Quiet World Markets; BaWang IPO in HK

123jump.com Staff
03 Jul, 2009
New York City

In a quiet trading in world markets, indexes edged lower as commodities priced declined. European retail sales index in May and UK home owners increase home equity. Indian railways budget left fares unchanged. Retailers in Japan fell on weak sales. BaWang IPO in Hong Kong oversubscribed 400 times.

[R]4:00 PM New York, 9:00 PM London, 6:00 AM Sydney – In a quiet trading in world markets, indexes edged lower as commodities priced declined. European retail sales index in May and UK home owners increase home equity. Indian railways budget left fares unchanged. Retailers in Japan fell on weak sales.[/R]

World markets closed nearly unchanged after crude oil and base metal prices declined in London trading. Ahead of earnings season in less than a week investors are hoping that earnings recovery will lift stocks higher in the next five weeks. However, rising unemployment in the U.S. and Europe has begun to weaken investor confidence in Asia.

European markets were nearly unchanged. European retail sales index decreased 0.4% in May. Volkswagen June sales increased 6% and estimated world automobile sales to fall 16% to 46 million. Lower house of German parliament passed a bill to separate toxic debt from the state controlled banks.

British Air for the second year in a row cut its summer capacity and cuts capital spending by 20%. Service sector showed increased activities in June but at a slower pace in May. UK home owners increased equity by £8.1 billion compared to withdrawals of £6.7 billion.

Stocks in Japan edged lower after the 26-year high U.S. unemployment and 10-year record in Europe. Retailers fell after Seven & I and others reported lower earnings. Mitsui OSK and Nippon Yusen fell on a decline in freight rate index.

In Hong Kong trading BaWang, the initial public offering of the herbal shampoo maker surged 27% to close at HK$3.03. The offering was oversubscribed 400 times by retail investors and 40 times by institutional investors. Bawang raised 1.67 billion yuan through 700 million share offering.

Indian Railways left its freight and passenger fares unchanged and proposed to add more wagons and build a coach manufacturing facility. Stocks gained on the hopes that the national budget will allocate more capital to power, infrastructure and telecom sector.

North American Markets

U.S. markets were closed today. TSX Composite Index increased 0.4% or 37.19 to 10.283.10.

South American Markets Indexes

Mexico Bolsa Index decreased 6.07 to 24,045.39. Brazil Bovespa Stock Index decreased 90.25 or 0.2% to 50,934.69.

Argentina Merval Index increased 1.1%. Chile Stock Market Select index edged higher 0.4%, Peru Lima General Index decreased 1.2% and Colombia IGBC General Index fell 0.3%.

Europe Markets Review

In London FTSE 100 Index closed higher 2.01 or 0.05% to 4,236.28, in Paris CAC 40 Index increased 3.10 or 0.10% to close at 3,119.51 and in Frankfurt DAX index lower 10.18 or 0.22% to close at 4,708.21. In Zurich trading SMI decreased 16.72 or 0.13% to close at 5,338.51.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 60.08 or 0.61% to 9,816.07, Hang Seng index in Hong Kong increased 25.35 or 0.14% to 18,203.40, CSI 300 index in China higher 44.78 or 1.36% to 3,327.14. ASX 200 index in Australia decreased 49.10 or 1.27% to 3,828.20.The KL Composite index in Malaysia closed lower 6.02 or 0.56% to 1,072.69.

The Kospi Index in South Korea increased 8.56 or 0.61% to close at 1,420.04.SET index in Thailand closed lower 2.94 or 0.50% to 583.48 and JSE Index in Indonesia increased 9.55 or 0.46% to 2,075.30. The Sensex index in India increased 254.56 or 1.74% to 14,913.05.

DAX Index Movers

K+S AG led decliners in the DAX index of 2.20% followed by losses in Metro AG of 2.16%, in Man SE of 1.52%, in E.On AG of 1.50%, in Salzgitter AG of 1.48%.

Commerzbank AG led gainers in the DAX index with a rise of 3.27% followed by increase in Deutsche Bank AG of 2.06%, in Volkswagen AG of 2.06%, in Deutsche Post AG of 0.75%, in Fresenius Medical Care AG & Co. KGaA of 0.65%.

CAC-40 Index Movers

Electricite de Strasbourg SA led the decliners in the CAC-40 index of 4.50% followed by losses in Vallourec SA of 1.85%, in Renault SA of 1.74%, in ING Prime Rate Trust of 1.47%, in Pernod Ricard SA of 1.45%.

Dexia SA led gainers in the CAC-40 index with a rise of 2.92% followed by gains in Unibail-Rodamco SA of 2.59%, in Danone SA of 2.32%, in BNP Paribas SA of 1.98%, in Bouygues SA of 1.95%.