29 Sep, 2008, 2337 hrs IST, AGENCIES
WASHINGTON: Massive legislation to bail out the stressed financial industry is hanging near defeat on the floor of the House.
More than enough members of the House had cast votes to defeat the Bush administration-pushed bill, and the vote was being held open, apparently as efforts were under way to persuade people to change their vote.
On Wall Street, stocks plummeted as investors followed the developments in Congress.
Via:E.T
Monday, September 29, 2008
Markets feel credit crunch; Sensex support 12400
MUMBAI: The worst credit crisis facing the world’s central banks saw markets take a beating on Monday, even as the US readied a $700 billion bailout plan.
Indian stocks were no different, as the benchmark Sensex and Nifty breached key supports.
Players battered the markets on fears there will be more corporate failures and the US bailout plan may fail to resolve the credit crisis.
National Stock Exchange's 50-share Nifty closed the day 3.39 per cent lower at 3850.05 and Bombay Stock Exchange’s Sensex fell 3.87 per cent to 12595.75. Intraday, Nifty touched a low of 3777.30 and Sensex took support at 12402.84.
Said Ashok Jainani, Vice-President (Research & Market Strategy) Khandwala Securities, “The past week's trend continues as the two major events -- modified Wall Street rescue plan and Indo-US nuke deal -- still remain on the table and the crisis situation has yet not been resolved. Market sentiments are mostly being driven by news and short-term technical charts at present.”
At current levels, Sensex could find a lower support near 12,400 level and Nifty near 3,750. Many of the frontline stocks look attractive for a medium-term perspective, on hopes that they would report good Q2 results, Jainani said.
“Unwinding of FII liquidity, which had caused Sensex underperforming, and multiple contraction might ebb, with new initiatives being considered by SEBI next week,” he added. Thus, investors could buy front-line stocks at their lower levels.
“Market is reacting on the weak global sentiments that have spread across from US to European and Asian markets, weighed by liquidity crisis. Real investors are scared of weak fundamentals ahead and fear that efforts being made by the major global economies are not enough,” said DD Sharma, head retail research, Anandrathi Securities Ltd.
Sharma believes that in India, most of the potential institutional investors are keeping away due to global uncertainty, even though the fundamentals are comfortable and it is the right time to enter the market.
Mirae Asset Global Investment Management says, “The present downtrend is due to big uncertainty on liquidity side and de-leveraging by institutional investors, domestic as well as foreign, even though the fundamentals are still positive of the country.”
Both, Anandrathi and Mirae expect Nifty to find support between 3,750 and 3,800 and after that a bounce back is possible.
Nifty had hit below the 3,800 level for the third time and then recovered this year.
via:E.T
Indian stocks were no different, as the benchmark Sensex and Nifty breached key supports.
Players battered the markets on fears there will be more corporate failures and the US bailout plan may fail to resolve the credit crisis.
National Stock Exchange's 50-share Nifty closed the day 3.39 per cent lower at 3850.05 and Bombay Stock Exchange’s Sensex fell 3.87 per cent to 12595.75. Intraday, Nifty touched a low of 3777.30 and Sensex took support at 12402.84.
Said Ashok Jainani, Vice-President (Research & Market Strategy) Khandwala Securities, “The past week's trend continues as the two major events -- modified Wall Street rescue plan and Indo-US nuke deal -- still remain on the table and the crisis situation has yet not been resolved. Market sentiments are mostly being driven by news and short-term technical charts at present.”
At current levels, Sensex could find a lower support near 12,400 level and Nifty near 3,750. Many of the frontline stocks look attractive for a medium-term perspective, on hopes that they would report good Q2 results, Jainani said.
“Unwinding of FII liquidity, which had caused Sensex underperforming, and multiple contraction might ebb, with new initiatives being considered by SEBI next week,” he added. Thus, investors could buy front-line stocks at their lower levels.
“Market is reacting on the weak global sentiments that have spread across from US to European and Asian markets, weighed by liquidity crisis. Real investors are scared of weak fundamentals ahead and fear that efforts being made by the major global economies are not enough,” said DD Sharma, head retail research, Anandrathi Securities Ltd.
Sharma believes that in India, most of the potential institutional investors are keeping away due to global uncertainty, even though the fundamentals are comfortable and it is the right time to enter the market.
Mirae Asset Global Investment Management says, “The present downtrend is due to big uncertainty on liquidity side and de-leveraging by institutional investors, domestic as well as foreign, even though the fundamentals are still positive of the country.”
Both, Anandrathi and Mirae expect Nifty to find support between 3,750 and 3,800 and after that a bounce back is possible.
Nifty had hit below the 3,800 level for the third time and then recovered this year.
via:E.T
Another bearish day: September 29, 2008,
Sensex sheds 4%, ICICI drags
The Sensex opened almost flat at 13,110 - up eight points, touched a high of 13,114, and soon slipped into the negative zone owing to weak global cues.
banking, realty and technology stocks bore the brunt of the selling, as the index tumbled to a new calender year low of 12,403 - down 699 points from the previous close.
However, some buying towards the end helped the Sensex recoup some of its losses, and finally end at 12,596 - down 506 (3.9%) points. In the process, the index has now shed 8% (1,097 points) in the last three trading sessions.
INDEX SHAKERS...
ICICI Bank and Jaiprakash Associates slumped around 12% each to Rs 493 and Rs 107, respectively.
Satyam plunged over 9% to Rs 293, and TCS tumbled 8.4% to Rs 620.
Tata Power shed 7% at Rs 918. Mahindra & Mahindra and Reliance Infrastructure slipped over 6.5% each to Rs 495 and Rs 794, respectively.
Reliance Communications and Ranbaxy declined over 6% each to Rs 326 and Rs 256, respectively.
DLF and Larsen & Toubro dropped around 5% each to Rs 351 and Rs 2,345, respectively.
Tata Motors and NTPC slipped over 4.5% each to Rs 356 and Rs 166, respectively.
Infosys, Bharti Airtel and HDFC Bank were down nearly 4% each to Rs 1,392, Rs 747 and Rs 1,200, respectively.
VALUE & VOLUME TOPPERS
Reliance Capital topped the value chart with a turnover of Rs 309 crore followed by Reliance (Rs 299.80 crore), ICICI Bank (Rs 295.40 crore), Axis Bank (Rs 157.20 crore) and Larsen & Toubro (Rs 134.70 crore).
Reliance Natural Resources led the volume chart with trades of around 1.42 crore shares followed by IFCI (89.90 lakh), Chambal Fertilisers (71.70 lakh), Jaiprakash Associates (63.80 lakh) and ICICI Bank (58.40 lakh).
Saturday, September 27, 2008
Investors wonder if $700 bn is the right number for US crisis bailout
27 Sep, 2008, 1202 hrs IST, REUTERS
NEW YORK: As the US Congress works to reach a deal on the proposed $700 billion rescue for the US financial system, investors want to know if $700 billion is a magic or arbitrary number.
While investors and other experts at the Reuters Restructuring Summit this week felt the $700 billion bailout, crafted by US Treasury Secretary Henry Paulson and Federal reserve Chairman Ben Bernanke, was necessary to support the financial system, they wondered what the number would ultimately mean to investors seeking to buy distressed assets.
"Secretary Paulson has not really come with any explanation why $700 billion is the right number," Wilbur Ross, the billionaire investor who is Chairman and CEO of WL Ross and Co, said at the Reuters Restructuring Summit in New York this week. "Why not $500 billion or $1 trillion?"
Banks have written off more than $400 billion since the subprime crisis took hold last summer, but $700 billion seemed a very large number, practically pulled out of thin air, some said.
"We talk about a $700 billion bailout, but that number is, I think, almost meaningless," said Ed Altman, a professor at New York University's Stern School of Business said at the summit.
"$700 billion is what is going to be potentially purchased, but these are not valueless assets," Altman said.
If the government buys the assets from financial firms, then later sells them back to the market, it could spend much less than $700 billion, or use the sale proceeds to perpetually go back and invest more in the market, Altman explained.
Others say a big number, whatever it is, is needed to inject confidence back into the market.
"You need a big number for the bailout to have credibility in this market," St. Louis Federal Reserve President James Bullard said on Friday, noting that the market showed a sense of "panic" after the collapse of Lehman Brothers Holdings Inc and the government's rescue of insurer AIG.
But as the government becomes a player in the market for these assets, investors who specialize in purchasing distressed assets also wondered how it would interact with their investment plans.
"It sort of competes with the distressed investors that would otherwise be buyers," Michael Fineman, a portfolio manager at Third Avenue said at the summit.
"If the government is willing to step in and pay a higher price, it will initially squeeze out the distressed investor from buying these assets," Fineman said, noting the government could also find likely buyers to resell assets to in the distressed community.
Distressed investors in the United States, such as those speaking at the Reuters Restructuring Summit, have raised billions to buy up troubled mortgage loans, companies and other distressed assets.
But many have been sitting on the sidelines for now, worried that if they act too early they would "catch a falling knife," as Michael Psaros, co-founder and managing partner at firm KPS Capital Partners, termed it at the summit.
Members of Congress on Friday were reviewing draft legislative language agreed by negotiators for House and Senate Democrats and Senate Republicans on modifications to the Bush administration's $700 billion Wall Street bailout plan. Part of the draft called for the $700 billion to be granted in $250 billion installments.
How the government chooses to value the billions in assets it purchases is also a concern, the investors said.
In a survey of more than 3,000 investors on Thursday from the CFA Institute, 74 percent of those polled felt the government should pay fair value, or mark-to-market value, for the illiquid subprime, mortgage and derivatives securities it plans to purchase rather than any other value.
"The first thing they are really going to have to grapple with is how do you value assets coming in?" Ross said at the summit.
"I think a lot of us suspect that the institutions that own them probably tend to carry them on the generous side. So how do you parse the difference between what some third-party adviser might think is the right price and where they are carried? That's going to be a very critical part of the whole equation."
via:E.T
NEW YORK: As the US Congress works to reach a deal on the proposed $700 billion rescue for the US financial system, investors want to know if $700 billion is a magic or arbitrary number.
While investors and other experts at the Reuters Restructuring Summit this week felt the $700 billion bailout, crafted by US Treasury Secretary Henry Paulson and Federal reserve Chairman Ben Bernanke, was necessary to support the financial system, they wondered what the number would ultimately mean to investors seeking to buy distressed assets.
"Secretary Paulson has not really come with any explanation why $700 billion is the right number," Wilbur Ross, the billionaire investor who is Chairman and CEO of WL Ross and Co, said at the Reuters Restructuring Summit in New York this week. "Why not $500 billion or $1 trillion?"
Banks have written off more than $400 billion since the subprime crisis took hold last summer, but $700 billion seemed a very large number, practically pulled out of thin air, some said.
"We talk about a $700 billion bailout, but that number is, I think, almost meaningless," said Ed Altman, a professor at New York University's Stern School of Business said at the summit.
"$700 billion is what is going to be potentially purchased, but these are not valueless assets," Altman said.
If the government buys the assets from financial firms, then later sells them back to the market, it could spend much less than $700 billion, or use the sale proceeds to perpetually go back and invest more in the market, Altman explained.
Others say a big number, whatever it is, is needed to inject confidence back into the market.
"You need a big number for the bailout to have credibility in this market," St. Louis Federal Reserve President James Bullard said on Friday, noting that the market showed a sense of "panic" after the collapse of Lehman Brothers Holdings Inc and the government's rescue of insurer AIG.
But as the government becomes a player in the market for these assets, investors who specialize in purchasing distressed assets also wondered how it would interact with their investment plans.
"It sort of competes with the distressed investors that would otherwise be buyers," Michael Fineman, a portfolio manager at Third Avenue said at the summit.
"If the government is willing to step in and pay a higher price, it will initially squeeze out the distressed investor from buying these assets," Fineman said, noting the government could also find likely buyers to resell assets to in the distressed community.
Distressed investors in the United States, such as those speaking at the Reuters Restructuring Summit, have raised billions to buy up troubled mortgage loans, companies and other distressed assets.
But many have been sitting on the sidelines for now, worried that if they act too early they would "catch a falling knife," as Michael Psaros, co-founder and managing partner at firm KPS Capital Partners, termed it at the summit.
Members of Congress on Friday were reviewing draft legislative language agreed by negotiators for House and Senate Democrats and Senate Republicans on modifications to the Bush administration's $700 billion Wall Street bailout plan. Part of the draft called for the $700 billion to be granted in $250 billion installments.
How the government chooses to value the billions in assets it purchases is also a concern, the investors said.
In a survey of more than 3,000 investors on Thursday from the CFA Institute, 74 percent of those polled felt the government should pay fair value, or mark-to-market value, for the illiquid subprime, mortgage and derivatives securities it plans to purchase rather than any other value.
"The first thing they are really going to have to grapple with is how do you value assets coming in?" Ross said at the summit.
"I think a lot of us suspect that the institutions that own them probably tend to carry them on the generous side. So how do you parse the difference between what some third-party adviser might think is the right price and where they are carried? That's going to be a very critical part of the whole equation."
via:E.T
US's sixth largest bank Wachovia looking for buyers
Press Trust Of India / New York/ London September 27, 2008, 16:04 IST
Financial turbulence in the US took yet another toll with America's sixth largest bank, Wachovia, starting preliminary talks with potential buyers including Citigroup, Wells Fargo and Spain's Banco Santander, media reports say.
The reports about Wachovia looking for a bailout buyer appeared in media a day after the collapse of Washington Mutual, the biggest bank failure of US history.
According to reports, Wachovia has assimilated distressed assets worth $122 billion on account of its exposure in the housing mortgage.
Wachovia, according to its website, has assets of over $800 billion and its brokerage operations manage $1.1 trillion of client assets.
"Wachovia approached potential buyers, including Citigroup, Wells Fargo and Spain's Banco Santander, on Friday after a 27 per cent plunge in its shares deepened fears over the future of the sixth-largest US bank," UK daily Financial Times reported.
After assessing the fallout situation of its shares, Wachovia executives led by its CEO Robert Steel contacted Citi, Wells and Santander, the report said.
These three financial majors - Citi, Wells and Santander- were also interested to buy Washington Mutual Inc but ultimately JP Morgan acquired most of the WaMu.
However, US financial daily Wall Street Journal reported that, "Wachovia officials don't believe they need to rush into a deal, and the bank isn't feeling immediate pressure on its financial condition," quoting people familiar with the company.
Financial turbulence in the US took yet another toll with America's sixth largest bank, Wachovia, starting preliminary talks with potential buyers including Citigroup, Wells Fargo and Spain's Banco Santander, media reports say.
The reports about Wachovia looking for a bailout buyer appeared in media a day after the collapse of Washington Mutual, the biggest bank failure of US history.
According to reports, Wachovia has assimilated distressed assets worth $122 billion on account of its exposure in the housing mortgage.
Wachovia, according to its website, has assets of over $800 billion and its brokerage operations manage $1.1 trillion of client assets.
"Wachovia approached potential buyers, including Citigroup, Wells Fargo and Spain's Banco Santander, on Friday after a 27 per cent plunge in its shares deepened fears over the future of the sixth-largest US bank," UK daily Financial Times reported.
After assessing the fallout situation of its shares, Wachovia executives led by its CEO Robert Steel contacted Citi, Wells and Santander, the report said.
These three financial majors - Citi, Wells and Santander- were also interested to buy Washington Mutual Inc but ultimately JP Morgan acquired most of the WaMu.
However, US financial daily Wall Street Journal reported that, "Wachovia officials don't believe they need to rush into a deal, and the bank isn't feeling immediate pressure on its financial condition," quoting people familiar with the company.
Thursday, September 25, 2008
Man Industries secured new orders worth Rs 1100 crore
Man Industries India galloped 13.56% to Rs 63.65 at 15:40 IST on BSE, after the company said it has secured new orders worth Rs 1100 crore in longitudinal submerged arc welded and helical submerged arc welded segments in the current quarter.
The company made this announcement during trading hours today, 25 September 2008.
The stock hit a high of Rs 64.80 and a low of Rs 55.95 so far during the day. The stock has a 52-week high of Rs 177 on 2 January 2008 and hit a 52-week low of Rs 53.55 on 23 September 2008.
The company’s current equity is Rs 26.64 crore. Face value per share is Rs 5.
The current price of Rs 63.65 discounts Q1 June 2008 annualized EPS of Rs 10.90, a PE multiple of 5.84.
With these orders, Man Industries’ order book has crossed Rs 1500 crore.
Man Industries has also announced the commissioning of its 3rd helical submerged arc welded (HSAW) production line at Anjar in Gujarat.
The company also acquired 155 acres of land in Little Rock, Arkansas USA for setting up a state of the art HSAW pipe manufacturing plant having capacity of 3 lakh metric tonne at an approximate project cost of $100 million.
Man Industries India’s net profit fell 16.3% to Rs 14.52 crore on 1.3% fall in net sales to Rs 316.88 crore in Q1 June 2008 over Q1 June 2007.
The company makes oil and gas pipelines.
The company made this announcement during trading hours today, 25 September 2008.
The stock hit a high of Rs 64.80 and a low of Rs 55.95 so far during the day. The stock has a 52-week high of Rs 177 on 2 January 2008 and hit a 52-week low of Rs 53.55 on 23 September 2008.
The company’s current equity is Rs 26.64 crore. Face value per share is Rs 5.
The current price of Rs 63.65 discounts Q1 June 2008 annualized EPS of Rs 10.90, a PE multiple of 5.84.
With these orders, Man Industries’ order book has crossed Rs 1500 crore.
Man Industries has also announced the commissioning of its 3rd helical submerged arc welded (HSAW) production line at Anjar in Gujarat.
The company also acquired 155 acres of land in Little Rock, Arkansas USA for setting up a state of the art HSAW pipe manufacturing plant having capacity of 3 lakh metric tonne at an approximate project cost of $100 million.
Man Industries India’s net profit fell 16.3% to Rs 14.52 crore on 1.3% fall in net sales to Rs 316.88 crore in Q1 June 2008 over Q1 June 2007.
The company makes oil and gas pipelines.
Golden Tobacco on de-merger plan
Golden Tobacco surged 9.01% to Rs 139.25 at 13:02 IST on BSE after the company's board approved spinning off its tobacco and realty businesses into two separate companies.
The stock hit a high of Rs 145.60 and a low of Rs 132 so far during the day. The stock has a 52-week high of Rs 750 on 11 December 2007 and hit a 52-week low of Rs 100.50 on 16 September 2008.
The stock had surged 19.96% to Rs 127.70 on Wednesday, 24 September 2008, before the announcement.
The company’s current equity is Rs 17.60 crore. Face value per share is Rs 10.
The current price of Rs 139.25 discounts Q1 June 2008 annualized EPS of Rs 20.15, a PE multiple of 6.91.
The board has also approved issuing one share in each of the new companies, for every share held.
Erstwhile GTC Industries, Golden Tobacco's net profit rose 126.6% to Rs 8.86 crore on 66.1% decline in sales to Rs 15.87 crore in Q1 June 2008 over Q1 June 2007.
Golden Tobacco is a cigarette manufacturer. Its main brands are Panama, Flair, Chancellor, Esquire, Legend (a low tar and nicotine cigarette), Burton, CHL (Chancellor Harward Luxury, premium king-size cigarettes). The company was also the first in India to launch Ms Special Filter, a unique cigarette for women.
The stock hit a high of Rs 145.60 and a low of Rs 132 so far during the day. The stock has a 52-week high of Rs 750 on 11 December 2007 and hit a 52-week low of Rs 100.50 on 16 September 2008.
The stock had surged 19.96% to Rs 127.70 on Wednesday, 24 September 2008, before the announcement.
The company’s current equity is Rs 17.60 crore. Face value per share is Rs 10.
The current price of Rs 139.25 discounts Q1 June 2008 annualized EPS of Rs 20.15, a PE multiple of 6.91.
The board has also approved issuing one share in each of the new companies, for every share held.
Erstwhile GTC Industries, Golden Tobacco's net profit rose 126.6% to Rs 8.86 crore on 66.1% decline in sales to Rs 15.87 crore in Q1 June 2008 over Q1 June 2007.
Golden Tobacco is a cigarette manufacturer. Its main brands are Panama, Flair, Chancellor, Esquire, Legend (a low tar and nicotine cigarette), Burton, CHL (Chancellor Harward Luxury, premium king-size cigarettes). The company was also the first in India to launch Ms Special Filter, a unique cigarette for women.
Tata Steel two block deals on BSE at an average price of Rs 486.50.
Tata Steel (CMP= Rs 482.80 ) around 1 crore shares, or 1.37% of the company's equity changed hands in two block deals on BSE at a weighted average price of Rs 486.50.
The stock hit a high of Rs 492.80 and a low of Rs 481.55 so far during the day. The stock has a 52-week high of Rs 969.80 on 29 October 2007 and hit a 52-week low of Rs 440.10 on 18 September 2008.
The company’s current equity is Rs 730.58 crore. Face value per share is Rs 10.
The current price of Rs 482.80 discounts Q1 June 2008 annualized EPS of Rs 80.47, a PE multiple of 6.
As per recent reports, Tata Steel through its indirect subsidiary TS Global Minerals Holdings, has bought a 7.3% stake in Riversdale Mining, which has a coking coal project in Mozambique.
In August 2008 Tata Steel announced that its overseas unit formed a joint venture with Vietnam Steel Corporation and Vietnam Cement Industries Corporation for a steel complex in Ha Tinh province in Vietnam.
Tata Steel’s net profit rose 21.8% to Rs 1,488.40 crore on 46.9% rise in sales to Rs 6,165.03 crore in Q1 June 2008 over Q1 June 2007.
Tata Steel is an integrated steel producer which manufactures a variety of steel products. The company's products include steel ball bearing rings, alloy steel bearing rings, annular forgings, flanges, bearings, welded steel tubes, cold rolled strips and seamless tubes. Tata Steel also manufactures metallurgical machinery.
The stock hit a high of Rs 492.80 and a low of Rs 481.55 so far during the day. The stock has a 52-week high of Rs 969.80 on 29 October 2007 and hit a 52-week low of Rs 440.10 on 18 September 2008.
The company’s current equity is Rs 730.58 crore. Face value per share is Rs 10.
The current price of Rs 482.80 discounts Q1 June 2008 annualized EPS of Rs 80.47, a PE multiple of 6.
As per recent reports, Tata Steel through its indirect subsidiary TS Global Minerals Holdings, has bought a 7.3% stake in Riversdale Mining, which has a coking coal project in Mozambique.
In August 2008 Tata Steel announced that its overseas unit formed a joint venture with Vietnam Steel Corporation and Vietnam Cement Industries Corporation for a steel complex in Ha Tinh province in Vietnam.
Tata Steel’s net profit rose 21.8% to Rs 1,488.40 crore on 46.9% rise in sales to Rs 6,165.03 crore in Q1 June 2008 over Q1 June 2007.
Tata Steel is an integrated steel producer which manufactures a variety of steel products. The company's products include steel ball bearing rings, alloy steel bearing rings, annular forgings, flanges, bearings, welded steel tubes, cold rolled strips and seamless tubes. Tata Steel also manufactures metallurgical machinery.
Areva T&D fixed 29 October 2008 as record date for a 5-for-1 stock split.
Areva T&D India (CMP=Rs:1517)has fixed 29 October 2008 as record date for a 5-for-1 stock split.
The stock hit a high of Rs 1530 and a low of Rs 1500 so far during the day. The stock has a 52-week high of Rs 3280 on 13 November 2007 and hit a 52-week low of Rs 1199 on 1 July 2008.
The company’s current equity is Rs 47.82 crore. Face value per share is Rs 10.
The current price of Rs 1517.25 discounts Q2 June 2008 annualized EPS of Rs 54.09, a PE multiple of 28.05.
On 9 April 2008, Areva T&D India secured an order worth Rs 418 crore from Essar Constructions to provide equipments for power project in Gujarat and Madhya Pradesh.
Areva T&D India’s net profit surged 39.1% to Rs 64.66 crore on 44.5% increase in net sales to Rs 621.75 crore in Q2 June 2008 over Q2 June 2007.
The company's products and systems serve to transmit and distribute electricity, ensure the reliability, quality and safety of energy flows.
The stock hit a high of Rs 1530 and a low of Rs 1500 so far during the day. The stock has a 52-week high of Rs 3280 on 13 November 2007 and hit a 52-week low of Rs 1199 on 1 July 2008.
The company’s current equity is Rs 47.82 crore. Face value per share is Rs 10.
The current price of Rs 1517.25 discounts Q2 June 2008 annualized EPS of Rs 54.09, a PE multiple of 28.05.
On 9 April 2008, Areva T&D India secured an order worth Rs 418 crore from Essar Constructions to provide equipments for power project in Gujarat and Madhya Pradesh.
Areva T&D India’s net profit surged 39.1% to Rs 64.66 crore on 44.5% increase in net sales to Rs 621.75 crore in Q2 June 2008 over Q2 June 2007.
The company's products and systems serve to transmit and distribute electricity, ensure the reliability, quality and safety of energy flows.
Post-Market Commentary. Thursday, September 25, 2008
Expiry of September 2008 derivatives contracts put down Market 145.34 points.
BSE 30-share Sensex lost 145.34 points to 13,547.18.
Nifty was down 50.70 points to 4110.55.
As per provisional data released by the stock exchanges after trading hours, foreign funds today, 25 September 2008, sold shares worth a net Rs 1050.38 crore. Domestic funds bought shares worth a net Rs 605.59 crore.
BSE 30-share Sensex lost 145.34 points to 13,547.18.
Nifty was down 50.70 points to 4110.55.
As per provisional data released by the stock exchanges after trading hours, foreign funds today, 25 September 2008, sold shares worth a net Rs 1050.38 crore. Domestic funds bought shares worth a net Rs 605.59 crore.
Wednesday, September 24, 2008
Emco block deal
Emco slipped 3.81% to Rs 89.60 at 16:14 IST on BSE, after 18.50 lakh shares or 3.14% equity of the firm, changed hands in a block deal on NSE at Rs 93.75 each.
The stock hit a high of Rs 99 and a low of Rs 88.20 so far during the day. The stock has a 52-week high of Rs 330 on 17 January 2008 and hit a 52-week low of Rs 86 on 18 September 2008.
The company’s current equity is Rs 11.76 crore. Face value per share is Rs 2.
The current price of Rs 89.60 discounts Q1 June 2008 annualized EPS of Rs 23.17, a PE multiple of 42.83.
In May 2008, Emco secured an order worth Rs 126-crore from Delhi Transco for new substation at Mundka, Delhi.
Emco’s net profit rose 11.5% to Rs 10.05 crore on 18.8% increase in net sales to Rs 183.35 crore in Q1 June 2008 over Q1 June 2007.
The company is engaged in manufacturing and marketing furnace and rectifier transformers and electronic energy meters.
The stock hit a high of Rs 99 and a low of Rs 88.20 so far during the day. The stock has a 52-week high of Rs 330 on 17 January 2008 and hit a 52-week low of Rs 86 on 18 September 2008.
The company’s current equity is Rs 11.76 crore. Face value per share is Rs 2.
The current price of Rs 89.60 discounts Q1 June 2008 annualized EPS of Rs 23.17, a PE multiple of 42.83.
In May 2008, Emco secured an order worth Rs 126-crore from Delhi Transco for new substation at Mundka, Delhi.
Emco’s net profit rose 11.5% to Rs 10.05 crore on 18.8% increase in net sales to Rs 183.35 crore in Q1 June 2008 over Q1 June 2007.
The company is engaged in manufacturing and marketing furnace and rectifier transformers and electronic energy meters.
Prakash Industries Large block deal
Prakash Industries declined 1.37% to Rs 118.40 at 15:55 IST on BSE, after 59.40 lakh shares or 5.14% of the company's equity changed hands in a block deal on NSE at Rs 121.95 each.
The stock hit a high of Rs 127 and a low of Rs 116.15 so far during the day. The stock has a 52-week high of Rs 354.60 on 1 January 2008 and hit a 52-week low of Rs 109 on 18 September 2008.
The company’s current equity is Rs 115.47 crore. Face value per share is Rs 10.
The current price of Rs 118.40 discounts Q1 June 2008 annualized EPS of Rs 23.17, a PE multiple of 42.83.
Prakash Industries’ net profit rose 33.4% to Rs 66.88 crore on 43.6% increase in net sales to Rs 392.07 crore in Q1 June 2008 over Q1 June 2007.
The principal activity of Prakash Industries is to manufacture sponge iron, steel billets, wire rod and rigid PVC pipes and generation of power.
The stock hit a high of Rs 127 and a low of Rs 116.15 so far during the day. The stock has a 52-week high of Rs 354.60 on 1 January 2008 and hit a 52-week low of Rs 109 on 18 September 2008.
The company’s current equity is Rs 115.47 crore. Face value per share is Rs 10.
The current price of Rs 118.40 discounts Q1 June 2008 annualized EPS of Rs 23.17, a PE multiple of 42.83.
Prakash Industries’ net profit rose 33.4% to Rs 66.88 crore on 43.6% increase in net sales to Rs 392.07 crore in Q1 June 2008 over Q1 June 2007.
The principal activity of Prakash Industries is to manufacture sponge iron, steel billets, wire rod and rigid PVC pipes and generation of power.
Sterlite Industries spurts on canceling restructuring plan
Sterlite Industries India galloped 11.69% to Rs 502.55 at 12:18 IST on BSE, after the company said on Wednesday, 24 September 2008, its board has decided not to pursue a proposed restructuring scheme.
The company made this announcement during trading hours today, 24 September 2008.
The stock hit a high of Rs 517.70 and a low of Rs 447 so far during the day. The stock has a 52-week high of Rs 1140 on 7 December 2007 and hit a 52-week low of Rs 405 on 18 September 2008.
The company’s current equity is Rs 141.74 crore. Face value per share is Rs 2.
The current price of Rs 502.55 discounts Q1 June 2008 annualized EPS of Rs 20.21, a PE multiple of 24.87.
In view of the recent changes in global financial markets and investor feedback, Vedanta has decided not to pursue the proposed group restructuring, it said. Sterlite is part of the Vedanta group. The company is committed to simplifying and streamlining the group corporate structure in the interest of all shareholders, Sterlite said.
On 9 September 2008, the Vedanta group had announced a revamp of the group. The restructuring was planned to result in three units focused on commodities produced by the group: copper, zinc and lead; aluminium and energy; and iron ore. The restructuring plan involved transfer of Sterlite's aluminium and energy businesses to Madras Aluminium Company, another company belonging to the Vedanta group.
Sterlite Industries India's net profit rose 77.7% to Rs 357.93 crore on a 4.8% decline in net sales to Rs 2964.43 crore in Q1 June 2008 over Q1 June 2007.
Sterlite Industries is a leading producer of copper in India. It is a part of Vedanta Resources, a London listed metals and mining major, with aluminum, copper and zinc operations in India and Australia.
The company made this announcement during trading hours today, 24 September 2008.
The stock hit a high of Rs 517.70 and a low of Rs 447 so far during the day. The stock has a 52-week high of Rs 1140 on 7 December 2007 and hit a 52-week low of Rs 405 on 18 September 2008.
The company’s current equity is Rs 141.74 crore. Face value per share is Rs 2.
The current price of Rs 502.55 discounts Q1 June 2008 annualized EPS of Rs 20.21, a PE multiple of 24.87.
In view of the recent changes in global financial markets and investor feedback, Vedanta has decided not to pursue the proposed group restructuring, it said. Sterlite is part of the Vedanta group. The company is committed to simplifying and streamlining the group corporate structure in the interest of all shareholders, Sterlite said.
On 9 September 2008, the Vedanta group had announced a revamp of the group. The restructuring was planned to result in three units focused on commodities produced by the group: copper, zinc and lead; aluminium and energy; and iron ore. The restructuring plan involved transfer of Sterlite's aluminium and energy businesses to Madras Aluminium Company, another company belonging to the Vedanta group.
Sterlite Industries India's net profit rose 77.7% to Rs 357.93 crore on a 4.8% decline in net sales to Rs 2964.43 crore in Q1 June 2008 over Q1 June 2007.
Sterlite Industries is a leading producer of copper in India. It is a part of Vedanta Resources, a London listed metals and mining major, with aluminum, copper and zinc operations in India and Australia.
Provogue India fixed 13 October 2008 as record date for a 5-for-1 stock split.
Provogue India (CMP=Rs 700 ) has fixed 13 October 2008 as record date for a 5-for-1 stock split.
The stock hit a high of Rs 716.95 and a low of Rs 699 so far during the day. The stock has a 52-week high of Rs 1460 on 14 January 2008 and hit a 52-week low of Rs 660 on 25 August 2008.
The company’s current equity is Rs 23.28 crore. Face value per share is Rs 10.
The current price of Rs 700 discounts Q1 June 2008 annualized EPS of Rs 10.59, a PE multiple of 5.99.
Provogue India’s net profit rose 27.6% to Rs 6.05 crore on 31.1% increase in net sales to Rs 67.78 crore in Q1 June 2008 over Q1 June 2007.
The company is engaged in designing, manufacturing and selling ready-made garments and other accessories under the brand Provogue. The group's products include shirts, trousers, t-shirts, sweaters, shorts, pajamas, suits, jackets, ties, socks, handkerchiefs, belts, wallets, sunglasses, bags and caps. The group distributes its products through branded stores and a network of national chain stores and multi brand outlets.
The stock hit a high of Rs 716.95 and a low of Rs 699 so far during the day. The stock has a 52-week high of Rs 1460 on 14 January 2008 and hit a 52-week low of Rs 660 on 25 August 2008.
The company’s current equity is Rs 23.28 crore. Face value per share is Rs 10.
The current price of Rs 700 discounts Q1 June 2008 annualized EPS of Rs 10.59, a PE multiple of 5.99.
Provogue India’s net profit rose 27.6% to Rs 6.05 crore on 31.1% increase in net sales to Rs 67.78 crore in Q1 June 2008 over Q1 June 2007.
The company is engaged in designing, manufacturing and selling ready-made garments and other accessories under the brand Provogue. The group's products include shirts, trousers, t-shirts, sweaters, shorts, pajamas, suits, jackets, ties, socks, handkerchiefs, belts, wallets, sunglasses, bags and caps. The group distributes its products through branded stores and a network of national chain stores and multi brand outlets.
Akruti City on new projects
Akruti City plans to set up 17 warehousing facilities for National Commodity and Derivatives Exchange of India across the country.
The stock hit a high of Rs 1020.50 and a low of Rs 960 so far during the day. The stock had a 52-week high of Rs 1399 on 23 January 2008 and a 52-week low of Rs 607 on 1 July 2008.
The company has an equity capital of Rs 66.70 crore. Face value per share is Rs 10. The company has high promoter holding of 89.96% (as at end June 2008).
The current price of Rs 992 discounts its Q1 June 2008 annualised EPS of Rs 102.79, by a PE multiple of 9.65.
Meanwhile, the derivatives contracts in Akruti City have crossed 95% of the market-wide position limit and are currently in the ban period from today, 24 September 2008.
Besides setting up warehousing facilities for National Commodity and Derivatives Exchange of India (NCDEX), Akruti City also plans to redevelop bus terminals in Gujarat for a project of Gujarat government. The bus terminals will be converted into bus stations-cum-commercial and retail hubs. In the first phase, Akruti City will redevelop 5-7 bus terminals in towns such as Baroda, Surat and Mehsana in Gujarat.
Akruti City reported 272.87% surge in net profit to Rs 171.41 crore on 236.79% increase in total income to Rs 241.01 in Q1 June 2008 over Q1 June 2007.
Akruti City’s principal activity is to develop real estate. It includes commercial and residential properties and acquisition of land and land development. Currently, the company has 107 million square feet of developable land bank spread across Mumbai, Panvel, Pune and Baroda. Akruti, in association with TCG Realty, is developing a biotech park on 700 acres at Savli near Vadodara.
The stock hit a high of Rs 1020.50 and a low of Rs 960 so far during the day. The stock had a 52-week high of Rs 1399 on 23 January 2008 and a 52-week low of Rs 607 on 1 July 2008.
The company has an equity capital of Rs 66.70 crore. Face value per share is Rs 10. The company has high promoter holding of 89.96% (as at end June 2008).
The current price of Rs 992 discounts its Q1 June 2008 annualised EPS of Rs 102.79, by a PE multiple of 9.65.
Meanwhile, the derivatives contracts in Akruti City have crossed 95% of the market-wide position limit and are currently in the ban period from today, 24 September 2008.
Besides setting up warehousing facilities for National Commodity and Derivatives Exchange of India (NCDEX), Akruti City also plans to redevelop bus terminals in Gujarat for a project of Gujarat government. The bus terminals will be converted into bus stations-cum-commercial and retail hubs. In the first phase, Akruti City will redevelop 5-7 bus terminals in towns such as Baroda, Surat and Mehsana in Gujarat.
Akruti City reported 272.87% surge in net profit to Rs 171.41 crore on 236.79% increase in total income to Rs 241.01 in Q1 June 2008 over Q1 June 2007.
Akruti City’s principal activity is to develop real estate. It includes commercial and residential properties and acquisition of land and land development. Currently, the company has 107 million square feet of developable land bank spread across Mumbai, Panvel, Pune and Baroda. Akruti, in association with TCG Realty, is developing a biotech park on 700 acres at Savli near Vadodara.
Post-Market Commentary .Wednesday, September 24, 2008
Sensex Up 122-points
Sensex ended up 122.21 points or 0.9% to 13,692.52.
Nifty rose 34.35 points or 0.83% to 4,161.25.
US stock futures rose boosted by Warren Buffett's Berkshire Hathaway's announcment of an infusion of $5 billion in Goldman Sachs Group. Goldman will sell $5 billion of preferred stock to Berkshire Hathaway, which will also receive warrants to purchase $5 billion of common stock with a strike price of $115 per share. Berkshire has five years to exercise the warrants. The Dow futures were up 83 points and the Nasdaq futures were up 14 points.
US-India civilian nuclear cooperation agreement moved closer to approval by Congress on Tuesday, 23 September 2008, when a key Senate Committee passed the deal with a landslide majority. However, the historic agreement is yet to clear a few hurdles in its final lap. The bill now goes to the floor of the Senate for the final ratification.
Sensex ended up 122.21 points or 0.9% to 13,692.52.
Nifty rose 34.35 points or 0.83% to 4,161.25.
US stock futures rose boosted by Warren Buffett's Berkshire Hathaway's announcment of an infusion of $5 billion in Goldman Sachs Group. Goldman will sell $5 billion of preferred stock to Berkshire Hathaway, which will also receive warrants to purchase $5 billion of common stock with a strike price of $115 per share. Berkshire has five years to exercise the warrants. The Dow futures were up 83 points and the Nasdaq futures were up 14 points.
US-India civilian nuclear cooperation agreement moved closer to approval by Congress on Tuesday, 23 September 2008, when a key Senate Committee passed the deal with a landslide majority. However, the historic agreement is yet to clear a few hurdles in its final lap. The bill now goes to the floor of the Senate for the final ratification.
Tuesday, September 23, 2008
RNRL mulls Rs 12,000 cr capex for cement, shipping foray
MUMBAI: Anil Ambani-controlled Reliance Natural Resources plans to enter cement manufacturing and shipping activities with an investment of Rs 12,000 crore.
"We will invest Rs 10,000 crore in cement business and Rs 2,000 crore in shipping," RNRL Vice-Chairman Anil Singhvi said on the sidelines of the company's annual general meeting here today.
"Our foray into cement and shipping will take 3-4 years period," Singhvi said.
Earlier at the meeting, RNRL Chairman Anil Ambani said that "we are actively considering entering into cement manufacturing with 20-million tonnes capacity".
For supporting its ambitious cement business, RNRL is looking to run a shipping service. It will help the company in transporting raw materials and finished products. At present, RNRL is engaged in sourcing, supply and transportation of various fuels along with exploration, production and distribution of gas.
"We will foray into shipping business with six ships to start with. It will operate between
"We re-positioned RNRL as a complete fuel management company, covering exploration, development and production, sourcing and supply, transportation and distribution activities," he said.
"We are now equipped not just to meet the fuel requirements of our group companies but of a wider market."
Global financial crisis on banking stocks
BSE fears: local banks may reportedly suffer losses on their exposure to the
As per reports, nine of the country's largest commercial banks including State Bank of India (SBI), ICICI Bank and HDFC Bank reportedly have exposure of $420 million (Rs 2,000 crore) in the
The estimated losses are due to their ownership of securities sold by Fannie Mae, Freddie Mac, Merrill Lynch & Co., and Lehman Brothers Holding Inc, which have declined in value leading to marked-to-market losses, the report said.
Post-Market Commentary. Tuesday, September 23, 2008
Sensex slips 425pts; Ranbaxy tanks over 11%
All BSE sectoral indices suffered losses with IT, realty and banking leading the fall. However state-run oil marketing firms bucket weak market trend. The market breadth was weak. Ranbaxy Labs slumped over 11%.
The BSE 30-share Sensex was down 424.65 points or 3.03% to 13,570.31.
Nifty was down 96.15 points or 2.28% to 4,126.90.
Ranbaxy Laboratories declined 11.05% at Rs 308.85 on reports the Canadian drug regulator, Health Canada, issued a notice to Ranbaxy saying it will be particularly cautious about drug marketing applications from Ranbaxy after the US drug regulator blocked the sale of more than 30 generic medicines made in two factories by the company. The stock had declined 2.70% in the previous session.
Hindalco Industries fell 1.59% at 108.10 after hitting a 52-week low of Rs 106.20 on BSE. The company's Rs 5,050 crore rights share offering for subscription
Software shares tumbled on growing worries about outsourcing prospects amid a global financial turmoil. Satyam Computer (down 5.98% at Rs 331.65), TCS (down 5.91% at Rs 720.75), Wipro (down 5.77% at Rs 390.45), and Infosys Technologies (down 5.19% at Rs 1,543.35), slipped. The BSE IT index underperformed the Sensex, falling 5.07% at 3,455.05. Export-driven Indian software firms earn more than half of their revenue in dollar terms.
Realty shares extended previous session's fall. Indiabulls Real Estate (down 6.93% at Rs 209.50), Housing Development & Infrastructure (down 5.97% at Rs 209.60), and Unitech (down 3.66% at Rs 123.80), slumped.
DLF fell 6.25% at Rs 394.60. As per recent reports, the company is retrenching around 300 employees across all its centres and subsidiaries as it decides to slow down its project execution, especially in Tier II cities, in the face of shrinking demand and expensive borrowing.
Monday, September 22, 2008
Goldman, Morgan woes could trigger more FII exit
23 Sep, 2008, 0345 hrs IST,Pradeep Pandey, ET Bureau
MUMBAI: With the US Federal Reserve approving the conversion of two major global investment firms into bank holding companies, Indian market is likely to witness more pullouts by foreign institutional investors (FIIs), fear BSE traders. The conversion of Goldman Sachs and Morgan Stanley into banks may see more winding down of structured investments vehicles which these entities had built in India and other Asian countries. Now, there could be a curb on their investment portfolios with much tighter regulatory norms, traders said.
Goldman Sachs and Morgan Stanley will now be regulated like any other bank and will have to follow strict ‘dos and don’ts’ of the regulation. P-Notes, exotic structured investments and other such derivatives-based instruments would have to be wound down, a senior official with a leading private securities firm said.
“As such, investments would be required to be shifted to some other subsidiaries of the proposed banks. However, on the positive side, they would be able to access public deposits,” he said. Airing a similar view, a financial market specialist with a global financial institution told ET that these entities would now be placed under much tighter regulation by the Fed, including tough capital requirements for investments. In addition, they will have to follow sectoral and group limits under overall banking norms as they will be controlled by the banking regulator, he asserted.
In the backdrop of the global turmoil of the past two weeks, FIIs have been pulling out drastically from the Indian market and have been on a continuous selling mode. In this calendar year so far, FIIs have sold a net of about $ 8.2 billion (Rs 37,000 crore) and have been net sellers for every month since May, according Sebi data.
“It is for the first time since 1994, that FIIs are net sellers for such a long sustained period,” said a technical analyst. Goldman Sachs and Morgan Stanley were granted approval on Sunday to become bank holding companies regulated by the US Federal Reserve.
Under the new set-up, the Federal Reserve becomes the primary regulator of the parent companies though the Securities Exchange Commission (SEC) continues to regulate their US securities businesses. The Federal Reserve’s control over banks is much tighter though Goldman and Morgan would gain long-term access to the Fed’s discount window and be able to access bank deposits insured by the Federal Deposit Insurance Corp.
via:E.T
MUMBAI: With the US Federal Reserve approving the conversion of two major global investment firms into bank holding companies, Indian market is likely to witness more pullouts by foreign institutional investors (FIIs), fear BSE traders. The conversion of Goldman Sachs and Morgan Stanley into banks may see more winding down of structured investments vehicles which these entities had built in India and other Asian countries. Now, there could be a curb on their investment portfolios with much tighter regulatory norms, traders said.
Goldman Sachs and Morgan Stanley will now be regulated like any other bank and will have to follow strict ‘dos and don’ts’ of the regulation. P-Notes, exotic structured investments and other such derivatives-based instruments would have to be wound down, a senior official with a leading private securities firm said.
