+ve sector , scripts : Naukri, LITL,Selan,RPL
BUY HeroHonda-1693 for 1723-1735+ with sl 1664
BUY ABB-795 for 823-837+ with sl 755
BUY GTOFFSH-563 for 577-589+ with sl 555
BUY SAIL-179 for 193-204+ with sl 172
BUY Bhartforg-243 for 270-287-312+ with sl 232
BUY GIChousing-86 above 90 for 105+ with sl 88
BUY Jyotistruc-162 above 166 for 200+ with sl 160
BUY Network18-106 above 109 for 120-127+ with sl 105
-Reliance Petroleum to be removed from NSE F&O from September 25, all contracts to expire on September 24 ((merger with RIL))
-NSE bars further F&O positions in Aban Offshore as 95% of market wide limit reached
-TCS says open to acquisitions in Latin America
-HDFC: FIPB (foreign investment promotion board) approves issue of 1.09 crore warrants to QIBs including FIIs
-Elder Pharma says no plan to dilute 20% stake in company
-Vijaya Bank cuts new home, vehicle loan rates under festive season offer: NW18
-Ex-dividend: MTNL @ Rs 1
-Ex-bonus: Gujarat Gas @ 1:1
-Ex-rights: Impex Ferro @ 1:1
-Ex-split: Rajoo Engineers from Rs 10 to Re 1
RESISTANCE
4982
5005
5026
5155
SUPPORT
4952
4949
4926
4905
4857
4836
Buy EIH ASSOCIATED HOTELS;Buy ORCHID CHEM
Strong & Weak futures
This is list of 10 strong futures:
Orchid chem, Al Bk, OBC, IOB, Chenn Petro, Bhushan Steel, Tata Motors, Hindalco, Jindal Saw & Indian Bank.
And this is list of 10 Weak futures:
Idea, Concor, Dish TV, Hind UniLvr, PTC, Mc Dowell, BEL, Cipla, India Cement & Finance Tech.
Nifty is in Up trend
NIFTY FUTURES (F & O):
Rally may continue up to 4982 level for time being.
Support at 4949 & 4952 levels. Below these levels, expect profit booking up to 4926-4928 zone and thereafter expect a slide up to 4905-4907 zone by non-stop.
Buy if touches 4857-4859 zone. Stop Loss at 4836-4838 zone.
On Positive Side, cross above 5003-5005 zone can take it up to 5024-5026 zone by non-stop. If crosses & sustains this zone then uptrend may continue.
Short-Term Investors:
Bullish Trend. 3 closes above 4790.00 level, it can zoom up to 5155.00 level by non-stop.
BSE SENSEX:
Higher opening expected. Uptrend should continue.
Short-Term Investors:
Short-Term trend is Bullish and target at around 17281.17 level on upper side.
Maintain a Stop Loss at 16119.95 level for your long positions too.
POSITIONAL BUY:
Buy EIH ASSOCIATED HOTELS (NSE Cash)
Expect uptrend in this scrip.
Profit booking up to 113 level will be healthy. Keep a Stop Loss at 106 level for your long positions too.
Expect a target of 126 level on upper side. If crosses & sustains above 133 level then uptrend may continue.
Buy ORCHID CHEM (NSE Cash)
Expect uptrend in this scrip.
Profit booking up to 149 level will be healthy. Keep a Stop Loss at 139 level for your long positions too.
| FII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores) | ||||
| Category | Date | Buy Value | Sell Value | Net Value |
| FII | 16-Sep-2009 | 3631.16 | 2525.52 | 1105.64 |
| DII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores) | ||||
| Category | Date | Buy Value | Sell Value | Net Value |
| DII | 16-Sep-2009 | 1723.46 | 1580.01 | 143.45 |
Global Cues & Rupee
The Dow Jones Industrial Average closed at 9,791.71. Up by 108.30 points.
The Broader S&P 500 closed at 1,068.76. Up by 16.13 points.
The Nasdaq Composite Index closed at 2,133.15. Up by 30.51 points.
The partially convertible rupee INR=IN closed at 48.24/25 per dollar on yesterday, up from Tuesday's close of 48.65/66.
Interesting findings on web:
Stocks spike to 1-year highs.
Economic optimism helps Wall Street extend gains, with the Dow, Nasdaq and S&P hitting the highest points since fall '08.
Stocks gained Wednesday, pushing Wall Street to its highest level in a year, with a rise in industrial production and a spike in commodity prices and equities fueling the advance.
Stocks are higher for the third day as strength in industrial production gives investors new reason to wager that the economy is recovering.
U.S. industrial production rose 0.8% in August from an upwardly revised 1.0% gain in July (was 0.5%). That brought capacity utilization up to 69.6% from 69.0% (revised from 68.5%). Manufacturing output rose 0.6%, helped by a 5.5% surge in auto production. But, strength was broadbased as production excluding vehicles rose 0.6%. Utility production climbed 1.9% after a 1.6% decline in July (was -2.4%). Mining was up 0.5% after a 0.6% increase in July (was 0.8%).
Consumer prices rose 0.4% in August, and were up 0.1% excluding food and energy. The increases were in line with the consensus estimates. Energy prices surged 4.6%, but remain down 23% from a year earlier. New car prices dropped 1.3% in August, reflecting the treatment of the "cash for clunkers" program. This should reverse in September. Overall, the CPI is down 1.5% from a year ago, and up only 1.4% excluding the food and energy components.
The current account deficit narrowed to $98.8 billion in the second quarter from $104.5 billion in the first quarter, putting the deficit at the lowest level in 8 years even though it was a bit worse than the consensus estimate of $92.0 billion. The goods and services deficit narrowed to $83.0 billion in Q2 from $92.4 billion in the first quarter, but the surplus on income narrowed to $16.4 billion from $18.3 billion as investment income dropped. Transfers to foreigners increased $1.9 billion to $32.2 billion.
U.S. Treasury capital flows data showed foreigners sold a net $97.5 billion U.S. assets in July, after selling a revised $56.8 billion the month before (previously -$31.2 billion). Private foreign investors sold a net $131.3 billion in July, while foreign officials purchased a net $33.8 billion.
Analysts were encouraged by the fact that it was the second straight gain but were skeptical that the pace would hold after the "Clunkers" glow wears off.
"[W]e believe that the recovery process will be subdued and uneven as the household sector continues to struggle with ravaged balance sheets and lingering labor market weakness," Joshua Shapiro, chief U.S. economist at MFR Inc., wrote in a note to clients.
"It is interesting to note that minutes before today's industrial production report, Ford [F 7.15 -0.05 (-0.69%)] was on the tape saying that September automotive sales had started off 'soft,' and that it is uncertain whether the economy is really on the mend," Shapiro said.
Scott Marcouiller at Wells Fargo Advisors said the report "provided more evidence that the recession is ending."
"The strength in the industrial sector is impressive and its momentum into the third quarter appears to be quite solid," said Robert Brusca at FAO Economics.
The market also took comfort from data showing US consumer prices rose 0.4 percent in August, with the core inflation rate up a modest 0.1 percent. This served to ease fears about both deflation and resurgent inflation.
