EQUITY UPDATE – 2 JULY 2012

ASIA

China South Locomotive & Rolling Stock Corp – Co plans to acquire Invensys plc in a possible 2 step acquisition plan. The deal could be valued at GBP 2 b (USD 3.14 b). The China-based co. is also planning to launch a bid for train making co. Ansaldo STS SpA. (Bloomberg)

China’s Purchasing Managers Index declined to 50.2 in June vs 50.4 in the previous month. It however declined by a lesser extend as forecasts predicted a fall of 49.9. The PMI output sub-index also declined to 52 for June vs 52.9 in May. New orders also exhibited a decline. The news of falling PMI would prompt the central government to induce further stimulus measures to prop up the economy. (Bloomberg)

South Korea’s exports for June rose by 1.3 on y/y basis vs a revised number of a decline of 0.6 percent in May. The export data exceeded estimates of gain of 0.5 percent. Weaker Korean Won, their currency, was the chief contributor for the rise in sales as China’s growth stalled further. Imports, declined by 5.4 percent in June on a y/y basis, leading to a trade surplus of USD 4.96 b for the period.  The government also cut its forecast for export growth in FY2012 from 6.7 percent to 3.5 percent. (Bloomberg)

INDIA

According to the Bombay Bullion Association’s President Prithviraj Kothar, 2HY12 period could see a rise in imports of gold to 300 tonnes, a rise of 20 percent vs imports of 250 tonnes in the 1HY12 period. Imports would rise further if prices stayed below INR 30,000 per 10 grams. Demand is expected to pick up in the 2HY12 period on account of various festivals and marriage season. (Economic Times)

FII’s accelerated the investment outflow  in the Indian markets by pulling out INR 1957 cr from the equities section for the April-June period vs inflows worth INR 43,951 cr in the previous quarter.  The same period saw investments worth INR 5171 cr in the equity markets. FIIs invested a total of INR 1,463 cr in the second quarter ended 30 June vs inflows of INR 19,398 cr in the first quarter ended 31 March. (Economic Times)

Insurance Co.’s – Government of India is considering hiking FDI in insurance sector to 49 per cent from existing 26 per cent. (The Hindu Business Line/PTI)

SAIL – Co. to invest INR 3000cr to quadruple its capacity at its Gua iron  mines in Jharkhand. Co. to increase capacity to 10 million tonnes per annum and build a four million tonnes per annum pelletisation plant. (Business Standard/PTI)

State Bank of India – According to the deputy MD and group Ex. Mid corporate, co. is looking for a 20 per cent loan growth in the mid-corporate segment in the current fiscal. (The Hindu Business Line)

Tata Motors – Co. reported a 3 percent decline in its total sales at 63,341 units for June. Domestic sales of commercial and passenger vehicles also declined by five per cent to 58,270 units vs 61,266 units a year ago. Sales of commercial vehicles in June in India was at  41,026 units vs 39,272 units sold a year ago, exhibiting a rise of 4 per cent. (Economic Times)

Hindustan Copper Ltd – Co. plans to invest INR 2000 cr to construct a copper smelting plant in Vizag, India. The co. aims at a plant with a capacity of 600,000 tonnes. It is also on the lookout for a buyer for its plant in Rajasthan, India. (Economic Times)

Kingfisher Airline – Co.’s ATR pilots went on strike due to non-payment of salaries for the past five months.  However co. has deployed executive pilots to carry out truncated operations.  An all staff meeting is to be held in Mumbai  tomorrow to chalk out further course of action. (The Hindu Business Line)

EUROPE

Spain’s Finance Minister Luis De Guindos stated that the nation’s second quarter GDP declined by 0.3 percent on a q/q basis. The government expects the economy for FY12 to decline by 1.7 percent over FY11. It is expected by analysts that the decline could intensify further once the austerity measures set in. (Reuters)

Credit Agricole – Co is in talks to conduct the sale of its brokerage unit Cheuvreux to Kepler Capital Markets. (Reuters)

According to economists at Citigroup, the Bank of England is likely to restart QE program in its upcoming polecat meeting, citing weakness in the UK economy, easing inflation and EU crisis. (Telegraph UK)

Anheuser Busch InBev – Co. to acquire Mexican Grupo Modela for USD 20.1b. Adding Corona brand to its portfolio. (Business Standard/Reuters)

Heritage Oil – Co. and its Nigerian joint-venture partner Shoreline Power will acquire a 45 percent stake in an oilfield known as OML 30. The co.’s will pay USD 850 m in cash for the acquisition from Shell, Total and ENI. The acquisition aims to increase Heritage’s production from 605 barrels of oil per day to 11350 barrels.  The co. has procured a bridge loan of USD 550 m from Standard Bank of South Africa. (Reuters)

NORTH AMERICA

Bristol-Myers Squibb Co. – Pharma co. is to acquire Amylin Pharmaceuticals Inc for USD 5.3 b. The co. will pay USD 31 a share in cash, which is 10 percent premium to the Friday’s closing price. AstraZeneca plc is also to pay Bristol USD 3.4 b to develop Amylin’s portfolio of medicines. (Bloomberg)

COMMODITIES

The impact of the EU sanctions on Iran intensified further as exemptions on certain contracts and insurance came to an end. The sanctions would lead to further reductions in crude oil supply leading to a rise in prices. In related news, Norwegian workers also went on a strike, which would reduce supply from the North Sea oil fields.  In other news Iranian Oil Minister Rostam Qasemi has urged OPEC’s secretary to call for an extraordinary meeting as oil continued to fall. (Bloomberg/Reuters)

 



Categories: General News

Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: