Headline equities of the Asia Pacific market closed mostly weaker on
Thursday, 29 May 2014, hurt by profit-taking in recent high-performers.
But losses on the regional bourses were limited amid optimism the US economy and on expectations the European Central Bank (ECB) will do something big next week. An unexpected increase in German joblessness and data on euro-region money supply released on Wednesday stoked bets that the ECB will act to boost inflation next week.
Among Asian bourses, Australian share market finished weaker, on tracking weak offshore cues, with shares in technology and materials & resources stocks led losses. The decline was, however, capped on the back of the better than expected 2nd estimate for 2014/ 15 capital spending plans. The benchmark S&P/ASX200 and the broader All Ordinaries each declined by 0.14% to 5519.50 and 5499.20, respectively.
Material and resource stocks were worst performer in the Sydney market today after the price of iron ore declined to the lowest levels seen in 2 years, around US$97.00 per tonne levels. The commodity price for Australia's biggest export has lost 28% year-to-date.
Resources giant BHP Billiton fell 1.3% to A$37.49. Main rival Rio Tinto lost 2.2% to A$60.07 as it announced plans to downsize operations at its Mongolian joint venture Oyu Tolgio copper and gold mine. Iron ore miner Fortescue Metals Group shed 3% to A$4.54 as chief executive Nev Power told investors the company would consider expanding into the oil and gas sector.
Shares of telecommunication and retailers were major gainers in the Sydney bourse, with Telstra Corporation rising 0.8% to A$5.38. Woolworths rose 0.2% to A$37.51, while rival Wesfarmers, added 0.6% to A$43.53 as incoming Coles managing director John Durkin vowed to keep trimming supply chain costs.
Toll Holdings (TOL) shares climbed up 4.9% to A$5.53 after the freight and courier company said it expects to save up to A$12 million each year by streamlining its business structure. TOL plans to reduce its structure from six divisions to five and expects the restructure to deliver annual savings of between A$10 million and A$12 million from next financial year with the costs the rationalisation to be offset by one-off gains.
Australian Bureau of Statistics released first-quarter capital expenditure numbers on Thursday, indicating that capex fell by 4.2% in the March quarter, contributed to by an 8.7% reduction in mining investment. However, the ABS also published estimates for 2014-15 and these were revised up substantially from the previous quarter. Now, capex in the coming financial year is expected to reach $137 billion, up 9.3% from an initial estimate of $125 billion, with mining investment not predicted to drop as much as initially feared, and investment in services picking up.
In Japan, Japanese share market advanced for sixth straight session, supported by gaining confidence in the U.S. economic recovery after strong economic data. But a weak lead from Wall Street overnight and stronger yen limited the market gains. The benchmark Nikkei 225 index was up 0.07% to finish at 14,681.72, while the Topix index of all first-section shares rose 0.21% to 1200.68.
The Tokyo shares followed Wall Street lower at the start of trade. The concerns over the impact of corporate overseas earnings due to yen appreciation against the greenback also fuelled losses. Meanwhile, investors' sentiments weakened after data from the Ministry of Economy, Trade and Industry showed Japan's retail sales fell 4.4% on year in April, hit by the April 1 sales tax hike to 8% from 5%.
But, the Tokyo market recouped lost initial ground and managed to end the day in positive terrain, after the release of better-than-expected domestic auto output figures for April during TSE trading hours. At Mitsubishi Motors, domestic output jumped 74.9% from a year earlier, while output at Honda Motors rose 38.1%.
The Bank of Japan on Thursday updated the guideline of its outright purchases of Japanese government bonds to reduce the lower end of JGB buying operations of bonds of more than 10 years duration to Y150 billion from Y170 billion. The decision is aimed at keeping the duration of its JGB holdings in a range of six to eight years as the BOJ has recently faced problems keeping the duration under eight years, the upper end of the guideline, increasing pressure on the BOJ to lower its purchases of longer-end JGBs. But the guideline of JGB buying operations decided in May 2013 makes it difficult for the BOJ to lower the scale of JGB buying with a remaining life of more than 10-years from floor of Y170 billion.
In China, Mainland China share market declined today, hurt by profit-taking in recent high-performers, with shares of securities brokers leading losses. The market losses, was however, limited after Premier Li Keqiang said China's economy is generally stable and positive changes have appeared in structural adjustment. Li also said there were still uncertainties and unstable factors in the global recovery. The benchmark Shanghai Composite declined 0.47% to finish at 2040.60, on turnover of 69.47 billion yuan.
Shares of securities brokers were the biggest index drags on the Shanghai market. CITIC Securities, China's largest listed brokerage, was down 1.7% to 11.29 yuan, while Haitong Securities shed 1.5% to 9.23 yuan.
Shares of Health-related companies closed mostly higher in Shanghai market, thanks to newly-announced reform policies allowing private companies more access to the healthcare system. Jointown Pharmaceutical Group surged 6.9% to 14.41 yuan, Jiangsu Hengrui Medicine gained 2.1% to 32.37 yuan, and Shanghai Fosun Pharmaceutical Group added 1.3% to 19.72 yuan.
In Hong Kong, HK share market finished lower in volatile trade when spot futures contracts expire today. The benchmark Hang Seng Index was down 0.3% to finish at 23010.14. Turnover decreased to HK$58.32 billion from HK$71.9 billion on Wednesday. The benchmark index shot up 129 points at one stage in the morning, but headed south in afternoon session, and slid 111 points at one point.
The HK share market commenced trading with firm footing, lifted by Chinese insurers which posted strong gains after Morgan Stanley upgraded the sector. But the market erased earlier gain on late afternoon trade, with losses in materials and energy stocks overshadowed gains in realty stocks.
Macau gaming counters were lower on strong selling orders emerging from afternoon session. Galaxy Ent (00027) fell 3% to HK$59.2. Sands China (01928) and MGM China (02282) retreated 2% to HK$55.9 and HK$26.35. Wynn Macau (01128) was weakened by 1.7% to HK$31.75.
Realty counters were higher, with Sino Land (00083), Henderson Land (00012) and Wharf (00004) all gaining up 0.7% to 0.8%. Hang Lung Properties (00101) added 2% to HK$24.35. Chueng Kong (00001) rose 2.2% to HK$137.
Technology and Telecom stocks were lower. Tencent (00700) fell 3% to HK$109.8. Melco (00200) slipped 1%. Chinasoft (00354), Sinosoft (01297) and Kingdee (00268) all declined between 3.7% and 5.5%. Kingsoft (03888) slid 11.6% to HK$22.95 after it reported a slowdown in 1Q earnings.
China software company Kingsoft Corp tumbled 11.6% to HK$22.95 after its first quarter results on Wednesday failed to meet market expectations.
Shares of home appliances retailer Huiyin Household Appliances Holdings Co surged 24.1% to HK$0.335 after the smaller rival of Suning and GOME said it would expand into the lottery sales business in China, leveraging on its retail sales channel in the country.
In India, key benchmark indices finished lower on weak global cues. Meanwhile, the market sentiment also hit by data showing that foreign funds were net sellers of Indian stocks on Wednesday, 28 May 2014.
The S&P BSE Sensex lost 321.94 points or 1.31% to settle at 24,234.15, its lowest closing level since 16 May 2014. The Sensex has risen 1,816.35 points or 8.1% in this month so far (till 29 May 2014). The Sensex has gained 3,063.47 points or 14.47% in calendar year 2014 so far (till 29 May 2014). From a 52-week low of 17,448.71 on 28 August 2013, the Sensex has risen 6,785.44 points or 38.88%.
Bharat Heavy Electricals (Bhel) dropped 1.89%. The company's net profit fell 43.02% to Rs 1844.59 crore on 21.42% fall in total income to Rs 15320.38 crore in Q4 March 2014 over Q4 March 2013. The result was announced after trading hours. Bhel's net profit fell 47.68% to Rs 3460.78 crore on 17.8% fall in total income to Rs 40724.86 crore in the year ended 31 March 2014 over the year ended 31 March 2013.
BPCL shed 0.96% to Rs 536.50 on weak Q4 result. The scrip hit high of Rs 555 and low of Rs 532.15. The company's net profit fell 15.19% to Rs 4068.37 crore on 12.53% increase in total income to Rs 75194.71 crore in Q4 March 2014 over Q4 March 2013. The result was announced during market hours.
Sun Pharmaceutical Industries (Sun Pharma) rose 0.63% to Rs 587.60 after announcing strong Q4 result. The scrip hit high of Rs 591.90 and low of Rs 582.50. The company's consolidated net profit jumped 57% to Rs 1587 crore on 32% increase in net sales/income from operations to Rs 4044 crore in Q4 March 2014 over Q4 March 2013. The result was announced during market hours.
National Aluminium Company (Nalco) declined 1.84% on weak Q4 result. The company's net profit fell 29.9% to Rs 172.45 crore on 0.63% decline in total income to Rs 1973.59 crore in Q4 March 2014 over Q4 March 2013. The result was announced after market hours on Wednesday, 28 May 2014.
Hero MotoCorp fell 0.39% to Rs 2,341.20 after announcing weak Q4 results. The stock was volatile. The stock hit high of Rs 2,353.60 and low of Rs 2,268.90. Hero MotoCorp's net profit declined 3.45% to Rs 554.43 crore on 6.31% rise in net sales to Rs 6455.70 crore in Q4 March 2014 over Q4 March 2013.
Elsewhere in the Asia Pacific region, Taiwan's Taiex index fell 0.14%. New Zealand's NZX50 eked out 0.03% gain. Malaysia's KLSE Composite rose 0.27%. Markets in Indonesia are closed for a holiday.
South Korea's KOSPI index was down 0.24%. The nation's current account surplus narrowed to $7.1 billion in April from a revised $7.29 billion in March, data released by the Bank of Korea on Thursday showed.
Singapore's Straits Times index jumped 0.88% after Morgan Stanley raised its rating on the city's shares to overweight from equal-weight, citing stabilizing economic growth and limited earnings risks.
But losses on the regional bourses were limited amid optimism the US economy and on expectations the European Central Bank (ECB) will do something big next week. An unexpected increase in German joblessness and data on euro-region money supply released on Wednesday stoked bets that the ECB will act to boost inflation next week.
Among Asian bourses, Australian share market finished weaker, on tracking weak offshore cues, with shares in technology and materials & resources stocks led losses. The decline was, however, capped on the back of the better than expected 2nd estimate for 2014/ 15 capital spending plans. The benchmark S&P/ASX200 and the broader All Ordinaries each declined by 0.14% to 5519.50 and 5499.20, respectively.
Material and resource stocks were worst performer in the Sydney market today after the price of iron ore declined to the lowest levels seen in 2 years, around US$97.00 per tonne levels. The commodity price for Australia's biggest export has lost 28% year-to-date.
Resources giant BHP Billiton fell 1.3% to A$37.49. Main rival Rio Tinto lost 2.2% to A$60.07 as it announced plans to downsize operations at its Mongolian joint venture Oyu Tolgio copper and gold mine. Iron ore miner Fortescue Metals Group shed 3% to A$4.54 as chief executive Nev Power told investors the company would consider expanding into the oil and gas sector.
Shares of telecommunication and retailers were major gainers in the Sydney bourse, with Telstra Corporation rising 0.8% to A$5.38. Woolworths rose 0.2% to A$37.51, while rival Wesfarmers, added 0.6% to A$43.53 as incoming Coles managing director John Durkin vowed to keep trimming supply chain costs.
Toll Holdings (TOL) shares climbed up 4.9% to A$5.53 after the freight and courier company said it expects to save up to A$12 million each year by streamlining its business structure. TOL plans to reduce its structure from six divisions to five and expects the restructure to deliver annual savings of between A$10 million and A$12 million from next financial year with the costs the rationalisation to be offset by one-off gains.
Australian Bureau of Statistics released first-quarter capital expenditure numbers on Thursday, indicating that capex fell by 4.2% in the March quarter, contributed to by an 8.7% reduction in mining investment. However, the ABS also published estimates for 2014-15 and these were revised up substantially from the previous quarter. Now, capex in the coming financial year is expected to reach $137 billion, up 9.3% from an initial estimate of $125 billion, with mining investment not predicted to drop as much as initially feared, and investment in services picking up.
In Japan, Japanese share market advanced for sixth straight session, supported by gaining confidence in the U.S. economic recovery after strong economic data. But a weak lead from Wall Street overnight and stronger yen limited the market gains. The benchmark Nikkei 225 index was up 0.07% to finish at 14,681.72, while the Topix index of all first-section shares rose 0.21% to 1200.68.
The Tokyo shares followed Wall Street lower at the start of trade. The concerns over the impact of corporate overseas earnings due to yen appreciation against the greenback also fuelled losses. Meanwhile, investors' sentiments weakened after data from the Ministry of Economy, Trade and Industry showed Japan's retail sales fell 4.4% on year in April, hit by the April 1 sales tax hike to 8% from 5%.
But, the Tokyo market recouped lost initial ground and managed to end the day in positive terrain, after the release of better-than-expected domestic auto output figures for April during TSE trading hours. At Mitsubishi Motors, domestic output jumped 74.9% from a year earlier, while output at Honda Motors rose 38.1%.
The Bank of Japan on Thursday updated the guideline of its outright purchases of Japanese government bonds to reduce the lower end of JGB buying operations of bonds of more than 10 years duration to Y150 billion from Y170 billion. The decision is aimed at keeping the duration of its JGB holdings in a range of six to eight years as the BOJ has recently faced problems keeping the duration under eight years, the upper end of the guideline, increasing pressure on the BOJ to lower its purchases of longer-end JGBs. But the guideline of JGB buying operations decided in May 2013 makes it difficult for the BOJ to lower the scale of JGB buying with a remaining life of more than 10-years from floor of Y170 billion.
In China, Mainland China share market declined today, hurt by profit-taking in recent high-performers, with shares of securities brokers leading losses. The market losses, was however, limited after Premier Li Keqiang said China's economy is generally stable and positive changes have appeared in structural adjustment. Li also said there were still uncertainties and unstable factors in the global recovery. The benchmark Shanghai Composite declined 0.47% to finish at 2040.60, on turnover of 69.47 billion yuan.
Shares of securities brokers were the biggest index drags on the Shanghai market. CITIC Securities, China's largest listed brokerage, was down 1.7% to 11.29 yuan, while Haitong Securities shed 1.5% to 9.23 yuan.
Shares of Health-related companies closed mostly higher in Shanghai market, thanks to newly-announced reform policies allowing private companies more access to the healthcare system. Jointown Pharmaceutical Group surged 6.9% to 14.41 yuan, Jiangsu Hengrui Medicine gained 2.1% to 32.37 yuan, and Shanghai Fosun Pharmaceutical Group added 1.3% to 19.72 yuan.
In Hong Kong, HK share market finished lower in volatile trade when spot futures contracts expire today. The benchmark Hang Seng Index was down 0.3% to finish at 23010.14. Turnover decreased to HK$58.32 billion from HK$71.9 billion on Wednesday. The benchmark index shot up 129 points at one stage in the morning, but headed south in afternoon session, and slid 111 points at one point.
The HK share market commenced trading with firm footing, lifted by Chinese insurers which posted strong gains after Morgan Stanley upgraded the sector. But the market erased earlier gain on late afternoon trade, with losses in materials and energy stocks overshadowed gains in realty stocks.
Macau gaming counters were lower on strong selling orders emerging from afternoon session. Galaxy Ent (00027) fell 3% to HK$59.2. Sands China (01928) and MGM China (02282) retreated 2% to HK$55.9 and HK$26.35. Wynn Macau (01128) was weakened by 1.7% to HK$31.75.
Realty counters were higher, with Sino Land (00083), Henderson Land (00012) and Wharf (00004) all gaining up 0.7% to 0.8%. Hang Lung Properties (00101) added 2% to HK$24.35. Chueng Kong (00001) rose 2.2% to HK$137.
Technology and Telecom stocks were lower. Tencent (00700) fell 3% to HK$109.8. Melco (00200) slipped 1%. Chinasoft (00354), Sinosoft (01297) and Kingdee (00268) all declined between 3.7% and 5.5%. Kingsoft (03888) slid 11.6% to HK$22.95 after it reported a slowdown in 1Q earnings.
China software company Kingsoft Corp tumbled 11.6% to HK$22.95 after its first quarter results on Wednesday failed to meet market expectations.
Shares of home appliances retailer Huiyin Household Appliances Holdings Co surged 24.1% to HK$0.335 after the smaller rival of Suning and GOME said it would expand into the lottery sales business in China, leveraging on its retail sales channel in the country.
In India, key benchmark indices finished lower on weak global cues. Meanwhile, the market sentiment also hit by data showing that foreign funds were net sellers of Indian stocks on Wednesday, 28 May 2014.
The S&P BSE Sensex lost 321.94 points or 1.31% to settle at 24,234.15, its lowest closing level since 16 May 2014. The Sensex has risen 1,816.35 points or 8.1% in this month so far (till 29 May 2014). The Sensex has gained 3,063.47 points or 14.47% in calendar year 2014 so far (till 29 May 2014). From a 52-week low of 17,448.71 on 28 August 2013, the Sensex has risen 6,785.44 points or 38.88%.
Bharat Heavy Electricals (Bhel) dropped 1.89%. The company's net profit fell 43.02% to Rs 1844.59 crore on 21.42% fall in total income to Rs 15320.38 crore in Q4 March 2014 over Q4 March 2013. The result was announced after trading hours. Bhel's net profit fell 47.68% to Rs 3460.78 crore on 17.8% fall in total income to Rs 40724.86 crore in the year ended 31 March 2014 over the year ended 31 March 2013.
BPCL shed 0.96% to Rs 536.50 on weak Q4 result. The scrip hit high of Rs 555 and low of Rs 532.15. The company's net profit fell 15.19% to Rs 4068.37 crore on 12.53% increase in total income to Rs 75194.71 crore in Q4 March 2014 over Q4 March 2013. The result was announced during market hours.
Sun Pharmaceutical Industries (Sun Pharma) rose 0.63% to Rs 587.60 after announcing strong Q4 result. The scrip hit high of Rs 591.90 and low of Rs 582.50. The company's consolidated net profit jumped 57% to Rs 1587 crore on 32% increase in net sales/income from operations to Rs 4044 crore in Q4 March 2014 over Q4 March 2013. The result was announced during market hours.
National Aluminium Company (Nalco) declined 1.84% on weak Q4 result. The company's net profit fell 29.9% to Rs 172.45 crore on 0.63% decline in total income to Rs 1973.59 crore in Q4 March 2014 over Q4 March 2013. The result was announced after market hours on Wednesday, 28 May 2014.
Hero MotoCorp fell 0.39% to Rs 2,341.20 after announcing weak Q4 results. The stock was volatile. The stock hit high of Rs 2,353.60 and low of Rs 2,268.90. Hero MotoCorp's net profit declined 3.45% to Rs 554.43 crore on 6.31% rise in net sales to Rs 6455.70 crore in Q4 March 2014 over Q4 March 2013.
Elsewhere in the Asia Pacific region, Taiwan's Taiex index fell 0.14%. New Zealand's NZX50 eked out 0.03% gain. Malaysia's KLSE Composite rose 0.27%. Markets in Indonesia are closed for a holiday.
South Korea's KOSPI index was down 0.24%. The nation's current account surplus narrowed to $7.1 billion in April from a revised $7.29 billion in March, data released by the Bank of Korea on Thursday showed.
Singapore's Straits Times index jumped 0.88% after Morgan Stanley raised its rating on the city's shares to overweight from equal-weight, citing stabilizing economic growth and limited earnings risks.
