Q2 2010 Quarterly Dividend and Q3 Timetable Announcement

July 30, 2010 By Leave a Comment

THE HAGUE, Netherlands, July 29, 2010 /PRNewswire-FirstCall/ — The Board of Royal Dutch Shell plc (“RDS”) today announced an interim dividend in respect of the second quarter of 2010 of US$0.42 per A and B ordinary share, equal to the US dollar dividend for the same quarter last year.

Dividends declared on A ordinary shares (“A shares”) will be paid by default in euro, although holders of A shares will be able to elect to receive dividend in pounds sterling. Dividends declared on B ordinary shares (“B shares”) will be paid by default in pounds sterling, although holders of B shares will be able to elect to receive dividend in euro. Dividends declared on American Depository Receipts (“ADRs”) will be paid in US dollars.

Details relating to the second quarter 2010 interim dividend

This dividend will be payable on September 8, 2010 to those members whose names are on the Register of Members on August 6, 2010. The shares will become ex-dividend on August 4, 2010.

It is expected that the dividends on the B shares will be paid via the Dividend Access Mechanism from UK-sourced income of the Shell Group.

Per ordinary share Q2 2010
RDS A shares (US$) 0.42
RDS B shares (US$) 0.42

Per ADR Q2 2010
RDS A ADRs (US$) 0.84
RDS B ADRs (US$) 0.84

Dividends on A shares will be paid, by default, in euro at the rate of EUR 0.3227 per A share. Holders of A shares who have validly submitted pounds sterling currency elections by July 28, 2010 will be entitled to a dividend of 26.89p per A share.

Dividends on B shares will be paid, by default, in pounds sterling at the rate of 26.89p per B share. Holders of B shares who have validly submitted euro currency elections by July 28, 2010 will be entitled to a dividend of EUR 0.3227 per B share.

Holders of A or B shares in ADR form will be entitled to a dividend of US$0.84 per ADR.

Taxation

Dividends on A shares will be subject to the deduction of Netherlands dividend withholding tax at the rate of 15%, which may be reduced in certain circumstances. Provided certain conditions are met, shareholders in receipt of A share dividends may also be entitled to a non-payable dividend tax credit in the United Kingdom.

Shareholders resident in the United Kingdom, receiving dividends on B shares through the Dividend Access Mechanism, are entitled to a tax credit. This tax credit is not repayable. Non-residents may also be entitled to a tax credit, if double tax arrangements between the United Kingdom and their country of residence so provide, or if they are eligible for relief given to non-residents with certain special connections with the United Kingdom or to nationals of states in the European Economic Area.

The amount of tax credit is 10/90ths of the cash dividend, the tax credit referable to the second quarter 2010 interim dividend of US$0.42 (26.89p or EUR 0.3227) is US$0.05 (2.99p or EUR 0.0359) per ordinary share and the dividend and tax credit together amount to US$0.47 (29.88p or EUR 0.3586).

Dividend reinvestment plan

The Royal Bank of Scotland N.V. (“RBS”) and Equiniti each have established a dividend reinvestment facility which enables RDS shareholders to elect to have their dividend payments used to purchase RDS shares of the same class as those already held by them. The dividend reinvestment plans (the “DRIPs”) are provided by RBS in respect of shares held through Euroclear Nederland and by Equiniti in respect of all other shares (but not ADRs). DRIPs for the ADRs (both Class A ADRs and Class B ADRs) traded on the NYSE are available through The Bank of New York Mellon.

Enquiries about the DRIPs, including how to elect to participate and information about the reinvestment mechanisms under the respective plans should, in the case of shareholders holding through Euroclear Nederland, be directed to their bank or broker and in the case of all other shareholders (other than holders of ADRs) to Equiniti. Enquiries relating to the DRIPs for ADRs (both Class A ADRs and Class B ADRs) should be made to The Bank of New York Mellon.

Scrip dividend programme

At the 2010 Annual General Meeting of the Company, shareholders approved a resolution authorising the Directors to offer ordinary shareholders (excluding any shareholder holding shares as treasury shares) the right to choose to receive extra ordinary shares instead of some or all of the cash dividend or dividends which may be declared or paid at any time after the date of that meeting and prior to May 18, 2015 (the “Scrip Dividend Programme”).

The Board intends to introduce the Scrip Dividend Programme in relation to the third quarter 2010 financial results.

Shareholders will be provided with full details of its terms and conditions and how to participate in September 2010. Full details of the Scrip Dividend Programme will be made available on http://www.shell.com/dividend.

Revised timetable for the third quarter 2010 interim dividend

The Board advises shareholders that the timetable for the third quarter 2010 interim dividend has been revised as a result of the intended introduction of the Scrip Dividend Programme.

Revised intended timetable for the third quarter 2010 interim
dividend:

Announcement date October 28, 2010

Ex-dividend date November 3, 2010

Record date November 5, 2010

Scrip reference share price announcement date November 10, 2010

Closing of scrip election and currency election November 26, 2010

Pounds sterling and euro equivalents announcement December 3, 2010
date

Payment date December 17, 2010

The revised intended dividend timetable for the third quarter 2010 interim dividend is also available on http://www.shell.com/dividend.

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , ,

Analysis: Emerging market capital curbs may be just the ticket

July 30, 2010 By Leave a Comment

(Reuters) – Investors are buying more long-dated bonds and overseas-listed shares in key emerging markets, suggesting capital controls set up in these countries may be helping curb volatile portfolio flows and currency swings.

While it is hard to gauge the net impact of controls set up in some developing countries, the experience of Brazil and Indonesia suggests it is possible to deter big speculative flows or redirect portfolio cash to less volatile assets without necessarily scaring investors off.

Last October, frustrated by a 30 percent surge in the real, Brazil slapped a 2 percent tax on foreign flows into its stocks and bonds. It was followed by Taiwan, Indonesia and South Korea, which have imposed a variety of milder curbs on capital.

Nine months on, investors say they are still putting cash in Brazil while Finance Minister Guido Mantega has been quoted as saying that the levy has changed the “irrational course” of the markets and that the real currency is now less volatile.

Fund managers say the tax has also raised millions of dollars in government revenue.

“Has this tax made my life tougher? Definitely yes. Has it put me off investing in Brazil? Definitely not,” said Jose Cuervo, who looks after $6 billion in Brazilian stocks at HSBC.

Cuervo says the 2 percent levy has to be seen against the backdrop of 20 percent-plus corporate earnings growth.

To avoid the tax but still invest in Brazil, he buys American Depositary Receipts in Brazilian firms instead of the underlying Sao Paulo-listed stocks where possible. ADRs are priced in dollars and enable investors to sidestep cross-border and cross-currency transactions.

The tax has also slowed some cash outflows.

“In the past when we sold positions in local bonds we would move returns back offshore into dollars. But now we look to keep the money onshore in Brazil,” says Brett Diment, who oversees $5 billion in emerging debt at Aberdeen Asset Management.

Data from Indonesia, another popular emerging market, suggests steps enacted there in June may have helped push out some foreign accounts from short-dated debt.

Jakarta now requires buyers of one-month central bank bonds to hold them for at least 28 days, making the short-term debt less attractive to cut-and-run speculators.

Foreign holdings of six-month Indonesia bills surged 37 percent in July, data shows. As foreigners raised duration, one-month yields rose while six-month and one-year yields fell 25-30 bps.

“The results are in line with what the government wanted: more investors in longer-dated bonds, but at the same time foreign ownership of Indonesian bonds is at a record high,” said Standard Chartered currency strategist Thomas Harr.

TOO SUCCESSFUL?

Ironically, investors fear the relative success of Brazil’s levy may tempt the government to raise it further.

“Brazil’s local bonds are among the most attractive assets in EM, but if the real breaks much higher the market will be concerned about further measures,” Diment said.

“So from that point of view (the tax) has been a successful measure in that it is limiting currency appreciation.”

Some also worry that countries such as Colombia or Peru could follow Brazil’s example.

The Institute for International Finance has cut its 2010 forecasts for emerging market capital flows, citing fear of more controls.

Across emerging markets, flows into equities have dipped from last year’s highs and currencies have weakened, while bond flows are at record highs. This is significant as equities are widely seen as a key destination for speculative cash.

Central bank reserve growth, often used for calculating the ebb and flow of hot money, has also slowed. Developing countries’ reserves grew $80 billion in the first three months of 2010, IMF data shows, versus a $200 billion jump the previous quarter.

Still, analysts are reluctant to pin these developments entirely on capital controls, noting that the industrialized world’s poor growth outlook is weighing on emerging markets and creating a friendlier environment for bonds than stocks.

“In the past whenever G3 growth collapsed, flows to EM have slowed,” says Claire Dissaux, strategist at Millennium Global citing 1998 and 2002. “You would have to believe in true decoupling to expect flows to continue at the same level.”

Emerging central banks say it is not currencies or portfolio flows that they aim to curb, though, but hot money flitting from market to market in search of yield — the type of cash that is widely blamed for past emerging market crises.

They may be fighting an uphill battle as emerging interest rates are rising, creating a powerful driver for speculative capital seeking returns in short-term deposits.

But multilateral lenders’ surprising endorsement of calibrated controls may be tacit acknowledgement that the curbs do indeed discourage hot money.

A February paper by IMF economists noted “an effect on the composition of inflows rather than the aggregate volume” resulting from such curbs — just the result the emerging economies are looking for.

(Editing by Hugh Lawson)

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , ,

Stora Enso Plans Temporary Lay-Offs at Sawmills in Finland

June 16, 2010 By Leave a Comment

HELSINKI, Finland, June 15, 2010 (GLOBE NEWSWIRE) — Stora Enso will start
co-determination negotiations concerning possible temporary lay-offs at its
Finnish sawmills, which are at Kitee, Uimaharju,Varkaus and Honkalahti. The
planned lay-offs are in response to the threat that wood cost levels in Finland
will become even more uncompetitive if current trends continue.

“We are increasingly concerned by the trend in Finnish raw material prices. We
need to prepare ourselves to take rapid corrective actions if raw material
prices continue to escalate and can no longer be compensated by increases in
end-product prices or efficiency improvements,” says Hannu Kasurinen, EVP, Stora
Enso Wood Products.

The total number of employees affected by the co-determination negotiations in
Finland is about 500. The negotiations address the plan to curtail production at
individual sawmills if necessary through temporary lay-offs between 1 September
and 31 December 2010. In Finland Stora Enso has a total capacity of about 1.3
million cubic metres of sawn timber per year.

Stora Enso is a global paper, packaging and wood products company producing
newsprint and book paper, magazine paper, fine paper, consumer board, industrial
packaging and wood products. The Group is the world leader in forest industry
sustainability. We offer our customers solutions based on renewable raw
materials. Our products provide a climate-friendly alternative to many
non-renewable materials, and have a smaller carbon footprint. Stora Enso is
listed in the Dow Jones Sustainability Index and the FTSE4Good Index. Stora Enso
employs some 27,000 people worldwide, and our sales in 2009 amounted to EUR
8.9billion. Stora Enso shares are listed on NASDAQ OMX Helsinki (STEAV, STERV)
and Stockholm (STE A, STE R). In addition, the shares are traded in the USA as
ADRs (SEOAY) in the International OTCQX over-the-counter market.

STORA ENSO OYJ

Jari Suvanto

Ulla Paajanen-Sainio

-0-
CONTACT: Stora Enso Oyj
Hannu Kasurinen, EVP, Stora Enso Wood Products
+358 2046 21222
Ulla Paajanen-Sainio, Head of Investor Relations
+358 2046 21242
Paeivi Kauhanen, Director, Communications in Finland
+358 2046 21380
www.storaenso.com
www.storaenso.com/investors

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , ,

EuroCCP Launches Clearing Service for US Equity Issues

April 15, 2010 By Leave a Comment

First European equities clearing service that supports trading of US securities
during European trading hours with settlement in DTC
LONDON–(Business Wire)–
EuroCCP announced today that has launched a new service offering central
counterpary clearing of trades in US stocks and US exchange-traded funds (ETFs)
to European trading firms. EuroCCP is the first European equities central
counterparty (CCP) clearing US securities and settling them directly in the
central securities depository in their home market of issue, The Depository
Trust Company (DTC).

EuroCCP`s new service gives European trading firms their first-ever opportunity
to trade US securities on a variety of pan-European platforms during European
trading hours and to settle those trades in DTC.. By offering a service where US
securities settle directly at the US CSD, EuroCCP provides European trading
firms with a more cost-effective post-trade solution.

Its clearing service for US issues allows EuroCCP to extend the efficiency,
cost-saving and counterparty risk protection benefits it already provides to
clients` European-listed securities transactions to US stock and US ETF
transactions. Initially, the US securities eligible for clearing through EuroCCP
include approximately 100 stock issues and 50 ETFs. EuroCCP expects over time to
expand the scope of eligible instruments to further equities, ETFs, and to ADRs.

EuroCCP`s clearing service for eligible US issues is open to any trading venue
cleared by EuroCCP that offers trading in the securities. Trading will be
against US dollars.

“With our new service, we expect to encourage the development of liquidity in US
equities in Europe. European trading firms will have a centralised clearing
solution to facilitate their trading of US securities on multiple European
trading venues,” said Andrew Simpson, EuroCCP`s head of Product Management in
London. “We are leading the way by providing European investors with the most
comprehensive array of central counterparty services on a single post-trade
platform – and at the same time offer a lower-cost settlement alternative than
previously available to firms trading in Europe. We`re focused on delivering
services that reflect the demands of firms, making it easier to build trading
strategies across multiple asset classes-US and European equities issues, GDRs
and Exchange-Traded Funds – and driving down the cost of post-trade.”

The new service increases the number of markets cleared by EuroCCP to 19, more
than any other European equities CCP. This service extension marks the latest in
an ongoing series of enhancements EuroCCP is bringing to Europe`s clearing
space, and demonstrates EuroCCP`s commitment to support the European trading
community with a cost-effective, creative clearing solution that best addresses
firms` trading needs and business aspirations.

To view the initial list of US securities eligible for clearing through EuroCCP,
please go to www.euroccp.co.uk.

About EuroCCP

European Central Counterparty Limited (EuroCCP) is a UK-incorporated,
FSA-regulated Recognised Clearing House that is governed by its European users.
It is the European subsidiary of The Depository Trust & Clearing Corporation
(DTCC) and is headquartered in London. EuroCCP is a pan-European clearing
solution offering the scale economies and risk management expertise of the US
market to European market participants. It currently clears equity trades in 18
markets. EuroCCP has been appointed to provide central counterparty services by
Turquoise, SmartPool, NYSE Arca Europe and Pipeline for equity trades. EuroCCP
has also entered into a Memorandum of Understanding with NASDAQ OMX to provide
clearing services for its exchanges in Copenhagen, Helsinki and Stockholm.
Market participants can trade equities on any venue EuroCCP supports and have
their transactions netted for settlement and/or margin purposes for the same
security traded on the same day, thereby reducing costs and operational risks.
For more information on EuroCCP, visit www.euroccp.co.uk.

About DTCC

The Depository Trust & Clearing Corporation (DTCC), through its subsidiaries,
provides clearance, settlement and information services for equities, corporate
and municipal bonds, government and mortgage-backed securities, money market
instruments and over-the-counter derivatives. In addition, DTCC is a leading
processor of mutual funds and insurance transactions, linking funds and carriers
with financial firms and third parties that market these products. DTCC`s
depository provides custody and asset servicing for more than 3.5 million
securities issues from the United States and 121 other countries and
territories, valued at US$33.9 trillion. In 2009, DTCC settled more than US$1.47
quadrillion in securities transactions. DTCC has operating facilities and data
centres in multiple locations in the United States and overseas. For more
information on DTCC, visit www.dtcc.com.

For EuroCCP
Judith Inosanto, +1 212 855 5424
jinosanto@dtcc.com
or
Citigate
Lucie Holloway, +44 (0)20 7638 9571
lucie.holloway@citigatedr.co.uk

Copyright Business Wire 2010

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , ,

Seoul shares seen up on Wall Street, econ data

April 12, 2010 By Leave a Comment

SEOUL, April 12 (Reuters) – Seoul shares are set to open
higher on Monday after gains on Wall Street, with the South
Korean central bank sharply raising its economic growth forecast
for 2010 likely to boost sentiment further.

“Shares will probably open higher, and attention has now
fully shifted to earnings as the season kicks off this week with
POSCO (005490.KS),” said Kim Seung-han, a market analyst at HI
Investment Securities.

“We will probably see the continuation of domestic
institutions’ selling on persistent equity fund redemption, while
foreign buying will likely hold up the market,” Kim added.

South Korea’s central bank on Monday raised its economic
growth forecast for this year by more than half a percentage
point. [ID:nSUL000024]

Energy sensitive issues such as Korean Air Line (003490.KS)
could react to losses in crude prices CLc1.

The Korea Composite Stock Price Index (KOSPI)
finished 0.54 percent lower at 1,724.47 points on Friday.
———————-MARKET SNAPSHOT @ 2242 GMT ————

INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 1194.37 0.67% 7.930
USD/JPY JPY= 93.17 -0.03% -0.030
10-YR US TSY YLD US10YT=RR 3.8825 — 0.000
SPOT GOLD XAU= 1164.1 0.44% 5.100
US CRUDE CLc1 85.54 0.73% 0.620
DOW JONES .DJI 10997.35 0.64% 70.28
ASIA ADRS .BKAS 136.29 0.62% 0.84
————————————————————-
MARKET SUMMARY
*Wall Street climbs, Dow touches 11,000 [nN09139071]
*Oil drops below $85 on downbeat sentiment [nSGE638063]
*Greek aid hopes boost euro against dollar [nN09117135]
*Treasuries rise on Greece jitters, long-dated bets[nN09108181]

STOCKS TO WATCH

FOOD MANUFACTURERS

South Korea began culling more than 25,000 animals on Sunday
in trying to contain an outbreak of foot-and-mouth disease
affecting a region north-west of the capital
Seoul.[ID:nTOE63A00T]

(Reporting by Jungyoun Park; Editing by Jonathan Hopfner)

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , ,

HK shares expected to drop with banks seen hard-hit

April 24, 2009 By Leave a Comment

HONG KONG, April 21 (Reuters) – Hong Kong shares are expected
to drop on Tuesday amid a global sell-down in banking stocks
after Bank of America (BAC.N) raised concerns about credit
quality deterioration.

The stock plunged more than 24 percent on Monday despite
reporting a rise in profit for the first quarter as its chief
executive warned the bad credit environment was getting worse.

American depository receipts (ADRs) in Hong kong-listed
companies joined the slump on Wall Street overnight with global
lender HSBC (HBC.N) (0005.HK) sliding 7.7 percent, while China
Mobile (CHL.N) (0941.HK), which reported a 5.2 percent increase
in its first quarter net profit on Monday, sank 4.5 percent.

The benchmark Hang Seng Index .HSI closed 1 percent higher
at 15,750.91 on Monday as Chinese stocks led the charge on
expectations of improved corporate earnings in 2009

STOCKS TO WATCH-

* Enric Energy Equipment Holdings (3899.HK), which had
previously made a takeover offer with CIMC Hong Kong for Target
Co China, has reduced its offer for Target Co China to HK$3 per
share from HK$4.49 per share, citing market conditions and
economic environment. For statement please click
here

* China National Resources Development Holdings (0661.HK) on
Tuesday said it had discovered 400,000 tonnes of copper reserves
in its mine in Xinjiang and 500,000 tonnes in the northern and
southern copper belts. For statement please click
here

* Chinese property developer Beijing North Star (0588.HK)
said its first-quarter net profit rose to 171.3 million yuan,
compared with 84.5 million yuan a year earlier. For statement
please click
here

* Xinjiang Xinxin Mining Industry Co (3833.HK) said it had
agreed to acquire a 57 percent equity interest in Zhongxin Mining
for 33.1 million yuan from Xinjiang Investment and Development
(Group) Co . For statement please click
here
———————-MARKET SNAPSHOT @ 2247 GMT ————

INSTRUMENT LAST PCT CHG NET CHG
S and P 500 .SPX 832.39 -4.28% -37.210
USD/JPY JPY 98.04 0.08% 0.080
10-YR US TSY YLD US10YT 2.8562 — 0.000
SPOT GOLD XAU 884.05 -0.01% -0.100
US CRUDE CLc1 45.8 -0.17% -0.080
DOW JONES .DJI 7841.73 -3.56% -289.60
ASIA ADRS .BKAS 95.58 -4.00% -3.98
————————————————————-

MARKETS SUMMARY
*Wall St sinks on banks’ woes; IBM drops late [nN20421816]
*Oil drops over 8 pct on economic outlook, dollar [nSYD428032]
*Increased anxiety lifts dollar, euro slumps on ECB [nN20408601]
*Treasuries rally as bank fears clobber Wall Street [nN20563843]

(Reporting by Parvathy Ullatil; Editing by Chris Lewis)

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Seoul shares seen up helped by U.S. results

April 20, 2009 By Leave a Comment

SEOUL, April 20 (Reuters) – Seoul shares may rise on Monday
after gains on Wall Street, with banks likely to be helped by
better-than-expected results from Citigroup (C.N), but caution
before a batch of key South Korean earnings could limit rises.

“The rises in U.S. stocks and U.S. results will help
sentiment. But Seoul stocks snapped a five-week gaining streak
last Friday and it seems caution is setting in,” said Kim
Hyoung-ryoul, a market analyst at NH Investment and Securities.

The Korea Composite Stock Price Index (KOSPI)
finished down 0.58 percent at 1,329.00 points on Friday,
stumbling after five straight weekly gains.

“Investors will probably want to confirm a set of key
doemstic earnings this week, but since they are not expected to
be as bad as feared, we can hope for the return of weekly gains,”
Kim added.

Memory chip makers including Hynix Semiconductor (000660.KS)
may react to news that Taiwan’s Nanya Technology (2408.TW) would
cut its capital by 66.43 percent as it grapples with losses amid
a supply glut and falling demand. [ID:nTPU001299]

Lotte Group issues including Lotte Chilsung (005300.KS) may
be in the spotlight after a report that the retail-to-beverage
conglomerate would not submit a final offer for Oriental Brewery.
[ID:nHKG328220]
———————-MARKET SNAPSHOT @ 2246 GMT ————

INSTRUMENT LAST PCT CHG NET CHG
S and P 500 .SPX 869.6 0.5% 4.300
USD/JPY JPY 99.2 0.04% 0.040
10-YR US TSY YLD US10YT 2.9544 — 0.000
SPOT GOLD XAU 867.4 -0.06% -0.500
US CRUDE CLc1 50.2 -0.26% -0.130
DOW JONES .DJI 8131.33 0.07% 5.90
ASIA ADRS .BKAS 99.56 0.42% 0.42
————————————————————-

MARKETS SUMMARY
*Dow ends best 6 wks since 1938 on economy hopes [nN17358750]
*Oil rises to over $50 on consumer confidence boost [nSIN431763]
*Dollar gains vs most majors, euro slumps on ECB [nN17275408]
*Benchmark Treasuries lose a full point in price [nNYD000473]

STOCKS TO WATCH

KUMHO TIRE (073240.KS)

The tiremaker said late on Friday it would suspend production
for three days amid falling global demand.

LG HAUSYS (108670.KS)

LG Hausys, a manufacturer of industrial materials spun off
from LG Chem (051910.KS), will be re-listed and start trading on
Monday.

(Reporting by Jungyoun Park; Editing by Jonathan Hopfner)

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Singapore Hot Stocks-OCBC, Singapore Airlines, Cosco in focus

April 20, 2009 By Leave a Comment

SINGAPORE, April 20 (Reuters) – Oversea-Chinese Banking
Corp (OCBC.SI), the smallest of Singapore’s three banks, may be
in investors’ focus on Monday after its chairman said the bank
did not need to raise funds to tide it through the recession.

U.S. stocks rose on Friday, with the Dow scoring its
biggest six-week gain since July 1938, helped by a reassuring
report on the mood of consumers and stabilisation in General
Electric (GE.N) and Citigroup’s (C.N) quarterly results.
———————-MARKET SNAPSHOT @ 2345 GMT ————

INSTRUMENT LAST PCT CHG NET CHG S and P
500 .SPX 869.6 0.5% 4.300
USD/JPY JPY 99.38 0.22% 0.220
10-YR US TSY YLD US10YT 2.9395 — -0.015
SPOT GOLD XAU 868.25 0.04% 0.350
US CRUDE CLc1 50.24 -0.18% -0.090
DOW JONES .DJI 8131.33 0.07% 5.90
ASIA ADRS .BKAS 99.56 0.42% 0.42
————————————————————-
> Earnings deluge may stall rally [.N] >
Dollar gains vs most majors, euro slumps on ECB [USD/] >
Bonds tumble in absence of safe-haven buying [US/] >
Gold drops on weak ETF demand, less fear [GOL/] >
Crude steady above $50 on demand recovery hopes [O/R]

Stocks and factors to watch:

— OVERSEA-CHINESE BANKING CORP (OCBC.SI)

– Oversea-Chinese Banking Corp, the smallest of Singapore’s
three banks, does not need to raise extra funds to prop up its
books in the face of the recession, Chairman Cheong Choong Kong
was quoted by Singapore media as saying. [ID:nSIN390070]

— SINGAPORE AIRLINES (SIAL.SI)

– Macquarie Research slashed its price target for Singapore
Airlines to S$8.12 from S$10.07 and kept its “underperform”
rating, citing the deteriorating demand for air travel.

— COSCO CORP (COSC.SI)

– China’s COSCO Group, the parent company of
Singapore-listed shipbuilder Cosco Corp (Singapore), said its
business is looking up as a recovering Chinese economy will
help boost trade and international freight prices.
[ID:nPEK78826]

— SINGAPORE EXCHANGE (SGXL.SI)

– Singapore Exchange said on Friday it will launch the
world’s first cleared over-the-counter iron ore swaps contract,
moving the massive market a small step closer to floating
prices. [ID:nSP154767]

— ASCENDAS REIT AEMN.SI

– Ascendas REIT said its fourth quarter distribution per
unit fell 12.5 percent to 3.23 cents compared to last year due
to dilution by new units and because of the cash payment of
full-year performance fees. [ID:nSN4H10701]

— GUOCOLAND LIMITED (GUOC.SI)

– Property firm Guocoland said its third-quarter net profit
rose 91 percent to S$4.9 million ($3.3 million) compared to
last year mainly due to sales at its Singapore unit, The
Quartz. [ID:nSN4H31091]

— CAPITARETAIL CHINA TRUST CRCT.SI

– Singapore-based REIT CapitaRetail China Trust said its
first-quarter distribution per unit increased by 38.1 percent
compared to last year due to a rise in the yuan against the
Singapore dollar, the acquisition of Xizhimen Mall and higher
rentals at three other malls. [ID:nSN4H50912]

— SINGAPORE TECHNOLOGIES ENGINEERING (STEG.SI)

– ST Engineering, the world’s largest aircraft repair firm,
said its ST Kinetics units had collaborated with Mexico’s Grupo
Ferrominero to set up a joint venture, GFM Maquinaria, in
Monterrey, Mexico. [ID:nSN4H80591]

– Singapore Technologies Telemedia has offered around 100
million euros ($130 million) for Babcock and Brown Capital
BCM.AX, the Irish Independent newspaper reported on Saturday.
[ID:nLI70691]

— SINGAPORE AIRPORT TERMINAL SERVICES LTD (SIAT.SI)

– The airport services provider said on Friday it had
completed the compulsory acquisition of all the remaining
shares in the capital of Singapore Food Industries.
[ID:nSN4H61511]

— C and G INDUSTRIAL HOLDINGS LTD (CGTE.SI)

– China based C and G Industrial, which manufactures yarn and
polyester products, said it plans to acquire waste incineration
power plant, CUGU Environmental Protection International, for
359 million ($53 million) from CUGU Group (Hong Kong) Ltd.
[ID:nSN4G61231]

— ARMARDA GROUP LIMITED (ARMA.SI), CHINA YONGSHENG LIMITED
(CHYL.SI), EXCELPOINT TECHNOLOGY LTD (EXCE.SI)

– Armanda Group, China Yongsheng and Excelpoint Technology
Ltd said they expect to report a loss for their first quarter
results that ended on 31 March due to the global economic
slowdown. [ID:nSN4H50661] [ID:nSN4H01151] [ID:nSN4H30720]

— SIN GHEE HUAT (SGHC.SI)

– Sin Ghee Huat said it expects a third-quarter loss due to
lower demand for stainless steel products. [ID:nSN4H90681]

— NEW WAVE HOLDINGS (NEWW.SI), CPH LTD (CIPH.SI)

– New Wave Holdings and CPH Ltd said they expect to report
a full-year net loss for the year to the end of March due to
the economic crisis. [ID:nSN4H91341] [ID:nSN4H51301]

– Singapore’s benchmark Straits Times Index .FTSTI rose
0.25 percent to 1,896.56 points on Friday.

– The Dow Jones Industrial Average .DJI gained 0.07
percent to 8,131.33 points. The Nasdaq Composite Index .IXIC
was up by 0.16 percent to 1,673.07 points.
(Reporting by Laurence Tan; Editing by Jan Dahinten)

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , ,

Thai stocks weighed down by politics, banks reporting

April 20, 2009 By Leave a Comment

BANGKOK, April 20 (Reuters) – Thai stocks are expected to
edge down on Monday, hit by continued selling by foreign
investors after last week’s political violence in Bangkok,
analysts said.

The capital could remain under emergency rule for another
week after an attempted political assassination raised fears of
further unrest, Prime Minister Abhisit Vejjajiva said on
Sunday. [nSP403927]

“Investors are still doubtful about the political situation
and also concerned over the country’s economy. There’s nothing
positive to our market,” said Therdsak Taveetheeratham, an
analyst at Asia Plus Securities, expecting support on the main
index .SETI at 440.

Despite the political unrest, on Friday the benchmark SET
index rose 0.85 percent to 456.80, its highest close since Jan.
9, pushed up by commodity and heavyweight energy stocks.

Banks .SETB will be in focus ahead of first-quarter
results. Most major banks are expected to report weaker profits
amid slower economic growth, dragged down by sluggish lending,
lower fee income and a sharp fall in net interest margins due
to interest rate cuts.

Click [TH/TRADING01] for cumulative trading value by
investor type. ———————-MARKET SNAPSHOT @ 0118 GMT
————

INSTRUMENT LAST PCT CHG NET CHG
S and P 500 .SPX 869.6 0.5% 4.300
USD/JPY JPY 99.01 -0.15% -0.150
10-YR US TSY YLD US10YT=RR 2.9191 — -0.035
SPOT GOLD XAU 866.15 -0.20% -1.750
US CRUDE CLc1 49.93 -0.79% -0.400
DOW JONES .DJI 8131.33 0.07% 5.90
ASIA ADRS .BKAS 99.56 0.42% 0.42
————————————————————-
MARKET SUMMARY > Oil steadies above $50, eyes equity markets
for directions[O/R] > Wall St Week Ahead: Earnings deluge may
stall rally [.N] > Euro hits a 1-month low vs dollar on
ECB uncertainty [USD/] > TREASURIES-Bonds tumble in absence
of safe-haven buying [US/] > PRECIOUS-Gold drops on weak ETF
demand, less fear [GOL/]

STOCKS AND FACTORS TO WATCH

– BANGKOK BANK BBL.BK

The top lender is to announce its first-quarter results
after the market close. It is expected to report a small fall
in net profit due mainly to shrinking lending and net margins,
but expanding fee income and falling expenses could help
cushion the profits.

