Market Update
Friday's Market Rebound Trimmed Weekly Losses In India
Arjun Pandit
29 Nov, 2024
Mumbai
Stock market indexes in Mumbai rebounded sharply after falling in the previous session as investors debated the future rate path and outlook for urban consumer spending growth.
The Sensex index increased 0.8% to 79,765.23, and the Nifty index rose 0.9% to 24,123.95.
For the week, the Sensex declined 0.5% and the Nifty index fell 0.8% in volatile trading.
Market sentiment remained weak as Adani Group stocks lacked direction and investors worried about the future rate paths amid falling urban consumer spending.
Crude oil prices in international trading held steady in thin trading as investors await the OPEC+ meeting this Sunday.
Investors are hoping that the group will postpone its previously planned production increase next month amid weak demand growth from key customers in Asia and a supply glut.
India Stock Movers
Sun Pharmaceuticals increased 1.7% to ₹1,764.40, and the company said the Ministry of Corporate Affairs has levied fines on a select list of past and present board of directors for not seeking board approval for related party transactions and failure to make disclosures.
PCBL Ltd. increased 0.6% to ₹433.45, and the company said it has completed the expansion of its specialty chemical capacity at the Mundra plant in Gujarat to 40,000 tons per annum from 20,000 TPA.
Zee Entertainment Enterprises Ltd. increased 5.5% to ₹129.88, and the company's proposal to reappoint Punit Goenka as director of the company was rejected by shareholders.
The proposal to reappoint Goenka as the company director received 49.54% of the total number of votes, and 50.4% voted against the resolution, according to a regulatory filing.
However, shareholders approved three other resolutions, including dividend payment, adopting fiscal year 2024 financial statements, and auditor remuneration.
NCC Ltd. jumped 2.5% to₹311.10 after the company said it received an order worth ₹3,389 crore from various departments of the central government.
The project linking the Ken River in Madhya Pradesh and the Betwa River in Uttar Pradesh was first approved in 2021 to irrigate the drought-prone Bundelkhand region, provide drinking water to 62 lakh people, and generate 103 MW of hydropower.
PC Jeweller Ltd. advanced 2.6% to ₹160.0 after the company set December 16 as a record date for its 1-to-10 stock split.
The retailer reported a sharp reversal in its performance in the fiscal second quarter ending in September; revenue rose to ₹505 crore from ₹33 crore and net income swung to a profit of ₹179 crore from a loss of ₹152 crore a year earlier.
ONGC jumped 0.8% to ₹254.15, and the oil minister said the company is still awaiting the oil field leasing rights for four oil fields discovered in Ashokenagar, West Bengal, for six years.
The Union Oil Minister Hardeep Singh Puri said in Lok Sabha that the state-controlled company is still waiting for permits to commence operations from the West Bengal government.
The company applied for mining rights in a 5.88-square-kilometer area to the state in 2020.
Heidelberg Materials Enlarges U.S. Footprint with Giant Cement Acquisition
Scott Peters
28 Nov, 2024
New York City
Heidelberg Materials AG advanced 1% to €118.85, and the German cement company agreed to acquire the US-based Giant Cement and its subsidiaries for $600 million.
Inmocemento SA gained 5.4% to €3.16, and the Mexican billionaire Carlos Slim-controlled company said its subsidiary, Cementos Portland Valderrivas, will sell its 45% stake in Giant Cement Holding to Heidelberg Materials North America.
The transaction is expected to bring a cash inflow of about $200 million and a capital gain of $145 million for CPV.
The transaction is expected to be accretive from the first year, and add $60 million to operating earnings before "significant additional synergies."
The deal is anticipated to be finalized in the first quarter of 2025.
In the deal, the company acquired a cement production plant, located in South Carolina, with an annual capacity of 800,000 tons, a network of four cement distribution terminals in Georgia and South Carolina, as well joint-venture deep water terminal in Savannah, Georgia.
The cement plant is known for its use of waste-derived fuel facility, and the deal also includes alternative fuel recycling business with four facilities in the Eastern U.S.
The transaction also includes a deep water terminal in Boston, Massachusetts and a distribution terminal in Newington, New Hampshire.
The purchase price for the cement facility and other subsidies is not cheap, but the company held out for future growth because of rising investment in construction and infrastructure projects.
Heidelberg last month commenced the sale of its cement operation in India to Adani Group for $1.2 billion, but at the time said it plans to move away from cement to higher value-added building materials businesses.
Heidelberg and its larger Swiss rival Holcim AG have been ramping up their activities in the U.S. as the world's largest economy ramps up infrastructure building.
Earlier in the year, in June, Heidelberg acquired three cement and building materials companies in the U.S. for $380 million.
Heidelberg Materials Enlarges U.S. Footprint with Giant Cement Acquisition
Scott Peters
28 Nov, 2024
New York City
Heidelberg Materials AG advanced 1% to €118.85, and the German cement company agreed to acquire the US-based Giant Cement and its subsidiaries for $600 million.
Inmocemento SA gained 5.4% to €3.16, and the Mexican billionaire Carlos Slim-controlled company said its subsidiary, Cementos Portland Valderrivas, will sell its 45% stake in Giant Cement Holding to Heidelberg Materials North America.
The transaction is expected to bring a cash inflow of about $200 million and a capital gain of $145 million for CPV.
The transaction is expected to be accretive from the first year, and add $60 million to operating earnings before "significant additional synergies."
The deal is anticipated to be finalized in the first quarter of 2025.
In the deal, the company acquired a cement production plant, located in South Carolina, with an annual capacity of 800,000 tons, a network of four cement distribution terminals in Georgia and South Carolina, as well joint-venture deep water terminal in Savannah, Georgia.
The cement plant is known for its use of waste-derived fuel facility, and the deal also includes alternative fuel recycling business with four facilities in the Eastern U.S.
The transaction also includes a deep water terminal in Boston, Massachusetts and a distribution terminal in Newington, New Hampshire.
The purchase price for the cement facility and other subsidies is not cheap, but the company held out for future growth because of rising investment in construction and infrastructure projects.
Heidelberg last month commenced the sale of its cement operation in India to Adani Group for $1.2 billion, but at the time said it plans to move away from cement to higher value-added building materials businesses.
Heidelberg and its larger Swiss rival Holcim AG have been ramping up their activities in the U.S. as the world's largest economy ramps up infrastructure building.
Earlier in the year, in June, Heidelberg acquired three cement and building materials companies in the U.S. for $380 million.
Europe Movers: Air France KLM, Direct Line Insurance, Heidelberg Materials, Semiconductor Stocks, Volkswagen
Inga Muller
28 Nov, 2024
Frankfurt
European market indexes advanced, but gains were capped amid worries of political instability in France as three political groups struggled to compromise on the financial budget.
The DAX index increased by 0.7% to 19,395.90; the CAC-40 index rose by 0.7% to 7,189.77; and the FTSE 100 index inched higher by 0.04% to 8,278.46.
The yield on 10-year German bonds edged lower to 2.15%, French bonds inched down to 3.0%, the UK gilts edged lower to 4.35%, and Italian bonds decreased to 3.38%.
Semiconductor-related stocks advanced in Europe following speculation that the U.S. may impose weaker restrictions on advanced equipment sales to China.
ASML Holding NV jumped 4% to €653.10, NXP Semiconductor increased 1.4% to €215.0, STMicroelectronics added 0.2% to €23.90, and Infineon advanced 0.8% to €30.28.
Volkswagen Group increased 0.5% to €80.72, and the German automaker said it plans to shut its testing track in Xinjiang and factory for "economic reasons."
Heidelberg Materials AG advanced 1% to €118.85, and the German cement company agreed to acquire the US-based Giant Cement and its subsidiaries for $600 million.
Inmocemento SA gained 5.4% to €3.16, and the Mexican billionaire Carlos Slim-controlled company said its subsidiary, Cementos Portland Valderrivas, will sell its 45% stake in Giant Cement Holding to Heidelberg Materials North America.
The transaction is expected to bring a cash inflow of about $200 million and a capital gain of $145 million for CPV.
The deal is anticipated to be finalized in the first quarter of 2025.
Heidelberg last month commenced the sale of its cement operation in India to Adani Group for $1.2 billion, but at the time said it plans to move away from cement to higher value-added building materials businesses.
Heidelberg and its larger Swiss rival Holcim AG have been ramping up their activities in the U.S. as the world's largest economy ramps up infrastructure building.
Earlier in the year, in June, Heidelberg acquired three cement and building materials companies in the U.S. for $380 million.
Direct Line Insurance Group soared 42% to 226.67 pence after the UK-based insurance company rejected a £3.3 billion offer from Aviva.
Air France KLM SA increased 2.4% to €7.43 on the report that the airline is looking to acquire a 20% stake in Air Europa.
Europe Movers: Air France KLM, Direct Line Insurance, Heidelberg Materials, Semiconductor Stocks, Volkswagen
Inga Muller
28 Nov, 2024
Frankfurt
European market indexes advanced, but gains were capped amid worries of political instability in France as three political groups struggled to compromise on the financial budget.
The DAX index increased by 0.7% to 19,395.90; the CAC-40 index rose by 0.7% to 7,189.77; and the FTSE 100 index inched higher by 0.04% to 8,278.46.
The yield on 10-year German bonds edged lower to 2.15%, French bonds inched down to 3.0%, the UK gilts edged lower to 4.35%, and Italian bonds decreased to 3.38%.
Semiconductor-related stocks advanced in Europe following speculation that the U.S. may impose weaker restrictions on advanced equipment sales to China.
ASML Holding NV jumped 4% to €653.10, NXP Semiconductor increased 1.4% to €215.0, STMicroelectronics added 0.2% to €23.90, and Infineon advanced 0.8% to €30.28.
Volkswagen Group increased 0.5% to €80.72, and the German automaker said it plans to shut its testing track in Xinjiang and factory for "economic reasons."
Heidelberg Materials AG advanced 1% to €118.85, and the German cement company agreed to acquire the US-based Giant Cement and its subsidiaries for $600 million.
Inmocemento SA gained 5.4% to €3.16, and the Mexican billionaire Carlos Slim-controlled company said its subsidiary, Cementos Portland Valderrivas, will sell its 45% stake in Giant Cement Holding to Heidelberg Materials North America.
The transaction is expected to bring a cash inflow of about $200 million and a capital gain of $145 million for CPV.
The deal is anticipated to be finalized in the first quarter of 2025.
Heidelberg last month commenced the sale of its cement operation in India to Adani Group for $1.2 billion, but at the time said it plans to move away from cement to higher value-added building materials businesses.
Heidelberg and its larger Swiss rival Holcim AG have been ramping up their activities in the U.S. as the world's largest economy ramps up infrastructure building.
Earlier in the year, in June, Heidelberg acquired three cement and building materials companies in the U.S. for $380 million.
Direct Line Insurance Group soared 42% to 226.67 pence after the UK-based insurance company rejected a £3.3 billion offer from Aviva.
Air France KLM SA increased 2.4% to €7.43 on the report that the airline is looking to acquire a 20% stake in Air Europa.
Divided French Parliament Keeps European Markets On Edge, Spain's Inflation Accelerated
Bridgette Randall
28 Nov, 2024
London
European markets rebounded a day after falling sharply as investors shifted attention to tech stocks.
Benchmark indexes in Paris, Frankfurt, Milan, and London advanced, following speculation that the U.S. may weaken its stance on advanced semiconductor technology sales to China.
However, market gains were capped amid worries that budgetary disagreements may topple the minority government in France as three main political groups struggle to find a compromise.
France is struggling to lower its budget gap to 3% of GDP over the next three years, as required by the European Union, from 6.1% in 2024.
Benchmark indexes in Europe have struggled over the last month as weakness in private sector activities and political instability in France and Germany have been compounded by looming trade tensions with the U.S.
Spain's Inflation Accelerated to 4-Month High
Spain's annual consumer price inflation rose in November, reflecting a lower base and a rise in electricity and fuel prices.
Consumer price inflation increased to a four-month high of 2.4% from 1.8% in October, and the core rate, which excludes energy and fuel prices, slowed to 2.4% from 2.5% in the previous month.
On a monthly basis, consumer price inflation slowed to 0.2% from 0.6% in October.
EU-harmonized consumer price inflation rose 2.4% on an annual basis and was flat on a monthly basis.
Europe Indexes and Yields
The DAX index increased by 0.7% to 19,395.90; the CAC-40 index rose by 0.7% to 7,189.77; and the FTSE 100 index inched higher by 0.04% to 8,278.46.
The yield on 10-year German bonds edged lower to 2.15%, French bonds inched down to 3.0%, the UK gilts edged lower to 4.35%, and Italian bonds decreased to 3.38%.
The euro edged higher to $1.05; the British pound inched up to $1.26; and the U.S. dollar strengthened to 88.38 Swiss cents.
Brent crude increased $0.49 to $73.32 a barrel, and the Dutch TTF natural gas rose by €0.47 to €46.92 per MWh.
Europe Stock Movers
Semiconductor-related stocks advanced in Europe following speculation that the U.S. may impose weaker restrictions on advanced equipment sales to China.
ASML Holding NV jumped 4% to €653.10, NXP Semiconductor increased 1.4% to €215.0, STMicroelectronics added 0.2% to €23.90, and Infineon advanced 0.8% to €30.28.
Volkswagen Group increased 0.5% to €80.72, and the German automaker said it plans to shut its testing track in Xinjiang and factory for "economic reasons."
Heidelberg Materials AG advanced 1% to €118.85, and the German cement company agreed to acquire the US-based Giant Cement and its subsidiaries for $600 million.
Inmocemento SA gained 5.4% to €3.16, and the Mexican billionaire Carlos Slim-controlled company said its subsidiary, Cementos Portland Valderrivas, will sell its 45% stake in Giant Cement Holding to Heidelberg Materials North America.
The transaction is expected to bring a cash inflow of about $200 million and a capital gain of $145 million for CPV.
The deal is anticipated to be finalized in the first quarter of 2025.
Heidelberg last month commenced the sale of its cement operation in India to Adani Group for $1.2 billion, but at the time said it plans to move away from cement to higher value-added building materials businesses.
Heidelberg and its larger Swiss rival Holcim AG have been ramping up their activities in the U.S. as the world's largest economy ramps up infrastructure building.
Earlier in the year, in June, Heidelberg acquired three cement and building materials companies in the U.S. for $380 million.
Direct Line Insurance Group soared 42% to 226.67 pence after the UK-based insurance company rejected a £3.3 billion offer from Aviva.
Air France KLM SA increased 2.4% to €7.43 on the report that the airline is looking to acquire a 20% stake in Air Europa.
Divided French Parliament Keeps European Markets On Edge, Spain's Inflation Accelerated
Bridgette Randall
28 Nov, 2024
London
European markets rebounded a day after falling sharply as investors shifted attention to tech stocks.
Benchmark indexes in Paris, Frankfurt, Milan, and London advanced, following speculation that the U.S. may weaken its stance on advanced semiconductor technology sales to China.
However, market gains were capped amid worries that budgetary disagreements may topple the minority government in France as three main political groups struggle to find a compromise.
France is struggling to lower its budget gap to 3% of GDP over the next three years, as required by the European Union, from 6.1% in 2024.
Benchmark indexes in Europe have struggled over the last month as weakness in private sector activities and political instability in France and Germany have been compounded by looming trade tensions with the U.S.
Spain's Inflation Accelerated to 4-Month High
Spain's annual consumer price inflation rose in November, reflecting a lower base and a rise in electricity and fuel prices.
Consumer price inflation increased to a four-month high of 2.4% from 1.8% in October, and the core rate, which excludes energy and fuel prices, slowed to 2.4% from 2.5% in the previous month.
On a monthly basis, consumer price inflation slowed to 0.2% from 0.6% in October.
EU-harmonized consumer price inflation rose 2.4% on an annual basis and was flat on a monthly basis.
Europe Indexes and Yields
The DAX index increased by 0.7% to 19,395.90; the CAC-40 index rose by 0.7% to 7,189.77; and the FTSE 100 index inched higher by 0.04% to 8,278.46.
The yield on 10-year German bonds edged lower to 2.15%, French bonds inched down to 3.0%, the UK gilts edged lower to 4.35%, and Italian bonds decreased to 3.38%.
The euro edged higher to $1.05; the British pound inched up to $1.26; and the U.S. dollar strengthened to 88.38 Swiss cents.
Brent crude increased $0.49 to $73.32 a barrel, and the Dutch TTF natural gas rose by €0.47 to €46.92 per MWh.
Europe Stock Movers
Semiconductor-related stocks advanced in Europe following speculation that the U.S. may impose weaker restrictions on advanced equipment sales to China.
ASML Holding NV jumped 4% to €653.10, NXP Semiconductor increased 1.4% to €215.0, STMicroelectronics added 0.2% to €23.90, and Infineon advanced 0.8% to €30.28.
Volkswagen Group increased 0.5% to €80.72, and the German automaker said it plans to shut its testing track in Xinjiang and factory for "economic reasons."
