EQUITY UPDATE: 17 AUGUST 2012

ASIA

Japan would soon overtake China to become the biggest creditor to the U.S as it purchased USD 10.4 b of Treasuries in June to take its total to USD 61.3 b. total holdings in U.S Treasuries came in at USD 1.193 t vs China’s USD 1.164 t. (Bloomberg)

South Korea’s jobless rate declined marginally to 3.1 percent in July vs 3.2 percent in June. Expectations came in at 3.3 percent. The decline was contributed by rise in the no. of self-employed workers and rise in service-sector jobs. (Reuters)

China National Gold Group Corp – Precious metals mining firm is in early talks to purchase Barrick Gold Corp’s 73.9 percent stake in mining firm African Barrick Gold plc. (Bloomberg)

China Mobile – Co. reported lower than expected 2Q12 profit at RMB 54.40 b (USD 5.4 b) vs RMB 34.42 b a year ago, based on its 1HY12 earnings data. The co. saw its sales rise to RMB 139.1 b vs USD 131.9 b in the quarter a year ago. Estimates came in at RMB 140.5 b. The co. saw higher costs on attracting new customers amid slowdown in the economy. (Bloomberg)

INDIA

DII’s made gross purchases of INR 1,259.33cr and sales of INR 1,034.03cr. FII’s made gross purchases of INR 2,447.90cr and sales of totaling at INR 2,352.89cr. (Business Standard)

Indian oil marketing co.’s (OMCs) are faced with losses of INR 450 cr a day on rising prices of crude oil in the international markets and the fall of the rupee. Since the OMCs purchase oil, diesel and cooking gas at international rates and sell them at government-controlled rates, the difference in prices would see losses widen if it does not receive timely subsidies from the government. (Business Standard)

Maruti Suzuki – Co. to restart its Manesar plant on 21 August and said it is planning to remove 500 contract workers over their alleged involvement in the violence.  Co. to make 150 cars a day at its Manesar plant. (Times of India/PTI/Reuters/Yahoo)

Bank of Baroda – Nomura downgraded co. to a ‘reduce’ from ‘neutral; price target cut to INR 590 from INR 628. According to Nomura co.’s asset quality will continue to impacts its earnings growth over the next several quarters, and increased its delinquency forecast for fiscal 2013 and its loan loss provisioning forecast for fiscal 2012. Also expected change in top management later in 2012 reiterate the asset quality risk to earnings. (Economic Times/Reuters)

Punjab National Bank – Nomura downgraded co. to a ‘reduce’ from ‘neutral; price target cut to INR 680 from INR 719. Nomura expected loan delinquency to continue to increase over the next few quarters. (Economic Times/Reuters)

Wockhardt – Co. got US FDA approval to market Clopidogrel bi-sulfate tablets, used to help reduce risk of heart attack or stroke, in 75 mg strength. Co. also got a tentative nod for the 300 mg strength tablets. (MoneyControl)

Tata Motors – Co.’s July global sales at 101,605 units, up 21 per cent. (The Hindu Business Line)

Gitanjali Group – Co. acquired 15.3 per cent stake in Japanese firm Verite for INR 25cr. (Indian Express)

INDIAN EARNINGS

Nalco – Co. reported 1Q12-13 net profit at INR 223cr vs. previous 1Q11-12 net profit at INR 377cr. Net sales at INR 1,718cr vs. previous INR 1,733cr. (Yahoo/IANS)

RINL – Co. reported 1Q12-13 net profit at INR 150cr vs. previous 1Q11-12 net profit at INR 74cr. Turnover at INR 2,976cr vs. previous INR 2,582cr. (Financial Express)

ABG Shipyard – Co. reported its 1Q12-13 net profit at INR 41.31cr vs. previous 1Q11-12 net profit at INR 40.06cr. (Business Standard)

Jain Irrigation – Co. reported 1Q12-13 net loss of INR 16cr vs. previous 1Q11-12 net profit at INR 82cr. Sales at INR 865cr vs. previous INR 951cr. (The Hindu Business Line)

EUROPE

Spain’s exports touched EUR 18.9 b (USD 23.2 b), exceeding imports by EUR 1.2 b for the period of June 2012. The county still faces risk of declining exports as demand for its goods mainly comes in from Europe, which is still in recession. Besides, the exporters are not receiving adequate financing and incentives from the government, which itself is reeling from severe austerity cuts. Imports have declined to EUR 21.6 b in June vs EUR 21.4 b two years ago. The marginal rise is due to lack of domestic demand, which can be a worrying factor. (Reuters)

According to the Bank of England policy maker Martin Weale, the British economy was mired in stagnation rather than recession. The European debt crisis was the biggest source of uncertainty. The BOE policy maker was of the opinion that, squeeze on household spending through rising fuel prices was coming to an end. (Economic Times/Reuters)

ArcelorMittal – Steel mining giant is planning to hold discussions with the Indian government to expedite the procurement of a mining lease for its proposed INR 50,000 cr plant in Jharkhand, India. (Economic Times)

Airbus – Co. saw a loss of 10 A-380 aircrafts amounting to USD 3.8 b as Hong Kong airlines wound up its first class business category flight services. (Financial Times)

NORTH AMERICA

Construction of New homes in the U.S declined 1.1 percent to 746,000 vs June’s 754,000, falling below estimates of 756,000. The decline was offset by a rise in building permits to 812,000, its highest since 2008. The mixed data of low mortgage rates, decline in foreclosures, rising hiring and access to cheaper credit could show signs of an improvement in the property markets in the 2HY12 period. Construction of single-family homes declined 6.5 percent to 502,000 and multi-family home construction rose to 244,000, a five month high in 2012. (Bloomberg)

U.S initial jobless claims rose marginally by 2000 applicants to 366,000 for week ended 11 August vs prv week’s revised 364,000 vs exp rise to 365,000. The less volatile four week moving average declined to 363,750, a sign that labor markets picked up in July after the temporary layoffs caused by the auto plant maintenance activity. Unemployment rate remained at 8.3 percent. People on continuing jobless benefits declined by 31,000 to 3.31 m for week ended 4 August. (Bloomberg)

Ford Motors – Co.’s EU sales down 12.3 per cent at 83,100 units from a year earlier. YTD sales down at 10.6 per cent. Industry sales down 7.1 per cent through July, the lowest since 1995. (Boston.com/AP)

NORTH AMERICAN EARNINGS

Walmart – Retailer’s rising profits were reduced on unfavourable movements in the exchange rates which affected its revenues from international operations. Profits came in at USD 4 b, a y/y rise of 5.7 percent. EPS came in at USD 1.18 a share, marginally exceeding expectations. Revenues came in at USD 114.3 b vs exp USD 115.8 b. U.S like-for-like sales rose 2.2 percent on a y/y basis. Revenues from its global operations rose 4.5 percent to USD 113.5 b. The co. plans to expand its operations in markets such as Mexico, China and Brazil. (Financial Times)

7 banking firms have been issued subpoenas from U.S State prosecutors in the context of rigging the Libor rates. Banks summoned will be HSBC, Deutsche Bank, Citigroup, J P Morgan, UBS, RBS and Barclays. (Financial Times)

Brazil will implement a Brazilian Rias (BRL) 133 b (USD 66 b) worth of stimulus measures to increase investments in the nation to prop up the economy. The government plans to grant concessional opportunities on rail and roadways construction. Slowdown in the economy combines with shortage of skilled labour raised inflation and contributed to a slowdown in the economy. (Financial Times)

Cisco – Networking equipment manufacturer saw its profits and revenues rise that it raised its dividend and full year earnings estimate. Revenues rose to USD 11.7 b, exceeded estimates of USD 11.6 b. EPS came in at 47 cents vs exp. 45 cents, all on a pro forma basis. Cost cuts and prudent utilization of its resources saw the co. raise its FY12 forecasts at USD 46 b and EPS to 1.85 a share. The co. raised its dividend for the next quarter to 14 cents, a 75 percent increase. (Financial Times)

 

 

 

 



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: