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