Market Update
A Rebound In Bank Stocks Lead China Indexes Higher
Li Chen
18 Nov, 2024
Hong Kong
Stock market indexes in mainland China and Hong Kong advanced following a rise in banks and tech stocks.
The Hang Seng index advanced 1%, and the mainland-focused CSI 300 index added 0.9%, but market sentiment remained shaky amid rising geopolitical tensions.
Market indexes have been under pressure over the last seven weeks after politicians and policymakers failed to follow through with "whatever it takes" fiscal stimulus.
In addition, market sentiment was shaky on the worry that the next U.S. administration is likely to ramp up trade tariffs on goods made in China and made by Chinese companies in Vietnam, Malaysia, and Mexico.
Banks traded higher after the China Securities Regulatory Commission urged banks to disclose plans to lift their stock prices above the book value.
The regulatory agency released a statement after the market close on Friday and urged company boards to take an active role in lifting their stock prices.
Over the last 12 years, leading nine Chinese banks have traded below their book value, reflecting investor concerns about lurking bad loans in the property sector and obligations to the central government for national priority projects.
Of the total of 29 banks traded in mainland China, about 22 are trading below their book value as investors worry that bad loans issued to state-controlled property developers are not fully reflected in their financial statements.
China Stock Movers
The Hang Seng index increased 1% to 19,619.87, and the mainland-focused CSI 300 index advanced 0.9% to 4,002.89.
China Merchants Bank increased 0.7% to ¥38.11, ICBC gained 2.9% to HK $4.72, China Construction Bank gained 0.6% to HK $6.03, and Bank of China added 3.9% to HK $3.75.
Property stocks traded higher in the hopes of additional reforms from the People's Bank of China and policymakers.
China Vanke increased 2.5% to HK $6.56, China Resources Land gained 1.7% to HK $24.05, and Longfor Group Holdings edged up 0.3% to HK $11.40.
Alibaba Group Holding declined 1.9% to HK $85.60 after the e-commerce platform operator reported weaker-than-expected quarterly results.
JD.com jumped 4% to HK $138.0, and Tencent Holdings advanced 0.8% to HK $404.20.
India Indexes Extend Losses; Grasim, Crompton Greaves, and EID Parry In Focus After Results
Arun Goswami
18 Nov, 2024
Mumbai
Stocks opened lower in Mumbai trading amid weak market sentiment for the third week in a row.
The Sensex index decreased 0.4% to 77,263.74, and the Nifty index dropped 0.45% to 23,439.05.
Foreign investors continue to sell large- and mid-cap stocks after weak earnings and persistent inflation dented market sentiment.
Moreover, foreign investors are repatriating funds to the U.S. to take advantage of rising bond yields and hope that the next U.S. administration will enact pro-business policies.
Foreign investors are also hoping that China's leaders will follow through on the promised broad fiscal reforms to support consumer sentiment and the flailing property market.
Closer to home, consumer price inflation jumped to a 14-month high in October, supporting the case for the central bank to keep interest rates unrevised at its next policy meeting.
Meanwhile, investors are looking forward to the Maharashtra State election on December 20, which could deliver a win to an alliance headed by the BJP, strengthening the party's standing in the center.
E.I.D. Parry decreased 2.4% to ₹762.45 after the sugar company reported mixed quarterly results.
Revenue in the September quarter increased to ₹9,399.3 crore from ₹9,210.3 crore, but after-tax income decreased to ₹591.7 crore from ₹781.9 crore a year ago, respectively.
For the six-month period ending in September, consolidated revenue edged lower to ₹16,206.71 crore from ₹16,225.8 crore, and net income fell to ₹817.5 crore from ₹1,106.7 crore a year ago.
Easy Trip Planners increased 1.1% to ₹30.38 after the Delhi-based online travel agency reported a decline in after-tax profit in the September quarter.
Consolidated revenue increased 2.1% to ₹144.7 crore from ₹141.7 crore, but net profit declined 45.2% to ₹26 crore from ₹47.1 crore a year ago, respectively.
Hotel night bookings soared 75.3% 2.2 lakh or 1.3 lakh and train and bus bookings rose 3.3% to 2.8 lakh from a year ago, respectively.
Gross booking revenue across the platform increased to ₹2,075.6 crore from ₹2,025 crore, and hotels and packages jumped 178% to ₹241.4 crore a year ago, respectively.
The company's booking services generally receive very low ratings from online customers, with several allegations of poor customer support and misleading prices.
Hindustan Zinc increased 0.4% to ₹496.90, and the company won gold mining rights through an auction in Rajasthan.
Crompton Greaves Consumer Electricals increased 3.9% to ₹384.50 after the company reported September quarter results.
Revenue increased 6.4% to 1,896 crore from 1,782.3 crore, and net income jumped 28.6% to 125 crore from 97.2 crore a year ago, respectively.
Delhivery decreased 1.0% to ₹327.30, and the logistics company swung to profit in the September quarter.
Revenue increased 12.8% to ₹2,189.7 crore, and net income swung to a profit of ₹10.2 crore from a loss of ₹102.9 crore a year ago, respectively.
Grasim Industries declined 1% to ₹2,499.75 after the cement company reported a sharp fall in profit in the September quarter.
Revenue increased 11% to ₹33,562 crore from ₹30,221 crore, and net income plunged 66% to ₹390 crore from ₹1,164 crore a year ago, respectively.
India Indexes Extend Losses; Grasim, Crompton Greaves, and EID Parry In Focus After Results
Arun Goswami
18 Nov, 2024
Mumbai
Stocks opened lower in Mumbai trading amid weak market sentiment for the third week in a row.
The Sensex index decreased 0.4% to 77,263.74, and the Nifty index dropped 0.45% to 23,439.05.
Foreign investors continue to sell large- and mid-cap stocks after weak earnings and persistent inflation dented market sentiment.
Moreover, foreign investors are repatriating funds to the U.S. to take advantage of rising bond yields and hope that the next U.S. administration will enact pro-business policies.
Foreign investors are also hoping that China's leaders will follow through on the promised broad fiscal reforms to support consumer sentiment and the flailing property market.
Closer to home, consumer price inflation jumped to a 14-month high in October, supporting the case for the central bank to keep interest rates unrevised at its next policy meeting.
Meanwhile, investors are looking forward to the Maharashtra State election on December 20, which could deliver a win to an alliance headed by the BJP, strengthening the party's standing in the center.
E.I.D. Parry decreased 2.4% to ₹762.45 after the sugar company reported mixed quarterly results.
Revenue in the September quarter increased to ₹9,399.3 crore from ₹9,210.3 crore, but after-tax income decreased to ₹591.7 crore from ₹781.9 crore a year ago, respectively.
For the six-month period ending in September, consolidated revenue edged lower to ₹16,206.71 crore from ₹16,225.8 crore, and net income fell to ₹817.5 crore from ₹1,106.7 crore a year ago.
Easy Trip Planners increased 1.1% to ₹30.38 after the Delhi-based online travel agency reported a decline in after-tax profit in the September quarter.
Consolidated revenue increased 2.1% to ₹144.7 crore from ₹141.7 crore, but net profit declined 45.2% to ₹26 crore from ₹47.1 crore a year ago, respectively.
Hotel night bookings soared 75.3% 2.2 lakh or 1.3 lakh and train and bus bookings rose 3.3% to 2.8 lakh from a year ago, respectively.
Gross booking revenue across the platform increased to ₹2,075.6 crore from ₹2,025 crore, and hotels and packages jumped 178% to ₹241.4 crore a year ago, respectively.
The company's booking services generally receive very low ratings from online customers, with several allegations of poor customer support and misleading prices.
Hindustan Zinc increased 0.4% to ₹496.90, and the company won gold mining rights through an auction in Rajasthan.
Crompton Greaves Consumer Electricals increased 3.9% to ₹384.50 after the company reported September quarter results.
Revenue increased 6.4% to 1,896 crore from 1,782.3 crore, and net income jumped 28.6% to 125 crore from 97.2 crore a year ago, respectively.
Delhivery decreased 1.0% to ₹327.30, and the logistics company swung to profit in the September quarter.
Revenue increased 12.8% to ₹2,189.7 crore, and net income swung to a profit of ₹10.2 crore from a loss of ₹102.9 crore a year ago, respectively.
Grasim Industries declined 1% to ₹2,499.75 after the cement company reported a sharp fall in profit in the September quarter.
Revenue increased 11% to ₹33,562 crore from ₹30,221 crore, and net income plunged 66% to ₹390 crore from ₹1,164 crore a year ago, respectively.
Wall Street's Post-Election Upswing Fizzles, Tech and Small Caps Lead Downturn
Barry Adams
15 Nov, 2024
New York City
The post-election bump on Wall Street appears to be fizzing out as investors review the latest comments from Fed Chairman and retail sales update.
The S&P 500 index edged down 0.1% and the Nasdaq Composite declined 0.2% after Fed Chair Jay Powell reiterated that the central bank is not in a hurry to lower rates.
Powell's comments follow a 25 basis points rate cut last week, and investors held out for one more potential rate cut in December.
Investors are also worried that stocks may face more headwinds in the months ahead as president-elect Donald Trump struggles to assemble a list of candidates with experience and knowledge.
So far, cabinet appointments have raised more eyebrows in Washington, and many of the nominated candidates are likely to face serious questions from the U.S. Senate.
On the economic front, retail sales rose 2.8% from a year ago in October, following an upwardly revised 2.0% in the previous month, the U.S. Census Bureau reported Friday.
Retail sales rose 0.4% from the previous month, driven by an increase of 2.3% in electronics and appliance stores and 1.9% in auto dealers.
However, book stores declined 1.1%, furniture stores fell 1.3%, and miscellaneous stores decreased 1.6%.
U.S. Indexes and Treasury Yields
The S&P 500 index decreased 0.8% to 5,903.82, the Nasdaq Composite fell 1.3% to 18,858.55, and the Russell 2000 index declined 1.4% to 2,336.94.
The yield on 2-year Treasury notes edged higher to 4.31%, 10-year Treasury notes inched down to 4.43%, and 30-year Treasury bonds decreased to 4.60%.
WTI crude oil increased $0.47 to $72.08 a barrel, and natural gas prices edged down 7 cents to $2.71 a thermal unit.
Gold decreased by $2.24 to $2,564.50 an ounce, and silver increased by $0.14 to $30.53.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 106.64.
U.S. Stock Movers
Tesla declined 2% to $309.18 after the electric vehicle maker soared as much as 25% following the U.S. presidential election results.
Chief executive Elon Musk is perceived as one of the key beneficiaries of Donald Trump's return to the White House after he poured as much as $200 million into supporting the president-elect.
Applied Materials dropped 9% to $169.19 after the chip equipment maker reported better-than-expected quarterly results, but the company's sales outlook in the current quarter fell short of market expectations.
Alibaba Group Holding increased 0.9% to $90.70 after the China-based e-commerce platform operator reported weaker-than-expected sales in the fiscal second quarter.
Revenue increased 5% to 236.5 billion yuan amid ongoing weak consumer demand in the second-largest economy, but net income soared 58%, driven by a surge in its equity investment performance.
Ulta Beauty dropped 6% to $360.0 after Berkshire Hathaway sold off its entire stake in the company, but Domino's Pizza increased 4.9% to $456.99 after the diversified conglomerate added the company to its investment portfolio.
Wall Street's Post-Election Upswing Fizzles, Tech and Small Caps Lead Downturn
Barry Adams
15 Nov, 2024
New York City
The post-election bump on Wall Street appears to be fizzing out as investors review the latest comments from Fed Chairman and retail sales update.
The S&P 500 index edged down 0.1% and the Nasdaq Composite declined 0.2% after Fed Chair Jay Powell reiterated that the central bank is not in a hurry to lower rates.
Powell's comments follow a 25 basis points rate cut last week, and investors held out for one more potential rate cut in December.
Investors are also worried that stocks may face more headwinds in the months ahead as president-elect Donald Trump struggles to assemble a list of candidates with experience and knowledge.
So far, cabinet appointments have raised more eyebrows in Washington, and many of the nominated candidates are likely to face serious questions from the U.S. Senate.
On the economic front, retail sales rose 2.8% from a year ago in October, following an upwardly revised 2.0% in the previous month, the U.S. Census Bureau reported Friday.
Retail sales rose 0.4% from the previous month, driven by an increase of 2.3% in electronics and appliance stores and 1.9% in auto dealers.
However, book stores declined 1.1%, furniture stores fell 1.3%, and miscellaneous stores decreased 1.6%.
U.S. Indexes and Treasury Yields
The S&P 500 index decreased 0.8% to 5,903.82, the Nasdaq Composite fell 1.3% to 18,858.55, and the Russell 2000 index declined 1.4% to 2,336.94.
The yield on 2-year Treasury notes edged higher to 4.31%, 10-year Treasury notes inched down to 4.43%, and 30-year Treasury bonds decreased to 4.60%.
WTI crude oil increased $0.47 to $72.08 a barrel, and natural gas prices edged down 7 cents to $2.71 a thermal unit.
Gold decreased by $2.24 to $2,564.50 an ounce, and silver increased by $0.14 to $30.53.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 106.64.
U.S. Stock Movers
Tesla declined 2% to $309.18 after the electric vehicle maker soared as much as 25% following the U.S. presidential election results.
Chief executive Elon Musk is perceived as one of the key beneficiaries of Donald Trump's return to the White House after he poured as much as $200 million into supporting the president-elect.
Applied Materials dropped 9% to $169.19 after the chip equipment maker reported better-than-expected quarterly results, but the company's sales outlook in the current quarter fell short of market expectations.
Alibaba Group Holding increased 0.9% to $90.70 after the China-based e-commerce platform operator reported weaker-than-expected sales in the fiscal second quarter.
Revenue increased 5% to 236.5 billion yuan amid ongoing weak consumer demand in the second-largest economy, but net income soared 58%, driven by a surge in its equity investment performance.
Ulta Beauty dropped 6% to $360.0 after Berkshire Hathaway sold off its entire stake in the company, but Domino's Pizza increased 4.9% to $456.99 after the diversified conglomerate added the company to its investment portfolio.
Europe Movers: Aegon, ASML, Evotec, Generali
Inga Muller
15 Nov, 2024
Frankfurt
Benchmark indexes in the eurozone fell between 1% and 2% as investors worried about the rising trade tensions with the U.S. and Europe and uncertainty about NATO financing in 2025 following the U.S. elections and political instability in Germany.
The DAX index decreased by 0.1% to 19,252.48; the CAC-40 index eased by 0.1% to 7,304.66; and the FTSE 100 index rose by 0.1% to 8,075.84.
The yield on 10-year German bonds edged lower to 2.33%, French bonds inched lower to 3.06%, the UK gilts edged lower to 4.48%, and Italian bonds decreased to 3.52%.
Generali SpA increased 0.4% to €25.61 after the Italian insurance company reported better-than-expected nine-month profit, despite a €930 million charge linked to natural disasters.
Aegon Ltd. increased 2% to €6.18 after the Dutch insurance company launched a stock buyback worth €150 million.
ASML Holding NV declined 3.5% to €648.20 after the advanced chip equipment maker Applied Materials reported better-than-expected profit in its latest quarter but provided weaker-than-expected sales outlook in the current quarter.
Evotec soared 17.8% to €10.18 after the German drug company received a non-binding €2 billion acquisition offer from Halozyme Therapeutics.