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Friday, November 21, 2008
Citi - to sell ?
Citigroup, the beleaguered New York bank that is witnessing unprecedented sell-off in its shares, is reportedly considering selling off parts of the bank or the whole company, The Wall Street Journal (WSJ) reported online, citing people familiar with the matter.
Talks are preliminary and don’t suggest that Citi and management are backing down from their insistence that the New York company has sufficient capital, funding and strategic direction, the WSJ said. Citi's board is scheduled to have a formal meeting on Friday to discuss the options.
Citi shares declined US$1.69, or 26.4% to a 15-year low of US$4.71 on the New York Stock Exchange at 4:15 p.m. It has fallen 84% this year.
Earlier, Citi's largest shareholder, Saudi Prince Alwaleed Bin Talal, said that he was increasing his stake in the troubled bank back to 5% from 4%, even as shares continue to plummet.
Citi is also seeking to revive a prohibition on short-selling financial stocks, according to reports. The bank has discussed with the Securities and Exchange Commission (SEC) and lawmakers its proposal to reinstitute the ban on bets that stock prices will fall.
Citi has reported losses for four straight quarters, and has raised about US$75bn since December by selling assets and equity stakes, including a US$25bn injection from the US Treasury.
Citi has lost about US$20bn in the past four quarters as bad loans increased and demand for banking services declined. CEO Vikram Pandit said this week the company will cut 52,000 jobs in the next year to lower costs.
Alphageo - BUY
We recommend a buy in Alphageo (India) from a short-term perspective. It is apparent from the charts of Alphageo that it has been on a long-term downtrend from its life-time high of Rs 1,078 recorded in early January. Since then, the stock has been forming lower troughs and lower peaks. During mid-September, the stock’s downtrend accelerated and it declined steeply. However, the stock found support at Rs 103 (52-week low) on November 20 and bounced up forming inverted hammer candlestick pattern, which indicates short-term bullishness. We observe that the stock has a significant long-term support at Rs 100 that is 1994 peak and 2006 low. Moreover, we notice that the daily relative strength index is displaying positive divergence and moving average convergence and divergence also is displaying positive divergence. The weekly RSI is hovering in the oversold territory. We take a contrarian view on the stock from a short-term perspective and anticipate it to make a corrective up move until it hits our price target of Rs 120 in the impending trading sessions. Traders with short-term perspective can buy the stock while maintaining a stop-loss at Rs 102.
ICICI Bank - no manipulative trading
Market regulator SEBI on Thursday said it did not find evidence of manipulative trading in shares of ICICI Bank, which had demanded a probe by the watchdog after its scrip came under heavy selling pressure in September.
"While SEBI continues its surveillance of the stock exchange trading in various securities, SEBI did not find evidence of manipulative trading in ICICI Bank shares during the period (September 8 to October 10)," the market regulator said in a statement here.
A spokesperson of ICICI Bank, which had approached the regulator seeking a probe into what they called "beating down" of their shares by vested elements, declined to comment.
SEBI said by and large, the trading patterns are consistent with the shareholding pattern of ICICI with predominant holdings by FIIs, general buying and selling behaviour by FIIs and the broad movements of the market during this period.
The regulator analysed the trading pattern of ICICI Bank shares from September 8 to October 10 this year following the complaint by the country's largest private sector bank.
ICICI Bank MD and CEO K V Kamath had earlier demanded a probe by SEBI, alleging conspiracy by market manipulators to destbilise the bank's shares through rumours.
SEBI said prices of ICICI Bank shares fell by 49.52 per cent from Rs 720.45 on September 8 to Rs 363.65 on October 10 this year.
In its analysis, SEBI said none of the major sellers were observed to be placing orders successively at lower price. "There was no pattern observed regarding placement of successive orders at lower price by sellers to hammer down the price. There was no pattern observed of booking intra-day profits by major clients or brokers."
DLF may cut jobs in future
Real estate giant DLF Ltd on Thursday said trimming of staff could happen in the future, although it has not laid off any employee so far.
"We have not laid off anything. The lay-off could happen in future in case the demand further goes down," DLF Chairman KP Singh said at an Assocham event here.
He clarified that as of "today" DLF has not laid off anybody.
Earlier this week, during India Economic Summit, Singh had said DLF fired "some" employees.
"We must have laid off some employees somewhere," Singh had said.
He also said the company had deferred some of its projects due to poor demand.
"In hotels, residential and commercial everywhere... deferred because of lower demand and liquidity crisis," he had said.
Singh today said high interest rates have taken a toll on demand.
"The interest rates should be around seven percent," Singh said.
Thursday, November 20, 2008
BSE Bulk Deals to Watch - Nov 20 2008
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
20/11/2008 532919 ALLIED COMP SHREE BHIKSHU FIN. PVT LTD. B 500000 5.00
20/11/2008 531682 CAT TECHNOL S V ENTERPRISES S 160302 3.01
20/11/2008 533026 CHEMCEL NAINESH HIMAT JATANIA B 200000 2.65
20/11/2008 532696 EDUCOMP SOLN OPG SECURITIES P LTD B 87942 1718.97
20/11/2008 532696 EDUCOMP SOLN OPG SECURITIES P LTD S 87942 1721.03
20/11/2008 513059 G.S. AUTO SPJ STOCK B 60000 22.65
20/11/2008 513059 G.S. AUTO HARDIK M MITHANI S 56019 22.65
20/11/2008 532855 HARYA CAPFIN DHARAM PAL JINDAL AND SONS HUF B 35000 22.09
20/11/2008 532544 INDIABULLS THE BANK OF NEW YORK JPMORGAN SECURITIES LTD B 6000000 90.45
20/11/2008 532544 INDIABULLS ORIENT GLOBAL CINNAMON CAPITAL LIMITED S 6000000 90.45
20/11/2008 530955 KAILASH FICO MANDVI DYES AND CHEMICALS PVT B 118310 22.71
20/11/2008 531611 PRRANET INDU PANNALAL H GULECHA HUF B 500000 1.69
20/11/2008 531646 RFL INTERNAT ISHITA MOHATTA B 100000 0.64
20/11/2008 531646 RFL INTERNAT GEETA NARENDRA SHAH S 28173 0.64
20/11/2008 530461 SABOO SOD CH HARDIK M. MITHANI B 72100 8.10
20/11/2008 531898 SANGUINE MD COMFORT INTECH LIMITED S 81277 7.07
NSE Bulk Deals to Watch - Nov 20 2008
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
20-NOV-2008,ALKALI,Alkali Metals Limited,SHINDE BALASO VITHAL,BUY,28108,181.89,-
20-NOV-2008,EDUCOMP,Educomp Solutions Limited,C D INTEGRATED SERVICES LTD,BUY,131624,1705.26,-
20-NOV-2008,KESORAMIND,Kesoram Industries Ltd.,CENTURY TEXTILE & INDUSTRIES L,BUY,229062,128.01,-
20-NOV-2008,ZANDUPHARM,Zandu Pharma works Ltd,VAIPA PHARMACITICAL PVT LTD,BUY,5765,6510.00,-
20-NOV-2008,ALKALI,Alkali Metals Limited,SHINDE BALASO VITHAL,SELL,54108,186.25,-
20-NOV-2008,EDUCOMP,Educomp Solutions Limited,C D INTEGRATED SERVICES LTD,SELL,131624,1706.70,-
20-NOV-2008,HDIL,Housing Development and I,Copthall Mauritius Investment Ltd,SELL,1905092,87.95,-
Post Session Commentary - Nov 20 2008
The Indian markets closed with deep cut on heavy selling pressures across the sectoral indices. The weak cues from the global markets led the domestic market to open on the backfoot and kept on hovering I the negative territory throughout the trading session without showing any sign of recovery. The fall in weekly inflation figures fell to give a support to the market. The wholesale price index rose 8.90% in the 12 months to 8 November 2008, marginally below the previous week''s annual rise of 8.98%. From the sectoral front, the Realty index was the worst hit that closed with a cut of more than 8%. Along with this, Consumer Durables, Oil & Gas, Bankex, Metal and Auto indices also remained out of favor that closed with losses of more than 4% each. The BSE Sensex ended below 8,500 level and NSE Nifty closed below 2,600 mark. The Midcap and Small cap stocks were also under extreme pressures.
Among the Sensex pack 25 stocks ended in red territory and 5 in green. The market breadth was negative as 1899 stocks closed in red while 594 stocks closed in green and 77 stocks remained unchanged.
The BSE Sensex closed lower by 322.77 points at 8,451.01 and NSE Nifty ended down by 81.85 points at 2,553.15. The BSE Mid Caps and Small Caps closed with losses of 102.60 points and 107.78 points at 2,895.79 and 3,385.34 respectively. The BSE Sensex touched intraday high of 8,540.46 and intraday low of 8,316.39.
Losers from the BSE Sensex pack are DLF 8.56%, Reliance Communication 8.32%, Sterlite Inds 7.96%, ICICI Bank 7.87%, HDFC bank 7.30% and JP Associates 6.66%.
The BSE Realty index dropped by (8.30%) or 151.88 points to close at 1,679.06. Losers are HDIL 11.06% along with Unitech 9.87%, Ansal Infra 9.71%, Indiabull Real 9.57%, Orbitco 8.99%, DLF 8.57% and Penland 7.04%.
The BSE CD index lost (4.95%) or 91.97 points to close at 1,763.93. Major losers are Blue Star 8.76%, Rajesh Exports 7.22%, Gitanjali GE 4.61%, Videocon Inds 4.37% and Titan Inds 2.80%.
The BSE Oil and Gas index ended down by (4.64%) or 255.47 points at 5,252.01 as Reliance Inds 6.58%, Cairn India 5.37%, Aban Offshore 4.56%, RPL 4.31%, Gail India 4.05%, RNRL 3.31% and HPCL 2.47% closed lower.
The BSE Bankex index ended lower by (4.32%) or 198.66 points to 4,398.29 as Yes bank 8.34%, ICICI Bank 7.87%, Indus Ind Bank 7.48%, HDFC bank 7.30%, Oriental bank 5.41%, IOB 5.37%, Axis bank 5%, Federal bank 4.82% closed in negative.
The BSE Metal index ended down by (4.18%) or 185.65 points at 4,250.49. Major losers are Gujarat NRE Coke 8.25%, Sterlite Inds 7.96%, Jindal Steel 7.48%, Sesa Goa 7.47%, JSW Steel 7.21%, NMDC 5.81% and Hind Zinc 4.47%.
The BSE Auto index plunged (4.14%) or 97.27 points to close at 2,252.97. Losers are Bharat Forge 8.15%, Maruti Suzuki 6.52%, Tata Motors 6.47%, Amtek Auto 6.17%, Bajaj Auto 5.41% and Hero Honda 5.21%.
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