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Thursday, July 09, 2009
Precious metals at two month lows
Prices drop in synchronization with slipping crude
Precious metal prices dropped substantially lower on Wednesday, 08 July, 2009. Slipping crude prices coupled with the dollar which remained strong erased more shine from precious metals by decreasing their appeal as a hedge against inflation.
Generally, a stronger dollar pressures demand for dollar-denominated commodities, such as crude oil and gold, which become more expensive for holders of other currencies and also vice versa.
On Wednesday, gold for August delivery ended at $909.3, lower by $19.8 (2.1%) an ounce on the New York Mercantile Exchange. Last week, gold ended lower by 1.1%. Year to date, gold prices are higher by 3%.
For the month of June, 2009, gold ended down by 5.4%. Gold had ended the month of May higher by 9.8%. It was the highest monthly gain registered by gold in six months. For the second quarter, gold ended higher by 0.5%. The metal had gained 4.3% in the first quarter of this year.
On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped somewhat (13%) since then.
On Wednesday, Comex silver futures for September delivery lost 36.8 cents (2.8%) at $12.852 an ounce.
Silver ended 13% down for the month of June, 2009. For the month of May, silver gained 26.6%. It was the biggest monthly gain for silver in more than two decades. For second quarter, silver rose 4.5%. Year to date, silver has climbed 14.4% this year. For 2008, silver had lost 24%.
In the currency market on Wednesday, the dollar index, a six-currency measure of the greenback's value rose. Dollar rose against the euro. The index rose as leaders from the Group of Eight nations kicked off their meeting today.
Crude prices traded lower once again today due to the strong dollar and economic worries. Crude oil prices settled around $60 today. With today's drop crude has given up almost $13 in the past six sessions.
In 2008, gold prices ended higher by 5.5%. The dollar index had gained 12% that year.
At the MCX, gold prices for August delivery closed lower by Rs 108 (0.73%) at Rs 14,496 per 10 grams. Prices rose to a high of Rs 14,624 per 10 grams and fell to a low of Rs 14,457 per 10 grams during the day's trading.
At the MCX, silver prices for September delivery closed Rs 244 (1.11%) lower at Rs 21,573/Kg. Prices opened at Rs 21,761/kg and fell to a low of Rs 21,460/Kg during the day's trading.
Crude back at $60 level
Price drop for the sixth consecutive session
Crude prices continued to slip at Nymex on Wednesday, 08 July, 2009. Prices fell as energy department reported rise in crude inventories for second straight week and also as energy demand remained fairly weak. Prices also dropped on worries about the certainty of global recovery from the current recession in the near future and strong dollar.
On Wednesday, crude-oil futures for light sweet crude for August delivery closed at $60.14/barrel (lower by $2.79 or 4.4%). Last week, crude ended lower by 3.5%. In July, crude has shed 14% on a m-t-d basis. Prices have gone down by $13 in the past six sessions.
For the month of June, 2009, crude ended higher by 5.5%. In May, crude had registered the largest monthly gain in a decade rising 30%. For the second quarter, crude ended higher by 40%. Crude prices had rallied 11.3% in the first quarter of 2009.
Oil prices had reached a high of $147 on 11 July, 2008 but have dropped almost 67% since then. Year to date, in 2009, crude prices are higher by 36.8%.
In the weekly inventory report, EIA reported today that crude inventories fell by 2.9 million barrels in the week ended 3 July, 2009. The drop came as US imported less oil in the week. Imports averaged 9.2 million barrels a day, down 139,000 barrels a day from the previous week. U.S. refineries ran at 86.8% of their operable capacity last week, slightly lower than the previous week's 87%.
EIA also reported today that gasoline inventories rose 1.9 million barrels, while distillate stockpiles increased 3.7 million barrels for last week. Total U.S. petroleum-product inventories rose for a 15th week to 766.9 million barrels, the highest level since 1998.
Yesterday EIA reported in its short-term energy outlook that it expects a smaller decline in global oil consumption this year due to better-than-expected economic activity in Asia. The EIA now projects oil consumption to fall by 1.6 million barrels a day compared with a decline of 1.7 million barrels a day in its June outlook. The price of crude oil is expected to average near $70 per barrel through the second half of 2009.
In the currency market on Wednesday, the dollar index, a six-currency measure of the greenback's value rose. Dollar rose against the euro. The index rose as leaders from the Group of Eight nations kicked off their meeting today.
Also at the Nymex on Wednesday, August reformulated gasoline fell 9.95 cents, or 5.7%, to $1.6333 a gallon and August heating oil dropped 2.59 cents, or 1.6%, to $1.6007 a gallon.
August natural-gas futures fell 5.8 cents, or 1.7%, to $3.429 per million British thermal units.
Crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex.
At the MCX, crude oil for July delivery closed at Rs 3,003/barrel, lower by Rs 72 (2.3%) against previous day's close. Natural gas for July delivery closed at Rs 167.6/mmbtu, lower by Rs 1.8/mmbtu (1.06%).
Grey Market Premium - Adani Power, NHPC, Mahindra Holidays, Excel Infoways
Mahindra Holidays 300
25 to 27
Excel Infoways Ltd. 80 to 85
Not Available
Adani Power 110 to 130 (Approximate)
20 to 25
NHPC 15 to 20 (Approximate)
4 to 5
Daily News Roundup - July 9 2009
Government is likely to be made an intervener in the RIL-RNRL case at the Supreme Court. (BS)
DLF sold its 50% stake in a commercial project in Mumbai, a JV with Akruti City, for Rs2bn to US based real estate developer. (ET)
IOC, HPCL and BPCL are expected to report Rs50bn loss on the sale of diesel, petrol and kerosene during Q1 FY10. (BL)
Tata Steel is on schedule to complete its Jamshedpur plant expansion to 10.5mt by 2010. (FE)
Tata steel plans to save Rs20bn this fiscal by increasing efficiency and cost cutting at its plant. (ET)
SAIL has cut prices of long steel products by 5%. (ET)
Coal India has sent notices of cancelling linkages to 19 companies including Hindalco, L&T and SRF amongst others. (ET)
The legal roadblock in selling the residual 29.5% stake in Hindustan Zinc has been removed with the withdrawal of the petition filed in the Supreme Court. (BS)
M&M plans to roll out diesel trucks in US. (ET)
DoT may impose a fine on Bharti Airtel for offering services to a number of subscribers in Delhi without proper verification. (BL)
TDSAT dismisses RCom’s application for GSM spectrum. (BS)
Educomp has opened the bidding for its US$100mn QIP. (BS)
CLB approved the allotment of fresh Satyam shares to Tech Mahindra on a preferential basis. (FE)
Gammon India received approval from the High Court for the merger of its subsidiary Associated Transrail Structures with itself. (BL)
GVK Power raised Rs7.2bn through placement of shares with QIB. (BL)
Government proposes IPO’s of NHPC in August and OIL in September. (FE)
Marico Bangladesh, an arm of Marico, plans to raise Rs90mn through an IPO. (BL)
Kingfisher Airlines plans to raise funds either through a rights issue or a follow on public offer if the FDI policy on investment in the sector remains unchanged. (BL)
Yes Bank plans to raise US$300mn by the end of this fiscal. (FE)
IndusInd Bank plans to raise US$100mn. (FE)
Bharat Electronics has exited the retail sale of set top boxes and will now focus on developing high end set top boxes for institutional buyers. (BL)
UTV Global Broadcasting Ltd (UGBL) and Dish TV have signed an agreement to broadcast UGBL’s English business news channel UTVi on the latter’s platform. (FE)
Lupin, Matrix Laboratories and Unichem Laboratories have come under the European Union Competition Commission scanner for an alleged understanding with global players to delay the launch of the generic version of Servier’s perindopril. (FE)
Galderma Laboratories, JV between Nestle and L’Oreal, and New York University have sued Lupin for infringing the patent rights of one of its main drugs, Oracea. (BS)
Elder Pharmaceuticals has earmarked Rs400mn investment to set up its network in villages. (BS)
Sobha Developers plan to raise Rs2.5bn during the current financial year through private placement or sale of land. (BL)
CERC plans to issue power trading regulations over the next couple of months. (FE)
Toshiba Corp, Japanese power and electronics major, announced that it would set up an Indian company to provide EPC services for power projects. (BL)
GE, the supplier of 9FA turbines to Dhabol, signed a comprehensive service and rehabilitation agreements with Ratnagiri Gas & Power Pvt Ltd. (FE)
Moser Baer has stopped some processes for manufacturing PV panels because of excess capacity and inventory build up. (BS)
BSNL shelves its plans to hive off its tower and other related infrastructure in a new entity. (ET)
Telecom operators will not get any spectrum unless the government finalizes a spectrum pricing policy. (FE)
Board of Approval which clears SEZ projects will meet next month to approve fresh proposals. (FE)
Power ministry proposed that 15% of the unallocated quota from the central sector will be sold through the exchanges. (FE)
29 coal projects meant for the power sector are awaiting environmental clearances. (FE)
Centre plans to enhance its nuclear power capacity to 6,700MW by the end of 2011. (FE)
Government plans to amend the I-T law to curb black money transactions in the property market. (BL)
NHAI plans to invite bids for 38 projects on a PPP model in FY10. (BL)
June automobile sales grew by 14.3% yoy. (BS)
Power ministry has asked for 40 units of gas from KG basin for its power plants. (ET)
Government to buy RBI’s stake in NABARD and NHB for Rs15bn. (ET)
Government plans to setup a coal regulatory body, with entry of private players in coal mining. (ET)
India’s June exports drop 29% yoy. (ET)
Fragile to exit!
