International Markets - Asian Markets retreats in losses; vanishing Fridays advance

14 Apr 2008 | 15:01

Asian Markets retreats in losses; vanishing Fridays advance

 

Asian markets were slam in to losses after Group of Seven finance ministers approved that the global economic prospects have weakened and financial market losses will continue. As per the statement released by G-7 the world economy is facing the downside risks. The G-7 downgraded its outlook for the world economy from that of two months ago, blaming the U.S. housing recession, credit-market turmoil, high commodity prices and inflation pressures.

The G-7 statement put a concern over sharp fluctuations in major currencies its possible implications for economic and financial stability. Adding further the statement promised to continue monitoring the exchange markets closely.

The Nikkei 225 Average dropped 3.1% to 12,917.51, while the broader Topix index sank 2.5% to 1,246.24.

Hong Kong's Hang Seng Index gave up 3.5% to 23,811.20, after rising during the two previous sessions, while the Hang Seng China Enterprises Index tanked 5.2% to 12,664.21.

China's Shanghai Composite dropped 5.6% to 3,459.00 and Singapore's Straits Times Index fell 2.6% to 3,046.22.

Australia's S&P/ASX 200 index lost 1.8% to 5,342.40, South Korea's Kospi lost 1.9% to 1,746.71, New Zealand's NZX 50 index slipped 0.5% to 3,470.96 and Taiwan's weighted index fell 0.2% to 8,892.68.

In India the markets were closed on the account of public holiday.

In currency trading, the U.S. dollar was quoted at 101.14 yen, compared with 100.90 yen in New York Friday.

May crude-oil futures slipped as much as 43 cents to $109.71 a barrel in electronic trading, after rising three cents to settle at $110.14 a barrel Friday on the New York Mercantile Exchange.

In Europe shares dropped again on Monday, as below-forecast earnings from Philips Electronics and more weakness in the banking sector weighed on sentiment.

National indexes were in the red, with the German DAX 30 index down 0.9% to 6,544.38, the U.K. FTSE 100 index down 0.7% to 5,859.80 and the French CAC-40 index losing 0.6% to 4,767.90.

On the data release side U.Ks producer prices rose at the highest annual rate since 1991 on record increases in raw material costs, adding to the danger that faster inflation becomes embedded in the economy.

Prices at factory gates climbed 6.2 % from a year earlier, compared with 5.9 % in February, the Office for National Statistics said today in London. Raw material costs rose 20.6 % on the year, the most since records began in 1986. Producer prices rose 0.9 percent on the month, the statistics office said.

Industrial production has slowed down its growing pace in February, compared to that of January 2008.

According to the latest figures released by Eurostat, Industrial output has risen 0.3% in the countries belonging to the Euro Area in February, half of the 0.6% growing pace posted in January, which has been revised down from the 0.9% previously estimated.

Year on year, industrial production increased 3.1%, from the 3.3% increase posted on the previous month, also revised down from the 3.8% previously estimated.

 

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International Markets - US Market ends week with huge losses

14 Apr 2008 | 07:41

US Market ends week with huge losses

 

A relay of not-so-good news on the earning front together with mixed data on the economic front took US market substantially lower for the week that ended on Friday, 11 April, 2008. But most of the weeks loss was due to the huge loss incurred the by the market on Friday it self which was mainly instigated by below-expected first quarter earnings and disappointing outlook from General Electric (GE). Or else, market would have ended the week with a little or modest losses. Other than that, commodities once again reached a sky-high price.

The Dow Jones Industrial Average lost 283 points for the week. Tech - heavy Nasdaq lost 80.75 points. S&P 500 lost 37.5 points. In percentage terms the three indices lost 2.3%, 3.4% and 2.7% respectively.

On Friday, 11 April, GE reported a 12% decline in continuing earnings and an 8% decline in continuing earnings per share. This was shocking not only because the company missed by such a big margin. GE attributed the bulk of its shortfall to the adverse effects of disruptions in the capital markets that hurt its financial services business. The company also slashed its full-year EPS guidance to reflect a slower economy and an assumption that capital markets remain challenging.

The disappointment from GE unnerved the market on Friday and prompted a deep sell-off that accounted for the bulk of this week's losses. The GE stock itself lost 13%, which was the biggest one day loss for the stock in last twenty-one years. Dow lost a huge 256 points on that day itself.

Other earnings-related disappointments included an earnings miss from Alcoa, a first quarter earnings warning from UPS, and a downward revenue revision from semiconductor company AMD.

The only silver lining in this market was Wal-Mart who raised its first quarter EPS guidance after reporting March same-store sales on Thursday, 10 April. That news was one of the few positive considerations in sea of disappointing same-store sales results.

Among major economic report of the week, weekly initial claims fell 53K to 357K. The trade deficit for February, meanwhile, widened to $62.3 billion from $59.0 billion in January. That widening contributed to downward revisions in Q1 GDP forecasts.

Among other negative news in the market, February pending home sales fell 1.9% month-over-month, which was worse than the expected decline of 1%. January pending home sales rose 0.3%. Sales have declined on average 1.7% each month since last year.

Also, The International Monetary Fund said total losses due to the financial market turmoil might grow to $945 billion.

 

Executive Summary

For the week, indices registered huge losses. DJIx and S&P 500, each closed down by 2.3% and 2.7% respectively. Nasdaq closed down by 3.4%. Market once again showed its erratic nature as indices whipsawed almost on all the days of the week.

 

But it was GE, which played the spoilt sport for the market. The company missed its earnings by a huge gap and also lowered its full year guidance. GE weighed on the indices extensively and most of the weeks loss for the market was due to Fridays loss. The GE stock itself fell by 13% on Friday.

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International Markets - Asian markets rebound ahead of weekend

11 Apr 2008 | 14:32

Asian markets rebound ahead of weekend

 

Asian markets were mostly higher, with Japanese indexes gaining after an advance on Wall Street, while Hong Kong stocks were lifted by strong corporate earnings forecasts by Chinese banks.

In Tokyo, the Nikkei 225 Average jumped 2.9% to 13,323.73, while the broader Topix index advanced 2.5% to 1,278. 26.

Hong Kong's Hang Seng Index rose 2% to 24,667.79, while the Hang Seng China Enterprises Index climbed 2.8% to 13,357.12.

China's Shanghai Composite advanced 0.6% to 3,492.89 and Taiwan's weighted index climbed 0.9% to 8,909.58.

Sydney listed shares took losses into a fourth straight day, as stocks of gaming firms TAB Corp Holdings and Tatts Group plummeted after the Victoria state government said their duopoly over gaming machines will end in 2012. Australia's S&P/ASX 200 ended the day on marginally negative note with down 0.1% at 5,439.30.

South Korea's Kospi rose 0.9% to 1,779.71 while New Zealand's NZX 50 index lost 1.5% to 3,488.84.

In afternoon trading, the Singapore's Straits Times Index added 1.5% at 3,110.06 while India's Sensex rose up by 1.1% to 15,874.68.

In currency trading, the U.S. dollar bought 101.95 yen, compared with 100.60 yen in Asia and 101.84 yen in New York late Thursday.

Light crude oil futures for May delivery slipped as much as 38 cents to $109.73 a barrel in electronic trading, after dropping 76 cents to settle at $110.11 a barrel Thursday on the New York Mercantile Exchange

European shares regained a bit of poise as the chemical and auto stocks some of the strongest performers ahead of a key earnings report from industrial bellwether General Electric. In the opening trade, the U.K. FTSE 100 index gained 0.6% to 5,999.60, the German DAX 30 index rose 0.7% to 6,748.67 and the French CAC-40 index increased by 0.8% to 4,896.38.

Meanwhile Germany's wholesale prices rose 1.6 % in March from February and increased 7.1 % from a year earlier.

According to the Federal Statistics Office Germany's wholesale price index stood at 122.2 in March, compared with 120.3 in February and 114.1 in March 2007

The day ahead is we feature OECDs Euro zone Leading Indicator Index. However the focus will be on G7 Meeting, which is scheduled to start today. In the late evening we have Import price index and Reuters/Michigan Consumer Sentiment Index from US.

 

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International Markets - Wal-Mart and Intel take US Market higher

11 Apr 2008 | 09:23

Wal-Mart and Intel take US Market higher

 

US Market opened higher and also ended higher today, Thursday, 10 April, 2008, after incurring losses in the previous two days. An upward guidance from Wal-Mart and an upgrade on Intel were the main catalysts for todays positive close. Other than that, there were a couple of economic reports that were mixed in nature. Seven of the ten economic sectors finished in positive territory. Tech made the biggest advance while Utilities had the worst showing.

Dow was up by as much as 113 points at one point during the day. At the end, The Dow Jones industrial Average ended with a gain of 54.7 points at 12,581.9. The Nasdaq Composite Index, finished higher by 29.5 points at 2,351.7. S&P 500 finished higher by 6 points at 1,360.6. Nineteen one out of thirty Dow stocks ended in the green today.

The technology sector got a big boost from the Semiconductors after the sector was upgraded by Banc of America. The firm upgraded four stocks to Buy from Neutral, including Intel.

Retailers were in focus today as stores reported their March same-store results. Overall, results have been poor. But Wal-Mart issued upside first quarter earnings guidance, and Costco also topped its same store expectations.

Among major economic news, there were 357,000 new unemployment claims for the week ended 5 April against an expected 383,000 claims. In a separate report, the trade deficit widened to $62.3 billion in February, from $59 billion in January. But the report is expected to have negative implications for first quarter GDP forecasts.

Crude prices fell lower for the second consecutive day today as the dollar weakened strengthened against its rivals. Prices also fell as an after effect to yesterdays inventory report by the Energy Department. EIA reported that USAs oil imports fell last week. Crude-oil futures for light sweet crude for May delivery closed at $110.11/barrel (lower by $0.76/barrel or 0.78%) on the New York Mercantile Exchange. Yesterday, prices touched a high of $112.21 during intra day trading. It was a new all-time record for crude prices. Crude prices are 77% higher on a yearly basis. For the year, crude is up by 13.4% till date.

Volume on the New York Stock Exchange came to 3.6 billion, while nearly 2.2 billion shares were exchanged on the Nasdaq. On the NYSE, nearly two stocks posted gains for every one on the decline. On the Nasdaq, advancers beat decliners 4 to 3.

Tomorrow, General Electric will set the tone for trading as the company announces first quarter results before the stock market opens. On the economic report front, March's Import and Export Prices report is due before tomorrow's open followed by The University of Michigan's Preliminary Consumer Sentiment survey. The survey is considered a barometer of consumer health and spending strength.

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International Markets - Asia to end on mix note as Shanghai rebounds

10 Apr 2008 | 15:52

Asia to end on mix note as Shanghai rebounds

Asian markets ended on a mixed note with Japanese stocks dropping in the wake of a fall in February core machinery orders, while the shanghai composite rebounded from the earlier losses on the positive data release which helped Yuan appreciation to cross 7 Yuan a dollar for the first time since the end of the peg.

Shanghai-listed stocks, which sank more than 5% in the previous session, swung between positive and negative territories a few times during the volatile session and influenced the movement of China-related shares in Hong Kong. The Shanghai Composite ended the session 1.7% higher at 3,471.74 on the back of positive data release showing upswing in Chinas GDP and FDI investment.

The U.S. dollar fell below the 7-yuan level for the first time since China removed the Yuans fixed peg to the dollar. The dollar recently bought 6.99 Yuan, bringing the Yuans advance to 18.4 % since the end of the peg.

China's National Bureau of Statistics revised 2007 gross domestic product growth to 11.9 pct from 11.4 pct. GDP totaled 24.953 trillion Yuan in 2007, based on current prices. This was 291.1 billion Yuan more than the initial estimate, the bureau said. The Foreign direct investment showed an upswing in first quarter (FDI) inflows into China in the first three months of the year totaled $ 27.414 billion, up 61.26% from a year earlier.

China's consumer confidence index dropped in the first quarter, affected by inflationary pressure. The index fell 1.7 % from the previous quarter to 94.8. Consumer confidence hit an 18-month low of 94.3 in February following reports that the consumer price index had surged to a 12-year high of 8.7 %, with food prices expanding by 23.3 %.

Shares of Industrial & Commercial Bank of China, however, advanced in Hong Kong after the lender forecast a strong profit growth and helped the benchmark Hang Seng Index come off its early lows. The Hang Seng was closed 0.8% up at 24,187.10, after dropping as low as 23,905.58 earlier in the day. The Hang Seng China Enterprises index gained 1% to 12,998.21.

In Tokyo, the Nikkei 225 Average dropped 1.3% to 12,945.30. The broader Topix index shed 1.2% to 1,248.07. Japan's core private sector machinery orders fell a seasonally adjusted 12.7 % to 1.06 trillion yen in February from January as orders for steel, pulp and paper, and petroleum products declined. This was the first fall in two months, and followed a 19.6 percent rise in January.

Meanwhile, Japan's current account surplus rose 2.9 % to 2.468 trillion yen in February from a year earlier, as higher portfolio income offset the drop in the trade surplus. In another release Japan's money supply shown by M2 plus certificates of deposit, grew 2.2% on year in March, slightly slower than February's 2.3% on-year rise.

Australia's S&P/ASX 200 index fell 1.3% to 5,446.40 on the back of increase in the unemployment to a seasonally adjusted 4.1% in March 4% in February 2008. New Zealand's NZX 50 index lost 1% to 3,540.01, and Taiwans weighted index rose 1.9% to 8,829.40.

Singapore's Straits Times index fell 0.8% to 3,064.60. However the data release today showed economy expanded at an annual pace of 7.2 % in the first quarter, led by double-digit growth in manufacturing.

South Korea's Kospi rebounded from early declines and was recently 0.6% higher at 1,764.64 as the Bank of Korea left its key interest rate unchanged at 5.0 % for the eighth straight month as it continues to grapple with rising inflationary pressures.

May crude-oil futures rose as much as two cents to $110.89 a barrel in electronic trading. On the New York Mercantile Exchange overnight, the contract hit an all-time high of $112.21 a barrel before ending $2.37 up at a record closing high of $110.87 a barrel.

In currency trading, the U.S. dollar bought 101.06 yen. The dollar bought 102.30 yen in Asia and 102.34 yen in New York late Wednesday.

Meanwhile, shares fell in Europe as oil prices moved back toward record highs and investors continued to worry about lingering effects of the credit market crisis on economic growth ahead of a pair of interest rate decisions.

Of national indexes, the U.K. FTSE 100 index fell 0.7% to 5,938.40 and the French CAC-40 index declined 1.5% to 4,800.53. The German DAX 30 index fell 1.4% to 6,627.17.

The euro rose to a record against the pound on speculation the European Central Bank will leave its benchmark interest rate at a six-year high while the Bank of England reduces borrowing costs. The euro rose to 80.27 British pence, the highest level since the Euro zone inception, before trading at 80.01 pence as of 8:50 a.m. in London. It was also within a cent of an all-time high against the dollar, at $1.5857 from $1.5831.

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International Markets - Economic and earning worries weigh on US Market

10 Apr 2008 | 07:49

Economic and earning worries weigh on US Market

US Market opened almost flat but soon slipped into red and lingered in the red for the entire day and ultimately ended lower for the day today, Wednesday, 09 April, 2008. A positive news on Citibanks front helped market open a little bit higher but a lower guidance from United Parcel Services (UPS) weighed on the market sentiment. Higher energy cost added further to its agony. Eight out of ten sectors ended in the red today led by the consumer discretionary sector. Energy was the main winner.

Dow was down by as much as 95 points at one point during the day. At the end, The Dow Jones industrial Average ended with a loss of 49.1 points at 12,527.26. The Nasdaq Composite Index, finished lower by 26.6 points at 2,322.1. S&P 500 finished lower by 11 points at 1,354.

Twenty-one out of thirty Dow stocks ended in the red today. Bucking the trend of Dow laggards were Boeing and Citigroup. The two stocks managed to finish modestly higher due to some good news on their respective front.

It was reported today that Citigroup is close to selling $12 billion in leveraged loans and bonds to a group of private equity players.

On the other hand, Being stock closed almost 5% higher after the aircraft manufacturer said that a delay in delivery of its 787 Dreamliner to later this year doesn't change its 2008 outlook.

Indian ADRs close mixed with majority in the red

Weighing on market sentiment since the very morning was the disappointing earnings guidance from United Parcel Service. The company announced that it expects first quarter earnings which are less than markets consensus estimate. The company cited higher energy cost and tighter business conditions for this change in guidance. The announcement reflects the weakened profit environment amid broader economic challenges.

Among other economic reports of the day, February's Wholesale Inventories Report indicated an increase of 1.1%. Market was expecting an increase of 0.5%, on average.

Indian ADRs closed mixed today but majority closed in the red. Satyam Computers and Wipro Technologies were the main losers shedding 4.2% and 3.8% respectively. HDFC Bank and ICICI Bank managed to end a bit higher. The two ADRs gained 0.1% and 1.6% respectively.

Crude makes a new record for itself

Crude prices rallied strongly today as the dollar weakened against its rivals. Prices also rose after the Energy Department reported that crude inventories unexpectedly fell for the week that ended on 4 April, 2008. Gains were also seen in petroleum-products futures trading on the New York Mercantile Exchange.

Crude-oil futures for light sweet crude for May delivery closed at $110.87/barrel (higher by $2.37/barrel or 2.2%) on the New York Mercantile Exchange. Earlier in the day, prices touched a high of $112.21. It is a new all-time record for crude prices. Crude prices are 80% higher on a yearly basis. For the year, crude is up by 14.2% till date.

Trading volumes showed 1.2 billion shares exchanging hands on the New York Stock Exchange, where decliners topped gainers by 2 to 1, and 816 million trading on the Nasdaq stock market, where decliners topped gainers by 3 to 1.

Tomorrow's economic reports include the weekly initial jobless claims before the market opens which will be followed by the February trade balance. Other than that, Treasury Secretary Paulson will speak in Washington on the economy and will testify on the International Monetary Fund and World Bank before the House Appropriations Committee.

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International Markets - Asian Markets dive further

09 Apr 2008 | 15:05

Asian Markets dive further

 

Asian markets slide deeper into the red with financials such as Mitsubishi UFJ Financial Group in Tokyo, National Australia Bank in Sydney and Ping An Insurance (Group) Co. of China in Hong Kong reacting to worries about global credit markets and a decline on Wall Street.

Japan's Nikkei 225 Average dropped 1.1% to 13,111.89 in late afternoon trading, while the broader Topix index fell 1.5% to 1,262.90. Both benchmarks gave up early gains as the Bank of Japan negatively revised its economic outlook. In its monetary policy meeting the Bank of Japan (BoJ) announced to keep its rate unchanged. The BoJ dropped its view published last month that a moderate expansion remained in place. It also negatively revised its economic outlook, saying the economy was slowing. Japan's economic growth is slowing mainly due to the effects of high energy and materials prices.

The BoJ cautioned corporate profits were leveling off and sentiment among businesses had grown more cautious. It added housing investment had started to recover, but that the pace of spending in the sector was growing only slowly.

China's Shanghai Composite plunged by 5.5% to 3,413.91, after rising for four days, amid concerns about slowing earnings growth.

Hong Kong's Hang Seng Index lost 1.4% to 23,984.57, while the Hang Seng China Enterprises Index shed 2.5% to 12,863.80.

Australia's S&P/ASX 200 declined 0.9% to 5,520.20, after climbing as high as 5,610.10 earlier in the day.

India's Sensitive Index, or Sensex, dropped in early trading, but bounced off 15,464.72. It was recently up 0.5% at 15,660.03.

Elsewhere, New Zealand's NZX 50 index lost 0.8% to 3,575.45; Singapore's Straits Times Index fell 1.1% to 3,0.95.58 and Taiwan's weighted index slipped 0.1% to 8,667.93, also hurt by late selling.

South Korean stock markets were closed for the country's parliamentary elections.

In Asian currency trading, the U.S. dollar bought 102.57 yen. The greenback was quoted at 101.96 yen in Asia and 102.36 yen in New York late Tuesday.

Crude oil for May delivery climbed as much as 30 cents to $108.80 in electronic trading, after dropping 59 cents to $108.50 a barrel on the New York Mercantile Exchange.

In European Session the national indices opened in negative territory ahead of important economic data releases. In its opening trade the U.K. FTSE 100 index fell 0.6% to 5,954.60, the German DAX 30 index declined 0.9% to 6,714.39 and the French CAC-40 index dropped 0.8% to 5,874.10.

On the data release side we had German trade balance that showed a slight decline in February. Februarys trade balance has posted a EUR 16.9 billion surplus in February, down from the EUR 17.1 billion surplus posted in the previous month. On the year German exports increased 9.0%, while imports recorded a 7.0% increase.

The current account of balance of payments has shown a EUR 15.4 billion surplus in February when the balance of services remained unchanged, the net factor income posted a 4.2 billion surplus, current transfers posted a 5.0 billion deficit, and supplementary trade items registered a 0.6 billion deficit.

Meanwhile Euro zone confirmed the sign of slowdown in fourth quarter of 2007 as the gross domestic product (GDP) for the region slowed to 0.4% in the Q4 of 2007 matching the initial estimates from Euro stat. Compared to the Q4 of 2006, fourth-quarter GDP grew 2.2% year-on-year. For all of 2007, GDP growth slowed to 2.6% in 2007 from 2.8% in 2006.

In United Kingdom the weaker pound helped the manufacturing sector to weather the credit crisis relatively well as official figures showed output rising for the second month running in February.

The office for National Statistics said manufacturing output rose 0.4 %in February from January. The previous month's growth was revised up to 0.5 %from 0.4 percent. That was the first time output increased for two months running since the three consecutive increases between March and May last year.

In annual terms manufacturing output rose 1.9 %in February, up from January's 0.6 %year-on-year gain posting the highest since December 2006's 2.0 percent.

The day ahead will feature events like BRC shop price index followed by MBA mortgage application data. In the evening we will turn our focus to the speech from Mr. Bernanke Federal Reserve Chief that will follow by the data on wholesale inventories and EIA Crude oil stocks.

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International Markets - US Market registers modest losses

09 Apr 2008 | 09:02

US Market registers modest losses

 

US Market lingered in the red for the entire day and ultimately ended lower for the day today, Tuesday, 08 April, 2008. The session's pessimistic tone had been present since the start of trading. A number of pessimistic news on different fronts was the main cause for the bearish tone in the market. Seven out of ten sectors ended in the red today led by the financial sector. Energy was the main winner.

Dow was down by as much as 80 points earlier in the day. For the day, The Dow Jones industrial Average ended with a loss of just 36 points at 12,576. The Nasdaq Composite Index, finished lower by 16 points at 2,348. S&P 500 finished lower by 7 points at 1,365.

Weighing on market sentiment since the very morning was the disappointing earnings report from Alcoa, and word that Advanced Micro Devices guided its revenue expectations below the consensus estimate.

Among other negative news in the market, February pending home sales fell 1.9% month-over-month, which was worse than the expected decline of 1%. January pending home sales rose 0.3%. Sales have declined on average 1.7% each month since last year.

Also, The International Monetary Fund said total losses due to the financial market turmoil might grow to $945 billion.

On the other hand, after gaining more than 30% yesterday, Washington Mutual announced it is raising $7 billion and cutting its quarterly dividend. The struggling financial firm expects a first quarter loss.

Crude prices dropped modestly today as the dollar strengthened against its rivals. Prices also fell after traders predicted that U.S. government report will show a decline in the country's fuel demand. Prices earlier rose in the day but then slipped. Crude-oil futures for light sweet crude for May delivery closed at $109.09/barrel (lower by $0.59/barrel or 0.5%) on the New York Mercantile Exchange. Crude prices are 69% higher on a yearly basis. For the year, crude is up by 14.2% till date.

In the currency market today, the dollar edged higher against major rivals after more downbeat U.S. housing data. The National Association of Realtors said its pending home sales index, which is considered a leading indicator of existing home sales, was down 21.4% in February from its year-ago level. The dollar index, which tracks the performance of the greenback, gained 0.1% to 72.28.

Tomorrow's economic reports include the weekly crude oil inventory report is due from the Department of Energy. Other than that, Fed Chairman Bernanke offers the opening remarks at a financial literacy conference in Washington, D.C.