– KASIKORNBANK KBAN.BK

Thailand’s fourth-largest lender reported a 14 percent drop
in quarterly net profit due to falling income bcause of slowing
loan demand and softer margins, but the profit was higher than
expected. [nBAK000730]

– KRUNG THAI BANK (KTB.BK)

The country’s second-largest lender said 2009 net profit
should be lower than last year’s 12.27 billion baht as the
economic downturn would affect its income and loan demand.

– PTT AROMATICS AND REFINERY (PTTAR.BK)

PTTAR said it had completed upgrading its production
capacity to increase jet fuel and diesel capacity. [nBKK449846]

– For the Thai press digest click on [PRESS/TH]

– For Thailand’s IPO diary click on

– For Thailand’s stock exchange news click on [TH-SET]

– For Thailand corporate earnings: [TH-RES-RTRS]

– For Thailand economic forecast: [POLL-ECI-TH-RTRS]
($1=35.43 Baht)
(Reporting by Arada Therdthammakun; Editing by Alan Raybould)

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , , ,

HK shares seen higher on Wall Street earnings bonanza

April 18, 2009 By Leave a Comment

HONG KONG, April 17 (Reuters) – Hong Kong shares are expected
to advance on Friday, joining the rally in other major markets,
after a strong showing from JPMorgan (JPM.N) and Google (GOOG.O)
spurred gains on Wall Street.
Shares in Cathay Pacific Airways Ltd (0293.HK) will be
watched after the airline said on Friday it would cut passenger
and cargo capacity from May following a sharp drop in turnover in
the first quarter of 2009.

From May, Cathay will reduce passenger capacity by 8 percent
and its unit Dragonair will slash capacity by 13 percent. Overall
cargo capacity will be reduced by 11 percent.

On Thursday, the benchmark Hang Seng Index .HSI fell 0.55
percent to close at 15,582.99 as investors locked in gains on a
three-day rally after first-quarter economic data from China came
in roughly in line with expectations.

STOCKS TO WATCH-

* Air China (0753.HK) (601111.SS), which posted
bigger-than-expected 2008 losses, returned to profit in the first
quarter of 2009, helped by an exceptional gain and lower fuel
costs.

The country’s flag carrier posted a net profit of 981.2
million yuan ($143.6 million) in the three months ended March,
down 5.7 percent from the same period last year, based on Chinese
accounting standards.

———————-MARKET SNAPSHOT @ 2246 GMT ————

INSTRUMENT LAST PCT CHG NET CHG
S and P 500 .SPX 865.3 1.55% 13.240
USD/JPY JPY 99.33 -0.01% -0.010
10-YR US TSY YLD US10YT 2.8395 — 0.000
SPOT GOLD XAU 875.2 0.07% 0.650
US CRUDE CLc1 49.71 -0.54% -0.270
DOW JONES .DJI 8125.43 1.19% 95.81
ASIA ADRS .BKAS 99.14 0.02% 0.02
————————————————————-

MARKET SUMMARY
*Wall Street soars on tech bets, JPMorgan [ID:nN16262383]
*Oil rises 1.5 pct toward $50; data curbs gains [ID:nSP405814]
*Dollar, yen climb on ongoing economic worries [ID:nN16386092]
*Treasuries hit by higher stocks, supply worries [ID:nN16623259]

(Reporting by Parvathy Ullatil; Editing by Chris Lewis)

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Seoul shares seen up on U.S rise; LG Display eyed

April 17, 2009 By Leave a Comment

SEOUL, April 16 (Reuters) – Seoul shares may open higher on
Thursday after gains overnight on Wall Street amid signs that the
recession in the world’s No.1 economy may be abating, with LG
Display in the spotlight as it reports quarterly results.

“Shares will open higher, helped by rises in U.S. peers. But
we have been noticing that institutions start selling at around
the 1,350 point level. Institutions’ trading patterns will be
eyed,” said Kim Sung-roh, a market strategist at KB Investment and
Securities.

“It seems 1,350 is the level at which investors in
equity-type funds are willing to cut some losses. The main
index’s rapid gains since March will also limit rises today,” Kim
added.

LG Display (034220.KS) will be watched as the world’s No.2
flat panel maker is set to report its quarterly results at around
0600 GMT. It is expected to post another quarter in the red, but
losses in January-March likely narrowed from the previous
quarter, driven by booming sales in China. [ID:nSEO373063]

The Korea Composite Stock Price Index (KOSPI)
finished down 0.71 percent at 1,333.09 points on Wednesday,
snapping a four-session advance.
———————-MARKET SNAPSHOT @ 2243 GMT ————

INSTRUMENT LAST PCT CHG NET CHG
S and P 500 .SPX 852.06 1.25% 10.560
USD/JPY JPY 99.26 -0.11% -0.110
10-YR US TSY YLD US10YT 2.768 — 0.000
SPOT GOLD XAU 889.15 -0.16% -1.450
US CRUDE CLc1 49.62 0.75% 0.370
DOW JONES .DJI 8029.62 1.38% 109.44
ASIA ADRS .BKAS 99.12 0.98% 0.96
————————————————————-

MARKET SUMMARY
*Wall St climbs on signs recession easing [ID:nN15521460]
*OPEC says oil demand falling faster than f’cast [ID:nLF364904]
*Dollar gains as economic concerns persist [ID:nN15511778]
*Treasuries ease as rally hits proverbial wall [ID:nN15361637]

STOCKS TO WATCH

SAMSUNG SECURITIES (016360.KS)

South Korea’s top brokerage by market value is forecast to
report Thursday a net profit of around 61.3 billion won for the
January-March period, according to Reuters Estimates.

HYUNDAI HEAVY (009540.KS)

Hyundai Heavy has acquired a farm in the Russian Far East, a
purchase that could test the water for further Asian investment
in Russia’s burgeoning agricultural sector. [ID:nLF155523]

(Reporting by Jungyoun Park; Editing by Jonathan Hopfner)

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Seoul shares seen down on U.S. data, fall

April 15, 2009 By Leave a Comment

SEOUL, April 15 (Reuters) – Seoul shares are likely to fall
on Wednesday as weak retail data hurt Wall Street, with techs
likely to be under pressure after Intel Corp (INTC.O) fell
despite solid earnings after failing to give a clear revenue
forecast.

“Seoul shares will probably undergo some correction after
overnight falls in U.S. stocks, but it will not likely be
significant. We think this will be a little bump on the road to
the market’s gradual rebound, said Park So-yeon, a market
analyst at Korea Investment and Securities.

Analysts expected a limited impact from news that North
Korea ordered U.N. inspectors to leave on Tuesday after saying
it would quit international nuclear disarmament talks and
restart a plant that makes bomb-grade plutonium [ID:nSP497987].

“North Korea has more political implications than economic
implications. I do not think investors will pay much attention
to it,” said Kim Se-jung, a market analyst at Shinyoung
Securities.

Elsewhere, Daewoo Shipbuilding and Marine Engineering
(042660.KS) may be eyed after Korea Asset Management Corp, a
state debt clearer, said on Tuesday it would consider the best
time later this year to sell a stake in Daewoo Shipbuilding.
[ID:nSEO91082]

The Korea Composite Stock Price Index (KOSPI) ended
up 0.33 percent at 1,342.63 points on Tuesday.
———————-MARKET SNAPSHOT @ 2246 GMT ————

INSTRUMENT LAST PCT CHG NET CHG
S and P 500 .SPX 841.5 -2.01% -17.230
USD/JPY 98.94 0.13% 0.130
10-YR US TSY YLD 2.79 — 0.000
SPOT GOLD 889.5 0.07% 0.650
US CRUDE CLc1 49.11 -0.61% -0.310
DOW JONES .DJI 7920.18 -1.71% -137.63
ASIA ADRS .BKAS 98.16 -1.95% -1.95
————————————————————-

MARKET SUMMARY *Weak retail sales, Goldman hit Wall Street

[ID:nN14457216] *Oil slips below $50 on demand, inventory
f’casts[ID:nSP458479] *Dollar, yen gain on renewed safe-haven
bid [ID:nN14451216] *Treasuries climb on falling retail
sales data [ID:nN14581335]

STOCKS TO WATCH

KEPCO (015760.KS), POSCO (005490.KS)

State-run Korea South-East Power Corp (KOSEP), a unit of
KEPCO, said on Tuesday it would spend 3.6 trillion won ($2.7
billion) building renewable energy plants with POSCO
Engineering and Construction, a unit of POSCO until 2015.
[ID:nSEO28604]

(Reporting by Jungyoun Park; Editing by Dhara Ranasinghe)

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , , , , ,

Singapore Hot Stocks-Sembcorp Marine, SIA, Parkway in focus

April 15, 2009 By Leave a Comment

SINGAPORE, April 15 (Reuters) – Oil-rig builder Sembcorp
Marine may be in focus on Wednesday after a large customer,
Petroprod, was placed under provisional liquidation. Petroprod
had placed orders worth over $500 million with the Singapore
firm, according to Business Times.

U.S. stocks fell on Tuesday as a surprising drop in retail
sales dented hopes the recession was abating, while financial
shares slid on fears that Goldman Sachs’ (GS.N) share offering
could prompt other banks to follow suit.
———————-MARKET SNAPSHOT @ 2359 GMT ————

INSTRUMENT LAST PCT CHG NET CHG
S and P 500 .SPX 841.5 -2.01% -17.230
USD/JPY 98.98 0.19% 0.190
10-YR US TSY YLD 2.7954 — 0.005
SPOT GOLD 888.1 -0.08% -0.750
US CRUDE CLc1 49.08 -0.67% -0.330
DOW JONES .DJI 7920.18 -1.71% -137.63
ASIA ADRS .BKAS 98.16 -1.95% -1.95
————————————————————- >
Weak retail sales, Goldman hit Wall St; eBay up late [.N] >
Dollar and yen gain on renewed safe-haven bid [USD/] >
Bonds climb on falling retail sales data [US/] >
Gold ends a tad lower but near-term strength seen [GOL/] >
Oil slips below $50 on demand, inventory forecasts [O/R]

Stocks and factors to watch:

— SEMBCORP MARINE (SCMN.SI)

– Sembcorp Marine said a large customer, Petroprod, has
been placed under provisional liquidation. J.P. Morgan said the
potential order-book cancellations may outweigh the positive
effect of a gas contract win by another Sembcorp unit, but kept
its “overweight” call on the rigbuilder. [ID:nSN4E51621]

— SINGAPORE AIRLINES (SIAL.SI)

– The world’s second-biggest airline by market value may
be in focus after Singapore and Malaysia agreed to expand their
bilateral air services agreement, which would give carriers of
both countries the right to operate between Singapore and six
new Malaysian destinations from June 1.

— PARKWAY HOLDINGS LTD (PARM.SI)

– The healthcare services provider said on Tuesday that
Chief Operating Officer Daniel Snyder had decided not to renew
his three-year job contract for personal reasons
[ID:nSN4E21031]

— SINGAPORE PRESS HOLDINGS (SPRM.SI)

– DBS Vickers downgraded Singapore Press Holdings (SPH) to
“hold” from “buy”, citing the 25 percent rise in the newspaper
publisher’s share price since the brokerage made its “buy”
call.

– LIAN BENGGROUP (LIBG.SI)

– The construction firm reported on Tuesday its net profit
rose 31 percent to S$11.4 million ($7.60 million) for the nine
months ended Feb 28, 2009 mainly on an increase in construction
activity. [ID:nSN4E91001]

– Singapore’s benchmark Straits Times Index .FTSTI rose
1.08 percent to 1,897.02 points on Tuesday.

– The Dow Jones Industrial Average .DJI fell 1.71 percent
to 7,920.18 points. The Nasdaq Composite Index .IXIC was down
1.67 percent to 1,625.72 points.
($1=1.501 Singapore Dollar)
(Reporting by Eveline Danubrata; Editing by Kevin Lim and
Muralikumar Anantharaman)

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Seoul shares may rise, but gains seen limited

April 13, 2009 By Leave a Comment

SEOUL, April 13 (Reuters) – Seoul shares may rise on Monday
but gains could be limited following their latest rally and as a
long weekend on Wall Street gives the market little direction,
with auto issues likely to be in the spotlight on government
support measures.

“I’d say shares still have upward momentum, though caution
about corporate results exists. Investors are waiting in
particular for U.S. bank results, which Wells Fargo (WFC.N)
kicked off on a positive note,” said Lee Jae-mahn, a market
analyst at Tong Yang Securities.

“Stocks have risen too much and too fast, and gains may be
limited in that regard,” Lee added.

The Korea Composite Stock Price Index (KOSPI) ended
up 1.50 percent at 1,336.04 points on Friday, posting its fifth
consecutive week of gains, the longest weekly winning streak
since June, 2007.

Auto issues including Hyundai Motor (005380.KS) may be in the
spotlight after news South Korea plans to spend 500 billion won
($376.5 million) to help the country’s car industry through the
global downturn. [ID:nSEO26773]
———————-MARKET SNAPSHOT @ 2243 GMT ————

INSTRUMENT LAST PCT CHG NET CHG
S and P 500 .SPX 856.56 3.81% 31.400
USD/JPY JPY 100.34 -0.04% -0.040
10-YR US TSY YLD US10YT=RR 2.9225 — 0.000
SPOT GOLD XAU 884.15 0.40% 3.500
US CRUDE CLc1 52.02 -0.42% -0.220
DOW JONES .DJI 8083.38 3.14% 246.27
ASIA ADRS .BKAS 98.99 4.59% 4.34
————————————————————-

MARKET SUMMARY
*Asia stocks push towards 6-mth highs [ID:nT1655]
*World fuel use to dive by 2.4 million bpd-IEA [ID:nLA70157]
*Japan’s record borrowing plan ups pressure on BOJ [ID:nT12543]
*Treasuries fall, rising stocks sap safe-haven bid
[ID:nN09298439]

STOCKS TO WATCH

POSCO (005490.KS)

The world’s No.4 steelmaker posted a sharp drop in quarterly
profit to the lowest level in seven years on crumbling global
steel demand, and cut its 2009 output and sales targets by nearly
a fifth. [ID:nSEO193919]

POSCO also said it was in a preliminary deal with Rio Tinto
(RIO.AX) for a 20 percent discount in iron ore term prices, but
was looking for prices to go down even further. [ID:nSEO11216]

(Reporting by Jungyoun Park; Editing by Jonathan Hopfner)

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Reddy calls for a stern action against those liable for Satyam fraud

January 20, 2009 By Leave a Comment

New Delhi, Jan 20 (ANI): Andhra Pradesh Chief Minister Y S Rajasekhar Reddy asserted that his Government will take strict action against all those responsible for the fraud in Satyam Computer Services Limited.

Reddy disclosed this to media persons here last evening.

“Satyam’s erstwhile management has defrauded the shareholders of Satyam Limited, is a mind boggling thing. It has really discredited the State and the country,” said Reddy.

He said that the State Government wants the erstwhile management should be brought to book and its criminal activity dealt with deterrently.

Government he said would take all necessary actions to protect the interests of the shareholders and employees.

Ramalinga Raju and his brother B Rama Raju, Satyam’s co-founder and managing director, were arrested on charges of criminal breach of trust, criminal conspiracy, cheating, falsification of records and forgery, following a case filed by Andhra Pradesh Police.

Several securities fraud class action lawsuits have been filed in the United States on behalf of the investors who bought Satyam American Depository Receipts (ADRs) in last five years. (ANI)

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , ,

Andhra minister says Centre actively probing Satyam case(Satyam-Update)

January 18, 2009 By Leave a Comment

Hyderabad, Jan.18 (ANI): Andhra Pradesh Finance Minister K. Rosiah on Sunday said that the Central Government is actively probing the fraud case involving software major Satyam Computer Services.

“The Government of India is actively looking into all these things. Their agencies are more capable of looking into all these aspects. Government of India is alert to the happenings, yesterday Prime Minister himself said that the fall of Satyam company has brought disrepute to this country. So, let the Government of India do its exercise, state government also will have its own method,” said Rosaiah.

Rosiah’s statement came hours after police took former Satyam Computer Services chairman B. Ramalinga Raju into its custody for interrogation on Sunday for four days following a local court order in relation to the Rs. 7800 crore financial fraud in the company.

Ramalinga Raju and his brother B Rama Raju, Satyam’s co-founder and managing director, were arrested late on Friday, on charges of criminal breach of trust, criminal conspiracy, cheating, falsification of records and forgery.

Raju’s counsel had earlier argued the case saying various investigating authorities have already laid their hands on various records concerning the offence and so it is not imperative for custodial interrogation by the police.

Chairman and founder Raju resigned after revealing years of accounting fraud at Satyam, including an admission that about a billion dollars, or 94 percent of the cash and bank balances on Satyam’s books at end-September, did not exist.

Several securities fraud class action lawsuits have been filed in the United States on behalf of investors who bought Satyam American Depository Receipts (ADRs) in the last five years.

The accounting fraud battered Satyam shares, with its market value plunging to 330 million dollars at last Friday’s close, against more than seven billion dollars just six months ago.

Hyderabad-based Satyam specialises in business software and back-office services for clients including General Electric and Nestle. (ANI)

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Satyam, Wipro blamed for 4 billion dollar loss on US stock bources in a week

January 18, 2009 By Leave a Comment

New York, Jan 18 (ANI): Satyam Computer Services and Wipro are being blamed for a loss of 4 billion dollars on the American bourses in the last week.

Satyam founder B Ramalinga Raju has been found guilty of committing a fraud that has led the market valuation of his company to diminish by 2.7 million US dollars for the week ended January 16. The trading on shares of the company resumed on January 13 after it closed down following the exposure of the accounting fraud.

Wipro, another leading IT company which has been barred from the World Bank from receiving any contracts till 2011, also has seen its market valuation plunging down to approximately 1.5 billion US dollars during the same period.

The total valuation of 16 Indian stocks listed as American Depository Receipts (ADRs) on NYSE and Nasdaq, dropped by six billion dollars in a single week.

Trading of Satyam stopped after its American Depository Receipt (ADR) crashed to 90 percent after the admission of Raju.

The private sector lender’s market capitalisation dropped one billion dollars making ICICI a major loser. Valuation of HDFC presented a sad picture of decline of 883 million dollars for the week ended January 16.

However, Infosys remained largely unaffected and added 705 million dollrs to its market share, thanks to the company’s net profit which soared 33.3 per cent to at Rs 1,641 crore for the December quarter.

The queue of other Indian ADR’s who lost their market value seems ending with telecom major Tata Communication, copper producer Sterlite Industries, auto maker Tata Motors and another telecom firm Mahanagar Telephone Nigam.

While Tata Communications fell by 247 million dollars, Sterlite industry’s market cap declined by 240 million dollars. Tata Motors got hard hit of a 100 million dollrs and Mahanagar Telephone Nigam fell by 44 million dollars.

Other than infosys, leading BPO’s like Genpact and WNS, pharma major Dr Reddy’s Laboratories and internet firm Sify Technologies managed to hold a safe position in the market capital. These companies together gained in the range of 12 to 73 million dollars. (ANI)

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