Confidence is a very fragile thing.
The worst recession in several decades is moderating but it would be too early to withdraw the slew of government measures aimed at lifting the global economy, says the IMF. Group of Eight (G8) leaders endorse the IMF view saying that the economic recovery is too fragile to consider the so-called ‘exit’ strategies. Meanwhile, a top Democratic lawmaker has questioned if Obama’s economic stimulus plan is working as intended.
One of the key concerns is that the worldwide efforts to bolster growth could revive inflation and harden interest rates. India is no exception. Some experts are even worried about stagflation following the additional stimulus unveiled in the budget; especially, if monsoon plays truant and global commodity prices soar again.
Today, we expect a cautious opening with US markets ending flat and mixed indications coming from Asian markets. Shares in Europe fell for a fifth straight session. Tomorrow is a big result day, as Infosys will announce its Q1 results. The Government will come out with its latest IIP numbers. The near-term trend will remain hazy. Earnings, monsoon and global cues will continue to be the key drivers.
Results Today: Gammon India and Praj Industries.
FIIs were net sellers in the cash segment on Wednesday at Rs8.28bn while the local institutions poured in Rs5.94bn. In the F&O segment, the foreign funds were net buyers at Rs7.66bn.
US stock benchmarks reversed most of their losses by the close on Wednesday, as investors brushed aside concerns about the state of the economy to gear up for the starting of the quarterly earnings reporting period. Concerns that second quarter earnings will disappoint overshadowed a Treasury plan to remove as much as $40 billion in toxic assets from financial firms.
The Dow Jones Industrial Average gained 15 points, or 0.2%, to 8,178.41. The S&P 500 index finished nearly unchanged at 879.56. The Nasdaq Composite index ended just above the unchanged mark at 1,747.17.
US stocks slipped through most of Wednesday as investors remained nervous about the economy at the start of the quarterly reporting period. But after touching fresh multi-month lows in the afternoon, stocks bounced back.
Stocks have drifted lower since mid-June on worries that the US economy won't stabilise as quickly as hoped earlier. Those declines followed a three-month stock market rally that propelled the S&P 500 off of 12-year lows by about 40%.
Google said that late on Tuesday that it will challenge Microsoft's dominant Windows by launching a rival operating system called Chrome OS. The system will be available in the second half of 2010.
Google shares gained, but other big techs slipped including chipmakers Intel, AMD and Applied Materials. Bank of America, Morgan Stanley and Goldman Sachs were among the big bank decliners.
Among Dow movers, gains in Boeing, Johnson & Johnson and Wal-Mart Stores helped offset weakness in bank, tech and telecom stocks.
May consumer credit fell $3.22 billion versus a revised decline of $16.7 billion in the previous month. Economists had forecast a fall of $8.8 billion.
The International Monetary Fund (IMF) forecast that global GDP would shrink by 1.4% in 2009, versus its earlier forecast of 1.3%. However, the IMF also lifted its forecast for 2010 growth to 2.5% from 1.9% previously.
The leaders of the world's eight foremost industrialized nations (G8) met in L'Aquila, Italy to discuss the global economy, climate change and security issues. In addition to US President Barack Obama, the leaders of Japan, the UK, France, Italy, Germany, Canada and Russia are also due to speak.
Treasury prices rallied, lowering the yield on the benchmark 10-year note to 3.31% from 3.45% late on Tuesday.
Energy prices slipped, with US light crude oil for August delivery falling $2.79 to settle at $60.14 a barrel on the New York Mercantile Exchange. A government report showed a bigger-than-estimated increase in US fuel supplies last week as the recession curbed demand.
In currency trading, the dollar gained versus the euro and fell versus the yen.
COMEX gold for August delivery fell $19.80 to settle at $909.30 an ounce.
After the close, Dow component Alcoa reported a quarterly loss of 26 cents per share as the global recession ate into the price and demand for its precious metals. But the decline was narrower than the loss of 38 cents per share analysts expected. Alcoa earned 66 cents a year ago. Alcoa shares gained 5% in after-hours trading.
But most quarterly reports are not due until later this month and the results are expected to be fairly grim. Profits for S&P 500 companies are expected to have fallen 36% from a year ago, according to the latest Thomson Reuters estimates.
European shares closed lower for the fifth straight session. The pan-European Dow Jones Stoxx 600 index declined 1.2% to 197.75, edging below 200 for the first time since mid-May. The index is still roughly 28% above its March low although shares haven't made much progress since the start of May.
The UK's FTSE 100 index fell 1.1% to 4,140.23, while the French CAC-40 index lost 1.3% to 3,009.71 and Germany's DAX index slipped 0.6% to 4,572.65, supported by gains for utility giant E.On and software firm SAP.
Indian markets were once again under the bear attack as the key indices reversed all the previous day gains on Wednesday. Bulls were unable to hold their composure as unabated selling throughout the day dragged the BSE Sensex and NSE Nifty below the 14,000 and 4,100 levels respectively.
The sharp sell-off could be attributed to weak cues from the international markets. Sentiments were further dampened after reports stated that monsoon rains have been 45% below average in the northwest region.
The decline was led by the interest rate sensitive stocks. Even the Mid-Cap and the Small-Cap stocks were not spared.
Technically, the NSE Nifty index has ended below the 4,080 levels which was a crucial support level for the index previously.
The heavy offloading in the past three days have seen the BSE Sensex losing over 1,100 points and the NSE Nifty nearly 350 points.
The Sensex lost 401 points or 2.8% at 13,769 after touching a high of 14,039 and a low of 13,701. The index had opened at 14,039 against the previous close of 14,170.
The NSE Nifty plunged 127 points or 3% to shut shop at 4,075.
Asian markets ended in the red; the Nikkei index in Japan slipped 2.3% at 9,420, Australia's S&P/ASX ended flat at 3,767. Hang Seng index fell 0.8% at 17,721.
Elsewhere in the Europe, stocks were trading mixed. The FTSE index was up 0.2% at 4,191. The DAX index was down 0.2% at 4,594. CAC 40 index was down 0.6% at 3,033.
Coming back to India, among the BSE Sectoral indices BSE Realty index was the top loser losing 8.5%, followed by the BSE Capital Goods index down 5%, BSE Metal index down 4.2% and BSE Bankex index down 4%.
The BSE Mid-Cap index lost 3.6% and the BSE Small-Cap index fell 3.7%.
In the Sensex, the major losers were Tata Steel, DLF, Reliance Infra, Sterlite, ICICI Bank, JP Associates, L&T and BHEL.
On the other hand, ACC, Maruti, Hero Honda, NTPC, Grasim and Tata Motors were among the top losers.
Outside the frontline indices, the top losers included Aban, Essar Oil, Suzlon, Jai Corp, Moser Baer, Canara Bank and IFCI.
Among the big gainers in the broader market were BEML, NMDC, Aditya Birla Nuvo, ZEE, BEL, Areva and APIL.
Cement stocks ended with smart gains due to increase in infrastructure allocation in Budget spending.
The Finance Minister in his Budget announced an increased spending allocation for commonwealth games to Rs347bn from Rs211bn and increase in infrastructure and housing spending through PPP model.
Suzlon Energy bagged new orders totaling to 114 MW in capacity. Suzlon Energy (Tianjin) Ltd., a subsidiary of the company further strengthened its presence in the Chinese wind energy market with another order for 48.75 KW.
The contract for 39 sets of S.64 - 1.25 MW capacity was signed with Datang Power Generation Co. The turbines under this order are expected to be delivered and commissioned by the third quarter of financial year 2009-10.
Suzlon Energy (Tianjin) got another Chinese order for 50 MW. The contract for 40 units of 1.25 MW capacity was signed with Honiton.
The company gets a repeat order for 10 units of S.82-1.5 MW turbine from KS Oils Ltd. The edible oil major started with a 2.5MW project in Madhya Pradesh with Suzlon and has placed 6 orders with Suzlon till date.
Shares of Suzlon Energy slumped by over 10% to Rs87 after hitting an intra-day high of Rs96 and a low of Rs87 and recorded volumes of over 10.7mn shares on BSE.
Refinery stocks also were in demand after crude oil prices fell to its lowest levels in over 4 weeks. Crude oil fell for the sixth straight day posting its longest losing streak since December 2008.
The government hiked retail fuel prices on July 2, 2009. It hiked retail prices of petrol and diesel. Petrol prices were hiked by Rs4 per litre while diesel prices have been raised by Rs2 a litre.
Lupin, Matrix Labs and Unichem Labs face European Union antitrust investigations of agreements that may have delayed market entry of a cardiovascular drug.
Others like Teva Pharmaceutical, Les Laboratories Servier, France and other generic-drug makers also are under the investigations.
The investigations concern agreements between Servier and generic-drug makers that may have hindered the market entry of generic perindopril, a cardiovascular medicine developed by Neuilly, France-based Servier.
The companies were probed as the commission said in a report that companies use a variety of techniques to delay the introduction of generics "for as long as possible."
Shares of Lupin slipped by 3% to Rs808, Unichem Labs was down by 3% to Rs203 and Matrix Labs ended flat at Rs206.
Wednesday, July 08, 2009
Turnover surges
NTPC July 2009 futures at discount
Nifty July 2009 futures were at 4064, at a discount of 14.90 points as compared to the spot closing of 4078.90. Turnover in NSE's futures & options (F&O) segment surged to Rs 66,588.76 crore from Rs 60,222.63 crore on Tuesday, 7 July 2009.
Bharat Heavy Electricals (Bhel) July 2009 futures were at a slight discount at 2045 compared to the spot closing of 2047.
NTPC July 2009 futures were at discount at 193.35 compared to the spot closing of 194.70.
Punj Lloyd July 2009 futures were near spot price at 183.45 compared to the spot closing of 183.80.
In the cash market, the S&P CNX Nifty lost 123.25 points or 2.93% at 4078.90.
Asian markets witness weak Wednesday
Hang Seng, Sensex lead the regional losses as investors turn cautious over the health of global economy
Stock market in Asian region remained weak on Wednesday, 8 July 2009, as investors tried to book some profits on renewed concerns over the state of global economy.
On Wall Street, stocks slipped once again pressured by slipping crude price. All ten sectors fell today at Wall Street. The worst performing areas were industrials, technology, energy and materials sectors. The defensive-oriented healthcare sector outperformed on a relative basis. The Dow Jones Industrial Average ended lower by 161 points at 8,163. The Nasdaq Composite Index, ended lower by 41 points at 1,746. S&P 500 ended lower by 18 points at 881.
In the commodity market, crude oil fell, poised for the longest losing streak since December, as equities slumped and an industry report showed an increase in U.S. fuel inventories.
According to the API report, crude oil inventories dropped 1.4 million barrels to 348.3 million. Stockpiles of distillate fuel, a category that includes heating oil and diesel, climbed 3.42 million barrels to 158 million, the highest since 1985. Gasoline supplies rose 767,000 barrels to 212.4 million last week. The API collects stockpile information on a voluntary basis from operators of refineries, bulk terminals and pipelines. The government requires that reports be filed with the Energy Department for its weekly survey.
Crude oil for August delivery fell as much as $1.06, or 1.7%, to $61.87 a barrel on the New York Mercantile Exchange, the lowest intraday price since May 26. Oil was at $62.19 a barrel at 2:51 p.m. Singapore time.
Brent crude for August settlement declined as much as 93 cents, or 1.5 percent, to $62.30 a barrel on London’s ICE Futures Europe exchange. It was at $62.57 a barrel at 2:50 p.m. Singapore time. Yesterday, the contract fell 1.3 percent to $63.23, the lowest settlement price since May 27.
Gold fell for a third day in Asia as the dollar advanced against the euro and crude oil tumbled, reducing demand for the precious metal as a store of value. Gold for immediate delivery lost as much as 0.6 percent to $919.20 an ounce, the lowest since June 23, and traded at $919.45 an ounce at 2:29 p.m. in Singapore.
In the currency market, Yen and, to a lesser extent, dollar rise sharply today riding another round of risk aversion trades in the markets.
The Japanese yen strengthened against major currencies on Wednesday in Asia s investors sought the relative safety of the currency on concern the worldwide slump will be prolonged. The dollar fell for a third day against the yen on concern the greenback’s role as the world’s reserve currency will be questioned at a Group of Eight meeting starting today. The Japanese currencies were quoted at 94.5 against the US dollar.
The Hong Kong dollar was trading at HK$ 7.7505 against the dollar. Actually The Hong Kong dollar is pegged at HK$ 7.8 to the U.S. dollar but can trade between HK$ 7.75 and HK$7.85 to the U.S. dollar.
In Sydney trade, the Australian dollar fell almost 1 cent today after better than expected domestic economic data failed to kick-start a sluggish session depressed by offshore movements. At the local close, the Australian dollar was trading at $US0.7863, down from Tuesday's close of $US0.7960.
In Wellington trades, the New Zealand dollar drifted lower amid uncertainty about the global economic outlook and forthcoming corporate earnings in the United States. By evening the NZ dollar was buying US62.85c, down from US63.66c at 5pm yesterday. The range was US62.67c to US62.98c during the domestic session.
The South Korean won finished at 1,276.1 won to the U.S. dollar, down 3 won from Tuesday's close, as overseas investors reduced holdings of local shares.
The Taiwan dollar weakened further against the greenback. The Taiwan dollar fell against the US dollar as it was trading lower at NT$ 33.0360, down by NT$ 0.0370 from Tuesday’s close of NT$32.9890.
Coming back in equities, Asian stock markets were lower Wednesday, dragged by ongoing weakness in oil and metal prices, though the declines weren't as severe as those suffered on Wall Street.
In Japan, the stock market extended losses for sixth consecutive day, on tracking negative lead from Wall Street and weaker commodity prices, rekindled concern over the health of global economy. The market plummeted on speculation that corporate earnings are unlikely to improve amid a dearth of demand at home and abroad.
At the closing bell, the Nikkei 225 Stock Average index plummeted 227.04 points, or 2.35%, to 9,420.75, while the broader Topix index stumbled 20.59 points, or 2.3%, to 889.
On the economic front, the Cabinet Office said Japan’s machinery orders, a key leading barometer of the state of Asian demand and the region’s manufacturing sector, fell 3% in May from the previous month.
A separate Japanese report, the Ministry of Finance said the current-account surplus narrowed for a fourth month in May, adding to signs the global economy will take time to recover. The surplus shrank 34.3% from a year earlier to 1.302 trillion yen ($13.7 billion).
In Mainland China, stock index endured losses for second consecutive day, on tracking the weakness in global market on concerns over economic recovery. Banks shares dived on concern regulators will crack down on mortgage lending to cool growth in housing prices. The Shanghai Composite Index, which covers both A shares and B shares on the Shanghai Stock Exchange, tumbled 0.28%, or 8.67 points, to 3,080.77, while the Shenzhen Component Index jumped 1.02%, or 126.14 points, to 12,488.58.
In Hong Kong, the g benchmark Index extended losses for third day in row, on tracking negative cues from Shanghai bourses and Wall Street overnight. Banks and financials plummeted on concern Chinese regulators will crack down on mortgage lending to cool growth in property prices.
Properties extended losses amid worries recent gains had outpaced profit expectations. Lower crude oil and metals prices taking a toll on commodity-linked stocks, while renewed doubts over global economic recovery weighed down export-related shares.
The Hang Seng Index melted 141.20 points, or 0.79%, to 17,721.07, while the Hang Seng China Enterprise Index retracted 100.96 points, or 0.95%, to 10,573.71.
In Australia, the stock market clawed back earlier losses to finish the session flat, snapping three days of loosing streak as investors chased for bargain among recently battered shares. Banks and properties spurted after positive consumer confidence data and home loan approvals. Australian consumer confidence jumped to the highest level in 19-months in July and number of loans issued for new housing increased in May by 2.2% over April.
At the closing bell, the benchmark S&P/ASX200 index edged up 1 point, or 0.03%, to 3,767.9, meanwhile the broader All Ordinaries shrank 1.8 points, or 0.05%, to 3,766.
On the economic front, the outcome of Westpac Banking Corporation and Melbourne Institute survey statement said that the Australian consumer confidence jumped to the highest level in 19- months in July with the sentiment index rising 9.3% from June to 109.4.
The Australian Bureau of Statistics revealed that number of loans issued for new housing increased in May by 2.2% over April. The Bureau said loan approvals to build houses was up a seasonally adjusted 8.0% on month in May, approvals to purchase newly built homes were up 2.9%, and the number of approvals to purchase existing houses was up 1.5%
In New Zealand, equities inched up slightly although most of the Asian markets were trading deep in the negative terrain today trailing a dull session on the Wall Street overnight. The New Zealand benchmark index registered its second consecutive session in the green region on Wednesday. The NZX50 inched forward 0.16% or 4.35 points to 2750.60. The NZX 15 increased 0.60% or 30.23 points to close at 5098.86.
On the economic front, as per a survey conducted by business NZ, New Zealand has scored highly in a survey of international trade. Business NZ Chief Executive Phil O’Reilly says this ranking is a testament to their openness to international trade, sound institutions and services and hard work over decades to get good trade deals with other nations. Meanwhile, New Zealand’s score would be even higher if not for the barriers erected in a number of countries against agricultural exports. The NZX50 inched forward 0.16% or 4.35 points to 2750.60. The NZX 15 increased 0.60% or 30.23 points to close at 5098.86.
In South Korea, stocks finished lower as foreign investors dumped steel and financial shares amid jitters over a global economic recovery. The benchmark Korea Composite Stock Price Index (KOSPI) declined 3.18 points to 1,431.02. Foreign investors snapped a nine-day buying streak, weighing down on the market.
In Singapore, the stock market fell on tracking the weakness in global market on concerns over economic recovery. Lower crude oil and metals prices taking a toll on commodity-linked stocks, while renewed doubts over global economic recovery weighed down shares of financials and manufacturing. Properties extended losses amid worries recent gains had outpaced profit expectations. The blue chip Straits Times Index melted 12.49 points, or 0.55%, to 2,259.77
In Taiwan, stock market continued to seesaw between gains and losses, giving up its one-month high status as economic report released today showed slowing demand from Mainland China and the United States, putting pressure on export oriented sector stocks. The main Taiex share index gave up yesterday’s gains as the Taiex index de-escalated 47.08 points or 0.70%, closing the day at 6668.14
In Philippines, the stock market reversed their two days gain, closing marginally lower, tracking the losses on the Wall Street overnight. The steep overnight decline of US stocks muted the positive impact of the rate cuts hopes by the Philippine monetary officials on the local bourse, following that the inflation has slowed down to 22 years low level. The benchmark index PSEi lost 0.39% or 9.77 points to 2,461.99, while the All Shares index declined 0.25% or 4.03 points to 1,578.77.
In India, the key benchmark indices slumped in late trade after the global rating agency Standard & Poor's today, said there is risk that its sovereign credit ratings on India may be lowered. Weak global stocks also dampened investor sentiment. The BSE 30-share Sensex was down 401.30 points or 2.83% to 13,769.15. The S&P CNX Nifty was down 123.25 points or 2.93% to 4,078.90.
Elsewhere, Malaysia's Kula Lumpur Composite index went down 0.08% or 0.89 points to 1065.47 while stock markets in Indonesia were closed on the account of holiday.
In other regional market, European shares pulled back for the fifth straight session on Wednesday, with investors turning away from financial firms and oil producers as they continued to fret about the prospects for a recovery in the global economy. On a regional level, the U.K. FTSE 100 index fell 0.1% to 4,183.02, The German DAX index traded down 0.2% at 4,588.37 and the French CAC-40 index declined 0.7% to 3,028.31.
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