Market Update
India Movers: HEG, GMM Pfaudler, Grasim Industries, Petronet LNG, Star Cement
Arun Goswami
23 May, 2024
Mumbai
Stocks in Mumbai meandered in early trading and investors reacted to the latest batch of corporate quarterly results.
The Sensex index decreased by 0.1% to 74,194.83, and the Nifty index fell by 0.1% to 22,583.55.
On the Mumbai stock exchange, 100 stocks traded at their 52-week highs, and 13 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds inched lower to 6.99%, and the Indian rupee edged lower at ₹83.27 against the U.S. dollar.
Grasim Industries decreased 0.5% to ₹2,423.40 despite the viscose fiber and yarn manufacturer reporting a rise in earnings and revenue in the March quarter.
Revenue rose 13% to ₹37,727 crore, and net income advanced 15.5% to ₹2,722 crore from ₹2,355 crore a year ago, respectively.
Petronet LNG increased 0.6% to ₹310.45 after the natural gas importer and LNG gas terminal operator reported better-than-expected results in the March quarter.
Revenue decreased 0.6% to ₹13,793.2 crore from ₹13,873.9 crore, and net income rose 24% to ₹734.1 crore from ₹591.2 crore a year ago, respectively.
GMM Pfaudler decreased 3.5% to ₹1,382.0 after the process technology company reported a decline in sales and earnings in the March quarter.
Revenue fell 14.5% to ₹745.6 crore and net income declined 14% to ₹28.7 crore from a year ago, respectively.
Star Cement dropped 0.3% to ₹234.75 after the cement maker reported a decline in earnings and revenue in the March quarter.
Revenue rose 10.2% to ₹9,135.2 crore from ₹8,291.5 crore, and net income fell 8.8% to ₹876.6 crore from ₹961.1 crore a year ago, respectively.
HEG Ltd. decreased 5.3% to ₹2,544.25 after the graphite electrode maker reported weak results in the March quarter.
Revenue in the March quarter decreased 11.3% to ₹546.9 crore, and net income plunged 67% to ₹32.9 crore from ₹99.7 crore a year ago, respectively.
Existing Home Sales Slipped In April, Despite Rise In Home Inventories
Brian Turner
22 May, 2024
Washington, D.C.
Existing home sales declined in April after inventory of homes available for sale rose, the National Association of Realtors reported Wednesday.
Home sales declined 1.9% from the previous month to a 4.14 million annual rate in April, up from the upwardly revised 4.22 million in March.
Sales also fell by 1.9% from one year ago.
"Home sales changed little overall, but the upper-end market is experiencing a sizable gain due to more supply coming onto the market," said NAR Chief Economist Lawrence Yun.
The median existing-home price for all housing types in April was $407,600, an increase of 5.7% from $385,800 in the previous year.
The median home price increased for the tenth month in a row and reached a record high for the month of April.
All four U.S. regions registered price gains.
The number of homes available for sale at the end of April was 1.21 million units, an increase of 9% from March and 16.3% from one year ago, when inventory was 1.04 million.
Unsold inventory sits at a 3.5-month supply at the current sales pace, up from 3.2 months in March and 3.0 months in April 2023.
For homes priced at $1 million or more, inventory and sales increased by 34% and 40%, respectively, from a year ago.
U.S. Stocks In Holding Pattern, Global Markets Turn Lower
Alexander Garcia
22 May, 2024
Miami
Benchmark indexes on Wall Street were little changed as investors eyed Nvidia's earnings after the close.
Investors also digested a fresh batch of earnings, including updates from leading retailers.
The S&P 500 index and the Nasdaq Composite inched lower after Target Corp. reported weaker-than-expected earnings and said consumers are restricting discretionary items.
Artificial intelligence technology-driven stocks were also in focus ahead of Nvidia's earnings release after the market close.
The chipmaker had guided sales in the April quarter to range between $23.5 billion and $24.5 billion, an increase of fourfold from a year ago.
Wall Street analysts are estimating the company to report earnings of $5.60 per share, a five-fold jump from $1.09 a year ago.
The S&P 500, the Dow, and the Nasdaq Composite reached new record highs last week, driven by positive corporate results and continued expectations of interest rate cuts in the second half.