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International Markets - Elevated Commodity prices drive Asian Markets lower

08 Apr 2008 | 15:17

Elevated Commodity prices drive Asian Markets lower

 

Asian markets draw back on the worries of rising crude-oil prices and higher raw-material prices hurting shares particularly airlines and steel makers.

Japan's Nikkei 225 Average fell 1.5% to 13,250.43, while the broader Topix index gave up 1.8% to 1,282.69.

Hong Kong's Hang Seng Index ended the day 1.1% lower at 24,311.69, while the Hang Seng China Enterprises Index dropped 1.7% to 13,196.22.

China's Shanghai Composite ended 0.4% higher at 3,612.54, extending gains into a fourth day. The index rose as high as 3,633.79 earlier during the volatile session.

In afternoon trading, India's Sensitive Index, or Sensex, declined 1.3% to 15,549.94 and the broader S&P CNX Nifty index gave up 1.3% to 4,700.70. Singapore's Straits Times index declined 1.7% to 3,128.70.

Thailand's SET index rose 0.05% to 825.21, ahead of a decision on interest rates by its central bank tomorrow.

Elsewhere, Australia's S&P/ASX 200 fell 1% to 5,571.50, snapping a six-day winning streak. South Korea's Kospi declined 1.1% to 1,754.71, New Zealand's NZX 50 index shed 1.1% to 3,605.68 and Taiwan's weighted index gave up 0.7% to 8,672.85.

Light crude oil futures for May delivery slipped as much as 31 cents to $108.78 a barrel in electronic trading, after rising $2.86 to finish at $109.09 a barrel in regular trading on the New York Mercantile Exchange.

In Asian currency trading, the U.S. dollar was quoted at 101.96 yen, compared with 102.36 yen in New York late Monday.

Technology sector weakness drove a retreat in Europe stocks. In the opening trade the U.K. FTSE 100 lost 0.9% to 5,961.40 while the French CAC 40 fell 1% to 4,897.44. The German DAX 30 fell 0.9% to 6,758.05.

Looking at the economic calendar for the day we have a pending home sales from the U.S followed by the release of FOMC minutes.

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International Markets - Asian Markets move on firm note

07 Apr 2008 | 14:56

Asian Markets move on firm note

Asian markets broadly advanced as resource stocks such as Australia's BHP Billiton, Hong Kong's Zijin Mining Group Co. and Japan's Inpex Holdings rallied on higher commodity prices.

 

Japan's Nikkei 225 Average rose 1.18% to 13,450.23, after dropping as low as 13,228.86 earlier in the day. The broader Topix index also came off the day's lows and advanced 1.29% to 1,305.63. On the economic front, Japan's index of leading economic indicators, which is used to gauge the future direction of the economy, came in at 50.0 in February, better than 36.4 in January. The coincident index, which measures the current state of the economy, stood at 44.4, as expected. The data is accompanied by the detail on the forex reserve, which rose to a record $1.02 trillion at the end of March from $1.01 trillion in February, supported by a stronger euro.

In Hong Kong, the Hang Seng Index rose 1.29% to 24,578.76 and the Hang Seng China Enterprises index rose 2.15% to 13,419.88, as trading resumed after an extended holiday weekend.

China's Shanghai Composite jumped 4.45% to 3,599.62. Australia's S&P/ASX 200 gained 0.1% to 5,625, after dropping as low as 5,605.40 earlier in the session. The trade deficit for Australia widened to A$3.29 billion in February from a deficit of A$2.56 billion in January mainly due to fall in commodity exports. Meanwhile the number of houses and apartments in Australia approved for construction increased by a seasonally adjusted 0.1 percent on month in February,

Elsewhere, New Zealand's NZX 50 index gained 0.36% to 3,644.48, South Korea's Kospi gained 0.4% to 1,773.56, Singapore's Straits Times Index advanced 0.42% to 3,168.9 and Taiwan's weighted index advanced 1.55% to 8,729.79.

In the afternoon trading, India's Sensex was up by 3.04% to 15,809.39, while the broader S&P CNX Nifty index gained 2.92% to 4,782.90.

Crude oil for May delivery rose as much as 25 cents to $106.48 a barrel in electronic trading, after rising $2.40 to $106.23 a barrel on the New York Mercantile Exchange Friday. June gold futures rose as much as $4.40 to $917.60 an ounce in electronic trading after settling up $3.60 at $913.20 on the Nymex Friday.

In Asian currency trading, the U.S. dollar bought 101.84-yen Monday, compared with 102.26 yen late on Friday.

The European markets opened moved higher on as investors continued to look past worrisome employment data out of the U.S., paced by gains in the mining sector after Goldman Sachs turned more positive on metal stocks, as well as strong performances from Swiss-headquartered Nestle and UBS.

Of national indexes, the U.K. FTSE 100 index rose 0.5% to 5,975.60, the German DAX 30 index increased 0.5% to 6,798.85 and the French CAC-40 index rose 0.6% to 4,928.50.

Looking at the data release calendar the day is schedule to release industrial production from Germany followed by building permit from Canada.

 

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Indian Markets on 11 April 2008

11 Apr 2008 | 17:21

Markets close the week on a positive note

The markets opened with an upgap this morning but soon gave up most of their gains after the inflation data was announced. The wholesale price index rose to 7.41% for the week ended 29 March 2008, accelerating from the previous week's annual rise of 7%. However, the markets soon recovered due to firm global cues and higher than expected IIP numbers, industrial output rose 8.6% in February 2008 from a year earlier, rising from the previous month's upwardly revised 5.8%. The markets finally closed the day on a mildly positive note.

While the Sensex was up 112.54 points or 0.72% at 15,807.64, the Nifty was up 44.8 points or 0.95% to close at 4777.80. For the week the Sensex was up 3% and the Nifty gained 2.8%. The broadmarket indices also closed in the positive. The BSE Midcap and Smallcap index closed up 0.68% and 0.63% respectively. The market breadth was positive, as A/D ratio was 1.6:1 on the BSE. NSE cash turnover was Rs. 11,815.36cr vs Rs. 12,539.14cr yesterday.

Sectorally, it was a mixed bag. The BSE Bankex and FMCG lost 0.64% and 1.29% respectively. The BSE Capital Goods, Oil & Gas and Power surged in excess of 2%. Gainers from the index pivotals include Bhel, L&T, Reliance and Satyam Comp. Losers include Ambuja Cement, Infosys, HUL and ITC.

The Nifty is facing a lot of resistance at 4800 levels and therefore only a convincing move above this level would lead to a rally to the 5000-5100 levels. We recommend a selective buying approach.

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Indian Markets on 10 April 2008

Markets end lower due to sell off in the final hour of trade The markets closed in red amid volatile trades.

Markets end lower due to sell off in the final hour of trade The markets closed in red amid volatile trades. It was a disappointing day as the markets couldn't sustain at the higher levels. While the Sensex closed 95.41pts or 0.6% lower at 15,695, the Nifty lost 14.05pts or 0.30% to close at 4733. Broad market indices outperformed as the BSE Midcap and Small Cap indices gained 0.12% and 1.13% respectively. Market breadth was healthy as A/D ratio was 1.81:1 on the BSE.

Sectorally, it was a mixed bag. The top gainer was the BSE Oil and Gas index, followed by the BSE Metals index. Top losers were Bankex, Realty and Healthcare. Coming to stock specific action, the top gainers amongst the frontline stocks were Reliance Energy, TCS, Reliance Industries, Cairn India and Reliance Petroleum. Losers were Bharti Airtel, Ranbaxy, HDFC Bank and Suzlon Energy.

We are not too worried with today's negative close as market breadth was positive due to positive action seen in many mid cap stocks. The nifty is facing a lot of resistance at 4800 levels and therefore only a convincing move above this level would lead to a rally to the 5000-5100 levels. We recommend a selective buying approach.

 

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Indian Markets on 9 April 2008 - Markets end on a healthy note

Markets end on a healthy note

Markets opened lower this morning on the back of weak global cues and traded in a range for the first part of the day. However in the afternoon session the momentum picked up and markets gradually moved up to close with strong gains. While the Sensex was up 202.89 points or 1.30% at 15,790.51, the Nifty gained 37.40 points or 0.79% to close at 4747.05. The broadmarket indices also participated in the rally as the BSE Midcap and Smallcap indices gained 1.39% and 1.62% respectively. The market breadth was positive as A/D ratio was 2.3:1 on the BSE. NSE cash turnover was Rs. __ cr vs Rs.12,340.19 cr yesterday.

Barring the BSE FMCG and Realty indices, all the Sectoral indices ended with gains. The BSE Bankex, Power and Capital Goods indices surged 3.01%, 2.74% and 2.66% respectively. Gainers from the index pivotals included HDFC Bank, HDFC, Bhel and Tata Steel. Losers included Maruti Suzuki, HUL, Bharti Airtel and TCS.

Today's upmove was accompanied with broad market participation which augurs well for the upmove to continue. The Nifty would gain upside momentum once the 4800 resistances are crossed convincingly. We recommend a selective buying approach.

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Indian Markets on 8 April 2008 - Markets end lower

Markets end lower

Markets ended in red with moderate losses as selling pressure was seen in Capital Goods, FMCG, IT and Oil stocks. While the Sensex closed down 169.46 points or 1.08% at 15587.62, the Nifty lost 51.55 points or 1.08% at 4709.65. Broader markets outperformed as the BSE Mid Cap and BSE Small Cap gained 0.60% and 0.47% respectively. Market breadth was marginally positive as A/D ratio was 1.15:1 on the BSE. NSE cash turnover was Rs.12,331.78crs. Vs. Rs. 12,026.36crs yesterday.

Sectorally, barring the BSE Bankex and BSE Consumer Durables indices, all the sectoral indices ended lower. The biggest losers were the BSE Metals, Capital Goods and IT. Among the frontline stocks, Wipro, L&T, JP Associates, SAIL, Grasim, Bharti Airtel and Tata Communications were the big losers. Orchid Chem was up over 15% as JB Chemicals had approved a buyback upto 7%.

Although the main indices and several frontline stocks displayed weakness, it was interesting to note that the midcaps outperformed. We nevertheless recommend a go slow approach on fresh positions till we see more clarity on the overall market direction.

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Indian Markets on 07 April 2008 - Markets end on a strong note as they recover all of Friday’s losses

07 Apr 2008 | 17:27

Markets end on a strong note as they recover all of Friday's losses After an initial blip in the morning, markets steadily moved up on the back of

Markets end on a strong note as they recover all of Friday's losses After an initial blip in the morning, markets steadily moved up on the back of strong Asian and European cues. While the Sensex was up 413.96 points or 2.70% at 15,757.08, the Nifty gained 114.20 points or 2.46% to close at 4761.20. Broadmarket indices too closed higher as the BSE Midcap and Smallcap indices gained 1.31% and 0.82% respectively. The market breadth was positive as A/D ratio was 1.5:1 on the BSE. NSE cash turnover was Rs. 12,026.36crs Vs. Rs.12,115.77 crs yesterday.

All the Sectoral indices ended higher. The BSE Bankex and FMCG indices were the top gainers as they surged 4.14% and 4% respectively. Gainers from the index pivotals included ICICI Bank, Ranbaxy Labs, Jaiprakash Associates and HUL. Losers included Ambuja Cement, Maruti Suzuki and Rel Energy.

With the markets closing on a strong note and recovering all the losses seen on Friday, the bulls seem to have made a comeback. We recommend a selective buying approach as there could be further upsides in the coming sessions.

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Mutual Funds NFO- ICICI Prudential Focused Equity Fund.

ICICI Prudential Mutual Fund has launched an open-ended equity scheme, ICICI Prudential Focused Equity Fund.

Invest in Mutual Fund – Transact Online            Invest in Mutual Fund - Offline

Investment Objective

Seeks to generate long-term capital appreciation and income distribution to unit holders from a portfolio that is invested in equity and equity related securities of about 20 companies belonging to the large cap domain and the balance in debt securities and money market instruments. The Fund Manager will always select stocks for investment from among Top 200 stocks in terms of market capitalization on the National Stock Exchange of India Ltd. If the total assets under management under this scheme goes above Rs.1000 crores the Fund Manager reserves the right to increase the number of companies to more than 20.

