Friday, March 12, 2010

Update Daily Investment News

0945 GMT [Dow Jones] Indonesian shares end mixed, with profit-taking on recent strong rally offsetting news of Indonesia's ratings upgrade by S&P, dealers say. "It's good news, because it confirms the good fundamentals of our economy, but shares are already overbought," says Bhakti Securities' Budhi Ruseno; adds short-term trend remains mixed. Main index down 0.4% at 2666.51, but gainers lead decliners 102 to 81; volume robust at 9.7 billion shares valued IDR4.1 trillion. Among gainers, Astra Agro (AALI.JK) +1.0% at IDR24,650 on strong CPO prices, Unilever (UNVR.JK) +0.8% at IDR12,100, while Telkom (TLKM.JK) down 2.3% at IDR8,400, Bank Mandiri (BMRI.JK) down 1.0% at IDR4,750; main index likely between 2610-2700 next week.

0928 GMT [Dow Jones] USD/IDR lower at 9,160 late vs 9,190 late yesterday; but off 9,145 intraday low on genuine demand from importers, dealers say; market's reaction to S&P's one-notch upgrade on Indonesia's ratings to BB muted, likely due to USD demand from importers, but news may drive pair back toward 9,145 Monday, barring no negative surprises in offshore markets. "The upgrade further confirms the positive sentiment on Indonesia, which should be good for the rupiah," a dealer with a foreign bank says; 9,145-9,190 range tipped for Monday.(i-made.sentana@dowjones.com)


0450 GMT [Dow Jones] HSI's movement in morning session tepid with index trapped in 113-point band, while volume dropping to HK$25.58 billion, lowest this week. "There're a lot of wait-and-see if China will announce any tightening measures, such as reserve-requirement-ratio hike, over the weekend," says Ernie Hon of ICBC International. Adds, investors especially jittery with last two RRR hikes happened Jan. 12, Feb. 12. Index down 0.1% at 21,211.36 midday; Citic Pacific (0267.HK) worst performer, down 4.1% at HK$18.98, succumbing to profit-taking after 2-day 12.1% post-results rally; SHK Properties (0016.HK) +1.4% at HK$116.10 after above-view 1H results; China Mobile (0941.HK) rebounds for second day, +0.5% at HK$75.70. (robert.li@dowjones.com)

0440 GMT [Dow Jones] Kospi flat at 1656.77 in light volume, torn between losses in techs, cars on lower USD/KRW and gains in most banks, shipbuilders. "Concerns over China's potential tightening moves have been somewhat reflected in the recent sluggish stock performance, limiting further negative impact from China's higher-than-expected inflation data," says Hwang Bin-ah at Kyobo Securities; but "the market lacks strong upward momentum," limiting Kospi's rise. Adds investors' focus shifted to U.S. economic data, like retail sales data due tonight; Kospi expected to stay near current levels rest of session. Korea Exchange Bank (004940.SE) +0.7% at KRW14,200 on ongoing M&A hopes, Daewoo Shipbuilding (042660.SE) +1.2% at KRW21,750 on cheap valuation. Hyundai Motor (005380.SE) down 2.7% at KRW109,000, Samsung Electronics (005930.SE) down 0.5% at KRW774,000. LG Electronics (066570.SE) flat at KRW107,000, ignoring U.S. federal court jury's rule in LG's favor in refrigerator patent dispute with Whirlpool Corp because it's not final ruling, say analysts. (soo-kyung.seo@dowjones.com)

0439 GMT [Dow Jones] Quiet forex market could get loud next week on reports Bank of Japan may discuss additional monetary easing at board meeting starting Tuesday, says Gareth Berry, director of FX strategy for UBS. While easing would have little direct affect on AUD, any move would fuel direction of USD/JPY, with USD and JPY two most watched crosses for AUD. "The Aussie could rise on this, but I think that might die in a week or two," says Berry, who tips AUD/USD resistance at 0.9193 and after that 0.9328. AUD/USD recently at 0.9164. (geoffrey.rogow@dowjones.com)

Asia Stocks Are More Attractive Than Brazil’s, CLSA’s Wood Says
(Bloomberg) -- Asian stocks are more attractive than those in Brazil amid a “pause” in the emerging-markets rally, CLSA Asia-Pacific Markets said.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a48ovFJXlawk

Thailand’s Stocks to Climb 10%, Country Group Says
(Bloomberg) -- Thai stocks may gain a further 10 percent as overseas investors rebuild portfolios at the fastest pace in three years, with profit growth outweighing political conflict, according to Country Group Securities Pcl.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a5oOZofSlA54

Stock Momentum Measure Signals More Gains: Technical Analysis
(Bloomberg) -- The yearlong rally in the U.S. market has pushed the number of stocks showing unusually strong momentum to the highest level at least since 1994, a sign that more gains may come, according to Concept Capital.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a3NtsZqOewCs

Citigroup vs. Goldman Sachs—The Better Buy: Strategists
By: JeeYeon Park CNBC News Associate
Financial giants Goldman Sachs and Citigroup have seen large moves in the last year: Since the lows of March 2009, Goldman Sachs has moved up more than 80 percent while Citigroup jumped over 160 percent. Do these stocks have further room for growth? Christopher Whalen, senior vice president and managing director at Institutional Risk Analytics, and Jeffery Harte, managing director in equity research at Sandler O’Neill, shared their insights.
http://www.cnbc.com/id/35816391

Indonesia Raises 2011 Economic Growth Forecast to 6%-6.5%
(Bloomberg) -- Indonesia’s central bank raised its 2011 economic growth forecast to as much as 6.5 percent from an earlier forecast of as much as 6 percent as consumer spending accelerates, Deputy Governor Hartadi A. Sarwono said.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aablo6P_eOP0

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