Stocks rode a four-day streak of gains last week to advance 1.9 percent,
getting a charge from the Federal Reserve’s new stimulus measures that could
keep equities buoyed for months. The Fed’s action followed a decision by the
European Central Bank to support debt-ridden euro-zone nations by purchasing
their debt.
Financials, which were among the
biggest gainers late last week, were among sectors leading the day’s decline.
The S&P financial index .GSPF fell 1.1 percent. Bank of America Corp
(BAC.N) shares lost 2.5 percent to $9.31.
Apple said on Monday that
pre-orders outstripped initial supply but it would deliver most phones as
planned by Friday, the first day of delivery. Many would not be available until
October, however.
It is not unusual for Apple
products to sell out the first day but this time around Apple has doubled its
first-day sales record. Last October, the company booked 1 million orders for
the iPhone 4S, in the first 24 hours. That had beaten Apple’s previous one-day
record of 600,000 sales for the iPhone 4.
Singapore
Singapore’s non-oil domestic
exports (NODX) fell more than expected last month, raising the prospect of the
city-state entering into a recession as exports to the EU plunged.
The trade-dependent Southeast
Asian city-state said yesterday NODX fell 10.6 percent from a year earlier,
hurt by a 10.4 percent drop in electronics and a 28.7 percent plummet in
shipments to the EU, its largest market.
On a seasonally adjusted
month-on-month basis, NODX shrank 9.1 percent after contracting 3.6 percent in
July.
Electronics exports contracted
14.8 percent last month from July after seasonal adjustments, while
non-electronics NODX shrank 7.1 percent, trade agency International Enterprises
Singapore said in a separate e-mail.
“Although our baseline case is
not for a quarter-on-quarter contraction, the chances are not minute. There is
perhaps a 40:60 chance of contraction,” Oversea-Chinese Banking Corp treasury
research head Selena Ling said.
Singapore’s economy shrank less
than anticipated in the second quarter, thanks to a surge in pharmaceutical
production in June, GDP data showed last month.
However, the government warned of
continued uncertainties and downside risks and narrowed its growth forecast to
between 1.5 percent and 2.5 percent for this year from an earlier 1 percent to
3 percent.
Thailand
The chairman of the state telecom
enterprise TOT Plc, Panthep Chamrasromran, tendered his resignation on Monday
after months of bickering within the board.
Internal conflict was cited for
Mr Panthep’s decision, which will likely cause yet another delay in TOT’s
third-generation (3G) network expansion nationwide and other key projects.
Mr Panthep’s resignation was
followed by the resignation of seven other board members who represente the
private sector.
Information and Communication
Technology Minister Anudith Nakornthap acknowledged that Mr Panthep’s
resignation will definitely affect of many TOT’s important projects, especially
its 3G expansion plan.
Malaysia
KLCI index gained 14.55 points or
0.89% on Friday. The Finance Index increased 1.13% to 14763.2 points, the
Properties Index up 1.40% to 1037.79 points and the Plantation Index rose 1.03%
to 8467.14 points. The market traded within a range of 9.46 points between an
intra-day high of 1642.95 and a low of 1633.49 during the session.
Actively traded stocks include
AIRASIA, INGENS, HUBLINE, ASIAEP, MAYBANK, ASUPREM, MBFHLDG-WA, AXIATA , SCOMI
and THHEAVY. Trading volume increased to 1066.32 mil shares worth RM2074.29 mil
as compared to Thursday’s 961.10 mil shares worth RM1789.42 mil.
Leading Movers were MAYBANK (+13
sen to RM9.40), CIMB (+11 sen to RM7.69), GENTING (+16 sen to RM9.13), PETDAG
(+120 sen to RM22.78) and AIRASIA (+15 sen to RM3.10). Lagging Movers were DIGI
(-4 sen to RM4.90), SIME (-1 sen to RM9.80), BAT (-12 sen to RM63.38). Market
breadth was positive with 561 gainers as compared to 209 losers.
Indonesia
Indonesian banks maintained
strong profit growth in July amid improving efficiency and a rise in income
from fees and securities, despite a central bank move to tighten mortgage and
automotive loans weighing on lending.
The country’s 120 commercial
banks posted collective profits of Rp 7.2 trillion ($752 million) in July, up
36 percent from the same period last year. The figures were derived by
subtracting the January-June numbers from the seven-month data reported by Bank
Indonesia on Friday.
In the first seven months, banks’
combined profit rose 25 percent to Rp 52.9 trillion.
Commercial banks lowered their
BOPO ratio — a measure of bank efficiency that compare their operating expense
to operating income — to 74.9 percent in July from 87.4 percent in the same
month in 2011.
A lower BOPO ratio is preferable
as that would mean a bank makes more income for every rupiah it loans, and its
operating expenses are smaller.
Banks posted a 39 percent
increase in other operating income — such as fees and gains from securities
assets — to Rp 12.4 trillion.
The lenders also reduced their
operating costs slightly to Rp 20.8 trillion, down 0.1 percent from last year.
Bank Indonesia in mid-June
introduced requirements that raised the down payments consumers were compelled
to make for motorcycle, cars and homes in a move to prevent a bubble in those
sectors and curb excessive consumer loan growth.
Consumers who finance their
motorcycle purchases via bank loan must pay a minimum of 25 percent of the
price tag as a down payment. For passenger cars, that requirement is 30
percent.
The new rule also imposes a 30
percent down payment on the purchase of homes that cover more than 70 square
meters.
There were no such rules prior to
the mid-June requirement, but banks usually ask for 10 to 20 percent of the
purchase price as down payment.
Central bank data showed that
commercial banks disbursed Rp 17.4 trillion in loans in July, down 25 percent
from the same period last year. In line with the declines in loan growth,
commercial banks’ net interest income — the money it makes from loans minus
deposits — dropped 30 percent to Rp 10.7 trillion in July.
Housing loans, however, more than
doubled, to Rp 6.6 trillion from Rp 2.4 trillion. Overall, commercial banks’
outstanding loans climbed 25 percent to Rp 2,488 trillion in July.
Philippines
Key infrastructure projects being
pushed by the government under its Public-Private Partnership (PPP) program
have elicited significant interest from several foreign corporate investors.
This was disclosed by PPP Center
executive director Cosette Canilao, who said a number of Chinese, British and
Japanese companies have bought prequalification documents with the aim of
participating in the bidding for two key projects—the LRT Line 1 Cavite
Extension project and the Naia Expressway Phase II project.
For the LRT Line 1 project, 33
firms bought prequalification documents from PPP Center, Canilao said. For the
Naia Expressway Phase II project, she said there were 17 companies that bought
prequalification documents.
“There were several investors who
have signified interest to participate in the bidding for the projects,
although we expect consolidation or the forming of groups [among those that
bought prequalification documents] in time for the bidding,” Canilao said in a
press briefing by economic officials of the Aquino administration on Monday.
“Interest in PPP projects has
significantly increased even among foreigners. There were several Japanese
companies, one or two Chinese firms, and several European companies,” Canilao
added.
Under the PPP program, the
government invites private enterprises to invest in public infrastructure. The
objective is to help meet the country’s need for infrastructure development
even as the government continues to suffer from a budget deficit.
The LRT Line 1 project calls for
the extension of the mass transport system to the south of Metro Manila,
particularly from the Baclaran to Bacoor in Cavite. The project likewise
entails the enhancement of its operation and management.
The Naia Expressway Phase II
project calls for the construction of an elevated expressway starting at the
existing Skyway toward the existing Naia terminals.
The LRT Line 1 project is
estimated to cost $1.4 billion while the Naia Expressway project will be worth
$377.6 million. The government targets to bid out the two projects, plus six
more PPP projects before the end of the year.
Yesterday in Asia
Sydney added 0.29 percent,
or 12.5 points, to close at 4,402.5, Seoul lost 0.26 percent, or 5.23 points,
to 2,002.35 and Hong Kong rose 0.14 percent, or 28.33 points, to 20,658.11.
Shanghai tumbled 2.14
percent, or 45.35 points, to 2,078.50, with shares tied to Japanese firms worst
hit owing to a territorial dispute between Beijing and Tokyo that has sparked
protests in China.
Tokyo and Kuala Lumpur were closed for public
holidays.
Taipei rose 0.31 percent,
or 24.17 points, to 7,762.22.
Smartphone maker HTC surged 5.90
percent to Tw$314.0 while Hon Hai Precision was 0.52 percent higher at Tw$97.5.
Manila closed 0.53 percent
higher, adding 28.43 points, to 5,350.90.
Ayala Land gained 2.58 percent to
23.90 pesos while Philippine Long Distance Telephone Co. rose 0.69 percent to
2,890 pesos.
Wellington climbed 0.66
percent, or 24.89 points, to 3,817.23.
Telecom gained 0.60 percent to
NZ$2.50 and Fletcher Building was up 2.1 percent at NZ$6.94.
Singapore closed up
0.27 percent, or 8.30 points, to 3,078.72.
Wilmar International gained 1.54
percent to Sg$3.29 and Jardine Cycle and Carriage rose 0.76 percent to
Sg$49.06.
Bangkok gained 0.19 percent,
or 2.42 points, to 1,278.54.
Telecoms company ADVANC dropped
1.87 percent to 210.00 baht, while coal producer Banpu edged up 3.14 percent to
460.00 baht.
Jakarta closed down 0.04
percent, or 10.47 points, at 4,255.28.
Telkom was down 4.2 percent at
9,250 rupiah and Bank Rakyat dropped 1.4 percent at 7,300 rupiah.
Mumbai rose 0.42 percent,
or 78.04 points, to 18,542.31.
Pantaloon Retail jumped 19.04
percent to 187.6 rupees while private airline Kingfisher rose 19.98 percent to
12.97 rupees.
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