However, policymakers in recent weeks have signaled that rate-cut expectations in the near future may be misplaced as inflation is still too high and higher rates may be needed longer than previously anticipated to bring down inflation to 2%.
Inflation has dropped from a high of 9.5% to below 4%, but prices are still rising faster than 3%, despite eleven rate hikes over the last two years.
Existing Home Sales Slipped In April
Existing home sales declined in April after inventory of homes available for sale rose, the National Association of Realtors reported Wednesday.
Home sales declined 1.9% from the previous month to a 4.14 million annual rate in April, up from the upwardly revised 4.22 million in March.
Sales also fell by 1.9% from one year ago.
"Home sales changed little overall, but the upper-end market is experiencing a sizable gain due to more supply coming onto the market," said NAR Chief Economist Lawrence Yun.
The median existing-home price for all housing types in April was $407,600, an increase of 5.7% from $385,800 in the previous year.
The median home price increased for the tenth month in a row and reached a record high for the month of April.
All four U.S. regions registered price gains.
The number of homes available for sale at the end of April was 1.21 million units, an increase of 9% from March and 16.3% from one year ago, when inventory was 1.04 million.
Unsold inventory sits at a 3.5-month supply at the current sales pace, up from 3.2 months in March and 3.0 months in April 2023.
For homes priced at $1 million or more, inventory and sales increased by 34% and 40%, respectively, from a year ago.
U.S. Indexes and Treasury Yields
The S&P 500 index was nearly unchanged at 5,318.77, and the Nasdaq Composite edged up a fraction to 16,833.72.
The yield on 2-year Treasury notes edged higher to 4.88%, 10-year Treasury notes increased to 4.48%, and 30-year Treasury bonds edged higher to 4.59%.
WTI crude oil decreased $0.74 to $78.22 a barrel, and natural gas prices increased 11 cents to $2.79 a thermal unit.
Gold decreased by $30.41 to $2,391.94 an ounce, and silver fell 71 cents to $31.31.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 104.74.
U.S. Stock Movers
Target Corp. declined 8.8% to $142.10 after the retailer reported weaker-than-expected earnings and a decline in sales driven by weakening growth trends in discretionary item sales.
Urban Outfitters rose 4.2% to $43.0 after the apparel retailer reported better-than-expected sales and earnings in its latest quarter.
Toll Brothers decreased 0.5% to $129.50 after the luxury home builder's quarterly results surpassed market expectations and the company raised its full-year outlook.
Nvidia Corp. increased 0.6% to $957.50 ahead of the advanced chipmaker's quarterly results after the close of regular trading sessions.
Nvidia has jumped 98% in the year so far and soared 205% in the last year of trading.
Viasat declined 10.4% to $16.82 after the satellite communication service provider reported a loss of 80 cents in its fiscal fourth quarter.
Analog Devices increased 5.4% to $228.32 after the company reported $1.26 earnings per share and $2.16 billion in revenue in the fiscal second quarter.
European Markets Extend Losses Third Consecutive Day
European markets headed lower amid ongoing rate uncertainty as investors reviewed the latest update on UK inflation.
Benchmark indexes in Frankfurt, Paris, and London turned lower for the second day in a row and traded below record levels set in the previous week.
UK Consumer Price Inflation Eases In April
Consumer price inflation in the U.K. rose 2.3% in April, slower than 3.2% in March, the Office for National Statistics reported Wednesday.
The annual inflation rate dropped to the lowest level since July 2021 after gas and electricity costs declined and recreation and culture costs rose at a slower pace.
The core rate of inflation, which excludes food and energy prices, eased to 3.9% from 4.2% in March and dropped to the lowest level since October 2021.
EU Car Registrations Rebound In April
The passenger car market in the European Union expanded by 13.7% in April, the European Automobile Manufacturers' Association reported on Wednesday.
Vehicle sales rebounded from a 5.2% decline in March, following the strength in the four largest markets: Germany, France, Spain, and Italy.
Sales rose in Spain by 23.1%, in Germany by 19.8%, in France by 10.9%, and in Italy by 7.7%.
The increase in April's vehicle sales could be attributed to two more selling days compared to a year ago, when Easter holidays fell in April last year.
Battery electric car sales in April rose 14.8% to 108,552 units and held its market share steady around 12%.
Battery-powered vehicle sales in France soared 45.2%, in Belgium they advanced 41.6%, and in Germany they decreased 0.2%.
Petrol car sales increased 7.3% to 328,967, and hybrid car sales surged 33.1% to 265,992.
During the first four months of the year, new car registration in the European Union increased 6.6% to 3.7 million units, and battery-powered vehicle sales advanced 6.4% to 442,000.
Europe Indexes and Yields
The DAX index decreased by 0.3% to 18,680.20; the CAC-40 index fell by 0.6% to 8,092.11; and the FTSE 100 index inched lower by 0.5% to 8,370.33.
The yield on 10-year German bonds edged up to 2.53%; French bonds inched higher to 3.02%; the UK gilts edged higher to 4.23%; and Italian bonds inched higher to 3.83%.
The euro edged higher to $1.084; the British pound inched higher to $1.273; and the U.S. dollar gained to 91.35 Swiss cents.
Brent crude decreased $0.85 to $82.07 a barrel, and the Dutch TTF natural gas rose by €1.83 to €34.73 per MWh.
Europe Stock Movers
British Land Company advanced 1.7% to 401.59 pence and gained for the second day in a row after the real estate developer agreed to sell its stake in a shopping center located in Sheffield, UK.
Marks & Spencer Group gained 6.6% to 290.40 pence, and the retailer said annual profit rose to a decade-high.
Revenue in the fiscal year ending in March rose 9.3% to £13.0 billion from £11.9 billion, profit after tax increased to £425.2 million from £364.5 million, and basic earnings per share advanced 18.4% to 21.9 pence from 18.9 pence a year ago.
The company announced its final dividend of 2 pence per share, payable on July 5, to shareholders on record on May 31.
RS Group PLC gained 1.1% to 815.50 pence after the British industrial and electrical products maker reported underlying annual profit declined by 25%.
Aalberts NV decreased 3.1% to €46.56 after the Dutch engineering company said revenue in the first four months fell 2.6% from a year ago.
Organic revenue for the building technology segment fell 6.1% and the industrial technology segment rose 1.7%, and the company said the added value margin "remained on a good level."
In 2023, the company's revenue increased by 4.5% to €3.3 billion, and earnings per share before amortization were €3.38.
Billeurd AB added 1.2% to SEK 112.50 after the Swedish paper company said it no longer plans to convert its Escanaba, Michigan, paper mill to cardboard production and focus on packaging materials after eighteen months of deliberations.
China Stock Market Rally Loses Steam
Stocks in Shanghai and Hong Kong rebounded in early afternoon trading, and investors await earnings from leading tech companies.
Market indexes in Shanghai and Hong Kong struggled to stay above flatline, and electric vehicle makers rebounded a day after Li Auto reported sharply lower earnings.
EV makers advanced after Xpeng reported better-than-expected earnings.
Lenovo and Xiaomi were in focus, and both companies are set to report earnings later in the session.
The market rally appears to have run its course as investors looked for more signs of improving earnings.
China Stock Movers
The CSI 300 index increased 0.4% to 3,690.28, and the Hang Seng index advanced 0.2% to 19,253.54.
Xpeng jumped 13.5% to HK$34.75 after the electric vehicle maker reported stronger-than-expected quarterly earnings.
Net loss in the first quarter narrowed to 1.37 billion yuan from 2.34 billion yuan, after revenue surged 62% to 6.55 billion yuan from a year ago, respectively.
The company sold 21,821 vehicles in the quarter, an increase of 20% from a year ago, and vehicle margin improved to 5.5% from a loss of 2.5% a year ago.
Lenovo Group jumped 12.5% to HK$11.50 ahead of the personal computer maker's earnings later in the day.
Xiaomi advanced 0.2% to HK$19.34, ahead of the smartphone maker's earnings later in the day.
In Wednesday's trading, banks advanced and tech stocks traded down.
ICBC, Bank of China, Agriculture Bank of China, and China Construction Bank gained between 0.2% and 0.7% in Wednesday's trading.
Li Auto and Geely Automobile advanced about 1.8% after falling sharply in the previous session.
China Vanke rose 2.8%, Longfor Group declined 1.8%, and China Resources Land added 0.1%.
U.S. Movers: Analog Devices, Nvidia, Toll Brothers, Viasat, Urban Outfitters
Scott Peters
22 May, 2024
New York City
Target Corp. declined 8.8% to $142.10 after the retailer reported weaker-than-expected earnings and a decline in sales driven by weakening growth trends in discretionary item sales.
Consumers limit their purchases of groceries and discretionary items like apparel and home decor.
Moreover, shoppers are chasing discounts, and relatively high-priced grocery items sold at Target still face competition from discount stores like Walmart, Aldi, Lidl, and other regional discount chains.
Target has been struggling to convince customers to spend more, as about 20% of its total sales are groceries, unlike 60% of Walmart's sales.
Total revenues declined 3.1% to $24.5 billion from $25.3 billion, net income dropped 0.8% to $942 million from $980 million, and diluted earnings per share fell to $2.03 from $2.05 a year ago.
Comparable sales declined 3.7% in the first quarter, reflecting a comparable store sales decline of 4.8%, partially offset by a comparable digital sales increase of 1.4%.
For the second quarter and for the full year, the company anticipated comparable sales to increase between zero and 2%.
For the full year, the company reiterated its adjusted earnings per share outlook to be between $8.60 and $9.60.
Urban Outfitters rose 4.2% to $43.0 after the apparel retailer reported better-than-expected sales and earnings in its latest quarter.
Comparable retail sales increased 4.6%, driven by high single-digit positive sales growth in online sales and low single-digit positive growth in retail store sales.
Revenue in the first quarter increased 7.6% to record $1.2 billion from $1.11 billion, net income advanced to $61.76 million from $52.8 million, and diluted earnings per share rose to 65 cents from 56 cents a year ago.
The company did not purchase its shares in the first quarter ending in April 2024 and in the year ending in January 2024, and 19.2 million of the authorized 20.0 million shares are still available under its stock repurchase program.
Toll Brothers decreased 0.5% to $129.50 after the luxury home builder's quarterly results surpassed market expectations and the company raised its full-year outlook.
Total fiscal second quarter revenue increased to $2.8 billion from $2.5 billion, net income rose to $481.6 million from $320.2 million, and diluted earnings per share advanced to $4.55 from $2.85 a year ago.
At the end of the fiscal second quarter in April, the backlog value of homes declined 12% to $7.4 billion, and the backlog of homes fell 6% to 7,093.
The company raised its estimate of home deliveries in the fiscal third quarter to 2,850 from 2,750 and in the fiscal year to 10,800 from 10,400.
In the quarter, Toll Brothers repurchased approximately 1.5 million shares at an average price of $120.60 per share, for a total purchase price of approximately $181.2 million.
On March 12, the company also hiked its cash dividend by 10% to 23 cents per share, which was paid on April 19 to shareholders on record on April 5.
Nvidia Corp. increased 0.6% to $957.50 ahead of the advanced chipmaker's quarterly results after the close of regular trading sessions.
Nvidia has jumped 98% in the year so far and soared 205% in the last year of trading.
Viasat declined 10.4% to $16.82 after the satellite communication service provider reported a loss of 80 cents in its fiscal fourth quarter.
Revenue in the fiscal fourth quarter ending in March surged to $1.15 billion from $666 million, net income swung to a loss of $100.3 million from a profit of $1.2 billion, and diluted earnings per share were a loss of 80 cents compared to a profit of $15.56 a year ago.
Last year's net income in the fiscal fourth quarter included an after-tax gain of $1.26 billion from discontinued operations, and net income excluding one-time gains was a loss of $58.6 million.
Analog Devices increased 5.4% to $228.32 after the company reported better-than-expected quarterly results in the fiscal second quarter ending in April.
Revenue in the quarter decreased 34% to $2.2 billion from $3.3 billion, net income decreased to $302.2 million from $977.6 million, and diluted earnings per share fell to 61 cents from $1.92 a year ago.
