EQUITY UPDATE – 24 JULY 2012

ASIA

Sinopec – Oil refining co. is to purchase a 49 percent stake in UK subsidiary of Talisman Energy Inc. for USD 1.5 b. The deal would provide Sinopec with access to oil fields in the North Sea. (Reuters)

INDIA

Consumer price index based on inflation for agriculture labourers stood at INR 8.03 per cent in June vs. previous 7.7 per cent in May. Rural labourers, all India CPI inflation at 8.54 per cent in June vs. 8.11 per cent in May. (The Hindu Business Line)

FII’s made gross purchases of INR 1,530.54cr and sales of INR 1,421.37cr. DII’s made gross purchases of INR 701.25cr and sales totalled INR 1,055cr. (Business Standard)

Pharmaceutical Co.’s – Inter-ministerial group is likely to come up with a final decision on FDI in pharmaceutical sector on 24 July 2012. (MoneyControl)

EUROPE

The Spanish stock market regulator CNMV has banned short selling of listed stock for three months, in order to maintain financial stability. The regulator cited extreme volatility across European markets had chances of interfering with smooth functioning and normal activities. In other news Spain’s 10 year borrowing rate rose by 0.21 per cent to close at 7.43 per cent. After having reached a high of 7.51 per cent; its highest level since 1999. According to market experts these high rates were unsustainable, as Spain will find it difficult to fund itself and will likely need a financial rescue. (Economic Times/AFP/Boston.com/AP)

The IMF dismissed its weekend report of refusing to support Greece, instead it will help Greece to overcome its economic difficulties. (Economic Times/Reuters)

Joh A Benckiser – Co. is to acquire US based coffee and tea maker Peet’s Coffee & Tea Inc. for USD 1 b. The co. offered to pay USD 73.50 a share, representing a 30 percent premium over Friday’s closing price. (Bloomberg)

NORTH AMERICA

Yields on government bonds declined to record lows, stocks declined in trade and the euro traded at its lowest to the dollar on the intensifying eurozone crisis. US Treasury yields for the 10 yr notes declined to 1.43 percent, touching record lows of 1.40 percent. German 2-yr bonds saw yields as low as -0.08 percent. Yields on Spanish and Italian bonds rose higher as investors were concerned about the stability of these countries. Euro declined to other currencies such as the US Dollar as news of more than expected Spanish regions asking for financial aid from the government. (Bloomberg)

According to a Citigroup Inc., the U.S Fed’s decision to purchase Treasury securities could end up leaving private investors without any instruments to purchase. Ben Bernanke, could in turn, purchase mortgage-backed securities or use additional tools for easing. (Bloomberg)

Genesee & Wyoming Inc – Co. is to acquire RailAmerica Inc. for USD 1.39 b. Genesse will pay RailAmerica USD 27.50 a share and plans to raise USD 2 b in debt to conduct the funding alongwith USD 800 m of equity. (Bloomberg)

Goldman Sachs – Co. stated in its report that the U.S housing market would make an attractive investment as a strong recovery would ensure a rise in new home sales. The co. raised its rating on the sector from neutral to attractive. Low mortgage rates, rising prices, job market growth and government policies contributed to the rise. (Bloomberg)

Valero Energy Corp – Co. has shut down operations at its oil refinery in Louisiana, U.S following reports of a fire on early Sunday morning. (Reuters)

NRG Energy – Co. is to acquire GenOn Energy in a stock deal worth USD 1.7 b. (Financial Times)

 

 

 

 



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