EQUITY UPDATE – 14 AUGUST 2012

ASIA

China Mengiu Dairy Co.- Dairy product producing firm is in talks to acquire China Modern Dairy Holdings Ltd. (Bloomberg)

INDIA

Investments by Private equity funds in India declined 39 percent on a y/y basis for 1HY12 period. Total investments totaled USD 9.8 b vs prv USD 14.9 b. Fundraising totaled USD 17.2 b and could be in line to achieve a target of USD 38.5 b, an amount raised in FY11. Fund raising in China also declined 8 percent, saw a 53 percent increase in Brazil with 42 percent in the Mid-east. Indian investments declined on account of volatility in the rupee, investment and regulatory policies. (Economic Times)

Maruti Suzuki India – Co. plans to resume partial operations at its Manesar plant next Tuesday. Initial work is expected to start with automated operations before workers resuming work. (Economic Times)

ONGC – Co. discovered an oil field in Tamil Nadu, India. The exploratory well produces 115 cu. Mt per day and 11,500 cu mt of gas in the Cauvery Basin block. (Economic Times)

EUROPE

The Euro Zone GDP for the 2Q12 period declined 0.2 percent, in line with estimates. Many major economies such as Spain and Italy undertaking budget cuts and implementing austerity measures weighed in on the data. Germany’s better than expected growth offset the negative growth of Spain. Italy also saw its GDP decline 0.7 percent while Spain’s GDP fell 0.4 percent on a q/q basis. As many as six nations face q/q GDP declines leading to a technical recession. (Bloomberg)

Greece raised EUR 4.06 b worth of T-bills today to repay a EUR 3.2 b bond loan to the ECB. Yields on the 3 month bills came in at 4.43 percent vs 4.28 percent from prv auction. Bid to cover ratio, a gauge of demand came in lower at 1.36 vs 2.12 previously.  The nation is expected make an obligation payment on 20th August to the ECM which rejected the nation’s proposal to delay the repayment by a month but raised the ceiling on the amount of bills used as collateral for obtaining additional loans. (Financial Times)

AP Moller Maersk – Container ship operating firm saw its 2Q12 profit come in at USD 227 m vs prv loss of USD 599 m. On a consolidated basis, the firm saw profits decline 39 percent y.y to USD 965 m. But the strength of its shipping business saw the co. raise its earnings guidance to around USD 3.4 b. (Financial Times)

Manganese Bronze – London’s black cab manufacturer saw its shares decline 32 percent to GBP 0.17 a share in trade on IT system errors after discovering a GBP 3.9 m deficit in its accounts. (Financial Times)

RWE – Electric utility firm stated that its plan to cut annual costs by upto EUR 1 b by 2014 could see around 2400 job cuts. (Financial Times)

NORTH AMERICA

U.S Retail Sales rose more than forecast for July on higher spending seen at department stores, electronic stores. Sales rose 0.8 percent in July vs expectations of a rise of 0.3 percent vs  decline of 0.7 percent in June. The 13 major categories of the index also registered growth, mitigating fears of slowdown in the economy. Same store sales rose 4.4 percent vs exp. Gain of 0.3 percent. (Bloomberg)

Home Depot – Co. saw its 2Q12 profit rise 12 percent to USD 1.53 b vs USD 1.36 b previously. EPS came in at USD 1.10 a share vs exp. 97 cents. These results prompted the co. to raise its forecasts to USD 2.95 a share vs exp. USD 2.92 a share. Revenues for the firm rose 1.7 percent to USD 20.6 b. (Bloomberg)



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