The company's board of directors declared a quarterly cash dividend of 92 cents per share payable on June 17 to shareholders of record at the close of June 4.
The company estimated fiscal third quarter revenue of $2.27 billion with a band of $100 million, an increase of 20.1% from a year ago.
The company also estimated earnings per share of 70 cents with a band of 10 cents and adjusted earnings per share of $1.50 with a band of 10 cents.
Wall Street Indexes Trade Sideways, Target Drops 9% On Earnings Weakness
Barry Adams
22 May, 2024
New York City
U.S. stocks traded slightly lower in early trading as investors digested a fresh batch of earnings from retailers.
The S&P 500 index and the Nasdaq Composite inched lower after Target Corp. reported weaker-than-expected earnings and said consumers are restricting discretionary items.
Artificial intelligence technology-driven stocks were also in focus ahead of Nvidia's earnings release after the market close.
The S&P 500, the Dow, and the Nasdaq Composite reached new record highs last week, and the market rally was driven by positive corporate results and continued expectations of interest rate cuts in the second half.
However, policymakers in recent weeks have signaled that rate-cut expectations in the near future may be misplaced as inflation is still too high and higher rates may be needed longer than previously anticipated to bring down inflation to 2%.
Inflation has dropped from a high of 9.5% to below 4%, but prices are still rising faster than 3% despite multiple rate hikes over the last two years.
U.S. Indexes and Treasury Yields
The S&P 500 index was nearly unchanged at 5,323.05, and the Nasdaq Composite edged down 0.02% to 16,835.57.
The yield on 2-year Treasury notes edged higher to 4.88%, 10-year Treasury notes increased to 4.48%, and 30-year Treasury bonds edged higher to 4.59%.
WTI crude oil decreased $0.57 to $78.09 a barrel, and natural gas prices declined 4 cents to $2.62 a thermal unit.
Gold decreased by $10.31 to $2,411.39 an ounce, and silver fell 39 cents to $31.63.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 104.84.
U.S. Stock Movers
Target Corp. declined 8.8% to $142.10 after the retailer reported weaker-than-expected earnings and a decline in sales driven by weakening growth trends in discretionary item sales.
Urban Outfitters rose 4.2% to $43.0 after the apparel retailer reported better-than-expected sales and earnings in its latest quarter.
Toll Brothers decreased 0.5% to $129.50 after the luxury home builder's quarterly results surpassed market expectations and the company raised its full-year outlook.
Nvidia Corp. increased 0.6% to $957.50 ahead of the advanced chipmaker's quarterly results after the close of regular trading sessions.
Nvidia has jumped 98% in the year so far and soared 205% in the last year of trading.
Viasat declined 10.4% to $16.82 after the satellite communication service provider reported a loss of 80 cents in its fiscal fourth quarter.
Analog Devices increased 5.4% to $228.32 after the company reported $1.26 earnings per share and $2.16 billion in revenue in the fiscal second quarter.
Europe Movers: Aalberts, Billeurd, British Land, Marks & Spencer, RS Group
Inga Muller
22 May, 2024
Frankfurt
European market indexes edged lower amid ongoing interest rate uncertainty and an uneven economic rebound in the region.
The DAX index decreased by 0.2% to 18,681.88; the CAC-40 index fell by 0.5% to 8,104.25; and the FTSE 100 index inched lower by 0.2% to 8,398.51.
The yield on 10-year German bonds edged up to 2.53%; French bonds inched higher to 3.02%; the UK gilts edged higher to 4.23%; and Italian bonds inched higher to 3.83%.
British Land Company advanced 1.7% to 401.59 pence and gained for the second day in a row after the real estate developer agreed to sell its stake in a shopping center located in Sheffield, UK.
Marks & Spencer Group gained 6.6% to 290.40 pence, and the retailer said annual profit rose to a decade-high.
Revenue in the fiscal year ending in March rose 9.3% to £13.0 billion from £11.9 billion, profit after tax increased to £425.2 million from £364.5 million, and basic earnings per share advanced 18.4% to 21.9 pence from 18.9 pence a year ago.
The company announced its final dividend of 2 pence per share, resulting in a full-year dividend of 3 pence, payable on July 5, to shareholders on record on May 31.
RS Group PLC gained 1.1% to 815.50 pence after the British industrial and electrical products maker reported underlying annual profit declined by 25%.
Aalberts NV decreased 3.1% to €46.56 after the Dutch engineering company said revenue in the first four months fell 2.6% from a year ago.
Organic revenue for the building technology segment fell 6.1% and the industrial technology segment rose 1.7%, and the company said the added value margin "remained on a good level."
In 2023, the company's revenue increased by 4.5% to €3.3 billion, and earnings per share before amortization were €3.38.
Billeurd AB added 1.2% to SEK 112.50 after the Swedish paper company said it no longer plans to convert its Escanaba, Michigan, paper mill to cardboard production and focus on packaging materials after eighteen months of deliberations.
EU Passenger Car Sales Rebounds, UK Inflation Slows to 3-year Low
Bridgette Randall
22 May, 2024
Frankfurt
European markets headed lower amid ongoing rate uncertainty as investors reviewed the latest update on UK inflation.
Benchmark indexes in Frankfurt, Paris, and London turned lower for the second day in a row and traded below record levels set in the previous week.
UK Consumer Price Inflation Eases In April
Consumer price inflation in the U.K. rose 2.3% in April, slower than 3.2% in March, the Office for National Statistics reported Wednesday.
The annual inflation rate dropped to the lowest level since July 2021 after gas and electricity costs declined and recreation and culture costs rose at a slower pace.
The core rate of inflation, which excludes food and energy prices, eased to 3.9% from 4.2% in March and dropped to the lowest level since October 2021.
EU Car Registrations Rebound In April
The passenger car market in the European Union expanded by 13.7% in April, the European Automobile Manufacturers' Association reported on Wednesday.
Vehicle sales rebounded from a 5.2% decline in March, following the strength in the four largest markets: Germany, France, Spain, and Italy.
Sales rose in Spain by 23.1%, in Germany by 19.8%, in France by 10.9%, and in Italy by 7.7%.
The increase in April's vehicle sales could be attributed to two more selling days compared to a year ago, when Easter holidays fell in April last year.
Battery electric car sales in April rose 14.8% to 108,552 units and held its market share steady around 12%.
Battery-powered vehicle sales in France soared 45.2%, in Belgium they advanced 41.6%, and in Germany they decreased 0.2%.
Petrol car sales increased 7.3% to 328,967, and hybrid car sales surged 33.1% to 265,992.
During the first four months of the year, new car registration in the European Union increased 6.6% to 3.7 million units, and battery-powered vehicle sales advanced 6.4% to 442,000.
Europe Indexes and Yields
The DAX index decreased by 0.2% to 18,681.88; the CAC-40 index fell by 0.5% to 8,104.25; and the FTSE 100 index inched lower by 0.2% to 8,398.51.
The yield on 10-year German bonds edged up to 2.53%; French bonds inched higher to 3.02%; the UK gilts edged higher to 4.23%; and Italian bonds inched higher to 3.83%.
The euro edged higher to $1.084; the British pound inched higher to $1.273; and the U.S. dollar gained to 91.35 Swiss cents.
Brent crude decreased $0.40 to $82.47 a barrel, and the Dutch TTF natural gas rose by €0.70 to €33.60 per MWh.
Europe Stock Movers
British Land Company advanced 1.7% to 401.59 pence and gained for the second day in a row after the real estate developer agreed to sell its stake in a shopping center located in Sheffield, UK.
Marks & Spencer Group gained 6.6% to 290.40 pence, and the retailer said annual profit rose to a decade-high.
Revenue in the fiscal year ending in March rose 9.3% to £13.0 billion from £11.9 billion, profit after tax increased to £425.2 million from £364.5 million, and basic earnings per share advanced 18.4% to 21.9 pence from 18.9 pence a year ago.
The company announced its final dividend of 2 pence per share, payable on July 5, to shareholders on record on May 31.
RS Group PLC gained 1.1% to 815.50 pence after the British industrial and electrical products maker reported underlying annual profit declined by 25%.
Aalberts NV decreased 3.1% to €46.56 after the Dutch engineering company said revenue in the first four months fell 2.6% from a year ago.
Organic revenue for the building technology segment fell 6.1% and the industrial technology segment rose 1.7%, and the company said the added value margin "remained on a good level."
In 2023, the company's revenue increased by 4.5% to €3.3 billion, and earnings per share before amortization were €3.38.
Billeurd AB added 1.2% to SEK 112.50 after the Swedish paper company said it no longer plans to convert its Escanaba, Michigan, paper mill to cardboard production and focus on packaging materials after eighteen months of deliberations.
China Stock Market Rally Loses Steam, Xpeng Reports Narrower Quarterly Loss
Li Chen
22 May, 2024
Hong Kong
Stocks in Shanghai and Hong Kong rebounded in early afternoon trading, and investors await earnings from leading tech companies.
Market indexes in Shanghai and Hong Kong struggled to stay above flatline, and electric vehicle makers rebounded a day after Li Auto reported sharply lower earnings.
EV makers advanced after Xpeng reported better-than-expected earnings.
Lenovo and Xiaomi were in focus, and both companies are set to report earnings later in the session.
The market rally appears to have run its course as investors looked for more signs of improving earnings.
China Stock Movers
The CSI 300 index increased 0.4% to 3,690.28, and the Hang Seng index advanced 0.2% to 19,253.54.
Xpeng jumped 13.5% to HK$34.75 after the electric vehicle maker reported stronger-than-expected quarterly earnings.
Net loss in the first quarter narrowed to 1.37 billion yuan from 2.34 billion yuan, after revenue surged 62% to 6.55 billion yuan from a year ago, respectively.
The company sold 21,821 vehicles in the quarter, an increase of 20% from a year ago, and vehicle margin improved to 5.5% from a loss of 2.5% a year ago.
Lenovo Group jumped 12.5% to HK$11.50 ahead of the personal computer maker's earnings later in the day.
Xiaomi advanced 0.2% to HK$19.34, ahead of the smartphone maker's earnings later in the day.
In Wednesday's trading, banks advanced and tech stocks traded down.
ICBC, Bank of China, Agriculture Bank of China, and China Construction Bank gained between 0.2% and 0.7% in Wednesday's trading.
Li Auto and Geely Automobile advanced about 1.8% after falling sharply in the previous session.
China Vanke rose 2.8%, Longfor Group declined 1.8%, and China Resources Land added 0.1%.
India Movers: Apollo Tyres, GSFC, Gulf Oil Lubricants, Ircon International, Hitachi Energy
Arun Goswami
22 May, 2024
Mumbai
Benchmark indexes in Mumbai advanced in cautious trading, and investors digested the fresh batch of earnings.
The Sensex index increased by 0.1% to 74,034.56, and the Nifty index rose by 0.1% to 22,552.25.
On the Mumbai stock exchange, 127 stocks traded at their 52-week highs, and 10 stocks traded at their 52-week lows.
GSFC declined 8.2% to ₹221.10 after the fertilizer company reported a decline in revenue and earnings in the March quarter.
Total revenue declined 16.3% to ₹2,017.46 crore and net income plunged 89% to ₹24.43 crore from a year ago, respectively.
Apollo Tyres increased 1.1% to ₹487.95 after the subsidiary of private equity firm Warburg Pincus's subsidiary, Iris Investment, sold its entire stake of 3.5% in the company.
Ircon International declined 3% to ₹281.05 after the railway construction company reported weak quarterly results.
Revenue in the March quarter fell 1% to ₹3,742 crore and profit declined 3.8% to ₹243.8 crore from a year ago, respectively.
Gulf Oil Lubricants rose 12.8% to ₹1,060.55 after the company reported rising revenue and earnings in the latest quarter.
Revenue in the March quarter rose 9.8% to ₹869.6 crore and net income soared 38.7% to ₹86.2 crore from a year ago, respectively.
Hitachi Energy rose 2.2% to ₹11,068.0 after the company reported positive quarterly results.
Revenue in the March quarter rose 27.1% to ₹1,695.3 crore from ₹1,334 crore, and net income more than doubled to ₹113.7 crore from ₹50.8 crore a year ago, respectively.