Asia Pacific shares mostly rebounded on Friday, 21 March 2014, lifted by
bargain buying following yesterday's selloff and overnight gains in US
stocks. The MSCI Asia Pacific excluding Japan Index advanced 0.7% to
452.10, paring this week's slide to 0.4%. The measure fell 1.7%
yesterday, taking its loss this year to 4.1%.
Regional bourses opened higher today on tracking gains in Wall Street overnight. US stocks rebounded on Thursday on the back of favorable US economic data. Meanwhile, buying activities spirited further on tracking rebound in Chinese market. Mainland China market rose sharply today amid speculation the government is loosening funding restrictions for property developers and banks to support economic growth and as government allowed more foreign investment in its stock market in a latest move to free up capital flows and further liberalize its securities market.
Among Asian Bourses, Australian stock market finished modest higher, as investors chased for bargain buying following steep yesterday's sell-off, with mining and energy heavyweight stocks leading the rally.
Shares of materials and energy companies were the best-performing in the ASX index blue chips, thanks to bargain buying. Among Resources giant BHP Billiton rose by 1.1% to A$35.58, while main rival Rio Tinto added 0.9% to A$61.37. Fortescue Metals Group, which produces only iron ore, added 1.6% to $4.98. Woodside Petroleum climbed up 1.6% to A$38.43, Santos 2.1% to A$13.39 and Origin Energy 1.5% to A$14.43.
Metcash shares fell 9.5% to A$2.85 after the wholesaler downgraded its earnings guidance and reduce its dividend payout to fund almost A$700 million of capital investment over the next five years. Metcash embarked a five-year transformation plan aimed at securing the future of the wholesaler and its independent retailers in the face of increased competition from Coles and Woolworths in food and groceries and Bunnings and Masters in the hardware space. Metcash said the plan would involve a significant step-up in capital investment over the next five years, funded by a reduction in working capital and a reduction in the dividend payout ratio to 60%, starting with the final dividend this year. Total capex is estimated to reach A$575 million to A$675 million over five years, causing an increase in gearing. Capex will peak at between A$150 million and A$180 million in 2015, reducing to A$130 million to A$150 million in 2016 and 2017.
AMP shares rose 1.4% to A$4.92 after the Australia's largest wealth manager announced plans to send back office jobs offshore as part of its efforts to reduce costs. AMP has appointed Tata Consultancy Services as its new administration business processing partner.
AMP will transfer back office functions that are already carried out by AXA Business Services in India to the new venture. In addition, the Sydney-based group will move more administrative and payments jobs in Australia to TCS. The job cuts will help AMP to reach its goal of delivering A$200 million in pre-tax recurring cost savings by the end of 2016, an efficiency program that was announced in August last year.
Hearing implant maker Cochlear rose 4.2% to A$58.96 after US authorities approved its latest hearing aid. The US Food and Drug Administration gave the thumbs up to the nucleus hybrid L24 which is designed to help people who don't benefit from conventional hearing aids.
In New Zealand, New Zealand stock market closed down today, due to selloff in energy companies as investors made room in their portfolios ahead of the listing of Genesis Energy next month. Vector, Meridian Energy, MightyRiverPower and Contact Energy fell. By the provisional closing, the NZX50 Index fell 35.396 points, or about 0.7%, to 5124.994. Within the index, 27 stocks fell, 13 rose and 10 were unchanged.
Vector, the Auckland based lines company, dropped 4.7% to $2.46. Government controlled Meridian fell 1.4% to $1.095 while Contact slipped 1.3% to $5.30. MightyRiverPower declined 0.5% at 2.10.
Pumpkin Patch rose 1.8% to 56 cents. The children's clothing retailer sank 19% to a record low of 55 cents this week, after the company reported a 98% drop in profit for the six months ended Jan. 31.
In China, Mainland China stock market finished sharp higher, on the back of bottom fishing across the board, with large-cap financial and property plays leading the rally. The benchmark Shanghai Composite Index surged 2.72% from prior day closure to finish at 2047.62.
Chinese shares opened higher as investors returned to market with bullish note on tracking positive finish of the Wall Street overnight. Meanwhile, buying momentum accelerated after China has allowed more foreign investment in its stock market in a latest move to free up capital flows and further liberalize its securities market.
China has relaxed rules to allow more foreign participation in its main stock market, in the latest step toward liberalizing the financial system in the world's second-largest economy. Since Thursday, foreign investors on the Shanghai Stock Exchange have been allowed to invest in more products and can invest up to 30% in a single company, up from 20% previously.
Among SSE sectors, all 10 sectors of the SSE index advanced, with financial sector was best performer in the SSE sectoral peers, adding 4.75%, followed by energy up 3.45%, consumer discretionary up 3.22%, industrials up 2.67%, utilities up 2.57%, materials up 2.45%, consumer staples up 1.97%, healthcare up 1.52%, information technology up 1.34%, and telecommunication services up 1.13%.
Shares of Chinese financials and property developers surged amid speculation the government is loosening funding restrictions for property developers and banks to support economic growth. Among large cap lenders, Shanghai Pudong Bank soared 10% to 9.89 yuan. Industrial Bank surged 6.6% to 9.48 yuan. Industrial & Commercial Bank of China added 1.8% to 3.34 yuan and China Construction Bank Corp rose 2.4% to 3.87 yuan. Among realty stocks, China Vanke rose 6.7% to 8.01 yuan and Poly Real Estate surged 6.8% to 7.20 yuan.
In Hong Kong, shares in city market also ended higher, lifted by gains in Li & Fung after solid earnings and bargain buying in financials and realty stocks. The Hang Seng Index closed higher 1.2% at 21436.70.
Among the HK 50 blue chips, 38 rose and 10 declined with 2 stocks closed steady. Li & Fung jumped 21.2% to HK$12.48, becoming the top blue-chip gainer, as investors cheered better-than-expected earnings and focused on a plan that includes the spin-off of its unit that manages brands and licenses. China Mobile dipped 3.7% to HK$64.50, becoming the top blue-chip loser, as a slew of brokerage target price downgrade after its 2013 profit missed market expectation.
PetroChina jumped 3.2% to HK$7.86 after China's top oil and gas producer has posted a 21% jump in net profit in the fourth quarter of last year due to higher natural gas prices and reduced refining losses. Fourth-quarter earnings rose to 34.3 billion yuan (US$5.5 billion) from 28.4 billion yuan a year earlier. For the whole year, PetroChina's net profit gained 12% to 129.6 billion yuan while sales rose 2.9% to 2.26 trillion yuan.
In India, a bout of volatility was witnessed as key benchmark indices trimmed gains in mid-afternoon trade. The barometer index, the S&P BSE Sensex, was up 2.93 points or 0.01%, off about 130 points from the day's high and up close to 15 points from the day's low.
Axis Bank edge higher in choppy trade amid huge volumes on reports that the government has sold about 4.22 crore shares, constituting a 9% stake in India's third-largest private-sector bank by assets, via block deals on BSE today, 21 March 2014.
Lupin rose after the company said its US subsidiary -- Lupin Pharmaceuticals Inc. -- has launched its Niacin Extended‐Release Tablets USP, 500 mg, 750 mg, 1000 mg strengths having received final approval from the United States Food and Drug Administration (FDA) on Thursday, 20 March 2014.
Elsewhere in the Asia Pacific region, Taiwan's Taiex index dipped 0.23%. South Korea's KOSPI index rose 0.8%. Singapore's Straits Times index rose 0.53%. Indonesia's Jakarta Composite Index rose 0.03%. New Zealand's NZX50 fell 0.7%. Malaysia's KLSE Composite rose 0.13%. Japanese markets closed for a holiday.
Regional bourses opened higher today on tracking gains in Wall Street overnight. US stocks rebounded on Thursday on the back of favorable US economic data. Meanwhile, buying activities spirited further on tracking rebound in Chinese market. Mainland China market rose sharply today amid speculation the government is loosening funding restrictions for property developers and banks to support economic growth and as government allowed more foreign investment in its stock market in a latest move to free up capital flows and further liberalize its securities market.
Among Asian Bourses, Australian stock market finished modest higher, as investors chased for bargain buying following steep yesterday's sell-off, with mining and energy heavyweight stocks leading the rally.
Shares of materials and energy companies were the best-performing in the ASX index blue chips, thanks to bargain buying. Among Resources giant BHP Billiton rose by 1.1% to A$35.58, while main rival Rio Tinto added 0.9% to A$61.37. Fortescue Metals Group, which produces only iron ore, added 1.6% to $4.98. Woodside Petroleum climbed up 1.6% to A$38.43, Santos 2.1% to A$13.39 and Origin Energy 1.5% to A$14.43.
Metcash shares fell 9.5% to A$2.85 after the wholesaler downgraded its earnings guidance and reduce its dividend payout to fund almost A$700 million of capital investment over the next five years. Metcash embarked a five-year transformation plan aimed at securing the future of the wholesaler and its independent retailers in the face of increased competition from Coles and Woolworths in food and groceries and Bunnings and Masters in the hardware space. Metcash said the plan would involve a significant step-up in capital investment over the next five years, funded by a reduction in working capital and a reduction in the dividend payout ratio to 60%, starting with the final dividend this year. Total capex is estimated to reach A$575 million to A$675 million over five years, causing an increase in gearing. Capex will peak at between A$150 million and A$180 million in 2015, reducing to A$130 million to A$150 million in 2016 and 2017.
AMP shares rose 1.4% to A$4.92 after the Australia's largest wealth manager announced plans to send back office jobs offshore as part of its efforts to reduce costs. AMP has appointed Tata Consultancy Services as its new administration business processing partner.
AMP will transfer back office functions that are already carried out by AXA Business Services in India to the new venture. In addition, the Sydney-based group will move more administrative and payments jobs in Australia to TCS. The job cuts will help AMP to reach its goal of delivering A$200 million in pre-tax recurring cost savings by the end of 2016, an efficiency program that was announced in August last year.
Hearing implant maker Cochlear rose 4.2% to A$58.96 after US authorities approved its latest hearing aid. The US Food and Drug Administration gave the thumbs up to the nucleus hybrid L24 which is designed to help people who don't benefit from conventional hearing aids.
In New Zealand, New Zealand stock market closed down today, due to selloff in energy companies as investors made room in their portfolios ahead of the listing of Genesis Energy next month. Vector, Meridian Energy, MightyRiverPower and Contact Energy fell. By the provisional closing, the NZX50 Index fell 35.396 points, or about 0.7%, to 5124.994. Within the index, 27 stocks fell, 13 rose and 10 were unchanged.
Vector, the Auckland based lines company, dropped 4.7% to $2.46. Government controlled Meridian fell 1.4% to $1.095 while Contact slipped 1.3% to $5.30. MightyRiverPower declined 0.5% at 2.10.
Pumpkin Patch rose 1.8% to 56 cents. The children's clothing retailer sank 19% to a record low of 55 cents this week, after the company reported a 98% drop in profit for the six months ended Jan. 31.
In China, Mainland China stock market finished sharp higher, on the back of bottom fishing across the board, with large-cap financial and property plays leading the rally. The benchmark Shanghai Composite Index surged 2.72% from prior day closure to finish at 2047.62.
Chinese shares opened higher as investors returned to market with bullish note on tracking positive finish of the Wall Street overnight. Meanwhile, buying momentum accelerated after China has allowed more foreign investment in its stock market in a latest move to free up capital flows and further liberalize its securities market.
China has relaxed rules to allow more foreign participation in its main stock market, in the latest step toward liberalizing the financial system in the world's second-largest economy. Since Thursday, foreign investors on the Shanghai Stock Exchange have been allowed to invest in more products and can invest up to 30% in a single company, up from 20% previously.
Among SSE sectors, all 10 sectors of the SSE index advanced, with financial sector was best performer in the SSE sectoral peers, adding 4.75%, followed by energy up 3.45%, consumer discretionary up 3.22%, industrials up 2.67%, utilities up 2.57%, materials up 2.45%, consumer staples up 1.97%, healthcare up 1.52%, information technology up 1.34%, and telecommunication services up 1.13%.
Shares of Chinese financials and property developers surged amid speculation the government is loosening funding restrictions for property developers and banks to support economic growth. Among large cap lenders, Shanghai Pudong Bank soared 10% to 9.89 yuan. Industrial Bank surged 6.6% to 9.48 yuan. Industrial & Commercial Bank of China added 1.8% to 3.34 yuan and China Construction Bank Corp rose 2.4% to 3.87 yuan. Among realty stocks, China Vanke rose 6.7% to 8.01 yuan and Poly Real Estate surged 6.8% to 7.20 yuan.
In Hong Kong, shares in city market also ended higher, lifted by gains in Li & Fung after solid earnings and bargain buying in financials and realty stocks. The Hang Seng Index closed higher 1.2% at 21436.70.
Among the HK 50 blue chips, 38 rose and 10 declined with 2 stocks closed steady. Li & Fung jumped 21.2% to HK$12.48, becoming the top blue-chip gainer, as investors cheered better-than-expected earnings and focused on a plan that includes the spin-off of its unit that manages brands and licenses. China Mobile dipped 3.7% to HK$64.50, becoming the top blue-chip loser, as a slew of brokerage target price downgrade after its 2013 profit missed market expectation.
PetroChina jumped 3.2% to HK$7.86 after China's top oil and gas producer has posted a 21% jump in net profit in the fourth quarter of last year due to higher natural gas prices and reduced refining losses. Fourth-quarter earnings rose to 34.3 billion yuan (US$5.5 billion) from 28.4 billion yuan a year earlier. For the whole year, PetroChina's net profit gained 12% to 129.6 billion yuan while sales rose 2.9% to 2.26 trillion yuan.
In India, a bout of volatility was witnessed as key benchmark indices trimmed gains in mid-afternoon trade. The barometer index, the S&P BSE Sensex, was up 2.93 points or 0.01%, off about 130 points from the day's high and up close to 15 points from the day's low.
Axis Bank edge higher in choppy trade amid huge volumes on reports that the government has sold about 4.22 crore shares, constituting a 9% stake in India's third-largest private-sector bank by assets, via block deals on BSE today, 21 March 2014.
Lupin rose after the company said its US subsidiary -- Lupin Pharmaceuticals Inc. -- has launched its Niacin Extended‐Release Tablets USP, 500 mg, 750 mg, 1000 mg strengths having received final approval from the United States Food and Drug Administration (FDA) on Thursday, 20 March 2014.
Elsewhere in the Asia Pacific region, Taiwan's Taiex index dipped 0.23%. South Korea's KOSPI index rose 0.8%. Singapore's Straits Times index rose 0.53%. Indonesia's Jakarta Composite Index rose 0.03%. New Zealand's NZX50 fell 0.7%. Malaysia's KLSE Composite rose 0.13%. Japanese markets closed for a holiday.
