Cement Sector
India Equity Analysis, Reports, Recommendations, Stock Tips and more!
Search Now
Recommendations
Monday, October 05, 2009
Asian stocks open mixed
Asian stocks opened mixed on Monday. The declines were led by technology and mining companies, after economist Nouriel Roubini said share prices may drop and a report showed the US lost more jobs than estimated.
Samsung dropped almost 3%. Mitsubishi Corp lost almost 2% after oil and metal prices decreased.
Japanese benchmark index Nikkei 225 rose 4.76 points, or 0.05%, to trade at 9,736.63.
Hong Kong`s Hang Seng index increased 46.26 points, or 0.23%, to trade at 20,421.75.
Taiwan`s Taiex index gained 0.99 points, or 0.01%, to trade at 7,412.87.
South Korea`s Kospi index fell 24.09 points, or 1.46% to trade at 1,620.54.
Singapore`s Straits Times sank 6.62 points, or 0.25%, to trade at 2,597.91. (8.08 a.m., IST)
China`s Shanghai Composite is not trading today.
Job report disappoints Wall Street
US stocks register second consecutive weekly losses
Dour economic reports pushed US stocks back to the wall once again on Friday, 02 October, 2009 and stocks registered their second consecutive weekly losses. Economic reports suggested that economic recovery might not be as fast as being anticipated.
For the week, that ended on Friday, 02 October, 2009, The Dow Jones Industrial Average ended lower by 177.52 points (1.8%) at 9,487.67. The Nasdaq Composite Index, ended lower by 42.81 points (2%) at 2,048.11. S&P 500 ended lower by 19.17 points (1.8%) at 1025.21. Nine of ten sectors registered weekly losses led by industrial sector.
News that the International Monetary Fund raised its forecast for 2010 global economic growth to 3.1% from earlier figure of 2.5% had no real positive impact on the market. The IMF forecast was widely disregarded; market participants were focused on several other reports, including another disappointing jobless claims tally.
Among the economic reports expected for the week, initial claims climbed 17,000 to 551,000, which was higher than had been expected. Continuing claims came in at 6.09 million, which was below the consensus estimate and down 70,000 from the previous week. In a separate report, Personal income and spending for August were up 0.2% and 1.3%, respectively. Both exceeded expectations, while core personal consumption climbed a mere 0.1%, as expected. The ISM Manufacturing Index for September came in at 52.6, which was below what was expected, but the figure still indicated growth in the manufacturing sector. A separate economic report showed that construction spending during August made a surprise 0.8% increase, while pending home sales for August surprised some by increasing 6.4% in August.
In the Wall Street on Friday, 02 October, 2009, technical support and a retreating dollar helped stocks bounce back after falling sharply in response to a disappointing jobs report, but there simply weren't enough buyers to drive stocks to a sustainable gain. In turn, stocks logged their fourth straight loss.
However, stocks were able to stop their slide for a brief time as stocks were helped off of their lows by a retreating U.S. dollar. A stronger dollar had weighed on stocks during the previous session. Despite a couple sources of support, the broader market managed only to poke into positive territory for just a moment.
The Dow Jones industrial Average ended lower by 21.61 points on Friday, 02 October, 2009 at 9487.67. The Nasdaq shed 9.4 points to end at 2048.11. S&P 500 ended lower by 4.64 points at 1025.21.
The Labor Department reported on Friday that 263,000 payroll jobs were lost in September and the unemployment rate rose to a 26-year high of 9.8%. Market expected a decline of 167,000 jobs. September was the 21st consecutive month of job losses. Since the recession began in December 2007, 7.2 million jobs have been lost and the unemployment rate has doubled.
Crude prices ended lower at Nymex on Friday, 02 October, 2009. Prices fell following a disappointing job report that hit the wires at Wall Street on Friday. With Friday's losses, crude curtailed its weekly gains also. On Friday, crude-oil futures for light sweet crude for November delivery closed at $69.95/barrel (lower by $0.87 or 1.2%). During intra day trading, it fell to a low of $68.27. For the week, crude ended higher by 6%.
In the currency market on Friday, the dollar index, which measures the strength of dollar against a basket of other currencies, fell by almost 0.5%. The dollar lost almost all its strength against the euro.
Also on Friday, November natural-gas futures rose 25.2 cents, or 5.6%, to $4.718 per million British thermal units. The contract dropped more than 7% in the previous session.
For the year, The Dow, Nasdaq and S&P 500 are higher by 8.1%, 29.9% and 13.5% respectively.
Venus Remedies
We recommend a sell in the stock of Venus Remedies from a short-term perspective. It is perceptible from the charts of the stock that it was on an intermediate-term uptrend between April and early September, from Rs 145 to Rs 312. Encountering long-term resistance in the band of Rs 300 to Rs 310, the stock changed it trend. Since then, it has been on a medium-term downtrend. On September 10, the stock tumbled 8 per cent with a downward gap, reinforcing this trend. Subsequently, it continued to trend south, penetrating intermediate-term up trendline as well as support at Rs 250. The stock is trading well below its 21-and 50-day moving averages. The daily relative strength index has entered in the bearish zone and weekly RSI is slipping in the neutral region. Besides, the daily moving average convergence and divergence indicator has entered the negative territory. We are bearish on the stock from a short-term perspective. We expect it to decline until it hits our price target of Rs 216. Traders with a short-term perspective can sell the stock while maintaining a stop-loss at Rs 252.
via BL
Copper registers fifth weekly drop
Job report hammers red metal prices
Copper prices dropped substantially on Friday, 02 October, 2009 at Comex and LME. Prices fell following the weak job report which dampened overall economic growth sentiments.
At USA, copper futures for December delivery ended down by 5.55 cents (2%) to 2.6815 a pound. Copper dropped 2.2% for the week. It was the fifth straight weekly drop for copper. Copper ended September, 2009, higher by 0.4%.
On the London Metal Exchange, copper for delivery in three months ended lower by $90 (1.5%) at $5,895 a metric ton. On 3 July, 2008, prices had touched an all time intra day high of $8,940.
After September, it was the ninth straight monthly gain for copper. On a year to date basis, prices are higher by 85%.
The U.S. buys about 13% of the 17 million metric tons of copper sold annually and China buys about 20%.
The Labor Department reported on Friday that 263,000 payroll jobs were lost in September and the unemployment rate rose to a 26-year high of 9.8%. Market expected a decline of 167,000 jobs. September was the 21st consecutive month of job losses. Since the recession began in December 2007, 7.2 million jobs have been lost and the unemployment rate has doubled.
In the currency market on Friday, the dollar index, which measures the strength of dollar against a basket of other currencies, fell by almost 0.5%. The dollar lost almost all its strength against the euro.
In FY 2008, copper prices dropped by 54%. Prior to 2008, copper prices ended FY 2007 with a gain of mere 5.5% after a whopping 44% gain in FY 2006. The price of copper gained every year since 2002 as global economic growth boosted demand for the metal used in pipes and wires.
Among other metals traded in the LME on Friday, lead fell 4.1% to $2,100 a ton and zinc shed 2% to end at $1,874 a ton. Nickel shed 0.3% to end at $17,375. Aluminium fell 1.4% to $1,833 a ton.
Precious metals end mixed end
Gold shines but silver turns pale
Precious metal prices ended mixed on Friday, 02 October, 2009. Yellow metal prices rose as the dollar erased its prior session's gains.
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 Friday, gold for December delivery ended at $1,004.3, higher by $3.6 (0.4%) an ounce on the New York Mercantile Exchange. For the week, gold ended higher by 1.3%. Year to date, gold prices are higher by 14%.
Gold ended September, 2009 higher by 5.9%. For the third quarter it ended higher by 8.7%. Before this, 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 (4%) since then.
On Friday, Comex silver futures for December delivery fell 21 cents (1.2%) to $16.23 an ounce.
Silver ended 11.8% higher for September, 2009. Year to date, silver has climbed 45.5% this year. For 2008, silver had lost 24%.
In the currency market on Friday, the dollar index, which measures the strength of dollar against a basket of other currencies, fell by almost 0.5%. The dollar lost almost all its strength against the euro.
In 2008, gold prices ended higher by 5.5%. The dollar index had gained 12% that year.
Job report weighs on crude price
Prices manage to gain healthy weekly gains
Crude prices ended lower at Nymex on Friday, 02 October, 2009. Prices fell following a disappointing job report that hit the wires at Wall Street on Friday. With Friday's losses, crude curtailed its weekly gains also.
On Friday, crude-oil futures for light sweet crude for November delivery closed at $69.95/barrel (lower by $0.87 or 1.2%). During intra day trading, it fell to a low of $68.27. For the week, crude ended higher by 6%.
For the month of September, 2009, crude ended higher by a marginal 0.9%. For the third quarter, crude ended higher by just 1%. Crude prices had rallied 40% and 11.3% in the second and first quarter of 2009 respectively.
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 44%.
The Labor Department reported on Friday that 263,000 payroll jobs were lost in September and the unemployment rate rose to a 26-year high of 9.8%. Market expected a decline of 167,000 jobs. September was the 21st consecutive month of job losses. Since the recession began in December 2007, 7.2 million jobs have been lost and the unemployment rate has doubled.
In the currency market on Friday, the dollar index, which measures the strength of dollar against a basket of other currencies, fell by almost 0.5%. The dollar lost almost all its strength against the euro.
Among other energy products on Friday, November reformulated gasoline fell 1.7 cents, or 1%, to $1.7409 a gallon and November heating oil dropped 3.06 cents, or 1.7%, to $1.7968 a gallon.
Also on Friday, November natural-gas futures rose 25.2 cents, or 5.6%, to $4.718 per million British thermal units. The contract dropped more than 7% in the previous session.
Crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex.
Sunday, October 04, 2009
Annual Report - Aditya Birla Nuvo - 2008-2009
ADITYA BIRLA NUVO LIMITED
ANNUAL REPORT 2008-2009
DIRECTOR'S REPORT
TO
THE SHAREHOLDERS
Dear Shareholders,
We are pleased to present the 52nd Annual Report together with the audited
accounts of your Company for the financial year ended 31st March, 2009.
Financial year 2008-09 proved to be a challenging one for the corporate
world. The economies across the globe experienced demand slowdown and
liquidity crunch which led to sharp volatility in the financial markets as
well as commodity prices. The impact on Indian industry was visible in the
second half of the financial year.
Even under this testing scenario, 'Value' businesses of your Company,
combined together, have maintained their operating profits despite the
Carbon Black business being impacted severely by unprecedented volatility
in crude oil prices. The Fertilisers business achieved its highest ever
profitability. The Rayon, Insulators and Textiles businesses posted
satisfactory results despite higher input and fuel costs prevailing during
the major part of the year and the slowdown in the textiles industry.
The Telecom and Financial Services, the key 'Growth' Businesses have
outperformed industry and enhanced market share supported by strategic
initiatives taken. These businesses together account for over 50% of your
Company's consolidated revenues.
The Telecom business doubled its operating service areas from 8 to 16 in
just three years span. In last one year itself, Idea Cellular Limited
('Idea') added five new service areas with a clear focus to become a Pan
India player.
* As a result, subscribers' base increased from 24 million to 43.02 million
with an improved all India market share at 11% compared to 9.2% one year
ago.
* Cash inflows from TMI and Providence deals made Idea an almost debt free
company, which will cushion financing of its expansion plans going forward.
In the Financial Services businesses, the thrust on expanding customer
reach and launching innovative products has helped gain significant market
share amidst slowdown woes.
* Birla Sun Life Insurance Company Limited improved its market share from
6.6% to 9% supported by 44% growth in new business premium while industry
de-grew by 3%.
* Birla Sun Life Asset Management Company Limited enhanced its market share
from 6.8% to 9.5%, growing by 31% in terms of average domestic AUM while
industry de-grew by 7%.
* Your Company has entered new business segments in the financial services
space with a vision to become a leader and role model in the financial
services sector with a broad-based and integrated business.
* Your Company acquired 76% stake in Apollo Sindhoori Capital Investments
Ltd. ('ASCIL') - a retail broking company and bought balance 50.01%
shareholding in Birla Sun Life Distribution Company Limited ('BSDL'). The
large customer base of ASCIL offers a huge opportunity to derive synergies
through cross selling. Besides, nation-wide network of ASCIL and BSDL will
be leveraged as a common distribution platform offering a bouquet of
financial products and services.
In the BPO business, revenues growth in the 'North America' region was
impaired in the second half of the year due to global slowdown.The business
initiated site rationalisation and cost control measures to reduce the
impact. As a result, the business remained positive at EBITDA level despite
site closure costs, forex loss and higher manpower costs.
In the Garments business, while expansion of retail space supported growth
in revenues, bottom-line was impacted due to new store openings and launch
of new concepts The Collective'and 'Peter England People'. Garments exports
business suffered lower capacity utilisation and forex loss due to weak
order flow and cancellation of few orders led by global slowdown.
Substantial restructuring and cost control measures are being pursued to
curtail losses and bring back profitability.
Subscribe to:
Posts (Atom)