NIFTY FUTURES LEVELS
RESISTANCE
4696
4700
4715
4721
4740
SUPPPORT
4671
4668
4647
4628
4622
4603
Buy JINDAL PHOTO;MOTHERSON SUMI
INTRADAY calls for 27th Aug 2009
+ve script : Shiping, GESHIP, ABGShip
BUY Drreddy-825 above 830 for 842+ with sl 826
BUY STER-679 above 682 for 695+ with sl 677
+ve script : Shiping, GESHIP, ABGShip
BUY Drreddy-825 above 830 for 842+ with sl 826
BUY STER-679 above 682 for 695+ with sl 677
BUY ABGShip-203 for 215+ with sl 199
BUY GMDC-97 for 105+ with sl 94
RISK Takers call
BUY LICHousing-673 above 677 for 686-697+ with sl 670
BUY TATAComm-519 above 522 for 537-545+ with sl 517
Positional
BUY Balmlawrie-471 for 537+ with sl 455
BUY Everon-396 for 554+ with sl 357
BUY Prajind-98 for 130+ with sl 91
BUY GMDC-97 for 105+ with sl 94
RISK Takers call
BUY LICHousing-673 above 677 for 686-697+ with sl 670
BUY TATAComm-519 above 522 for 537-545+ with sl 517
Positional
BUY Balmlawrie-471 for 537+ with sl 455
BUY Everon-396 for 554+ with sl 357
BUY Prajind-98 for 130+ with sl 91
Strong & Weak futures
This is list of 10 strong futures:
This is list of 10 strong futures:
Aban Off shore, Ansal Infra, Purva, Bhushan Steel, Patni, FSL, Tata Motors, Oracle Fin Serv & Orchid Chem.
And this is list of 10 Weak futures:
Bajaj Hind, India Cements, Chambal Fert, Balrampur Ch, Federal Bank, Cipla Ltd, Sesa Goa Ltd, Canara Bank, IDFC & Sail Ltd.
Nifty is in Up trend
Nifty is in Up trend
FII DATA
| FII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores) | ||||
| Category | Date | Buy Value | Sell Value | Net Value |
| FII | 26-Aug-2009 | 2289.71 | 1911.17 | 378.54 |
| DII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores) | ||||
| Category | Date | Buy Value | Sell Value | Net Value |
| DII | 26-Aug-2009 | 1612.74 | 1484.09 | 128.65 |
NIFTY FUTURES (F & O):
Above 4694-4696 zone, rally may continue up to 4700 level and thereafter expect a jump up to 4713-4715 zone by non-stop.
Above 4694-4696 zone, rally may continue up to 4700 level and thereafter expect a jump up to 4713-4715 zone by non-stop.
Support at 4668 & 4671 levels. Below these levels, expect profit booking up to 4647-4649 zone and thereafter slide may continue up to 4628-4630 zone by non-stop.
Buy if touches 4622-4624 zone. Stop Loss at 4603-4605 zone.
On Positive Side, cross above 4719-4721 zone can take it up to 4738-4740 zone. If crosses & sustains this zone then uptrend may continue.
Short-Term Investors:
Bearish Trend. 3 closes below 4623.80 level, it can tumble up to 4092.20 level by non-stop.
SL triggered. 3 closes above 4623.80 level, expect short covering up to 4889.60 level by non-stop.
BSE SENSEX:
Higher opening expected. Uptrend should continue.
Short-Term Investors:
Short-Term trend is Bearish and target at around 14235 level on down side.
Maintain a Stop Loss at 15973 level for your short positions too.
POSITIONAL BUY:
Buy JINDAL PHOTO (NSE Cash)
Uptrend may continue.
Mild sell-off up to 143 level can be used to buy. If uptrend continues, then it may continue up to 153 level for time being.
If crosses & sustains at above 161 level then uptrend may continue.
Keep a Stop Loss at 135 level for your long positions too.
Buy MOTHERSON SUMI (NSE Cash)
Uptrend may continue.
Mild sell-off up to 93 level can be used to buy. If uptrend continues, then it may continue up to 102 level for time being.
If crosses & sustains at above 110 level then uptrend may continue.
Keep a Stop Loss at 85 level for your long positions too.
Global Cues & Rupee
The Dow Jones Industrial Average closed at 9,543.52. Up by 4.23 points.
The Broader S&P 500 closed at 1,028.12. Up by 0.12 points.
The Nasdaq Composite Index closed at 2,024.43. Up by 0.20 points.
We did't get update on Rupee.
Interesting findings on web:
The stock market is running out of reasons to go higher.
Interesting findings on web:
The stock market is running out of reasons to go higher.
After rocking between gains and losses Wednesday, the Dow Jones industrials managed to rise for a seventh straight day, marking another high for the year.
But there was hardly any excitement. The Dow rose just 4 points, while other major indexes gained less than 1 point despite positive reports on home sales and factory orders.
An increasingly cautious mood has gripped the market in recent days, following a period of fervid buying this spring and summer that sent stocks up more than 45 percent since early March. While economic data is showing modest improvement, investors are worried stocks may have overshot the economy's recovery.
"The market jumps and then it sort of fades again," said Keith Walter, portfolio manager at Artio Global Equity Fund. "There's not a lot of commitment here."
With trading volume and news flow tapering down amid Wall Street's annual summer slowdown, analysts say there are few near-term catalysts that could get the market's rally going again.
"We seem to be floating up on air," said Andrew Frankel, co-president of Stuart Frankel & Co.
Stocks seesawed without a clear direction despite a Commerce Department report that said new home sales rose 9.6 percent in July for the fourth straight monthly increase. Sales rose to 433,000, the strongest pace since September and well above the 390,000 figure economists expected.
The latest sign of improvement in housing didn't do much to impress investors, though, who have already factored in a recovery in the long-suffering home industry. Some of the latest gains can be attributed to a federal tax credit for first-time home owners currently set to expire in November, and the industry has been pressing Congress to extend it.
Separately, the Commerce Department said orders for goods expected to last at least three years rose 4.9 percent in July — the biggest jump in two years and more than the 3 percent increase economists had expected.
However the overall increase was driven by a surge in orders for transportation equipment, which benefited from the government's recently expired Cash for Clunkers program that drove thousands of people to trade in older cars for new ones. Excluding transportation goods, orders rose 0.8 percent, just short of analysts' expectations.
Across the pond, German business confidence jumped to its highest since last September, according to the Ifo business-climate index.
The morning began with news of Senator Ted Kennedy's death at age 77. Kennedy died after a long battle with a brain tumor, having served in the Senate since 1962, making him the third longest serving senator in history.
Kennedy was considered one of President Obama's major allies in his health-care reform initiative, and the President issued a statement saying he and First Lady Michelle Obama were "heartbroken" to learn of Kennedy's death.
The Dow rose 4.23, or 0.04 percent, to 9,543.52. Over the past seven days, the Dow has risen 408 points, or 4.5 percent. The last time the Dow posted such a long winning streak was on July 21, when its seven-day gain came to 770 points, or 9.4 percent.
The Standard & Poor's 500 index rose 0.12, or 0.01 percent, to 1,028.12, while the Nasdaq composite index rose 0.20, or 0.01 percent, to 2,024.43.
All three indexes are now at their highest levels since last fall.
Stocks ended flat Wednesday as investors shrugged off solid demand from today's five-year Treasury auction and some encouraging economic reports.
For the third consecutive day, equities bounced after favorable news, but the gains fizzled.
After a five-month run-up that has pushed the broader S&P 500 up 52 percent from its 12-year closing low on March 9, analysts have been questioning the rally's strength even as economic data points to improved demand.
"It's a sleepy day on Wall Street," said Fred Dickson, market strategist at D.A. Davidson & Co in Lake Oswego, Oregon.
"It seems like traders have lost the momentum after a huge upward move and they are finally taking a breather."
For the week:
The Dow is up 37.56, or 0.4 percent.
The S&P is up 1.99, or 0.2 percent.
The Nasdaq is up 3.53, or 0.2 percent.
For the year:
The Dow is up 767.13, or 8.7 percent.
The S&P is up 124.87, or 13.8 percent.
The Nasdaq is up 447.40, or 28.4 percent.
Declining stocks narrowly outnumbered advancers on the New York Stock Exchange, where consolidated volume came to a light 5.10 billion shares, down from 5.74 billion shares on Tuesday.
In other trading, the Russell 2000 index of smaller companies rose 0.80, or 0.1 percent, to 584.02.
New home purchases in the US rose 9.6% last month, boosting Home Depot 1.5%. GE, 3M and Caterpillar all slumped more than 1% after durable goods orders, excluding cars, trucks and airplanes, climbed less than economists projected.
But the data proved bullish for the housing sector, driving the Dow Jones U.S. Home Construction index .DJUSHB up 3 percent.
Among the index components, D.R. Horton Inc (DHI.N) advanced 5.7 percent to $13.79 while Beazer Homes (BZH.N) climbed 5 percent to $4.23.
Home Depot Inc (HD.N), the largest home-improvement retailer and a Dow component, gained 0.9 percent to $27.57.
Durable goods excluding transportation rose 0.8 percent, below expectations, although overall durable goods orders posted the largest jump since July 2007, a separate Commerce Department report showed.
Industrial stocks tumbled, in part after China said it would take steps to curb overcapacity among steel and cement producers.
The Dow Jones Heavy Construction index .DJUSHV fell 1.8 percent, with Jacobs Engineering (JEC.N) down 2.8 percent at $45.10. US Steel Corp (X.N) fell 2.4 percent to $43.24.
One of the top drags on the Nasdaq was Apple Inc (AAPL.O), down 1.2 percent at $167.41.
Earlier, Nokia (NOK.N) said it would try to tackle Apple's iPhone in the smartphone market with a bet on Linux software, according to industry sources. Nokia's U.S.-listed stock was up 4 percent at $13.13.
In earnings-related activity, Williams-Sonoma (WSM.N) shot up 11.3 percent to $17.21 after it posted a surprising second-quarter profit.
Topping the Nasdaq's list of biggest percentage decliners was the stock of Concurrent Computer (CCUR.O), which sank 17.6 percent to $4.63 after the company said it expects lower spending trends to continue in the first quarter.
US Steel dropped 2.4% as China said it might seek to reduce overcapacity among steel and cement producers.
Shares of homebuilders surged for a second day after the housing data showed the supply of new homes on the market shrank to the lowest level since April 2007. If supply is decreasing, builders may need to ramp up production.
Hovnanian Enterprises Inc. rose 43 cents, or 9.4 percent, to $5, tacking on to its 6.5 percent jump the day before. The stock is now at its highest level since October. Lennar Corp. rose 61 cents, or 4.1 percent, to $15.58 — its highest point since September.
Sharp declines in industrial and material stocks weighed on the market as commodities prices wavered. A long rally in commodities prices that started earlier this year has been sputtering in recent weeks amid concerns of waning demand from China.
Financials finished mixed, with Bank of America [BAC 17.79 0.04 (+0.23%) ] and AIG [AIG 37.69 3.72 (+10.95%) ] finishing up. Citigroup [C 4.63 -0.12 (-2.53%) ] and JPMorgan [JPM 43.30 -0.28 (-0.64%) ] slipped.
Fannie Mae [FNM 1.85 -0.01 (-0.54%) ] and Freddie Mac [FRE 2.03 -0.03 (-1.46%) ] started higher but ended lower, with Freddie down 1.5 percent and Fannie off 0.5 percent.
In August's quiet trading, Bank of America, Citi, Fannie and Freddie have accounting for an extraordinary amount of volume, which traders have dubbed a "dash for trash."
Caterpillar [CAT 47.25 -0.58 (-1.21%) ], Boeing [BA 47.82 -0.43 (-0.89%) ] and Alcoa [AA 12.26 -0.09 (-0.73%) ] were among the biggest drags on the Dow. Industrials took a hit after China announced plans to curb overcapacity among steel and cement producers.
Toyota [TM 86.91 0.31 (+0.36%) ] will cut production in response to slumping sales, with cuts possibly reaching 700,000 vehicles, or about 7 percent of the company's global production capacity.
Williams-Sonoma [WSM 17.21 1.74 (+11.25%) ] jumped 11 percent after the housewares chain posted a surprise profit.
Oil,Gold & Currencies:
Oil prices fell further Wednesday after the government reported an increase in crude supplies. Light, sweet crude fell 62 cents to $71.43 a barrel on the New York Mercantile Exchange.
Oil inventories rose by 100,000 barrels last week, when analysts had expected a 600,000-barrel decline.
Gold futures edged lower as a stronger dollar reduced the metal's investment appeal.
The most active December contract settled at $US945.80 an ounce, down 20USc, in New York. It fell as low as $US941.20 earlier.
The less active August contract, which expires on Thursday, also ended at $US944.30.
The dollar advanced for a fourth day against the euro amid concern restrictions on Chinese production will stifle an economic recovery, sparking demand for safe-haven currencies.
The yen rose versus all of its 16 most-active counterparts as regional shares declined on the proposed production curbs and before reports estimated to show the U.S. economy contracted at a faster pace and Japanese unemployment rose. The pound dropped to the weakest level in more than a month against the yen before a U.K. report today forecast to show British home prices increased at a slower pace this month.
“Uncertainties about China’s policy action, aimed at tackling credit expansion, will continue to be a key driving force of the market,” said Toshiya Yamauchi, a Tokyo-based manager of the foreign-exchange margin trading department at Ueda Harlow Ltd. “Should the Chinese stock market struggle, the safe-haven currencies may strengthen.”
The dollar traded at $1.4243 versus the euro at 11:07 a.m. in Tokyo from $1.4255 yesterday in New York. The yen was at 133.70 per euro from 134.36. The dollar weakened to 93.87 yen from 94.26 yesterday.
Britain’s currency was at 152.38 yen from 153.17 yesterday after touching 152.18, the lowest since July 14. It fell to $1.6233 from $1.6249 in New York. It touched $1.6160 yesterday, the weakest since July 13.
The Australian dollar declined to 82.63 U.S. cents from 82.84 cents as crude oil, the nation’s fourth-most valuable export, fell for a third day to $71.33 a barrel.
Chinese Policy
China’s cabinet said yesterday it’s studying restrictions on overcapacity in industries including steel and cement as policy makers seek to rein in investment growth fueled by a record credit expansion this year.
“China is a key engine for Asia’s economies, so any curbs on investment would likely undermine a recovery in the region,” said Tsutomu Soma, a bond and currency dealer at Okasan Securities Co. in Tokyo. “Risk aversion will probably increase, leading to buying of the yen and the dollar.”
The Chinese government will also increase “guidance” over parts of the coal, glass and power industries, the State Council said on its Web site yesterday. Controls on stock and bond sales by companies in targeted sectors will be strengthened, it said.
The nation’s benchmark stock index has dropped 15 percent from its Aug. 4 high this year on concern banks may tighten credit after extending a record $1.1 trillion of loans in the first six months.
The Shanghai Composite Index opened lower today before rising 0.1 percent. The Nikkei 225 Stock Average declined 1.6 percent and the MSCI Asia Pacific Index of regional shares lost 0.7 percent.
Japanese Data
The yen advanced for a third day against the euro as a Bloomberg News survey of economists showed the unemployment rate in Japan rose last month, sapping risk appetite. The rate is forecast to match a record high of 5.5 percent.
Consumer prices excluding fresh food dropped an unprecedented 2.2 percent in July, according to a separate survey. Both reports are due tomorrow.
Adding to concerns that a global recovery will be slow, the U.S. government’s revised figures for second-quarter gross domestic product, due today, may show the economy contracted at a 1.5 percent annual rate, compared with the preliminary showing of a 1 percent fall, according to a Bloomberg News survey.
The pound declined for a seventh day against the euro, the longest run since January, on concerns that an economic recovery there may lag behind major counterparts.
The average cost of a home climbed 0.5 percent in August following a 1.3 percent rise in July, according to a Bloomberg News survey of economists before the Nationwide Building Society releases the data today.
“The recovery in U.K. house prices may be stalling a bit,” said Lee Wai Tuck, a currency strategist at Forecast Pte in Singapore. “It’s not good for the economy and it’s negative for the pound.”
The Bank of England has cut its benchmark interest rate to 0.5 percent, allocated 175 billion pounds ($284 billion) to buy bonds and is raising 220 billion pounds of debt through March 2010 to fund stimulus packages and bank bailouts.
Bonds:
Government bond prices were little changed despite favorable demand at an auction of $39 billion in five-year notes. The yield on the benchmark 10-year Treasury note held steady at 3.44 percent.
What to expect:
THURSDAY: 2nd reading on Q2 GDP; weekly jobless claims; Kansas City Fed report; Fed's Bullard speaks; seven-year auction; earnings from American Eagle, Toll Brothers and Dell.
FRIDAY: Personal income and spending; consumer sentiment; Earnings from Tiffany.
Thursday's data includes weekly jobless claims and second quarter GDP, which is the second read for that number. Earnings include American Eagle [AEO 14.58 0.24 (+1.67%) ], Toll Brothers [TOL 23.14 0.83 (+3.72%) ], Royal Bank of Canada [RBS 18.44 0.91 (+5.19%) ] and Toronto Dominion [TD 60.55 0.07 (+0.12%) ], before the open.
Dell [DELL 14.6761 0.1061 (+0.73%) ], Marvell Tech [MRVL 14.40 0.31 (+2.2%) ] and Novell [NOVL 4.75 0.03 (+0.64%) ] report after the close.
Gus Faucher, director of macroeconomics at Moody's Economy.com, said he expects unemployment claims to come in at about 568,000, down slightly.
"The labor market is improving in the sense job losses are shrinking. Employers aren't cutting back as quickly as they had," he said. Traders are watching this number closely after two previous weeks of slightly larger-than-expected new claims.
They are also watching it with an eye toward next Friday's key monthly jobs report for August. Faucher said he may tweak his expectations for the August report, if there are surprises in Thursday's data. For now, he expects a decline in payroll employment of 235,000. He sees the unemployment rate rising to 9.5 percent, versus 9.4 percent in July.
"It's still our anticipation that the labor market is getting worse at a slower pace. It's definitely not at the point where we see job gains. We should start to see gains early in 2010," he said.
Faucher said he expects to see the Q2 GDP revised to -1.5 percent. Second quarter GDP was initially reported at -1 percent, better than most economists had expected at the time.
The big decline in inventories in the second quarter is expected to affect that number.
"Industry got rid of a lot more inventory than we originally thought so that's going to be a negative for GDP in the second quarter, but it's going to be positive for GDP in the second half of the year," as companies increase production to rebuild inventory, he said.
China was big in the news but not much of a factor for markets, as it had been earlier this month when the Shanghai market sold off. Traders are wary about a report from official Chinese news that the state council is studying limits on industries where there is overcapacity, such as steel and cement. Also, Aluminum Corp of China said that smelters, traders and warehouses are all holding as much as 600,00 metric tons of inventories due to surplus output, far more than reported stocks held by the Shanghai Futures Exchange.
Chandler, in a note, said it is also being aggravated by Chinese smelters coming back on line to take advantage of a 30 percent jump in prices.
"We need to be concerned about it because China is one of the engines of the world economy and we need to worry about what it means to us," said Chandler, in an interview. He said China is trying to constrain its growth because it is worried about creating a bubble.
Asia:
Asian stock markets were mostly lower Thursday, succumbing to some profit-taking after Wall Street's limp showing, though losses weren't too severe as positive economic data from the U.S. bolstered sentiment.
Japan's Nikkei was down 1.5%, Australia's S&P/ASX 20 was 0.6% lower, while South Korea's Kospi Composite lost 0.6%. New Zealand's NZX-50 was flat.
Nikkei 225 10,470.99 -168.72 ( - 1.59%). (08.00 AM IST).
Japan's Nikkei average fell 1.6 percent on Thursday after hitting a 10-month closing high the previous day, with exporters such as Canon Inc (7751.T) losing steam, while trade remained cautious ahead of Sunday's election.
The benchmark Nikkei .N225 shed 168.72 points to 10,470.99, after rising 1.4 percent the previous day to score its highest close since Oct. 3.
The broader Topix declined 1.5 percent to 960.54.
Chubu Electric Power Co. (9502) Thursday said it plans to complete safety checks of the No. 3 reactor at its Hamaoka nuclear power station in Shizuoka prefecture, central Japan, around late September.
Nissan Motor Co. (7201) shares fell back Thursday morning, falling 18 yen from Wednesday at one point to 665 yen after buying ran its course.
HSI 20353.72 -102.6 -0.5% (08.10 AM IST).
Hong Kong shares declined early Thursday, with Esprit Holdings getting thrashed after the fashion retailer's half-yearly earnings disappointed, while China-related stocks fell on weakness in the Shanghai market. The Hang Seng Index fell 0.8% to 20,292.39, and the Hang Seng China Enterprises Index gave up 0.9%, while China's Shanghai Composite lost 0.8% to 2,943.63. Esprit /quotes/comstock/22h!e:330 (HK:330 53.20, -6.75, -11.27%) skidded 11.6% in strong volume after reporting a 40% drop in profit, while energy producer Cnooc Ltd. /quotes/comstock/22h!e:883 (HK:883 10.54, -0.10, -0.94%) /quotes/comstock/13*!ceo/quotes/nls/ceo (CEO 137.19, +1.14, +0.84%) dropped 1.3%, also on weaker-than-expected half-yearly earnings.
Hang Seng Index opens 166 points lower on Thu
Hong Kong stocks declined on Thursday morning, with the benchmark Hang Seng Index opening 166 points lower at 20,289.
The Hang Seng China Enterprise Index, which tracks the overall performance of 43 mainland Chinese state-owned enterprises on the Hong Kong Stock Exchange, opened 97 points lower at 11,560.
SOHO China Ltd<0410> decreased 0.69% from the previous closing to HK$4.33. Cheung Kong (Holdings) Ltd<0001> fell 1.01% and opened at HK$98.
SSE Composite 2965.60 -0.07.(08.23 AM IST).
Chinese stocks open 0.67% lower on Thu
Chinese stocks opened lower on Thursday morning.
The benchmark Shanghai Composite Index, which covers both A shares and B shares on the Shanghai Stock Exchange, opened at 2,947.83 points, down 0.67% or 19.76 points from the previous closing.
The Shenzhen Component Index on the smaller Shenzhen Stock Exchange opened 1.05% or 126.37 points lower at 11,868.66 points.
Asian Stocks Decline as China Mulls Production Curbs; Rio Falls
Asian stocks declined, led by commodity companies, after China’s government said it may curb overcapacity in the steel and cement industries, as well as strengthen controls of stock and bond sales.
Rio Tinto Group, which got 19 percent of its sales in China last year, sank 2.6 percent in Sydney. Mitsubishi Corp., a Japanese trading company that gets more than a third of its revenue from commodities, retreated 2.5 percent. China Vanke Co., the nation’s biggest publicly traded property developer, sank 2.7 percent in Shenzhen on share-sale plans.
The MSCI Asia Pacific Index lost 0.6 percent to 112.84 as of 10:47 a.m. in Tokyo. The gauge has climbed 60 percent from a more than five-year low on March 9 on speculation government stimulus packages and lower borrowing costs will revive the global economy.
“There’s been a few stories about Chinese authorities trying to pull back on some of the stimulus,” said Stephen Halmarick, Sydney-based head of investment markets research at Colonial First State, which holds about $114 billion. “In the short term, it takes some of the froth off the big rally we’ve had in the market.”
Japan’s Nikkei 225 Stock Average dropped 1.4 percent to 10,493.35. Australia’s S&P/ASX 200 Index declined 0.2 percent. South Korea’s Kospi Index fell 0.5 percent.
Studying Curbs
Futures on the Standard & Poor’s 500 Index lost 0.3 percent. The gauge was little changed yesterday as a smaller-than- estimated rise in orders for some durable goods and possible curbs on raw-materials suppliers in China outweighed a surge in new-home sales.
The Chinese government said yesterday it’s studying curbs on overcapacity in industries including steel and cement. It will also increase “guidance” over parts of the coal, glass and power industries, the State Council said on its Web site. Controls on stock and bond sales by companies in targeted sectors will be strengthened, it said.
Rio sank 2.6 percent to A$57.40. BHP Billiton Ltd., the world’s biggest mining company, lost 1.4 percent to A$37.61. Mitsubishi dropped 2.5 percent to 1,875 yen in Tokyo. Mitsui & Co., which counts commodities as its biggest source of profit, declined 3.3 percent to 1,219 yen.
“For commodity exporters like Australia the demand from China for commodities has been one of the key reasons we’ve managed to avoid the worst of the global downturn,” said Colonial’s Halmarick.
Commodity Prices
OZ Minerals Ltd. slumped 5.2 percent to A$1.09. The Australian copper and gold producer reported a first-half loss on the sale of $1.6 billion of mines.
Material producers were the second-biggest drag on the MSCI Asia Pacific Index today following declines in commodity prices. Crude oil slipped 0.9 percent to $71.43 a barrel in New York yesterday, the lowest settlement since Aug. 18, and a gauge of six metals in London fell for a second day, dropping 0.8 percent.
The MSCI Asia Pacific Index’s five-month rally has lifted the average price of its companies to 24 times estimated earnings, up from 13.7 at the end of 2008. The gauge’s current valuation is higher than the Standard & Poor’s 500 Index’s 17.2 times and 15.1 for Europe’s Dow Jones Stoxx 600 Index.
“Current prices fully reflect a possible V-shaped recovery in company earnings next year,” said Mitsushige Akino, who oversees the equivalent of $637 million at Tokyo-based Ichiyoshi Investment Management Co. “It’s still unclear whether such a recovery will indeed happen and this uncertainty is allowing speculators to dominate the market.”
In Shenzhen, China Vanke fell 2.7 percent to 10.65 yuan after saying it plans to raise as much as 11.2 billion yuan ($1.6 billion) by selling additional shares.
James Hardie Industries NV, the biggest seller of home siding in the U.S., climbed 3.8 percent to A$7.40 in Sydney. Sales of new homes in the U.S. jumped 9.6 percent in July, the most in four years, a government report showed.
China Zhongwang's net profit jumps 71.7% in H1.
Country Garden July contracted sales revenue hits RMB 1.25 bln.
Asustek's net loss hits NT$131 mln in Q2.
Chi Mei sees stable flat panel prices in Q4.
Shanghai-based firm to buy license from Pierre Cardin.
Sinotrans' net profit declines 61% in H1.
China surpasses Germany as world's largest exporter: WTO.
BP sells China LPG unit to Zhangjiagang Oriental Energy.
Platinum Investment cuts stake in TravelSky to 11.89%.
China Everbright Bank gets CBRC approval on private placement.
Belle Int'l reports RMB 988 mln in net profit for H1.
Poly posts H1 results, narrows gap with Vanke.
Kerry Properties sees profit fall to HK$1.88 bln in H1.
Global semiconductor revenue to drop 17% this year: Gartner
Siemens bought two Chinese metal companies.
U.S. regulator eases rules for private buys of failed banks.
Chinese newspapers available in Beijing and Shanghai carried the following stories on Thursday.
China's State Council, the country's cabinet, is seeking to tackle overcapacity and wasteful investments in some sectors, including steel, cement and wind power.
Chinese lawmaker and former central bank vice governor Wu Xiaoling said China may face long-term inflationary pressure due to the fast growth of M2 and new bank lending in the first half.
Major Chinese brokerage Shenyin Wanguo booked 2.92 billion yuan ($427.5 million) profit in the first seven months, exceeding its profit for 2008, said company president Feng Guorong.
The merger between China Eastern Airlines and Shanghai Airlines will not affect Air China's plans to make Shanghai one of its major global air hubs, said Huang Bin, Air China's board secretary.
CFM International, joint venture between General Electric and Safran and Pratt & Whitney, a unit of United Technologies, are among the potential engine suppliers for China's in-housed designed big commercial jet, said Zhang Jian, general manager of the jet's Chinese supplier.
Foreign aviation suppliers are competing for business opportunities arising from China's plans to build a jumbo jet, whose model will be unveiled in two weeks.
China's 600-year-old Forbidden City will provide visitors with richer, easier and more virtual access to the imperial building complex on its website.
Some 300 million Chinese now living in rural areas will move into cities in the coming 15 to 20 years, said Xu Zhongwei, deputy policy director of the Ministry of Housing and Urban-Rural Development.
China's industrial growth in 2009 could reach an estimated 11-12 percent, but irrational industrial structures, overcapacity and unplanned development remain problems, according to a report by the Ministry of Industry and Information Technology.
A modified Renewable Energy Law under the review of the National People's Congress is set to guarantee the use of electricity from renewable sources.
Taiwan farmers are now allowed to join agricultural cooperatives in the cross-strait province of Fujian, the authorities said. For Hong Kong and South China newspapers see..... For Taiwan newspapers
US Mortgage Delinquencies Up in July: Equifax
Rising unemployment continues to make more Americans miss their mortgage payments, a negative sign for the U.S. housing market that has lately enjoyed strong data on sales, prices and mortgage applications.
Among U.S. homeowners with mortgages, a record 7.32 percent were at least 30 days late on payments in July, up from about 4.5 percent a year earlier and 7.23 percent in June, according to monthly data from the Equifax credit bureau.
The rate of subprime mortgage delinquencies rose to 39.48 percent from 39.25 a month earlier, though it is still below levels reached earlier this year, according to the data obtained exclusively by Reuters.
Mortgage delinquencies are driven by three factors, two of which appear to be solved or at least improving, said Dann Adams, president of U.S. Information Systems for Equifax [EFX 27.90 0.11 (+0.4%) ]. First, loose underwriting standards are largely a thing of the past, now that lenders demand higher credit scores and are more careful to verify income. Second, home prices are stabilizing, or even rising, in some U.S. markets, which puts less pressure on home owners.
But the third factor, unemployment, remains a worry.
"Even if it's in the 200,000 to 400,000 (job losses) a month range, it will be a driver of these delinquency rates," Adams said. "Until unemployment starts to flatten out and begin to return to hiring, these numbers will probably continue to push up."
Mortgages are more likely to be delinquent in parts of the United States where the housing bubble was biggest, and underwriting standards were the loosest, such as Florida, Nevada and California; delinquency rates are less acute in parts of the Midwest and on the East Coast.
The mortgage data come against a backdrop of an improving housing market, whose health is considered critical to any U.S. economic recovery.
Sales of new single-family homes rose more than expected in July. Home prices were up in June, from May, in 18 of 20 metropolitan areas tracked by the Case-Shiller index, a monthly measure of U.S. home prices. Applications for loans to buy a home rose for a fourth straight week, according to the Mortgage Bankers Association.
Demand has been helped in part by an $8,000 government tax credit for new home buyers that is to expire in November. Some home builders, meanwhile, have reported increases in signed contracts for the first time in years, such as Toll Brothers [TOL 23.14 0.83 (+3.72%) ], which reports quarterly results on Thursday.
Areas of Concern
Against that backdrop, rising delinquencies suggest U.S. housing is not yet out of the woods. Early-stage delinquencies are a leading indicator of future bankruptcy filings, and Equifax's July data suggest bankruptcies will continue rising in coming months.
Bankruptcy filings were up 35 percent in July compared with a year earlier, accelerating from both June and May. Still, while more Americans are late on their mortgage payments, they seemed to be keeping up with credit card bills.
The proportion of bank cards at least 60 days past due was down for the fourth straight month in terms of units, and down for the second straight month in dollar terms. Equifax said this reflects both tight underwriting standards by card companies and consumers cutting back on their spending.
The number of new cards issued in the first half of the year, at 14.7 million, is down 39 percent from the same period in 2008, and those cards are now likely to go only to "prime" consumers with high credit scores.
"It is definitely a prime play right now," Adams said.
Separately, Equifax said it saw a huge increase in credit inquiries from auto dealers this month, in response to the cash-for-clunkers program.
"It will be interesting to see the underwriting standards put on that volume of new cars," Adams said. "We'll be watching that portfolio over the next three to six months."
Auto delinquency rates rose for the third straight month in July and are up about 13 percent over last year, to 0.75 percent. Subprime auto delinquencies, at 3.19 percent, are also up for three months running.
Meanwhile, student loan delinquencies are also up, partly reflecting graduates' difficulty in landing jobs after college.
Latest Japanese poll tips DPJ landslide: report
A new opinion poll in Japan added to indications that the opposition Democratic Party of Japan will trounce the ruling Liberal Democratic Party in the general election Sunday, according to a report Thursday. The Asahi Shimbun survey, as reported by Kyodo news, said the DPJ will take 320 of the 480 seats up for grabs in the powerful lower house of the Diet, while the LDP will capture "only around 100 seats." Other recent opinion polls have shown similar outcomes.
China Wealth Fund to Boost Investment 10-Fold: Report
China's sovereign wealth fund will increase new overseas investment this year by around 10 times from the previous year on signs the global economy has bottomed out, the head of the organisation said in a newspaper interview.
Gao Xiqing, president of China Investment Corporation (CIC), also said he was actively examining making new investment in Japanese companies and property on prospects of a recovery in the country's economy, according to the interview that ran on Thursday in Japan's daily Asahi newspaper.
CIC's new investment overseas, which shrank to $4.8 billion last year due to the deepening financial crisis, will increase by around 10 times this year to several tens of billion dollars, he said.
On whether Beijing will shift more from its $2-trillion foreign reserves to CIC, he said he couldn't reply because it was a decision for the Chinese government.
CIC was created in September 2007 and manages $200 billion of the country's foreign reserves, now the world's largest.
China ‘Tweaking’ Lending Policies to Reduce ‘Froth,’ RBS Says
China’s banking regulators are “tweaking” lending policies to remove “froth” from the system while growth remains the top priority for policymakers, according to Royal Bank of Scotland Group Plc.
The goal is to manage risk exposure among banks and asset quality by checking lending from going into A-shares traded on the mainland and properties, Wendy Liu, Hong Kong-based head of China research at RBS ABN Amro, said in a report dated yesterday.
“The current tweaking seems aimed at reducing froth, rather than slowing growth,” Liu said.
China plans to tighten capital requirements for banks, threatening to curb the record lending that’s fueled a rally in the stock market this year, three people familiar with the matter said last week. Chinese banks handed out a record $1.1 trillion of new loans in the first half to support the nation’s 4 trillion yuan economic stimulus package.
The benchmark Shanghai Composite Index was the best- performing major market from Jan. 1 to Aug. 4, when it reached this year’s high. It has dropped 15 percent since then on concern the government will curb lending.
The banking regulator sent draft rule changes to banks on Aug. 19 that would require lenders to deduct all existing holdings of subordinated and hybrid debt sold by other lenders from supplementary capital, said the people, who have seen the document and declined to be named as the matter is private. This may cut lending by as much as 700 billion yuan ($102 billion), China International Capital Corp. said Aug. 24.
Loans, Stocks
Wei Jianing, a deputy director at the Development and Research Center under the State Council, estimated about 1.16 trillion yuan of loans were invested in stocks in the first five months of this year, China Business News reported on June 29.
Premier Wen Jiabao said in comments published this week that the government will maintain its fiscal and monetary policies as the economic recovery isn’t stable and faces many “uncertainties.” Authorities can’t be “blindly” optimistic as a “decline in external demand may continue for a longer time” and excess capacity may restrain industrial growth, Wen was quoted as saying on the State Council’s Web site Aug. 24.
The top policy priority for the government in 2009 and 2010 remains growth given possible weak U.S. consumer spending next year, RBS’s Liu said. Real estate and commodities will benefit “significantly” from a continuation of China’s pro-growth policy, she said, adding that policymakers have “far greater tolerance” for asset-price appreciation over the medium term than before.
China’s stock market may resume its rally in the fourth quarter as investors gain “better clarity on earnings and policy priority,” she added.
INVESTMETN VIEW
INVESTMETN VIEW
Shasun Chem launches Streptokinase In India
Shasun Chemicals and Drugs Ltd. launches Streptokinase for Indian Market Shasun Chemicals & Drugs Ltd., a leading Indian CRAMS and API exporting pharmaceutical company, today announced that it is making a foray into Biotherapeutics by launching Streptokinase in the Indian Market.
Shasun Chemicals and Drugs Ltd. launches Streptokinase for Indian Market Shasun Chemicals & Drugs Ltd., a leading Indian CRAMS and API exporting pharmaceutical company, today announced that it is making a foray into Biotherapeutics by launching Streptokinase in the Indian Market.
Streptokinase is an effective and inexpensive clot dissolving drug used in the treatment of myocardial infarction and pulmonary embolism and belongs to the category of fibrinolytics/clot busters which work by activating plasminogen to produce plasmin which in turn helps in dissolving the clot.
The technology for the synthesis of this therapeutic protein was developed at Institute of Microbial technology (IMTech) by Dr. Girish Sahni, Director IMTech and his team. IMTech is a premier institute working on the frontiers of Science and Technology under the auspices of the Council of Scientific and Industrial research (CSIR), Government of India.
The technology was subsequently licensed to Shasun Chemicals and Drugs Ltd. (Shasun) in the year 2002 and Shasun had undertaken enormous amounts of work to effect the transition of this technology from the labs in IMTech to the commercial market place.
IMtech guided Shasun on the nuances of the technology and played a pivotal role in the development of this drug. This development represents and endorses the importance of Public/Private partnerships to produce affordable medicines.
Speaking on this development Mr. N Govindrajan, CEO & MD, Shasun Chemicals and Drugs Ltd said “We have worked closely with the Institute of Microbial technology since 2002 to get
this technology commercialized and we are happy to announce today, that this launch of Streptokinase demonstrates the potential of public-private partnerships to develop economically viable treatment alternatives”.
“This medicine will provide immense benefit to the Indian population. Young patients with fewer clots can be treated. It will reduce mortality among patients, increase lifespan of the younger lot & the thrombolytic patients can avoid surgery and huge expenses now.” he further added.
Over the last decade, treatment mechanism for patients with AMI (Acute Myocardial Infarction) has been by intravenous thrombolysis using Streptokinase. This mode of treatment makes it highly critical for the medicine to be of absolutely best purity.
Shasun‟s Streptokinase being a recombinant protein will have not any traces of Streptolysin or Streptodornase (which are usually harmful) associated with natural streptokinase.
Further studies in the lab have also demonstrated that Shasun‟s Streptokinase has one of the best fibrinolytic activities amongst the products currently available in the market.
About Shasun Chemicals and Drugs Ltd (BSE: 524552, NSE: SHASUNCHEM) Shasun Chemicals and Drugs Ltd is leading pharma company focused on manufacture of Active Pharmaceutical Ingredients (API‟s), intermediates and finished dosages to global pharma majors.
Founded in 1976, Shasun offers an integrated business model by offering services in research, development and manufacturing (including Contract Research and Manufacturing Services). The company has four bulk manufacturing facilities, two in India and two in UK, which have been inspected successfully several times by various regulatory agencies including US FDA.
Its finished dosage facility has been inspected by US FDA, TPD Canada and MHRA, UK. With its maiden acquisition of business and assets of UK-based Rhodia Pharma through the wholly owned subsidiary Shasun Pharma Solutions Ltd (SPSL), Shasun has now become a multi national company.
(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.)
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Arvind Parekh
+ 91 98432 32381