Brian Bethune, economist at IHS Global Insight, said the report suggests the deflation threat is fading.
"The steepest CPI declines are now behind us," he said. "Year-on-year inflation should be back in positive territory by the end of the year as gasoline price comparisons continue to become less favourable."
In addition, the Street cheered news that confidence among domestic homebuilders surged for the third consecutive month in September. The National Association of Home Builders' housing market index jumped one point to 19 this month, marking the highest level in 16 months.
The Dow rose 108.30, or 1.1 percent, to 9,791.71, its highest close since Oct. 6, when it ended at 9,956. The index is now up 11.6 percent for the year.
The broader Standard & Poor's 500 index rose 16.13, or 1.5 percent, to 1,068.76, while the Nasdaq composite index rose 30.51, or 1.5 percent, to 2,133.15.
The Russell 2000 index of smaller companies rose 12.54, or 2.1 percent, to 617.38.
There are among the nearly 150 new highs on the New York Stock Exchange, which is the most since last September.
The market appeared to be in the midst of a short squeeze ahead of the so-called Quadruple Witching expiration of options and futures later in the week, reports S&P MarketScope.
The advance comes even as analysts warn that stocks are due for a break. The S&P 500 index, the benchmark for many mutual funds, has surged 58 percent since it tumbled to a 12-year low in early March. An extended ascent tends to spook investors, who see it as a sign of indiscriminate buying.
Peter Schwartz, principal at Gregory J. Schwartz & Co. in Bloomfield Hills, Mich., expects stocks will rise but not without interruptions. "We can't have this trajectory for perpetuity without speed bumps along the way," he said.
Jason Pride, director of research at Haverford Investments in Radnor, Pa., would like to see more moderate gains but said the nature of markets is to overdo it. "The market can extend its speculation surrounding this economic rebound much longer than people expect," he said.
"Market friendly news over the last several weeks has created a more upbeat tone on Wall Street," said Michael Sheldon, chief market strategist at RDM Financial Group.
"The question going forward is whether this is too much euphoria given the somewhat uncertain outlook for the consumer and financial markets as we head into 2010," he said.
After the close, Oracle (ORCL, Fortune 500) reported weaker quarterly revenue that missed forecasts. The software maker's quarterly earnings of 30 cents per share were in line with forecasts. Shares slipped in extended-hours trading.
Federal Reserve Chairman Ben Bernanke said Tuesday that the recession is likely over although the job market will still struggle. That upbeat economic sentiment stretched into Wednesday's session and was helped along by the day's news. The major indexes have now gained for 8 of the last 9 sessions.
The combination of improving economic news and fiscal and monetary stimulus has helped boost stocks over the last six months. Since bottoming at a 12-year low in March, the Dow has gained 47% and the S&P 500 has gained 55%. Since bottoming at a 6-year low, the Nasdaq has gained 65%.
With the exception of a 7% pullback in late June and early July that preceded the start of the second-quarter financial reporting period, the market has essentially been on the upswing for months, with occasional sideways lulls.
Despite worries that the rally has outpaced the economic recovery, the market "just doesn't seem to want to fall," said Gary Flam, portfolio manager at Bel Air Investment Advisors.
"In April and May the market was rallying despite a lack of good economic news," Flam said. "Now that you are getting better news, including Bernanke's comments, it's hard for investors to sit on the sidelines."
He said that while the market seems to be avoiding the widely-predicted back-to-school selloff, it could hit resistance in November when a number of the government stimulus programs peter out.
Stock gains Wednesday were broad based, with 24 of 30 Dow components rising, led by General Electric (GE, Fortune 500), Boeing (BA, Fortune 500), IBM (IBM, Fortune 500), 3M (MMM, Fortune 500), McDonald's (MCD, Fortune 500), Chevron (CVX, Fortune 500) and Exxon Mobil (XOM, Fortune 500).
The Dow's financial shares gained too, with American Express (AXP, Fortune 500), Bank of America (BAC, Fortune 500), JPMorgan Chase (JPM, Fortune 500) and Travelers (TRV, Fortune 500) all advancing.
A variety of bank shares rallied, with the KBW Bank (BKX) index rising 4%.
Tuesday was the one-year anniversary of the collapse of Lehman Brothers and 11th-hour buyout of Merrill Lynch by Bank of America. In the year since then, the major indexes have seesawed violently, but are currently just below those 2008 levels.
Verizon Communications (VZ, Fortune 500) slipped 2% after UBS downgraded it to "neutral" from "buy," according to published reports.
Adobe (ADBE) shares fell around 6% after the software maker said late Tuesday it was buying e-commerce firm Omniture (OMTR) for about $1.8 billion.
Anheuser-Busch InBev (BUD), the maker of Bud beer, began trading Wednesday on the New York Stock Exchange 10 months after it was bought by Belgian brewer InBev. Shares gained 2%.
General Electric Co. and International Business Machines Corp. jumped.
GE, which has a large financial arm and often trades like a bank stock, jumped for a third day. American Express Co. and JPMorgan Chase & Co. rose more than 3 percent.
GE jumped $1, or 6.3 percent, to $17, adding to its gain for the week and erasing its loss for the year. The company plans to update analysts on its business Thursday. IBM, which carries more weight in the Dow because of its higher stock price, rose $2.47, or 2.1 percent, to $121.82, its best close of the year.
Alcoa and Barrick Gold rose at least 2.1% as gold climbed to near record prices. Caterpillar also climbed more 2.1% after the Federal Reserve said industrial production increased more than forecast.
Industrials continued to lead the rally, DuPont up near the top of the Dow.
Health insurers rose after Sen. Max Baucus of Montana introduced a Finance Committee version of a bill to revamp the nation's health care system. It would require most people to purchase insurance coverage and prevent insurance companies from charging more to people with more serious health problems.
UnitedHealth Group Inc. rose $1.59, or 5.7 percent, to $29.29, while Humana Inc. advanced $1.89, or 4.9 percent, to $40.67.
Home builder stocks surged after a builder confidence index from the National Association of Home Builders rose for the third straight month. Beazer Homes USA Inc. jumped 60 cents, or 14.2 percent, to $4.83 and Hovnanian Enterprises Inc. rose 41 cents, or 10.3 percent, to $4.41.
the September National Association of Home Builders sentiment index rose to 19 from 18 in August. In line with expectations. Homebuilder sentiment has been improving since hitting a record low of 8 in January, with all components above last year's levels. The index was 17 a year ago. The single family sales index rose to 18 from 16 in August. However, the future index slipped to 29 from 30 (it was 28 a year ago). The index of prospective buyer traffic rose to 17 from 16 (14 a year ago).
Newspaper stocks rose following a report from a market research company that signaled advertising spending wasn't eroding as quickly as it had been. Gannett Co., the publisher of USA Today and other papers, advanced 93 cents, or 10.3 percent, to $9.99. The New York Times Co. rose 94 cents, or 11.9 percent, to $8.82.
On the merger front, news that software maker Adobe Systems agreed to buy Web analytics firm Omniture for 1.8 billion dollars helped sentiment as a sign of confidence in the corporate outlook.
Omniture shares leapt 26.29 percent to 21.88 dollars while Adobe fell 6.37 percent to 33.35 dollars.
American Capital Ltd. (ACAS) agreed to sell all the shares of Axygen BioScience Inc. to Corning (GLW) for about $400 million in cash.
United Airlines parent UAL Corp. rallied 3.41 percent to 9.09 dollars after reaffirming its quarterly outlook.
Bristol-Myers Squibb added 0.94 percent to 22.46 dollars after agreeing to sell some assets in Asia to Japan's Taisho Pharmaceutical Co. for 310 million dollars.
Citigroup rallied 4.1% as speculation mounted the third-biggest US bank is planning an exit from the government debt guarantee programme.
Anadarko Petroleum [APC 64.85 5.68 (+9.6%)] shares jumped nearly 10 percent after the company said it had made a major oil discovery off Sierra Leone. Rival energy exploration companies also rose, including Chesapeake and XTO.
Some of the financial sector's biggest gainers today were Hartford Financial, which jumped 11 percnet, and Bank of New York Mellon, which gained nearly 7 percent.
Genworth Financial (GNW) said it has priced a public offering of 48 million Class A common shares at $11.75 per share. In addition, Genworth has granted the underwriters an option to buy up to an additional 7.2 million shares to cover over-allotments, if any.
BofA-Merrill upgraded Amazon.com (AMZN) to buy from neutral.
UBS analysts downgraded Verizon Communications (VZ) to neutral.
The chief financial officer of JPMorgan Chase (JPM) said the bank could boost its dividend.
Shares of Apple (AAPL) jumped after Jim Cramer, host of the CNBC program Mad Money raised his target price on the stock to $264 from $200, according to S&P MarketScope. Cramer thinks Apple's EPS will "skyrocket," maybe by as much as 40%, due to a yet-to-be announced accounting change, which Cramer says will allow the company to start recognizing all of its iPhone sales, earnings when they happen, instead of over a two-year time period as dictated by the current standard, according to Cramer.
Money has been flowing into stocks as some professional investors rush to keep with the market's gains and fear being left behind.
"People are looking to play catch-up at this point," said Christian Bendixen, director of technical research at Bay Crest Partners LLC in New York.
Jason Pride, director of research Haverford Investments in Radnor, Pa., welcomes the more moderate advances as a sign of stronger investor conviction.
"We're personally much bigger fans of a more measured move in the market. Each huge swing in the market, we give some skepticism to," he said.
Many analysts are encouraged by the market's climb but say it can't continue without some drops. The S&P 500 index, the benchmark for many mutual funds, has jumped 55.6 percent since it hit a 12-year low in early March.
"We've been trying to tamper people's enthusiasm even though we're bullish in the long run," said Peter Schwartz, principal at Gregory J. Schwartz & Co., Bloomfield Hills, Mich. "We can't have this trajectory for perpetuity without speed bumps along the way."
Investor Warren Buffett was more optimistic on the economy, saying that the situation is immeasurably better than a year ago when he referred to an "economic Pearl Harbor" in a CNBC interview Wednesday.
Citigroup (C) CEO Vikram Pandit said Wednesday "we've turned the corner on capital strength" and are "largely through mark-to-market writedowns," among other optimistic references. Pandit also sees signs of moderation in consumer delinquencies.
Bill Gross, who runs the world's biggest bond fund at Pacific Investment Management Co., increased holdings of government-related debt last month to the most in five years and cut mortgage securities.
VIX 23.69 + 0.27 +1.15%
Oil,Gold & Commodities:
U.S. light crude oil for October delivery rose $1.58 to settle at $72.51 a barrel on the New York Mercantile Exchange.
COMEX gold for December delivery rose $13.90 to settle at $1020.20 an ounce, a record high.
The dollar fell versus other major currencies, hitting a 9-month low against the euro and a 7-month low against the yen.
The dollar traded near a one-year low versus the euro amid optimism the global recession is easing, curbing demand for safe-haven currencies.
The Dollar Index was near the weakest in 12 months as Asian stocks extended a global rally and before reports forecast to show U.S. housing starts rose and manufacturing improved. The yen fell against 14 out of the 16 most-active currencies after data showed Japanese purchases of overseas bonds reached a four- year high, signaling increased demand for higher-yielding assets.
"Risk appetite is on the mend as the outlook for the global economy brightens," said Masahide Tanaka, senior strategist in Tokyo at Mizuho Trust & Banking Co., a unit of Japan's second-largest bank. "The dollar, now the most-favored funding currency because of its ample liquidity, will weaken."
The dollar traded at $1.4716 per euro at 10:36 a.m. in Tokyo from $1.4709 yesterday in New York where it reached $1.4737, the weakest level since Sept. 25, 2008. The yen was at 91.01 per dollar from 90.93 yesterday, when it hit 90.13, the strongest level since Feb. 12. Japan's currency fetched 133.95 per euro from 133.78.
Australia's currency traded at 87.40 U.S. cents from 87.35 cents yesterday, when it touched 87.50 cents, the most since Aug. 22, 2008. New Zealand's dollar was at 71.40 U.S. cents from 71.41 cents in New York, where it reached 71.53, also the strongest since Aug. 22, 2008.
Benchmark interest rates are 3 percent in Australia and 2.5 percent in New Zealand, compared with 0.1 percent in Japan and as low as zero in the U.S., attracting investors to the South Pacific nations' higher-yielding assets. The risk in such trades is that currency market moves will erase profits.
Rising Stocks
The Nikkei 225 Stock Average rose 1.2 percent and the MSCI Asia Pacific Index of regional shares gained 1 percent.
The Philadelphia Federal Reserve Bank will report today that its index of the region's manufacturing activity advanced this month to the highest level since 2007, according to the median forecast of 55 economists in a Bloomberg News survey. The index is expected to increase to 8 from 4.2 in August, with a positive reading signaling expansion.
Adding to signs that the recession is abating, U.S. builders broke ground on 598,000 new homes last month at an annual rate from 581,000 in the previous month, according to a separate Bloomberg News survey before the Commerce Department releases the data today.
The Bloomberg Professional Global Confidence Index rose to 58.54 this month from 58.12 in August. The index exceeded 50 for a second month, which means optimists outnumbered pessimists. Measures of confidence in France and Germany surged after their economies unexpectedly returned to growth last quarter.
Dollar Index
The Dollar Index, which tracks the U.S. currency against the euro, yen, pound, Canadian dollar, Swiss franc and Swedish krona, fell as much as 0.5 percent to 76.151 yesterday, the lowest level since Sept. 23, 2008. The gauge has retreated 15 percent from its 2009 high of 89.624 reached in March. It was little changed at 76.292 today.
The broad gauge for the dollar declined after the London interbank offered rate, or Libor, for three-month dollar loans fell to a record low of 0.292 percent yesterday. It was as high as 4.82 percent in October 2008, following the collapse of Lehman Brothers Holdings Inc. the month before.
"Given the fragility of the U.S. economy, the Fed can't normalize credit and monetary easing policies," said Mitsuru Saito, chief economist in Tokyo at Tokai Tokyo Securities Co. "The bulk of highly liquid dollar assets will continue to flow into other currencies or commodities, putting downward pressure on the dollar."
Yen Falls
The yen fell for a fourth day versus the euro as Japanese investors bought a net 1.66 trillion yen ($18.2 billion) in overseas bonds and notes in the week ended Sept. 12, the most since June 2005, the Ministry of Finance said today.
"Risk-taking sentiment is improving amid signs of a global recovery," said Akifumi Uchida, deputy general manager of the marketing unit at Sumitomo Trust & Banking Corp. in Tokyo. "Local investors are probably sending their money overseas into countries such as Brazil, Australia and New Zealand."
The euro traded near a four-month high against the pound before a report forecast to show Europe's trade surplus widened to the most in more than a year, adding to evidence the region's recession is abating.
The 16-nation euro area's trade surplus widened to 1.2 billion euros ($1.8 billion) in July, the most since February 2008, from 1 billion euros in June, a Bloomberg survey of economists showed. The European Union's statistics office will release the report in Luxembourg today. The Dutch central bank said yesterday a "slight improvement" is visible in the global economy.
'Sound Footing'
"Europe is fundamentally on a sound footing," said Adam Carr, a senior economist in Sydney at ICAP Australia Ltd., a unit of the world's largest interdealer broker. Among the Group of Three currencies from the U.S., Germany and Japan, "the euro is my favorite," he said.
Traders increased bets the European Central Bank will raise its 1 percent benchmark interest rate by the middle of next year. The implied yield on the three-month Euribor futures contract for June 2010 delivery rose to 1.25 percent today from 1.225 percent yesterday.
The euro traded at 89.27 pence from 89.24 pence in New York yesterday, when it climbed to 89.33 pence, the highest level since May 15.
Bonds:
Treasury prices rose, lowering the yield on the benchmark 10-year note to 3.43% from 3.45% late Tuesday.
Treasury prices and yields move in opposite directions.
What to expect:
THURSDAY: Housing starts; weekly jobless claims; Philly Fed; Earnings from FedEx [FDX 78.20 -1.33 (-1.67%) ]
FRIDAY: Quadruple witching
Asia:
Asian stocks rose, led by mining companies, after commodity prices jumped amid speculation the global economy has returned to growth.
BHP Billiton Ltd., the world's largest mining company, rose 1.7 percent after saying a surge in shipments of coking coal to China is "sustainable." Mitsubishi Corp., an ally of BHP's in producing the raw material for steel, advanced 2.5 percent. Nissan Motor Co., which gets 34 percent of its revenue in North America, jumped 3.4 percent after U.S. industrial production increased more than forecast.
"The world's economy is continuing to improve and investor sentiment remains solid, creating resilience in global stock markets," said Mitsushige Akino, who oversees the equivalent of $660 million at Ichiyoshi Investment Management Co. in Tokyo.
The MSCI Asia Pacific Index gained 0.8 percent to 118.54 as of 10:18 a.m. in Tokyo, the highest since Sept. 9, 2008. The gauge has climbed 68 percent from a more than five-year low on March 9 as stimulus measures around the world pulled economies out of recession. Stocks on the gauge are priced at an average 1.6 times book value, up from 1.03 times at the March low.
Japan's Nikkei 225 Stock Average rose 1 percent. Australia's S&P/ASX 200 Index gained 1.3 percent, the region's biggest advance. South Korea's Kospi Index added 0.9 percent.
Futures on the U.S. Standard & Poor's 500 Index were little changed. The gauge climbed 1.5 percent yesterday as the Federal Reserve reported a 0.8 percent increase in factory output last month, exceeding the median estimate of economists surveyed by Bloomberg.
Company Earnings
BHP added 1.7 percent to A$39.65. Mitsubishi, Japan's largest trading house, gained 2.5 percent to 1,974 yen.
Imports of coking coal into China, the world's largest steel-producing country, will be about 30 million metric tons this year, up from 1 million tons last year and 3 million in 2007, according to Vicky Binns, BHP's head of commodity analysis.
"China's imports of coking coal look sustainable for a small proportion of their total requirements," Binns told reporters yesterday in London. "We see this trend continuing."
Woodside Petroleum Ltd., Australia's second-largest oil producer, advanced 3.5 percent to A$52.60. Mitsui & Co., Japan's second-largest trading company, climbed 3 percent to 1,248 yen.
Crude oil climbed 2.2 percent to $72.51 a barrel yesterday, while gold futures added 1.4 percent to a record settlement price. Copper jumped 3.2 percent in New York.
The MSCI Asia Pacific Index's six-month rally has been driven by better-than-estimated economic reports and corporate earnings. Of 645 companies on the gauge that reported net income for the latest quarter, 226 beat analyst predictions, compared with 138 that missed.
Nissan rose 3.2 percent to 612 yen on speculation demand for its vehicles will pick up in the U.S. Toyota Motor Corp., the world's largest automaker, added 1.6 percent to 3,770 yen.
The stronger yen may limit Japanese automakers' gains today as it reduces the value of overseas sales when converted back into the local currency. The yen appreciated to as much as 90.13 per dollar late yesterday, a level not seen since Feb. 12.
Nikkei 225 10,391.32 +120.55 ( +1.17%). (08.17 AM IST).
Tokyo's Nikkei average rose 1.2 percent on Thursday, lifted by exporters such as Sony Corp (6758.T) after industrial output data helped buoy U.S. stocks to fresh 2009 highs.
A government survey showing that big manufacturers had turned optimistic in the three months to September as well as a mostly smooth start for Japan's new government were also lending support to market sentiment, market players said.
The benchmark Nikkei .N225 gained 120.55 points to 10,391.32, after adding 0.5 percent the previous day. The broader Topix advanced 0.8 percent to 938.52.
HSI 21776.12 +373.2 +1.74%. (08.19 AM IST).
Hong Kong shares extended gains early Thursday after finishing at their best level for 2009 in the previous session, with Cathay Pacific Airways Ltd. jumping after Citigroup upgraded the stock to hold from sell. Commodity stocks also shot up after Wall Street benchmarks hit their highest level of this year. The Hang Seng Index gained 1.3% to 21,687.28, while the Hang Seng China Enterprises Index rose 1.3% to 12,689.35 on strong cues from Shanghai. The Shanghai Composite gained 1% to 3,027.74. Cathay /quotes/comstock/22h!e:293 (HK:293 13.02, +0.66, +5.34%) /quotes/comstock/11i!cpcay (CPCA.Y 8.11, +0.48, +6.29%) shares rose 3.6% in Hong Kong, with Aluminum Corp. of China /quotes/comstock/13*!ach/quotes/nls/ach (ACH 30.46, +0.02, +0.07%) /quotes/comstock/22h!e:2600 (HK:2600 9.63, +0.43, +4.67%) up 4.6% and Citic Pacific Ltd. /quotes/comstock/22h!e:267 (HK:267 22.70, +0.90, +4.13%) boosted by hopes for a Shanghai listing.
SSE Composite 3046.18 + 1.55.(08.20 AM IST).
China's key stock index opened up 0.5 percent on Thursday, in step with firmer global markets and underpinned by news of more brokerages lining up to launch initial public offerings (IPO).
The Shanghai Composite Index .SSEC opened at 3,015.586 points, after fluctuating around its key psychological level of 3,000 points and falling 1.1 percent on Wednesday.
The official Shanghai Securities News reported that Industrial Securities would apply for an IPO at the end of this month, among several other brokerages waiting to launch IPOs.
Analysts said the index may continue to flirt with its key resistance of 3,000 points in the next couple of days, while sentiment will largely stay positive as investors expect the authorities to keep policy stable ahead of the country's week-long National Day holiday starting on Oct. 1.
Chinese stocks open 0.53% higher on Thu
Chinese stocks opened higher on Thursday morning.
The benchmark Shanghai Composite Index, which covers both A shares and B shares on the Shanghai Stock Exchange, opened at 3,015.59 points, up 0.53% or 15.88 points from the previous closing.
The Shenzhen Component Index on the smaller Shenzhen Stock Exchange opened 0.33% or 40.09 points higher at 12,334.96 points
Shanda Games to launch IPO next Friday.
Champion REIT's dividend yield estimated at 8.1% for 2009.
China Vanke to raise RMB 11.2 bln through share issuance.
Yahoo sells 57.48 mln shares of Alibaba.com.
Chairman reduces stake in Tencent.
Wuhan Iron and Steel to issue RMB 6 bln in short-term bills.
Sun Hung Kai Properties sees mainland property sales surge 587%.
China's ZTE enters Indian handset retail market.
Yanzhou Coal reapplies to takeover Felix Resources.
China Pacific earns RMB 68.4 bln in premiums in Jan-Aug.
Templeton raises stake in Brilliance China.
Hutchison Telecom unit inks US$422.2 mln in deals with Huawei.
NSSF cuts stake in China Coal Energy.
Capital Group raises stake in BYD to 5.1%.
Shares of Far East Consortium surges 19.07% on Wed.
Skype Founders Sue eBay, Investors
The founders of Skype have sued owner eBay [EBAY 24.32 0.18 (+0.75%) ] and an investor group that has agreed to buy the Webphone service, accusing them of copyright violation and potentially disrupting the $1.9 billion deal.
The lawsuit brought by Joltid, a Swedish firm owned by Skype founders Niklas Zennstrom and Janus Friis, says Skype used its technology without authorization. It comes on the heels of a legal dispute between Joltid and Skype in Britain over software rights.
Filed in Northern California U.S. District Court this week, the latest suit seeks a permanent injunction against Skype and damages. EBay has denied the allegations.
Joltid believes damages are piling up at a rate of more than $75 million a day.
"The Skype companies have continued to infringe Joltid's copyrighted works on a massive scale," the lawsuit said. "Each day that the Skype Companies continue to make available its Internet telephone software for download, Skype users download Joltid's copyrighted works approximately six times per second."
Ebay licenses peer-to-peer technology from Joltid for Skype, but has begun to develop its own alternative software given the uncertain outcome of pending litigation with Joltid.
"Their allegations and claims are without merit and are founded on fundamental legal and factual errors," eBay said in a statement.
Analysts have said the once-celebrated Skype business is an incongruous division of an Internet sales and auction house, and many have long urged the firm to spin off the unit or unload it.
The Internet auction house said on Wednesday it remained on track to close the Skype transaction in the fourth quarter.
Joost Business
Ebay agreed to sell a 65 percent stake in Skype for $1.9 billion to a consortium including Netscape founder Marc Andreessen's Andreessen Horowitz, venture firm Index Ventures, private equity firm Silver Lake, and the Canada Pension Plan Investment Board.
Joltid's suit named those investors as defendants, along with Skype, eBay, and Mike Volpi.
Sources last week said Zennstrom and Friis had contacted several private equity firms to try and buy back their old business.
Days ago, Web TV firm Joost -- also owned by Zennstrom and Friis – removed Volpi as chairman.
Volpi had joined Index Ventures by that time. Joost said they were investigating Volpi's actions during his tenure at the company, but did not elaborate.
Wednesday's developments are the latest in an escalating legal tussle.
Earlier this year, Skype filed a claim in the United Kingdom against Joltid, trying to resolve a dispute over a software licensing agreement between the parties that Joltid was seeking to terminate.
Joltid brought a counterclaim, reiterating that it holds the rights to the peer-to-peer technology and that Skype is in violation of the original agreement.
A trial is expected to take place in early 2010 in the United Kingdom.
Skype, whose 2008 revenue rose 44 percent to $551 million, charges for calls to regular telephones but provides free computer-to-computer voice, video and text services. It had about 405 million registered users at the end of 2008.
EBay's deal valued Skype at $2.75 billion but that was well below the $3.1 billion eBay spent in acquiring Skype.
Gold Jumps to 18-Month High As US Dollar Tumbles Further
Gold hit an 18-month high Wednesday as the dollar slid near one-year lows against the euro, sparking buying of the yellow metal as an alternative asset and helping lift silver and platinum to multi-month peaks.
Spot gold remained sharply higher at $1,017.65 an ounce into late New York dealings, compared with $1,005.90 on Tuesday. Wednesday's high of $1,020.50 an ounce was last reached in March 2008.
In New York, December gold finished $13.90 higher, a 1.38 percent gain, at $1,020.20 an ounce on the COMEX division of the New York Mercantile Exchange. The contract reached a high at $1,023.30 an ounce, unseen since July 2008.
Gold's [US@GC.1 1018.9 --- UNCH (0) ] rally to levels unseen in 14 months primarily resulted from heavy U.S. dollar selling against the euro.
"Gold's rise is related to the weaker dollar, which is a function of risk aversion coming out of the market. We had strong dollar buying for months because of the credit crisis. As financial markets give every impression of stabilizing, that is unwinding. A byproduct is much higher gold prices,'' said HSBC metals analyst and senior vice president, James Steel.
The precious metal could be building up for an assault on its previous all-time high above $1,030 an ounce, set in March 2008 in the spot market, traders said. U.S. gold is eyeing the $1,033.90 per ounce prior record high on gold's continuation chart.
Given the extent of net speculative buy positions in Comex-traded gold futures, conditions for gold are not as favorable as they were at the time of last year's record high, said Barclays Capital analyst Suki Cooper.
Nonetheless, if the dollar keeps falling, gold could continue to climb, she said.
"If we see currency movements becoming much more favourable—if we see the dollar weakening substantially—that is going to be a key support for prices,'' Cooper said.
The dollar slid to a near one-year low against the euro as optimism about global economic recovery eroded demand for the greenback as a safe haven.
Gold was also boosted when several stronger-than-forecast U.S. economic and inflation readings over the last two days implied a potential for inflation to heat up down the road.
"If a large element of the buying is based on inflation materializing and it fails to, you could see some liquidation. But it may take many months before that would appear and there is a bullish inflation camp that won't pay attention to that,'' said HSBC's Steel.
U.S. industrial output advanced for a second consecutive month in August, while higher gasoline costs pushed up consumer prices, although economists said the risk of inflation remained low.
On Tuesday, sales at U.S. retailers rose at their fastest pace in 3-1/2 years in August and Federal Reserve Chairman Ben Bernanke said the recession was "very likely'' over.
At the annual Denver Gold Forum, the Gold Fields chief executive officer told Reuters he sees gold hitting $1,600 an ounce if crude oil goes to $100 a barrel in the next six to 18 months.
Physical Demand Picks Up
Gold's rally helped lift other precious metals, with silver and platinum—both of which are used in manufacturing—also hitting multi-month highs as base metals rose on the more positive economic growth outlook.
Silver [US@SI.1 17.408 --- UNCH (0) ] prices hit a 13-month high of $17.45 an ounce, and held around $17.40 in late trade, against $16.97 on Tuesday.
Platinum [US@PL.1 0.0 --- UNCH (0) ] hit a peak of $1,346, its firmest since September last year, and was later at $1,341 against $1,323, while palladium was at $296 an ounce against $291.50.
WTO chief has concerns about U.S. tire tariffs on China
World Trade Organization chief Pascal Lamy said Wednesday he has concerns about U.S. President Barack Obama's decision to impose punitive tariffs on Chinese tires, reports said.
Xinhua reported that Lamy told reporters in Geneva that the move is "certainly a matter of concern."
"Both the United States and China are members of the [Group of 20 nations], and the G20 has taken this stance that they shouldn't have recourse to trade restrictive measures during the crisis," Lamy said, according to the report.
The U.S. last week imposed punitive sanctions on Chinese tire imports, sparking talk of an escalating trade war. The move was followed by a Chinese announcement that it would launch an anti-dumping investigation into U.S. sales of chicken and auto products. See story on likelihood of China-U.S. trade war.
The 35% punitive tariffs imposed by the U.S. on all car and light-truck tires from China were denounced in Beijing as an act of trade protectionism. The Chinese government has filed to resolve the issue through the WTO.
Lamy declined to comment on whether the U.S. tariffs on tires violate WTO rules, according to the Xinhua report, saying the WTO's dispute settlement system will provide a final judgment.
Oracle Earnings in Line With Forecasts, but Shares Slide
Oracle reported earnings that matched estimates but sales that fell short of analysts' forecasts as businesses remained reluctant to make technology purchases, and the software giant's stock declined in late trading Wednesday.
Oracle earned 30 cents a share in its fiscal first quarter on sales of $5.05 billion, compared with a profit of 29 cents a share on sales of $5.42 billion in the same period last year.
Analysts who follow Oracle expected the company to turn in a gain of 30 cents a share on sales of $5.25 billion, according to a consensus estimate from Thomson Reuters.
Oracle shares [ORCL 22.13 -0.53 (-2.34%) ], which closed 2.34 percent lower at $22.13, fell about 4 percent further in extended trading.
Oracle's sales of new software licenses fell 17 percent to $1 billion, while revenue from software updates and technical support contracts climbed 6 percent to $3.1 billion. While many businesses are still reluctant to pay for new software, existing Oracle customers usually pay the company to do the follow-up work on software they've already bought, which explains why the numbers sometimes go in different directions.
Oracle President Safra Catz said in a statement that the company was able to offset the revenue decline by boosting its operating margins during the quarter.
The business software maker's results reflect a familiar pattern that has emerged during the recession: Sales of new software licenses fell, while contracts for upgrades and software maintenance were up. Existing Oracle customers usually pay Oracle to do the follow-up work on their software.
Oracle is the world's No. 1 seller of database software, which companies use to archive and retrieve data such as payroll or customer information. Based in Redwood Shores, Calif., Oracle is also a major player in the "middleware" market, which refers to software that allows computing applications to talk to each other.
The company, run by billionaire Larry Ellison, is trying to branch out by buying struggling computer server maker Sun Microsystems for $7.4 billion, a deal that would thrust Oracle into the hardware market, a new area for the company.
The deal is being held up by European Union antitrust regulators, who are worried about Oracle's plans for Sun's MySQL open-source database, which is popular among Web companies and competes against Oracle's proprietary database. The underlying programming code for open-source software is distributed for free on the Internet; companies make money off it by selling support contracts for products built from that code.
There's still uncertainty about how the transaction will play out, but Oracle is moving ahead with plans for Oracle-Sun products. On Tuesday the companies announced a new "database machine," which combines Oracle's software with Sun computers. Oracle had previously made such a system with Hewlett-Packard [HPQ 45.64 --- UNCH (0) ].
Japan PM Pledges Big Change in Govt, Growth Model
New Japanese Prime Minister Yukio Hatoyama launched an untested government that aims to radically change how the country is run, wean the economy from exports and create more equal ties with close ally Washington.
Hatoyama's Democratic Party of Japan (DPJ) trounced the long-ruling Liberal Democratic Party in last month's election. He now faces pressure to make good quickly on promises to focus spending on consumers, cut waste and reduce bureaucrats' control over policy.
He must also try to ensure that a nascent recovery from Japan's worst recession since World War Two stays on track despite a huge public debt.
Managing ties with the United States while charting a more independent course will be a further priority.
"I want to create the kind of politics in which politicians take the lead without relying on bureaucrats," Hatoyama, 62, wearing his lucky gold, silver and blue striped tie and signature pocket handkerchief, told his first news conference after being voted in by parliament on Wednesday.
"We might make mistakes as we do things by trial and error. We want the people to be tolerant ... We would appreciate if the people nurture the new government with patience."
Hatoyama's cabinet, a balance of former Liberal Democrats, ex-socialists and younger conservatives, will have to hit the ground running to address headaches like the budget and deeper problems like the bulging costs of a fast-ageing society.
Hatoyama's choice of veteran lawmaker Hirohisa Fujii, 77, as finance minister soothed some concerns about government spending and the debt burden, but the former finance mandarin moved currency markets even before he was sworn in.
The yen jumped 0.9 percent to a new 7-month high against the dollar after he said a strong yen had merits for the economy and that recent currency moves were not rapid.
The choice of Shizuka Kamei, the outspoken head of a tiny coalition partner and an opponent of market-friendly reforms, as minister for banking and market regulation sent bank shares lower with comments on lending.
"I want to work with all my strength to rebuild Japan, which has been shaken by survival-of-the-fittest market fundamentalism," Kamei told a news conference.
Independent Diplomacy
Hatoyama's vow to steer Japan on a more independent diplomatic course has sparked concerns about possible friction with top ally the United States ahead of his diplomatic debut there next week, where he will meet President Barack Obama.
The U.S.-educated Hatoyama is expected to reassure Obama over ties and perhaps postpone calls for renegotiation of agreements on U.S. troops stationed in Japan.
"The first step will be to build a trusting relationship with President Obama," Hatoyama said. "Japan has tended to have a passive role in its relationship with the United States. We want an active role. We want the kind of relationship where we can tell one other what we are thinking frankly."
On his return, Hatoyama faces the urgent task of drafting a budget for the fiscal year from next April 1 and finding ways to plug holes in this year's budget caused by sliding tax revenues as Japan struggles out of recession.
The new government must balance the need to nurture a recovery and fund its consumer-friendly spending plans with concerns about a public debt heading towards 200 percent of GDP.
"It is not possible to restore fiscal health by sacrificing the people's livelihoods," Fujii told a news conference. But he added setting targets to restore fiscal health was a key task for a new National Strategy Bureau that will oversee the budget process and set policy priorities.
The Democrats have promised to scrap public works projects and other programmes they consider wasteful and use freed-up cash to stimulate consumption through measures such as payouts to farmers and families with children, and ending highway tolls.
Hatoyama told reporters he thought his government could secure the 7 trillion yen ($77.54 billion) it says it needs to fund its policies in fiscal 2010/11, starting next April.
It was vital, he said, to relieve the burden on households given an uncertain economic outlook. The economy returned to slow growth in the second quarter, but still suffers a record high jobless rate and deflation.
The finance minister will likely share responsibility for the budget with former Democratic Party leader Naoto Kan, who will head the new National Strategy Bureau.
Hatoyama must also hold together an awkward coalition with the two tiny parties whose support he needs in parliament's upper house.
Market Insider: Risk Appetite is Back!
Rising stock prices are acting as a powerful magnet, prying loose fresh cash and drawing it into a market that's 58 percent above its March lows.
The Dow Wednesday rose 1.1 percent, or 108 to 9791, while the S&P 500 jumped 1.5 percent, or 15 to 1068, and the Nasdaq was up 30 at 2133. Since the lows of March, the Dow is up 49.6 percent, the S&P is up 58 percent and the Nasdaq is up 68 percent. The Russell 2000 is up 80 percent. As stocks rose, bonds sold off, the dollar hit a new year low, and commodities climbed. Gold was at $1,018 an ounce, inching closer to its all time high of $1,033.
Financial stocks led the charge, with a 3.4 percent gain, followed by energy's 2.3 percent rise, and consumer discretionary stocks, up 1.9 percent. Big blue chip names, like General Electric [GE 17.00 1.00 (+6.25%) ] and IBM [IBM 121.82 2.47 (+2.07%) ] continued to break out, and there were 171 52-week highs on the NYSE, the largest number since October, 2007.
"The stock market keeps going up because there's such a diversity of opinion," said Andrew Busch of BMO Capital Markets.
"The news is good. The overall thing with the stock market that I emphasize to everyone is that you do not fight the Federal Reserve. The Fed is pumping so much money into the system that it's beneficial for the stock market - bottom line...The time to buy is always when the Fed is easing."
For Thursday's markets, traders are watching the weekly jobless claims number and housing starts, both at 8:30 a.m. The Philadelphia Fed survey is released at 10 a.m.
"We had a big move down in the last week's claims for the prior week of Sept. 5, and we're expecting a little bit of a move back up," said Michael Feroli, an economist with J.P. Morgan.
He expects the claims to come in at 555,000, compared to last week's 550,000. He said the number is affected by the Labor Day holiday.
Two companies that are often looked to for signals on the broader economy - FedEx [FDX 78.20 -1.33 (-1.67%) ] and General Electric - both are expected to make news. FedEx reports earnings before the bell, and GE holds an analyst meeting. GE is the parent of CNBC.
Oracle's [ORCL 22.13 -0.53 (-2.34%) ] after the bell report could dampen some enthusiasm in tech Thursday. Oracle profits rose 4 percent but sales were below expectations. The stock moved lower in late trading.
Whither Stocks
While traders and analysts continue to look for a correction, stocks keep rising. Traders say there is a lack of selling pressure, and buyers continue to step in, creating short term leadership in different sectors. They also say fund managers that were waiting for a pull back before investing more money may be feeling pressured to act before the end of September.
John Roque, technical analyst at WJB Capital, pointed out during that volume Wednesday was strong and advancers were beating declining shares by five to one.
"GE up this strong is hard to think the market comes in," he said during the trading day. "That's a plus. In addition, the financials are up 3 percent. It's hard to come in if the financials are up this much."
NYSE volume was 1.6 billion, above its recent average of about 1.2 billion shares.
Americans Plan to Limit Household Spending, Survey Shows
Americans say they plan to maintain their spending patterns as they are uncertain about the direction of the economy over the next six months.
Only 8 percent of U.S. adults plan to increase household spending, almost one-third will spend less, and 58 percent expect to "stay the course," according to a Bloomberg News poll. More than 3 in 4 said they cut spending in the past year.
Respondents were divided over whether the economy will get better or stay the same in the next six months; only 1 in 6 said things will get worse. More than 40 percent of those surveyed say they feel less financially secure than they did when President Barack Obama took office in January, outnumbering 35 percent who say they feel more secure.
"People I never thought would lose their jobs have lost their jobs," said Angela Payton, 42, a university publications editor in Florence, South Carolina. She kept her children out of summer camp, stopped buying organic milk and plans to curtail the party for her daughter's 6th birthday in November.
In the poll, conducted Sept. 10-14, 40 percent of those questioned say they have experienced one or more problems from the banking crisis. In the most-often cited repercussions, 27 percent say their credit-card interest rates have risen dramatically and 15 percent report that they couldn't get a home-equity, car, or other kind of consumer loan.
Americans are divided about Obama's handling of the financial industry's crisis -- 45 percent approve of the president's performance and 44 percent disapprove.
Wall Street faces a more hostile public as Obama presses for new financial regulations. Half of the Americans surveyed have an unfavorable view of Wall Street, versus 31 percent with favorable views.
No Bonuses
"Everybody is angry. We all know if we screwed up as badly as the Wall Street managers, we would not be paid, we would be fired and we would not get bonuses," said Virginia Clifford, 54, a lawyer in Olympia, Washington. "A lot of people are waiting to see if Obama has the guts to reform Wall Street."
Three out of four Americans support government-imposed limits on executive pay at companies that haven't repaid government bailout money, the poll shows.
While banks and financial companies are lobbying to kill Obama's proposal to establish a Consumer Financial Protection Agency, 56 percent of Americans support the idea, with 31 percent of the poll respondents opposed.
"If somebody is not looking out for consumers, who cares whether something is unhealthy or unwise?" said Tony Dumas, 39, a graduate student at the University of California in Davis. "Capitalism run amok is why we're in the mess we're in."
Cutting Back
Underscoring consumers' austere attitudes, 77 percent of respondents say they have cut back on spending during the past year, 59 percent say they have made a bigger effort to pay off debts and 48 percent have put more money aside as savings.
Because consumer spending accounted for 70 percent of the economy since 2001, the speed and strength of a recovery may depend on how quickly Americans loosen their purse strings.
Retail sales in August surged 2.7 percent, the largest monthly jump in three years, fueled in part by the government's "cash-for-clunkers" auto-purchase program. August sales also probably benefited from sales-tax holidays that some areas offered back-to-school shoppers and may not signal a turning point, said Louis Crandall, chief economist at Wrightson ICAP LLC, a Jersey City, New Jersey-based research firm.
"There are lots of reasons to expect consumer spending to remain soft," Crandall said, citing rising unemployment and drops in home values and household wealth.
Savings Suffer
More than 4 of 10 Americans surveyed say their retirement savings have suffered in the past year, 40 percent say home values have dropped, and 27 percent say workers in their households have less job security.
By 62-34 percent, Americans say high unemployment is a greater danger than inflation over the next two years.
The Federal Reserve, which Obama would like to give preeminent regulatory authority over the financial system, is viewed favorably by 44 percent of respondents against 33 percent with unfavorable opinions.
Democrats including House Financial Services Committee Chairman Barney Frank and Senate Banking Committee Chairman Christopher Dodd have questioned Obama's plan to give the Fed the primary authority to regulate systemic risks. They have backed Federal Deposit Insurance Corp. chief Sheila Bair's preference for a council of regulators to monitor risks.
Consumers Skeptical
Americans are skeptical about the prospects for two industries that have received large-scale government support. Fifty-three percent say they're pessimistic about the banking industry, versus 41 percent who are optimistic. When asked about the automobile industry, 53 percent are pessimistic versus 42 percent who are optimistic.
The poll is based on interviews with 1,004 U.S. adults 18 and older. Interviewers contacted households with randomly selected landline and cell-phone numbers. Percentages based on the full sample may have a maximum margin of error of plus-or- minus 3 percentage points.
INVESTMENT VIEW
SSPDL-Unsung, Worth A Re-Look!
BSE 530821
SSPDL is executing prestigious projects in CHENNAI, Bangalore, Hyderabad, Vizag, Kerala, as stand alone ventures, as joint projects with India REIT Advisors and as SPV with global associates. The results should become apparent in FY10-11, but it is the current market cap of roughly Rs 41 crore that gives this concern an attractive entry point . This kind of a risk should be acceptable to aggressive investors.
Alpha City-Chennai
Alpha City, the IT Park Project at Chennai, has been completed. IBM has taken 20,000 sqft for lease on second floor of Gamma block and the operations are on.
Chennai Central
Company has obtained NOCs from Chennai Corporation, National Airports Authority of India, CRAC and Director of Fire & Rescue Services and currently awaiting planning permission from CMDA. Construction work to commence after receiving planning permission.
Matrix Towers
The construction work at IT Park project, Perungudi is going on and the structural work is completed. Fire fighting, Plumbing, AC, STP & Compound wall works are in progress and the building is ready for fit outs. The company entered into an Agreement for Sale for the 4th, 5th and 6th floors for 71,400 sqft of its share and exploring the market for sale/lease of the balance 8,568 sqft.
Montieth Road Property
Company has taken possession of the site and front barricading completed. Building demolition plan submitted. Architect and Consultants have been appointed and Company is planning to apply for CMDA sanctions.
The Promenade
M/s Arup Datta Architect Limited, Canada, have been identified by the SPV for acquiring architectural designs, drawings and other documentation for the project as Architects and preliminary plans have been received.
Out of the SPV portion of 5 Lakh sqft the SPV has already concluded the sale of 2,40,000 sq ft. to M/s. Accor Group of Hotels for their Novotel and Ibis brands at a cost of Rs. 106 Crores. The project is expected to be completed by June 2010.The expected sales revenue for SPV portion will be Rs. 250 Crores.
Green Acres
The Company had entered into a Joint Venture Agreement with land owners for developing 7.20 acres of land into residential apartments. The land is situated at Kazhipattur Village in Old Mahabalipuram Road (IT Highway), Kancheepuram District.
M/s MS61 Pte Ltd, Singapore, have been identified for acquiring architectural designs, drawings and other documentation for the aforesaid project. Concept plan has been received from the Architects. This project will be developed jointly with IndiaReit Fund Advisors (P) Ltd in a separate SPV.
SSPDL Crescent
A Residential Premium Apartments project on a 1.12 Ac plot of land situated at Keelambakkam on Vandalur Road, (IT Express Highway), Chennai. The project will be implemented between March 2008 and December 2009.
The estimated cost of project is Rs.10.10 Crores against estimated revenue of Rs.13.50 Crores. Plans have been submitted for approval. Architects are Lavanaya & Shankar Associates. Pre launch sales have commenced and the response has been good.
SSPDL Madhavaram
A Residential Villas / Row Houses project is proposed on a 3.89 Ac plot of land situated at Thalambur Village of Old Mahabalipuram, (IT Express Highway), Chennai. The project will be implemented between December 2008 and March 2011.
The estimated cost of project is Rs.31.40 Crores against estimated venue of Rs.38.50 Crores. The expected profit will be 7.20 Crores. Built up area is about 175,000 sq ft. Plans are under preparation and M/s Advani Associates, Bangalore, are the Architects.
HYDERABAD-SSPDL Avion
The Company has obtained necessary permissions from HADA (Hyderabad Airport Development Authority) and works has commenced already. Currently, all Layout works including electrical works, road, plumbing works are in progress. The project is expected to complete by September,2008.
The Retreat
The Company is awaiting clearances and approvals for the project from various authorities and construction is expected to commence once the approvals are received.
SSPDL Northwoods
SSPDL Ltd and Indiareit Fund Advisors Pvt Ltd through their SPVs have acquired 42 acres in Gundlapochampally village, Hyderabad to develop a gated residential villa community "SSPDL Northwoods".
Legal due diligence has been completed. Land registered in 9 SPVs. Appointment of Architects for the projects is being finalized. Applications for mutations and relevant approvals are made to the Revenue and HUDA Authorities.
BANGALORE-The Retreat
Construction at "The Retreat" project at Bangalore is going on at frantic pace. Currently 30 villas are under construction and the works relating to club house, model villa, amphitheatre and cricket ground is almost complete. There is an increase in the scope of work of the construction contract for constructing and developing villas and other related works from Rs.77 crores to Rs.108 crores.
KERALA-The Retreat
The Company has acquired about 300 acres through itself and its subsidiaries, a Cardamom plantation land at Kalar Valley, Kerala. The Company is planning to use the SPV's for operating a) Villa Development, b) Jungle Resort Development and c) Jungle and Plantation Development.
Preliminary plans for both resort, layout of Villa Development and typical holiday home have been received from the Architects.
CONSTRUCTION CONTRACTS
TCG IT Park, Chennai
The Company has been awarded contract for construction of 5,00,000 sqft of IT Park including a car park block from TCG Group. The total value is Rs 36.20 Crores and expected date of completion is March 2009.
Ferns - Regalia Realty Ltd, Chennai
The Company has been awarded contract for construction of 50 villas for a value of about Rs 9 Crores. Expected date of completion is September 2009.
Warehouse for SAIL, Vizag
The Company has been awarded contract for providing infrastructure and other works for Steel Authority of India Limited (SAIL). Contract value is about Rs. 8 Crores and expected date of completion is March 2009.
Office building for NSIC, Hyderabad
Contract for construction of 1,50,000 sq ft building for NSIC. Contract value is about Rs 25 Crores and expected date of completion is December 2009.
PROPOSED PROJECTS-MOU WITH ALMOAYYED INTERNATIONAL GROUP
The Company has entered into a MOU with Almoayyed International Group, Behrain for strategic tie up for technical services and engineering, consulting, construction material business, air conditioning & lifts, property management services etc. It is proposed to float a Special Purpose Vehicle jointly with AIG and the same is under process.
(Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints.)
--
Arvind Parekh
+ 91 98432 32381
