Indonesia’s United Tractors posts flat H1 net profit

July 30, 2010 By Leave a Comment

July 29 (Reuters) – PT United Tractors (UNTR.JK), Indonesia’s biggest heavy equipment provider, posted a 0.8 percent rise in its first half 2010 net profit on Thursday, as revenues climbed but costs increased.

The firm, Indonesia’s largest mining contractor, posted a 1.888 trillion rupiah ($209.8 million) net profit in the first half of the year, versus 1.873 trillion rupiah a year earlier.

The company’s net revenue climbed 30 percent to 18.08 trillion rupiah.

Indonesia is expected to post economic growth of around 6 percent this year, driven by exports of resources that need heavy machinery, as well as increasing consumer demand.

Shares in United Tractors, which has a market cap of $7.3 billion, gained 21 percent in the first half of the year, outperforming the 15 percent rise in the Jakarta stock index .JKSE. (Reporting by Janeman Latul, Editing by Neil Chatterjee)

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China stocks end down, new IPOs weigh

July 28, 2010 By Leave a Comment

July 27 (Reuters) – China’s key stock index closed down half a percent on Tuesday, as expected large initial public offerings (IPOs) weighed on sentiment and analysts said the index was readjusting after six consecutive days of rises.

The Shanghai Composite Index .SSEC ended at 2,575.4, after closing up 0.7 percent on Monday, snapping a rally inspired by confidence that China would maintain stable economic policies.

Large fundraisings, including Agricultural Bank of China’s (601288.SS) hefty IPO, have weighed on the index, while Beijing’s clampdown on the speculative property sector triggered a near 30-percent drop in the index this year, until the recent rebound.

Sentiment was dampened on Tuesday after the China Securities Regulatory Commission said it would review an IPO application for ShanXi Securities, but analysts said new issuances were unlikely to halt market gains substantially.

“After Agricultural Bank’s huge listing, other listings are not likely to unsettle the market much. Today’s fall is because there is a need for some technical adjustment, this is normal,” said Wen Lijun, analyst at Nanjing Securities.

Wen said in the near term the index could extend its recent rally to 2,800 points on optimism that economic policies will remain stable for the rest of the year to bolster growth.

Volume slipped to 85 billion yuan ($12.54 billion) from Monday’s 88 billion yuan. Turnover had picked up significantly in the previous week, with analysts citing the potential for further rises.

Losing Shanghai shares outnumbered gainers 574 to 306. (Reporting by Farah Master; Editing by Jacqueline Wong)

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China stocks end up 2.1 pct on stable policy outlook

July 20, 2010 By Leave a Comment

July 19 (Reuters) – China’s key stock index closed up 2.1 percent on Monday, boosted by expectations that the government will maintain stable economic policies for the rest of the year.

Premier Wen Jiabao said on Sunday that China’s economy was responding appropriately to stable policies, adding “relatively fast” growth would help create jobs and boost domestic demand. [ID:nTOE66H00H] The Shanghai Composite Index .SSEC closed at 2,475.4 points after shedding 1.9 percent last week. The index, which is one of the world’s worst performers, second only to Greece, has lost over 24 percent of its value since the start of the year.

Yuan-denominated A-shares have been hard hit by Beijing’s moves to cool the country’s fiery property sector, while a raft of recent initial public offerings including that by Agricultural Bank of China (601288.SS) (1288.HK) have sapped investor demand.

“Investors are more confident that economic policies will remain stable and there is not a large possibility of major changes,” said Xu Yinhui, analyst at Guotai Junan Securities in Shanghai.

AgBank was the most active stock, ending up 0.7 percent, while property heavyweight Gemdale (600383.SS) rose 1.7 percent.

Shanghai’s property sub-index .SSEP was up 2.3 percent.

Turnover picked up to 79 billion yuan ($11.7 billion) versus 56 billion yuan on Friday. Volume has been picking up in recent sessions, indicating the possibility of a potential upward path for the index.

Gaining shares outnumbered losers 894 to 19. (Reporting by Farah Master; Editing by Jason Subler)

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Hungary stocks plunge after IMF/EU talks suspended

July 20, 2010 By Leave a Comment

July 19 (Reuters) – Hungary’s blue chip stock index opened 4.3 percent lower on Monday after talks between the centre-right government and international lenders were suspended without agreement at the weekend.

Shares in the country’s biggest bank, OTP (OTPB.BU), were down 8.5 percent at 4,705 forints in early trade. (Reporting by Gergely Szakacs, editing by Will Waterman)

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China stocks gain 2 pct on stable policy expectations

July 20, 2010 By Leave a Comment

July 19 (Reuters) – China’s key stock index rose more than 2 percent in afternoon trade on Monday, boosted by expectations that the government will maintain stable economic policies for the rest of the year.

Premier Wen Jiabao said on Sunday that China’s economy was responding appropriately to stable policies, adding “relatively fast” growth would help create jobs and boost domestic demand. [ID:nTOE66H00H] The Shanghai Composite Index .SSEC rose to as high as 2,483.9 by 0638 GMT, following a 1.9 percent decline last week. The index, which is one of the world’s worst performers, second only to Greece, has lost over 24 percent of its value since the start of the year.

Yuan-denominated A-shares have been hard hit by Beijing’s moves to cool the country’s fiery property sector, while a raft of recent initial public offerings including that by Agricultural Bank of China (601288.SS) (1288.HK) have sapped investor demand.

“Investors are more confident that economic policies will remain stable and there is not a large possibility of major changes,” said Xu Yinhui, analyst at Guotai Junan Securities in Shanghai.

AgBank was the most active stock, trading up 0.4 percent at 0631 GMT, while property heavyweight Gemdale (600383.SS) rose 1.9 percent.

Shanghai’s property sub-index .SSEP was up 2.2 percent. (Reporting by Farah Master; Editing by Jason Subler)

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China shares end up 0.8 pct, property sector firm

July 15, 2010 By Leave a Comment

July 14 (Reuters) – China’s key stock index ended up 0.8 percent on Wednesday, rebounding from the biggest single-day percentage drop in two weeks the day before, led by construction and property firms on optimism further tightening policies will not be too severe as economic growth slows.

The Shanghai Composite Index .SSEC finished at 2,470.4 points, after closing down 1.6 percent on Tuesday.

Analysts said firmer sentiment will help underpin Agricultural Bank of China’s [ABC.UL] debut in Shanghai on Thursday although investors remained generally cautious.

“Volume was still very thin ahead of AgBank’s listing. That means investors are adopting a cautious stance, awaiting its listing ” said Zheng Weigang, an analyst at Shanghai Securities.

He said that if volume breached 100 billion yuan, discounting turnover from AgBank’s listing, the index may find momentum to rise above the 2,500-point level that has proved a strong resistence.

Volume edged up to 70 billion yuan ($10.34 billion) from Tuesday’s 61 billion yuan.

Real estate stocks, which had slumped on Tuesday after the government said it would continue its clampdown on property speculation, eased from earlier session highs but retained most of their speculative rebound.

China’s stock market, one of the world’s worst performing this year, down nearly 25 percent, has been hard hit by Beijing’s moves to cool the mainland’s real estate fever, with investors closely eyeing any policy moves for new market direction. (Reporting by Chen Yixin and Jacqueline Wong)

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China stocks in biggest percentage fall in 2 weeks

July 14, 2010 By Leave a Comment

July 13 (Reuters) – China’s key stock index ended down 1.6 percent on Tuesday after the government said it would continue to rein in speculation in the country’s red-hot property sector, following recent media reports that had indicated it was relaxing credit controls.

The Shanghai Composite Index .SSEC closed at 2,450.3 points, chalking up its biggest single-day percentage fall in two weeks. It closed up 0.8 percent on Monday, supported by optimism that the government was relaxing property tightening policies.

China’s stock market, one of the world’s worst performing this year, down around 25 percent, has been hard hit by Beijing’s moves to cool the mainland’s real estate fever.

Chinese banks should “strictly implement” existing curbs on loans to multi-home buyers, the China Banking Regulatory Commission (CBRC) said on Tuesday. [ID:nTOE66C004]

“The market has received a blow from this news,” said Zhang Gang, an analyst at Central Securities. “We expect the index will still trade below 2,500 points in the near term.”

Shanghai’s property sub-index .SSEP slumped 3.2 percent. (Reporting by Chen Yixin and Jacqueline Wong)

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Nikkei down on China worry; earnings hope a support

July 14, 2010 By Leave a Comment

TOKYO, July 13 (Reuters) – Japan’s Nikkei edged lower on Tuesday, weighed as Shanghai shares fell after China said it had no plans to relax tougher property measures anytime soon, but falls were checked by hopes for U.S. earnings later in the day.

Though the market rose in early trade on broad short-covering as traders took heart from Alcoa’s (AA.N) stronger than expected quarterly profit, resistance appeared to be growing around 9,660, roughly the level of the Nikkei’s 25-day moving average.

China’s key stock index fell nearly 2 percent after the government said it would continue to rein in speculation in the country’s red-hot property sector, weighing on shares throughout Asia. [ID:nTST000264]

“There’s a lot of Chinese economic indicators coming out later this week, and investors have gotten pretty nervous ahead of the numbers,” said Takashi Ushio, head of the investment strategy division at Marusan Securities.

“But Alcoa’s results were quite good and we have Intel later today, with both of these offering support.”

Intel Corp (INTC.O) reports later on Tuesday, and other companies reporting this week include JPMorgan Chase & Co (JPM.N) and General Electric Co (GE.N).

“Although there’s a sense of selling fatigue, investor sentiment is still bearish, and the market is looking for a catalyst. Corporate earnings could be one,” said Naoki Koga, a senior fund manager at Toyota Asset Management.

“Intel’s earnings are a focus because they always illustrate a trend.”

The benchmark Nikkei .N225 erased morning gains to edge down 0.1 percent to 9,537.23, while the broader Topix shed 0.4 percent to 854.39.

U.S. stocks eked out small gains in thin trade on Monday before Alcoa, the largest U.S. aluminium producer, posted a stronger-than-expected second-quarter profit and raised its estimate for global aluminium consumption, sending its shares up 3 percent. [ID:nN12206110]

Chairman and Chief Executive Klaus Kleinfeld told Wall Street analysts that strong industry fundamentals were expected to drive demand for aluminium in the next 10 years with average growth of 6 percent a year.

But by afternoon U.S. stock futures SPc1 had given up earlier gains to edge down 0.2 percent.

The Nikkei’s next upward target is around 9,660, its 25-day moving average, which is a proxy for a one-month moving average that is closely watched in Japan. On daily Ichimoku charts, a popular charting method among Japanese traders, its kijun-sen — an indicator of medium-term trends — comes in around 9,671, becoming additional resistance.

The next target after that lies around 10,250, roughly the level of the Nikkei’s June high.

The technical picture is growing increasingly bright, with the Nikkei’s MACD, a measure of market momentum, heading up after a bullish cross.

CHINA BRUISING

Shares with large exposure to China slipped, with Hitachi Construction (6305.T) down 1 percent to 1,717 yen and Komatsu (6301.T), the world’s second-largest maker of earth-moving equipment, down 1.6 percent to 1,698 yen.

Shanghai copper slipped and London prices extended Monday’s falls on investor worry on the global economy, with trading companies taking a hit as a result.

Itochu Corp (8001.T) shed 1.7 percent to 704 yen and Sumitomo Corp (8053.T) lost 1.3 percent to 932 yen. Mitsui O.S.K. Lines (9104.T), which rose in morning trade, slipped 1.2 percent to 582 yen.

But a broad range of exporters clung to gains made on morning short-covering, with Canon Inc (7751.T) up 0.3 percent at 3,460 yen and Tokyo Electron (8035.T) up 1.7 percent at 4,910 yen.

Shares of Fast Retailing (9983.T), the operator of the Uniqlo casual-clothing chain, climbed 1 percent to 12,700 yen after it said it would set up a venture with Bangladeshi microfinance specialist Grameen Bank. [ID:nTOE66C03N]

Denso Corp (6902.T), Japan’s No.1 car parts maker, rose 1.3 percent to 2,658 yen after it announced it would establish an aftermarket sales company in Dubai in November to strengthen its business in the Middle East and North Africa.

Trade picked up, with 1.88 billion shares changing hands on the Tokyo exchange’s first section, the highest in two weeks. Declining shares outpaced advancing ones by more than 3 to 1.

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Nikkei gives up gains as China worry weighs

July 14, 2010 By Leave a Comment

July 13 (Reuters) – Japan’s Nikkei edged lower on Tuesday, weighed down as Shanghai shares fell after China said it had no plans to relax tougher property measures anytime soon, though falls were checked by hopes for U.S. earnings later in the day.

China’s key stock index .SSEC fell 1.6 percent after the government said it would continue to rein in speculation in the country’s red-hot property sector, weighing on shares throughout Asia. [ID:nTST000264]

The benchmark Nikkei .N225 shed 0.1 percent or 10.88 points to 9,537.23 after earlier rising nearly 1 percent. The broader Topix fell 0.4 percent to 854.39.

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China stocks end up 2.3 pct as cash flow improves

July 10, 2010 By Leave a Comment

July 9 (Reuters) – China’s key stock index closed 2.3 percent higher on Friday as cash tied up by Agricultural Bank of China’s [ABC.UL] mega IPO returned to the market, while institutions bought up banks and property issues.

Dealers attributed the buying of blue chip stocks to window-dressing ahead of the listing of AgBank next week.

Trading remained cautious after a 25 percent market slump this year battered investor confidence, with traders predicting the index may not easily breach the psychologically important 2,500-point barrier.

The Shanghai Composite Index .SSEC closed at 2,471 points, winding up the week with a gain of 3.7 percent and reversing a 6.7 percent loss last week amid the peak of fund demand for AgBank’s stock initial public offering.

The Shanghai portion of AgBank’s IPO had frozen nearly 500 billion yuan ($74 billion) in subscription funds, and the money for failed subscriptions would all be returned by Friday. The bank will be listed in Shanghai and Hong Kong next week.

Despite Friday’s gain, the index is still one of the world’s worst performers so far this year, hit by a slew of negative factors including Beijing’s campaign to cool the property market and worries over a slowdown of China’s economic recovery amid the euro zone debt crisis.

“I believe institutional investors are doing some window-dressing buying ahead of the AgBank listing,” said a senior trader at a major Chinese brokerage. “But the market should pull back late next week after the AgBank listing.”

China State Construction Engineering Co (601668.SS), the country’s top developer and construction firm, was the day’s most active stock, rising 1.9 percent, while Minsheng Bank (600016.SS), another active stock, closed up 2.8 percent. ($1=6.77 yuan) (Reporting by Lu Jianxin and Jacqueline Wong)

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UPDATE 1-Infosys shares hit record high ahead of earnings

July 10, 2010 By Leave a Comment

BANGALORE, July 9 (Reuters) – Shares in Infosys Technologies (INFY.BO), India’s second-largest outsourcer, rose almost 2 percent on Friday to a record high on optimism about quarterly earnings next week.

“Infosys is expected to outperform its forecast and upgrade its full-year outlook; plus it is good fundamentally,” said Harit Shah, IT analyst with domestic brokerage Karvy Stock Broking.

By 10:41 a.m. (0511 GMT), Infosys was up 1.5 percent at 2,869.40 after hitting 2,879.90, outpacing a 1 percent rise in the main stock index .BSESN.

Most analysts expect Infosys, which reports June quarter results on Tuesday, to raise its revenue growth guidance in dollar terms for 2010/11 to 17-19 percent from 16-18 percent given in April.

“We expect robust results from Tier 1 IT vendors to demonstrate the underlying demand strength,” Macquarie said in a note.

Analysts expect the rupee’s 3.3 percent fall against the U.S. dollar in the June quarter to partially offset the impact of salary hikes and euro volatility for exporters such as Infosys, which generates more than half its sales from the United States.

Shares in Infosys, which has a market value of about $35 billion, currently trade at a price to earnings multiple of 25-27, according to calculation by Reuters.

“The valuation is expensive,” said Shah, who has a ‘market performer’ rating on the stock with a 12-month target of 3,025 rupees. (Additional reporting by Ami Shah in MUMBAI; Editing by Ranjit Gangadharanan)

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Infosys shares hit record high ahead of earnings

July 10, 2010 By Leave a Comment

(Reuters) – Shares in India’s Infosys Technologies (INFY.BO) rose 1.8 percent to a record high of 2,876 rupees on Friday morning, ahead of its quarterly earnings on July 13.

“We expect robust results from Tier 1 IT vendors to demonstrate the underlying demand strength,” Macquarie said in a note.

It expects Infosys to raise fiscal year 2011 U.S. dollar revenue growth guidance to 17-19 percent from 16-18 percent.

At 9:29 a.m. (11:59 a.m. ET), Infosys was up 1.7 percent, outpacing 0.9 percent rise in the main stock index .BSESN.

(Reporting by Ami Shah)

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China markets brace for AgBank IPO pricing

July 7, 2010 By Leave a Comment

(Reuters) – Agricultural Bank of China, the country’s No.3 bank by assets, is set to price its dual Hong Kong and Shanghai IPO late on Tuesday, determining whether it will become world’s largest ever share offer.

AgBank’s pricing will also provide a barometer of sentiment for other Chinese banks planning to raise billions of dollars more from investors worried about slowing growth, rising bad loans and tanking global stock markets.

A low-range price would help the chances of a first day jump in its share price, but would also back the view that AgBank, as the weakest of China’s top four banks, is coming to market at a tough time.

China’s benchmark stock index has lost nearly a quarter of its value since mid-April and fell sharply last week, partly due to investors selling stocks to raise money for the AgBank offer.

Mark To, Head of Research at Wing Fung Financial Group, said he believes that money will flow back into Chinese shares once AgBank lists, particularly toward mainland banks and property developers.

“Investors have been on the sidelines waiting for the AgBank IPO but I see volume picking up once again after the listing as the fundraising has already been discounted in the stock prices and pessimism about the global economy tempers,” he said.

WORLD’S BIGGEST?

The price range for the A-share offering is 2.52-2.68 yuan ($0.37-$0.40) per share while the Hong Kong price range was narrowed to HK$3.18-HK$3.38 per share on Monday.

If AgBank’s offering is priced toward the top of the indicated range, and a greenshoe option is exercised to expand the offering by 15 percent, the IPO could still become the world’s biggest ever, exceeding Industrial & Commercial Bank of China’s $21.9 billion offering in 2006.

That would value AgBank at about $150 billion, ranking it the fourth biggest bank in the world by market capitalization behind ICBC, China Construction Bank and HSBC.

AgBank is going public because it has finally been able to shed its massive non-performing loan book, which only a few years ago was around 25 percent.

AgBank’s offering of a 15 percent stake will complete Beijing’s plans to have its four major banks go public, and will allow AgBank to use the IPO proceeds to boost its capital cushion after most Chinese banks went on a lending spree during the financial crisis.

Founded in 1951 by Mao Zedong as the rural unit of the central bank, it aims to list its shares in Shanghai on July 15, and in Hong Kong the following day.

Roughly half of both the Shanghai and Hong Kong offerings have already been subscribed to by major cornerstone and strategic investors, including sovereign wealth funds, banks, insurers and other major companies. Retail demand for both IPOs so far showing a tepid response.

Headed by Chairman Xiang Junbo, an award-winning scriptwriter and war hero, AgBank has 24,000 branches, 441,000 employees and 320 million customers — more than the population of the United States.

BENCHMARK FOR RIVALS

Bank of China and ICBC also have huge fund raisings planned.

“The (AgBank) pricing would be a barometer of market demand for Chinese banking stocks,” said Paul Lee, Hong Kong-based analyst at Tai Fook Securities. “I don’t see much good news about Chinese banks in the short term,” he said, citing concerns over the share sales and worries about loans to local governments that could struggle to repay them.

Some investors are confident the market can absorb the $70 billion plus in bank fundraising plans headed their way by the year-end.

“Capital markets should be able to stomach the issues as there is abundant liquidity out there and the dual-listing has been widely priced in,” said Chen Xingyu, an analyst with Phillip Securities Research. “The fact that it’s listing in both Shanghai and Hong Kong is good for diverting capital so that it won’t have a huge impact for any of them.”

(Additional reporting by Michael Wei in Beijing; Writing by Michael Flaherty; Editing by Lincoln Feast)

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China markets brace for AgBank IPO pricing

July 7, 2010 By Leave a Comment

SHANGHAI/HONG KONG, July 6 (Reuters) – Agricultural Bank of China [ABC.UL], the country’s No.3 bank by assets, is set to price its dual Hong Kong and Shanghai IPO late on Tuesday, determining whether it will become world’s largest ever share offer.

AgBank’s pricing will also provide a barometer of sentiment for other Chinese banks planning to raise billions of dollars more from investors worried about slowing growth, rising bad loans and tanking global stock markets.

A low-range price would help the chances of a first day jump in its share price, but would also back the view that AgBank, as the weakest of China’s top four banks, is coming to market at a tough time.

China’s benchmark stock index .SSEC has lost nearly a quarter of its value since mid-April and fell sharply last week, partly due to investors selling stocks to raise money for the AgBank offer.

Mark To, Head of Research at Wing Fung Financial Group, said he believes that money will flow back into Chinese shares once AgBank lists, particularly toward mainland banks and property developers.

“Investors have been on the sidelines waiting for the AgBank IPO but I see volume picking up once again after the listing as the fundraising has already been discounted in the stock prices and pessimism about the global economy tempers,” he said. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ For a Take A Look on AgBank: [ID:nSGE65307X] For a DEALTALK on IPO fees [ID:nSGE65L082] For graphic on investors: r.reuters.com/qum74m For a Newsmaker on AgBank Chairman: [ID:nTOE64U07W] For a Reuters Insider TV on waht next for China IPOs: link.reuters.com/ryv85m ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

WORLD’S BIGGEST?

The price range for the A-share offering is 2.52-2.68 yuan ($0.37-$0.40) per share while the Hong Kong price range was narrowed to HK$3.18-HK$3.38 per share on Monday.

If AgBank’s offering is priced toward the top of the indicated range, and a greenshoe option is exercised to expand the offering by 15 percent, the IPO could still become the world’s biggest ever, exceeding Industrial & Commercial Bank of China’s (1398.HK) (601398.SS) $21.9 billion offering in 2006.

That would value AgBank at about $150 billion, ranking it the fourth biggest bank in the world by market capitalisation behind ICBC, China Construction Bank (0939.HK)(601939.SS) and HSBC (HSBA.L).

AgBank is going public because it has finally been able to shed its massive non-performing loan book, which only a few years ago was around 25 percent.

AgBank’s offering of a 15 percent stake will complete Beijing’s plans to have its four major banks go public, and will allow AgBank to use the IPO proceeds to boost its capital cushion after most Chinese banks went on a lending spree during the financial crisis.

Founded in 1951 by Mao Zedong as the rural unit of the central bank, it aims to list its shares in Shanghai on July 15, and in Hong Kong the following day.

Roughly half of both the Shanghai and Hong Kong offerings have already been subscribed to by major cornerstone and strategic investors, including sovereign wealth funds, banks, insurers and other major companies. Retail demand for both IPOs so far showing a tepid response.

Headed by Chairman Xiang Junbo, an award-winning scriptwriter and war hero, AgBank has 24,000 branches, 441,000 employees and 320 million customers — more than the population of the United States.

BENCHMARK FOR RIVALS

Bank of China (3988.HK)(601988.SS) and ICBC also have huge fund raisings planned. [ID:nTOE66402Z] [ID:nTOE66502K]

“The (AgBank) pricing would be a barometer of market demand for Chinese banking stocks,” said Paul Lee, Hong Kong-based analyst at Tai Fook Securities. “I don’t see much good news about Chinese banks in the short term”, he said, citing concens over the share sales and worries about loans to local governments that could struggle to repay them.

Some investors are confident the market can absorb the $70 billion plus in bank fundraising plans headed their way by the year-end.

“Capital markets should be able to stomach the issues as there is abundant liquidity out there and the dual-listing has been widely priced in,” said Chen Xingyu, an analyst with Phillip Securities Research. “The fact that it’s listing in both Shanghai and Hong Kong is good for diverting capital so that it won’t have a huge impact for any of them.” (Additional reporting by Michael Wei in Beijing; Writing by Michael Flaherty; Editing by Lincoln Feast)

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Mexican stocks jump on Chicago PMI, America Movil

July 1, 2010 By Leave a Comment

June 30 (Reuters) – Mexico’s IPC stock index rose on Wednesday after data showed business activity in the U.S. Midwest grew slightly more than expected, tempering concerns of a slowdown in the United States, Mexico’s top trading partner.

Financials

The IPC stock index .MXX jumped 1.01 percent to 31,790, bouncing back from its steepest one-day loss in a year in the previous session.

Tuesday’s gains also were supported by a 1.5 percent gain in share of America Movil (AMXL.MX) as Latin America’s top wireless provider recovered some ground after its steepest fall in more than five months on Tuesday. (Reporting by Michael O’Boyle; Editing by Theodore d’Afflisio)

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China stocks slide over 4 pct as AgBank IPO nears

July 1, 2010 By Leave a Comment

June 29 (Reuters) – China’s key stock index tumbled more than 4 percent to a 14-month low on Tuesday as money flew out of existing shares to subscribe to a major initial public offering by Agricultural Bank of China [ABC.UL].

The Shanghai Composite Index .SSEC dropped to 2,430.3 points, its lowest since April 2009, heading for a quarterly loss of about 22 percent.

Institutions will start subscribing to the Shanghai portion of AgBank’s IPO on Thursday, while retail subscriptions are scheduled for early next week.

“The market is short of funding,” said Wen Lijun, analyst at Nanjing Securities. ($1 = 6.83 yuan) (Reporting by Farah Master; Editing by Edmund Klamann)

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U.S. crude falls $1 with Asian equities; storm may miss output

July 1, 2010 By Leave a Comment

June 29 (Reuters) – Oil fell to $77 on Tuesday as forecasts indicated tropical storm Alex would skirt the main production region in the U.S. Gulf of Mexico, limiting disruption there to a few precautionary shutdowns.

The price drop accelerated with slumping Asian stock markets. Shanghai’s main index fell to a 14-month low, while Japan’s Nikkei was poised for its worst quarter since October-December 2008 as European debt worries curbed investors’ risk appetite.

U.S. crude for August CLc1 dropped $1.21 to $77.04 a barrel by 0612 GMT, after falling 0.77 percent on Monday and rising 21 percent from a May 20 trough below $65. ICE Brent LCOc1 declined $1.09 on Tuesday to $76.50. (Reporting by Alejandro Barbajosa; Editing by Clarence Fernandez)

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China stocks fall 2.6 percent to 14-month low on AgBank IPO

June 30, 2010 By Leave a Comment

(Reuters) – China’s key stock index dropped 2.6 percent to a 14-month low on Tuesday afternoon as investors started pulling funds from the market to prepare for a major initial public offering by Agricultural Bank of China ABC.UL.

Asian Markets

The Shanghai Composite Index .SSEC dropped to 2,468.8 points, its lowest intraday level since April 2009, heading for a quarterly loss of more than 20 percent.

Institutions will start subscribing for AgBank’s IPO on Thursday, while retail subscriptions are scheduled for early next week.

(Reporting by Lu Jianxin and Edmund Klamann)

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China stocks fall 2.6 pct to 14-mth low on AgBank IPO

June 30, 2010 By Leave a Comment

June 29 (Reuters) – China’s key stock index dropped 2.6 percent to a 14-month low on Tuesday afternoon as investors started pulling funds from the market to prepare for a major initial public offering by Agricultural Bank of China [ABC.UL].

The Shanghai Composite Index .SSEC dropped to 2,468.8 points, its lowest intraday level since April 2009, heading for a quarterly loss of more than 20 percent.

Institutions will start subscribing for AgBank’s IPO on Thursday, while retail subscriptions are scheduled for early next week. ($1 = 6.83 yuan) (Reporting by Lu Jianxin and Edmund Klamann)

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China stocks slip 0.5 pct, volume remains thin

June 26, 2010 By Leave a Comment

June 25 (Reuters) – China’s key stock index ended 0.5 percent lower on Friday with trade volumes holding near their lowest in 17 months, as a much-awaited major listing of a domestic bank sapped investor demand for other shares.

The benchmark Shanghai Composite Index .SSEC slipped to 2,552.8 points, falling for a third consecutive session.

For the week however, the benchmark index, one of the worst performers in the world this year, managed to climb 1.6 percent, its best weekly performance this month, as China’s move to relax its hold over the yuan this week gave a filip to markets worldwide.

“The market has been performing poorly so it would take some time to rebuild confidence before buyers start coming back,” said Cheng Yi, an analyst at Xiangcai Securities.

Turnover was very light at 51.5 billion yuan ($7.58 billion), marginally above the previous day’s total, which set a 17-month low. ($1=6.799 Yuan) (Reporting by Koh Gui Qing, Editing by Edmund Klamann)

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