Investment Strategy

• This fund aims to invest in the companies which it believes are, Leaders in the industry in which they operate, have rapid growth potential over the next 3 to 5 years and have superior proven management.
• It aims to generate Alpha from being over weight on certain high conviction picks.
• It will not have any bias in terms of theme / sectors. It has the flexibility to take higher exposure to one theme or sector to maximize on the opportunities. But it will keep an eye on the limit on higher exposure.
• It will follow bottom up stock picking. This will be post required analysis, meeting and research about the respective company.

Why focused Large Caps?

• Large Caps have advantage of their size. They have easy access to credit, healthy cash reserves and staying power to withstand tougher times.
• These companies generally have a diversified presence in domestic and international markets and have various business under one umbrella, reducing the risk.
• These stocks have a proven track record of providing significant upside potential in the favorable market conditions and falls less in the adverse market conditions.
• The developed world is being forced to address their concern for the environment due to Global warming issues hence the need is for Alternative Energy sources.
• These stocks are generally less volatile compared to mid and small cap stocks, providing a consistency in the mid to long term returns.

Why is there a need for focus?

• Over diversification does not reduce the risk to a great extent but may end up compromising on the returns.
• A portfolio of focused stocks can help in generating Alpha thereby beating the indices returns.
• The fund manager will seek to take higher exposure in the focused stocks compared to the benchmark with the aim of generating higher returns.

Key Risks

• Equity securities by nature are volatile and prone to price fluctuations on a daily basis due to both macro and micro factors.

Fund Manager

• The fund manager as per the KIM is Anand Shah, but as informed by the AMC, the fund will be managed by Nilesh Shah (CIO) in the beginning and later in future Nilesh Shah will decide whether to continue managing the fund or to appoint another fund manager.
• Nilesh Shah: He is ACA, Grad. CWA and has completed GFM – 25 programme at JP Morgan, New York, USA. He was handling Templeton Debt Funds and Franklin Equity Funds in India (1999-2002)· He was the Portfolio Manager - Fixed Income (1997-1999)· Prior to joining Franklin Templeton, he worked as Head of structured products group at ICICI Securities & Finance Co. Ltd. for over 5 years· He has worked in ICICI merchant banking division managing public issues and corporate advisory assignments.

Scheme Features

Asset Allocation Pattern: Equity and Equity related Securities: 70 – 100 % Debt: 0 – 30%	Load Details: Entry Load: Retail Plan: 2.25 % for < Rs. 5 Crore. Exit Load: Retail Plan: 1.0% for < 6 months for < Rs. 5 Cr.
Benchmark Index: S&P CNX Nifty	Investment Options: Retail: Growth & Dividend (Payout & Reinvestment). Institutional: Growth
NFO Opens on 8th April 2008 NFO Closes on 7th May 2008	Minimum Application Amount: Retail Plan: Rs 5000/- & Institutional Plan: Rs. 10 crores

Investment Rationale

• A concentrated approach of 20 large cap stocks portfolio may help the fund in outperforming the broader indices.
• A focused large cap fund, which can be a value add to the portfolio in terms of exposure to fundamentally strong companies.

 

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Mirae Asset India Opportunities Fund debuts at Rs 9.98

15 Apr 2008 | 16:59

Mirae Asset India Opportunities Fund debuts at Rs 9.98

Mirae Asset Mutual Fund's Mirae Asset India Opportunities Fund, whose initial public offering closed on 11 March 2008, has debuted at Rs 9.98 per unit as against a face value of Rs 10 per unit on 9 April 2008.

Mirae Asset India Opportunities Fund is an open-ended equity oriented fund with an investment objective to generate long-term capital appreciation by capitalizing on potential opportunities through predominantly investing in equities and equity related securities.

The scheme aims to maximize the long term capital appreciation by finding good investment opportunities resulting from Indian economic growth and its structural shifts through investing in equities, equities related securities with risk mitigating and controlling measures. The scheme will invest 65%-100% Indian equities and equity related securities and 0-30% in money market instruments and debt securities investments.

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Standard Chartered Premier Equity Fund re-opens for subscription

15 Apr 2008 | 15:30

Standard Chartered Premier Equity Fund re-opens for subscription

Standard Chartered mutual fund has decided that Standard Chartered Premier Equity Fund is re-opened for subscription from 15 April 2008.

Standard Chartered Premier Equity Fund is an open-ended equity scheme with an objective to generate long-term capital growth from an actively managed portfolio of predominantly equity and equity related instruments.

The Standard Chartered Premier Equity Fund launched in September 2005 has now re-opened for subscription through lump sum investment as well as systematic investment plan (SIP). The SCPEF will be open for subscription from 15th April 2008. The fund will close after collection of a predetermined manageable corpus, which will be decided by the fund manager of the scheme after accessing the investment opportunities available in the stock market.

The fund will normally invest 65%-100% in equity and equity related instruments, 0% - 35% in debt and money market instruments, 0% - 35% in securitised debt instruments. Investment in derivatives, securities lending, foreign debt instruments and ADR / GDR shall be up to 50%, and up to 35%, up to 35% and 50% (subject to SEBI Regulations) of Net Assets of the scheme respectively. The fund is benchmarked to BSE 200.

During the ongoing offer period load will be charged as follows:

The amount to be invested (including by way of SIP/STP) being less than Rs. 5 Crores: 2.25%, Rs. 5 Crores or more (including by way of SIP/STP): nil, by an FOF (irrespective of the amount of Purchase): nil, by way of dividend re-investment: nil.

A switch-in/STP may also attract an entry load like any purchase however no load shall be chargeable on investments switched in by investor from any other equity schemes of Standard Chartered Mutual Fund (other than in case of switch-ins of less than Rs. 5 Crores from Standard Chartered Arbitrage Fund, where entry load of 2.25% shall be applicable).

Such switches may however be subject to exit load as applicable in the scheme from where the investments are switched out. No entry load shall be charged in case of direct investments.

Exit Load: For redemption within 1 year from the date of subscription applying first in first out basis for investments (including through SIPs/ STPs/ SWP/STAR), there will be an exit load of 1%. There will be no exit load for investment made by FOF scheme irrespective of amount of redemption / switch out.

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DBS Chola Interval Income Fund opens for transaction

15 Apr 2008 | 12:10

DBS Chola Interval Income Fund opens for transaction

DBS Chola Mutual Fund has decided that DBS Chola Interval Income Fund - Monthly Plan A, with specified transaction period is opened for transaction on 15 April 2008.

DBS Chola Interval Income Fund-Monthly Plan A combines the features of open-ended and closed ended schemes, making the fund open for fresh purchase or redemption during pre-determined intervals (monthly) at NAV based prices.

DBS Chola Interval Income Fund-Monthly Plan A is a debt oriented interval income fund with an objective to generate regular income through investments in debt including securitized debt, money market and government securities normally maturing in line with the time profile of the respective plans and also with a provision to offer liquidity at periodic interval.

The specified interval period for the fund is 30 days. The fund will offer liquidity at monthly intervals during the specified transaction period without any payment of entry/exit loads. The specified transaction period for DBS Chola Interval Income Fund Monthly Plan A would be 15th of every month. In addition, the fund will also offer redemption/ switch-out facility on an ongoing basis, subject to payment of applicable loads.

Post Expenses yield under institutional plan is between 8.10-8.20% and that of under retail plan is 7.80%. The scheme invests 65-100% in debt including securitized debt and money market instruments and 0-35% in government securities. The scheme is having retail and institutional plan with cumulative and dividend options.

The fund is benchmarked to CRISIL Liquid Fund Index.

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Franklin Templeton MF launches Fixed Tenure Fund IX-Plan B

15 Apr 2008 | 11:35

Franklin Templeton MF launches Fixed Tenure Fund IX-Plan B

Name of Fund: Franklin Templeton Fixed Tenure Fund -Series IX-Plan B

Scheme: It is a close - ended income fund. The scheme will be having maturity of 5 years from the date of allotment.

Objective: The investment objective of the scheme would be to generate returns and reduce interest rate volatility, through a portfolio of fixed income securities with a maturity profile generally in line with the fund's duration along with capital appreciation through equity exposure.

Fund Opens: 15 April 2008

Fund Closes: 12 May 2008

Face Value: Rs 10 per unit.

Investment Options: The scheme offers growth and dividend option. Dividend option further provides dividend payout facility.

Entry Load: The scheme will not charge any entry load as the scheme is of close ended nature.

Exit load: The scheme will charge an entry load of 3% for the redemption done up to 18 months from the date of allotment. It comes down to 2.5%, if redemption of investment is made after 18 months but before 30 months. If redemption of units is made after 30 months but before 42 months, the scheme will levy 2% an exit load. They will levy a 1% an exit load for redemption done after 40 months but before 54 months from the date of allotment. Further, exit load charges come down to 0.5%, if investment units are redeemed after 54 months but before maturity. No exit load will be charged for the switch out/ redemption on maturity.

Minimum Investment Amount: The minimum investment amount is Rs 10000 and in multiples of Re 1 thereafter.

Minimum Subscription amount: The scheme seeks to collect Rs.1 crore.

Asset allocation: The scheme may invest 70- 100% in debt securities and money market instruments. It will invest 0-30% in equity and equity-linked instruments. The exposure in government securities and securitised debts shall be up to 100%. The scheme makes investment in ADR/GDR/foreign securities up to 40% of the equity/ debt portion, exposure in derivatives up to a maximum of 50%.

Benchmark Index: 25% S&P CNX 500 + 65% Crisil Composite Bond Fund Index + 10% Crisil Liquid Fund Index.

Fund Manager: Ninad Deshpande and Pallab Roy for the debt portion and Anand Radhakrishnan for the equity portion.

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Lotus India MF launches FMP Series

15 Apr 2008 | 11:28

Lotus India MF launches FMP Series

Name of Fund: Lotus India Fixed Maturity Plans- 3 Month- Series XXVII

Scheme: This scheme is a close-ended income scheme.

Objective: The objective of the scheme is to generate income by investing in a portfolio of debt and money market instruments normally maturing in line with the duration of the scheme.

Investment option: The scheme offers growth and dividend options.

Fund Opens: 15 April 2008

Fund Closes: 15 April 2008

Face Value: Rs 10

Entry Load: There will no entry load charged for the scheme due to its close-ended structure.

Exit Load: The scheme charges an exit load of 1%, if the investment is redeemed before the maturity date.

Minimum Investment Amount: The minimum investment amount is Rs 5,000 and in multiples of Re 1 thereafter.

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Franklin Templeton MF launches Templeton Fixed Tenure Fund

15 Apr 2008 | 10:56

Franklin Templeton MF launches Templeton Fixed Tenure Fund

Name of Fund: Franklin Templeton Fixed Tenure Fund -Series IX-Plan A

Scheme: It is a close - ended income fund. The scheme will be having maturity of 3 years from the date of allotment.

Objective: The investment objective of the scheme would be to generate returns and reduce interest rate volatility, through a portfolio of fixed income securities with a maturity profile generally in line with the fund's duration along with capital appreciation through equity exposure.

Fund Opens: 15 April 2008

Fund Closes: 30 April 2008

Face Value: Rs 10 per unit.

Investment Options: The scheme offers growth and dividend option. Dividend option further provides dividend payout facility.

Entry Load: The scheme will not charge any entry load as the scheme is of close ended nature.

Exit load: The scheme will charge an entry load of 2.5% for the redemption done up to 18 months from the date of allotment. It comes down to 1.5%, if redemption of investment is made after 18 months but before 30 months. If redemption of units is made after 30 months but before maturity, the scheme will levy 0.5% an exit load. No exit load will be charged for the switch out/ redemption on maturity.

Minimum Investment Amount: The minimum investment amount is Rs 10000 and in multiples of Re 1 thereafter.

Minimum Subscription amount: The scheme seeks to collect Rs.1 crore.

Asset allocation: The scheme may invest 80- 100% in debt securities and money market instruments. It will invest 0-20% in equity and equity-linked instruments. The exposure in government securities and securitised debts shall be up to 100%. The scheme makes investment in ADR/GDR/foreign securities up to 40% of the equity/ debt portion, exposure in derivatives up to a maximum of 50%.

Benchmark Index: 20% S&P CNX 500 + 70% Crisil Composite Bond Fund Index + 10% Crisil Liquid Fund Index.

Fund Manager: Ninad Deshpande and Pallab Roy for the debt portion and Anand Radhakrishnan for the equity portion.

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