Heidelberg Materials AG advanced 1% to €118.85, and the German cement company agreed to acquire the US-based Giant Cement and its subsidiaries for $600 million.
Inmocemento SA gained 5.4% to €3.16, and the Mexican billionaire Carlos Slim-controlled company said its subsidiary, Cementos Portland Valderrivas, will sell its 45% stake in Giant Cement Holding to Heidelberg Materials North America.
The transaction is expected to bring a cash inflow of about $200 million and a capital gain of $145 million for CPV.
The deal is anticipated to be finalized in the first quarter of 2025.
Heidelberg last month commenced the sale of its cement operation in India to Adani Group for $1.2 billion, but at the time said it plans to move away from cement to higher value-added building materials businesses.
Heidelberg and its larger Swiss rival Holcim AG have been ramping up their activities in the U.S. as the world's largest economy ramps up infrastructure building.
Earlier in the year, in June, Heidelberg acquired three cement and building materials companies in the U.S. for $380 million.
Direct Line Insurance Group soared 42% to 226.67 pence after the UK-based insurance company rejected a £3.3 billion offer from Aviva.
Air France KLM SA increased 2.4% to €7.43 on the report that the airline is looking to acquire a 20% stake in Air Europa.
Resurgent Yen Keeps Rebound In Japan Indexes In Check After Two Days of Slide
Akira Ito
28 Nov, 2024
Tokyo
Bargain hunting was in full swing in Tokyo as investors returned and looked for stocks in the tech, retail, and property sectors.
The Nikkei 225 stock average increased 0.7%, the Topix index advanced 0.8%, and the yen advanced to a one-month high.
The yen edged up 0.3% to 151.24 on widespread speculation that the Bank of Japan is likely to raise rates by 25 basis points at the end of its policy in three weeks.
Stronger yen boosts the values of Japanese assets but lowers foreign earnings of corporations, and about 40% of the listed companies in Japan have significant export revenues.
Crude oil continued to drift lower ahead of the OPEC+ meeting on Sunday, and commodity traders are looking for the group to postpone January's planned production increase amid weak demand growth and supply glut.
Japan imports about 99% of its crude oil, and fossil fuels provide about 88% of the country's energy.
Japan Stock Movers
The Nikkei 225 Stock Average increased 0.7% to 38,408.78, and the broader Topix index added 0.8% to 2,687.26.
T&D jumped 12.7% to ¥2,821.50 after the company made positive statements about its life insurance business at a meeting with investors on Wednesday.
The company reiterated its plans to pay a cash dividend of 80 yen per share in the current fiscal year.
Dai-ichi Life Holdings increased 3.2% to ¥3,906.0, and Tokio Marine Holdings decreased 0.5% to¥5,541.0.
Among the widely held stocks, Casio Computer jumped 6.5% to ¥1,138.50, Toho Co. Ltd. advanced 2.2% to ¥6,322.0, and Tokyo Gas Co. Ltd. increased 1.3% to ¥4,429.0.
Stocks leading the decliners included pharma stocks, select tech stocks, and industrial conglomerates.
Sumitomo Pharma decreased 3.2% to ¥583.0, Ricoh Co. Ltd. fell 4.5% to ¥1,672.0, and Mitsubishi Electric eased 0.1% to ¥2,545.0.
Seven & I Holdings Co. Ltd. increased 1.2% to ¥2,608.0, Isetan Mitsukoshi advanced 1.1% to ¥2,173.0, and the parent company of Uniqlo, Fast Retailing, decreased 0.2% to ¥51,090.0.
Resurgent Yen Keeps Rebound In Japan Indexes In Check After Two Days of Slide
Akira Ito
28 Nov, 2024
Tokyo
Bargain hunting was in full swing in Tokyo as investors returned and looked for stocks in the tech, retail, and property sectors.
The Nikkei 225 stock average increased 0.7%, the Topix index advanced 0.8%, and the yen advanced to a one-month high.
The yen edged up 0.3% to 151.24 on widespread speculation that the Bank of Japan is likely to raise rates by 25 basis points at the end of its policy in three weeks.
Stronger yen boosts the values of Japanese assets but lowers foreign earnings of corporations, and about 40% of the listed companies in Japan have significant export revenues.
Crude oil continued to drift lower ahead of the OPEC+ meeting on Sunday, and commodity traders are looking for the group to postpone January's planned production increase amid weak demand growth and supply glut.
Japan imports about 99% of its crude oil, and fossil fuels provide about 88% of the country's energy.
Japan Stock Movers
The Nikkei 225 Stock Average increased 0.7% to 38,408.78, and the broader Topix index added 0.8% to 2,687.26.
T&D jumped 12.7% to ¥2,821.50 after the company made positive statements about its life insurance business at a meeting with investors on Wednesday.
The company reiterated its plans to pay a cash dividend of 80 yen per share in the current fiscal year.
Dai-ichi Life Holdings increased 3.2% to ¥3,906.0, and Tokio Marine Holdings decreased 0.5% to¥5,541.0.
Among the widely held stocks, Casio Computer jumped 6.5% to ¥1,138.50, Toho Co. Ltd. advanced 2.2% to ¥6,322.0, and Tokyo Gas Co. Ltd. increased 1.3% to ¥4,429.0.
Stocks leading the decliners included pharma stocks, select tech stocks, and industrial conglomerates.
Sumitomo Pharma decreased 3.2% to ¥583.0, Ricoh Co. Ltd. fell 4.5% to ¥1,672.0, and Mitsubishi Electric eased 0.1% to ¥2,545.0.
Seven & I Holdings Co. Ltd. increased 1.2% to ¥2,608.0, Isetan Mitsukoshi advanced 1.1% to ¥2,173.0, and the parent company of Uniqlo, Fast Retailing, decreased 0.2% to ¥51,090.0.
Investor Gloom Grip China Stocks A Day After Posting Largest Gain In Five Weeks
Li Chen
28 Nov, 2024
Hong Kong
Stocks in China and Hong Kong retreated a day after indexes surged the most in five weeks.
The Hang Seng index dropped 1.3% and the mainland-focused CSI 300 index decreased 0.8% amid a lack of catalysts and fading investor enthusiasm.
Benchmark indexes have declined 16% from the peak on October 7 after the monetary and fiscal stimulus measures failed to impress investors.
Last month, Chinese lawmakers offered support to local governments with a plan to swap hidden debt of 10 trillion yuan, and local authorities lowered restrictions for new home purchases.
However, those measures did not go far enough to boost consumption and stabilize the property market. adding to the market gloom.
China stocks are likely to stay rangebound with a downward bias until corporate earnings show a clear trend of a rebound or the government enacts wide-ranging measures to support consumption.
China Stock Movers
The Hang Seng index decreased 1.3% to 19,344.07, and the mainland-focused CSI 300 index fell 0.8% to 3,875.99.
Online store and platform operators were in focus amid an ongoing consumer slowdown and ahead of earnings from Meituan on Friday.
Alibaba Group declined 2.2% to HK $83.15, Tencent dropped 0.5% to $400.60, JD.com fell 0.4% to HK $142.0, and Meituan decreased 0.3% to HK $171.80.
Property stocks extended losses for the third week in a row after fiscal measures failed to stabilize the moribund property market.
China Vanke Ltd. decreased 0.6% to HK $6.24, China Resources Land fell 1.5% to HK $22.90, Henderson Land Development dropped 0.4% to $24.60, and Sun Hung Kai Properties eased 0.4% to HK $77.0.
Banks struggled to advance amid ongoing worries that the property market losses are still not fully reflected on their balance sheets.
Bank of China declined 1.1% to HK $3.58, China Merchants Bank dropped 1.7% to HK $34.90, China Construction Bank eased 1.4% to HK $5.82, and ICBC fell 1.5% to HK $5.82.
S.F. Holding Co. Ltd. declined 1.2% to ¥41.35, and a day ago the China's largest express delivery company listed its stock on the Hong Kong Stock Exchange and raised HK $5.83 billion in a public offering.
Investor Gloom Grip China Stocks A Day After Posting Largest Gain In Five Weeks
Li Chen
28 Nov, 2024
Hong Kong
Stocks in China and Hong Kong retreated a day after indexes surged the most in five weeks.
The Hang Seng index dropped 1.3% and the mainland-focused CSI 300 index decreased 0.8% amid a lack of catalysts and fading investor enthusiasm.
Benchmark indexes have declined 16% from the peak on October 7 after the monetary and fiscal stimulus measures failed to impress investors.
Last month, Chinese lawmakers offered support to local governments with a plan to swap hidden debt of 10 trillion yuan, and local authorities lowered restrictions for new home purchases.
However, those measures did not go far enough to boost consumption and stabilize the property market. adding to the market gloom.
China stocks are likely to stay rangebound with a downward bias until corporate earnings show a clear trend of a rebound or the government enacts wide-ranging measures to support consumption.
China Stock Movers
The Hang Seng index decreased 1.3% to 19,344.07, and the mainland-focused CSI 300 index fell 0.8% to 3,875.99.
Online store and platform operators were in focus amid an ongoing consumer slowdown and ahead of earnings from Meituan on Friday.
Alibaba Group declined 2.2% to HK $83.15, Tencent dropped 0.5% to $400.60, JD.com fell 0.4% to HK $142.0, and Meituan decreased 0.3% to HK $171.80.
Property stocks extended losses for the third week in a row after fiscal measures failed to stabilize the moribund property market.
China Vanke Ltd. decreased 0.6% to HK $6.24, China Resources Land fell 1.5% to HK $22.90, Henderson Land Development dropped 0.4% to $24.60, and Sun Hung Kai Properties eased 0.4% to HK $77.0.
Banks struggled to advance amid ongoing worries that the property market losses are still not fully reflected on their balance sheets.
Bank of China declined 1.1% to HK $3.58, China Merchants Bank dropped 1.7% to HK $34.90, China Construction Bank eased 1.4% to HK $5.82, and ICBC fell 1.5% to HK $5.82.
S.F. Holding Co. Ltd. declined 1.2% to ¥41.35, and a day ago the China's largest express delivery company listed its stock on the Hong Kong Stock Exchange and raised HK $5.83 billion in a public offering.
Caution Prevails On Dalal Street Amid Earnings Slowdown
Arjun Pandit
28 Nov, 2024
Mumbai
Stocks in Mumbai traded sideways, and the rupee hovered near the record low.
The Sensex index decreased 0.03% to 80,204.45, and the Nifty index was up 0.01% to 24,275.80.
Market sentiment was mildly positive on Dalal Street as investors debated the future economic outlook in the face of a sharp slowdown in earnings growth.
Consumer products and vehicle makers have struggled in the last two quarters amid a slowdown in demand growth and weak earnings growth.
Moreover, investors are worried that the Reserve Bank of India may not be in a hurry to lower interest rates in the near future, further providing headwind to the sale of property, vehicles, and appliances.
In international trading, crude oil prices continued to drift lower after the Israeli military and Hezbollah agreed to a tentative ceasefire, eliminating the risk of crude oil supply disruptions.
India Stock Movers
KEC International edged lower 0.3% to ₹1,021.05, and the company said it won an order worth 1,704 crore from Power Grid Corporation for 765 kV electricity transmission lines and distribution stations.
Aster DM Healthcare Ltd. soared 9% to ₹480.0 in the previous session after the company said it plans to acquire the remaining 13% stake in Aster Aadhar Hospital, previously known as Prerana Hospital.
Oceanic Foods Ltd. decreased 4.4% to₹45.0 after the company agreed to pay ₹12.2 lakh fine to the Securities and Exchange Board of India for violating disclosure requirements.
Sudarshan Chemical Industries increased 0.9% to ₹989.0, and the two promoters of the company sold 3% stake in the company for ₹197 crore through open market transactions.
Pradeep Ramwilas Rathi sold 7.6 lakh shares, and Subhadra Pradeep Rathi sold 20.75 lakh shares in the company.
The Finance Ministry has issued approval to raise as much as ₹25,000 crore through equity offerings to public sector banks in the current fiscal year and meet a regulatory requirement of 25% minimum public shareholding.
Bank of India increased 0.9% to ₹112.55, and the company raised ₹5,000 crore through the sale of infrastructure bonds with a coupon rate of 7.41%.
Bank of Baroda gained 0.1% to ₹246.65, and the company raised ₹3,500 crore through the sale of bonds with a coupon rate of 7.4%.
Godrej Properties advanced 1.6% to ₹2,883.05, and the company launched a secondary offering to raise as much as ₹6,000 crore.
Caution Prevails On Dalal Street Amid Earnings Slowdown
Arjun Pandit
28 Nov, 2024
Mumbai
Stocks in Mumbai traded sideways, and the rupee hovered near the record low.
The Sensex index decreased 0.03% to 80,204.45, and the Nifty index was up 0.01% to 24,275.80.
Market sentiment was mildly positive on Dalal Street as investors debated the future economic outlook in the face of a sharp slowdown in earnings growth.
Consumer products and vehicle makers have struggled in the last two quarters amid a slowdown in demand growth and weak earnings growth.
Moreover, investors are worried that the Reserve Bank of India may not be in a hurry to lower interest rates in the near future, further providing headwind to the sale of property, vehicles, and appliances.
In international trading, crude oil prices continued to drift lower after the Israeli military and Hezbollah agreed to a tentative ceasefire, eliminating the risk of crude oil supply disruptions.
India Stock Movers
KEC International edged lower 0.3% to ₹1,021.05, and the company said it won an order worth 1,704 crore from Power Grid Corporation for 765 kV electricity transmission lines and distribution stations.
Aster DM Healthcare Ltd. soared 9% to ₹480.0 in the previous session after the company said it plans to acquire the remaining 13% stake in Aster Aadhar Hospital, previously known as Prerana Hospital.
Oceanic Foods Ltd. decreased 4.4% to₹45.0 after the company agreed to pay ₹12.2 lakh fine to the Securities and Exchange Board of India for violating disclosure requirements.
Sudarshan Chemical Industries increased 0.9% to ₹989.0, and the two promoters of the company sold 3% stake in the company for ₹197 crore through open market transactions.
Pradeep Ramwilas Rathi sold 7.6 lakh shares, and Subhadra Pradeep Rathi sold 20.75 lakh shares in the company.
The Finance Ministry has issued approval to raise as much as ₹25,000 crore through equity offerings to public sector banks in the current fiscal year and meet a regulatory requirement of 25% minimum public shareholding.
Bank of India increased 0.9% to ₹112.55, and the company raised ₹5,000 crore through the sale of infrastructure bonds with a coupon rate of 7.41%.
Bank of Baroda gained 0.1% to ₹246.65, and the company raised ₹3,500 crore through the sale of bonds with a coupon rate of 7.4%.
Godrej Properties advanced 1.6% to ₹2,883.05, and the company launched a secondary offering to raise as much as ₹6,000 crore.
U.S. Movers: Dell Technologies, HP Inc, Workday
Scott Peters
27 Nov, 2024
New York City
Dell Technologies declined 12.8% to $124.32 after the company posted weaker-than-expected fiscal third quarter results.
Revenue in the third quarter ending on November 1 increased 10% to $24.4 billion from $22.3 billion, net income advanced 12% to $1.1 billion from $1.0 billion, and diluted earnings per share rose 16% to $1.58 from $1.36 a year earlier.
“AI is a robust opportunity for us with no signs of slowing down,” said Jeff Clarke, vice chairman and chief operating officer, Dell Technologies.
“Interest in our portfolio is at an all-time high, driving record AI server orders demand of $3.6 billion in Q3 and a pipeline that grew more than 50%, with growth across all customer types.”
HP Inc. dropped 7.7% to $36.09 after the personal computing company estimated weaker-than-expected adjusted earnings in the fiscal 2025 first quarter.
The company estimated fiscal 2025 first quarter diluted earnings per share between 57 cents and 63 cents and for the full-year fiscal 2025 between $3.06 and $3.36.
The company estimated adjusted earnings between 70 cents and 76 cents, sharply lower than as much as 83 cents estimated by some analysts.
Net revenue increased 1.7% to $14.1 billion from $13.8 billion, net income decreased 7% to $0.9 billion from $1 billion, and diluted earnings per share fell 4% to 93 cents from 97 cents a year ago.
HP returned $1.2 billion to shareholders in the fourth quarter, including $900 million to repurchase 25.4 million of its own stock and $263 million in dividend payment of 27.56 cents per share.
Workday Inc. plunged 12% to $238.0 after the human resource software company estimated lower-than-expected revenue and operating margin in the fourth quarter.
The software company estimated subscription revenue of $2.025 billion and an operating margin of 25% in the period.
Revenue in the fiscal third quarter ending in September increased 15.8% to $2.1 billion from $1.8 billion, net income advanced to $193 million from $114 million, and diluted earnings per share rose to 72 cents from 43 cents a year ago.
Workday repurchased approximately 0.6 million shares of Class A common stock for $157 million as part of its share repurchase programs.