EQUITY UPDATE: 11 AUGUST 2012

ASIA

Singapore’s GDP declined 0.7 percent in the 2Q12 period on a q/q basis. Preliminary estimates pegged the GDP to decline 1.1 percent. (Bloomberg)

INDIA

Issuance of structured notes in India declined more than 70 percent to INR 5.88 b (USD 106 m) in the 1HY12 period on a y/y basis. Stricter regulations aimed at risk minimization and investors avoiding securities linked with co.’s not performing well in the equity markets was cited as some of the major factors contributing to the declining volumes. (Bloomberg)

GMR Infra – Co. received approval from its Board to raise INR 2500 cr through issuance of fresh equity or bonds. The co. aims at issuing equity, depository receipts, foreign currency convertible bonds to raise the required amount. (Business Standard)

Some of the FII’s investing in India have decided to surrender their licenses on SEBI’s tightening market norms. The move by SEBI to identify FII’s into similar groups based on their investments affected FII’s with multiple operating licenses prompting them to cease operations. As per Indian law, FII is permitted to hold a maximum stake of 10 percent in a co and would now on count an owner’s investments in a co. through multiple sub-accounts into a single one. The no. of FII’s registered with SEBI have declined to 1756 from 1781 in March. (Business Standard)

According a BNP Paribas Securities report, FII’s nought USD 10.7b of Indian equities till August, the highest ever on a year to date basis.(Economic Times)

Maruti Suzuki India Ltd – Co. is most likely to decide this weekend on its decision to resume operations at its Manesar plant. The plant was shut on account of violent clashes between the workers and the management and is expected to resume operations early next week. (Economic Times)

Indian Oil Corporations – According to Moody’s, co.’s refining margins declined more than expected. Margins capped at USD 4 a barrel for the full year ending FY13. (Economic Times/PTI)

Tata Motors – Fitch rating affirmed co.’s and JLR’s rating at ‘BB’ and ‘BB-‘; with outlook stable.  (MoneyControl)

Reliance Infra – Co. has been shortlisted for various national level road projects worth INR 40,000 cr. (Business Standard)

INDIAN EARNINGS

Sun Pharma – Co. reported 1Q12-13 net profit at INR 795.55cr vs. previous 1Q11-12 net profit at INR 501cr. Net Sales at INR 2,658.14cr vs. previous INR 1,635.72cr. Co.’s board declared an interim dividend of INR 4.25 per share of INR 1 each. (Financial Express)

Siemens India – Co. reported 3Q11-12 net profit at INR 36.42cr vs. previous 3Q10-11 at INR 154.77cr. Sales at INR 2,793cr, up 2 per cent. (Financial Express)

Novartis India – Co. reports 1Q12-13 net profit at INR 26.98cr vs. previous 1Q11-12 net profit at INR 37.57cr. Net sales at INR 219.52cr vs. previous INR 200.13cr. (Financial Express)

Eros International – Co. reported 1Q12-13 net profit at INR 31.7cr vs. previous 1Q11-12 at INR 21.7cr. Total income at INR 259.cr vs. previous INR 162.2cr. (Economic Times/PTI)

EUROPE

Greece’s Public Debt Management agency to auction EUR 3.125b in short term debt to pay off a EUR 3.2b bond repayment due on August 20. (Boston.com/ AP)

Julius Baer Group Ltd – Swiss investment management firm is almost finalizing a takeover of Bank of America Corp’s Merrill Lynch wealth management business outside the U.S. The total buyout could be valued at USD 2 b. (Bloomberg)

KKR & Co. – PE firm’s investments in European distressed debt rose almost twice as much over the previous year as banking institutions have cut back on lending activities amid the crisis. KKR increased its investments to USD 512.5 m in 1HY12 vs USD 260 m a year ago. Lending in the euro region declined to high yield borrowers globally excl. U.S to USD 104 b vs USD 139.4 b a year ago. (Bloomberg)

NORTH AMERICA

According to Philadelphia Federal Reserve’s survey of 48 forecasters, showed that 3Q GDP annual growth rate at 1.6 per cent  versus previous estimate of 2.5 per cent in May. real GDP growth at 2.2 per cent in 2012 versus a previous growth forecast of 2.3 per cent. FY 2013 real GDP forecast at 2.1 per cent, 2.7 percent in 2014, and 3.1 percent in 2015.(Reuters/Philadelphia Fed)

Prices of imported goods in the U.S declined 0.6 percent in July vs 2.4 percent decline in June on lower costs of fuel and food. Expectations came in at a price rise of 0.2 percent. Prices excl. fuel declined 0.4 percent. Petroleum products saw a 1.6 percent decrease in their prices vs 12 percent decline a year ago. (Bloomberg)



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