“As such, investments would be required to be shifted to some other subsidiaries of the proposed banks. However, on the positive side, they would be able to access public deposits,” he said. Airing a similar view, a financial market specialist with a global financial institution told ET that these entities would now be placed under much tighter regulation by the Fed, including tough capital requirements for investments. In addition, they will have to follow sectoral and group limits under overall banking norms as they will be controlled by the banking regulator, he asserted.
In the backdrop of the global turmoil of the past two weeks, FIIs have been pulling out drastically from the Indian market and have been on a continuous selling mode. In this calendar year so far, FIIs have sold a net of about $ 8.2 billion (Rs 37,000 crore) and have been net sellers for every month since May, according Sebi data.
“It is for the first time since 1994, that FIIs are net sellers for such a long sustained period,” said a technical analyst. Goldman Sachs and Morgan Stanley were granted approval on Sunday to become bank holding companies regulated by the US Federal Reserve.
Under the new set-up, the Federal Reserve becomes the primary regulator of the parent companies though the Securities Exchange Commission (SEC) continues to regulate their US securities businesses. The Federal Reserve’s control over banks is much tighter though Goldman and Morgan would gain long-term access to the Fed’s discount window and be able to access bank deposits insured by the Federal Deposit Insurance Corp.
via:E.T
Corporate bankruptcies rise, more on way
Corporate bankruptcies rise, more on way
The number of US businesses filing for bankruptcy has soared 42 percent from a year ago, according to the Administrative Office for US Courts.
Already this year, more public companies have filed for Chapter 11 and Chapter 7 bankruptcy than during all of 2007, according to BankruptcyData.com.
The credit crisis has also complicated things for struggling companies, by hurting their ability to refinance their debts or even gain financing to exit bankruptcy protection.
Auto parts maker Delphi Corp, for example, has been struggling to get financing to exit bankruptcy protection for most of the year.
For more details visit: BankruptcyData.com
The number of US businesses filing for bankruptcy has soared 42 percent from a year ago, according to the Administrative Office for US Courts.
Already this year, more public companies have filed for Chapter 11 and Chapter 7 bankruptcy than during all of 2007, according to BankruptcyData.com.
The credit crisis has also complicated things for struggling companies, by hurting their ability to refinance their debts or even gain financing to exit bankruptcy protection.
Auto parts maker Delphi Corp, for example, has been struggling to get financing to exit bankruptcy protection for most of the year.
For more details visit: BankruptcyData.com
Goldman, Morgan under Fed control , give up i-bank status
WASHINGTON: Global financial services provider Goldman Sachs and Morgan Stanley will now become bank holding companies, and come directly under the purview of the Federal Reserve, a move that will entail stricter regulations for the previously lightly regulated investment banks.
“The Federal Reserve Board on Sunday approved, pending a statutory five-day antitrust waiting period, the applications of Goldman Sachs and Morgan Stanley to become bank holding companies,” the central bank of the U.S. said in a statement.
This move was pursuant to the bankruptcy of Lehman Brothers and the acquisition of Merrill Lynch by Bank of America.
The transition of Goldman Sachs and Morgan Stanley from the investment banks status to a Federal Bank Holding Company would provide ongoing access to the Federal Reserve Bank discount window and expanded opportunities for funding.
“We believe that Goldman Sachs, under Federal Reserve supervision, will be regarded as an even more secure institution with an exceptionally clean balance sheet and a greater diversity of funding sources,” Goldman Sachs Chairman and Chief Executive Officer Lloyd C. Blankfein said in a statement.
Meanwhile, Morgan Stanley Chairman and Chief Executive Officer John J Mack said, “this new bank holding structure will ensure that Morgan Stanley is in the strongest possible position with the stability and flexibility to seize opportunities in the rapidly changing financial marketplace.”
In order to provide liquidity support to these banks during their transition from investment banks to regulated banks, the Federal Reserve Board has authorised the Federal Reserve Bank of New York to extend credit to the U.S. broker-dealer subsidiaries of Goldman Sachs and Morgan Stanley, the statement added.
“We view regulation by the Federal Reserve Board as appropriate and in the best interests of protecting and growing our franchise across our diverse range of businesses,” Goldman Sachs added.
These credits can be provided against all types of collateral that may be pledged at the Federal Reserve’s primary credit facility or at the existing Primary Dealer Credit Facility. — PTI
Mitsubishi UFJ to buy stake in Morgan
AP reports from Tokyo:
Mitsubishi UFJ Financial Group Inc. on Monday said it had reached an agreement to buy 10-20 per cent stake in Morgan Stanley, one of the last two major U.S. investment banks.
“The Federal Reserve Board on Sunday approved, pending a statutory five-day antitrust waiting period, the applications of Goldman Sachs and Morgan Stanley to become bank holding companies,” the central bank of the U.S. said in a statement.
This move was pursuant to the bankruptcy of Lehman Brothers and the acquisition of Merrill Lynch by Bank of America.
The transition of Goldman Sachs and Morgan Stanley from the investment banks status to a Federal Bank Holding Company would provide ongoing access to the Federal Reserve Bank discount window and expanded opportunities for funding.
“We believe that Goldman Sachs, under Federal Reserve supervision, will be regarded as an even more secure institution with an exceptionally clean balance sheet and a greater diversity of funding sources,” Goldman Sachs Chairman and Chief Executive Officer Lloyd C. Blankfein said in a statement.
Meanwhile, Morgan Stanley Chairman and Chief Executive Officer John J Mack said, “this new bank holding structure will ensure that Morgan Stanley is in the strongest possible position with the stability and flexibility to seize opportunities in the rapidly changing financial marketplace.”
In order to provide liquidity support to these banks during their transition from investment banks to regulated banks, the Federal Reserve Board has authorised the Federal Reserve Bank of New York to extend credit to the U.S. broker-dealer subsidiaries of Goldman Sachs and Morgan Stanley, the statement added.
“We view regulation by the Federal Reserve Board as appropriate and in the best interests of protecting and growing our franchise across our diverse range of businesses,” Goldman Sachs added.
These credits can be provided against all types of collateral that may be pledged at the Federal Reserve’s primary credit facility or at the existing Primary Dealer Credit Facility. — PTI
Mitsubishi UFJ to buy stake in Morgan
AP reports from Tokyo:
Mitsubishi UFJ Financial Group Inc. on Monday said it had reached an agreement to buy 10-20 per cent stake in Morgan Stanley, one of the last two major U.S. investment banks.
Chinese Banks exposure to Lehman
Two more Chinese banks have reported holding Lehman Brothers bonds, raising total Lehman debt disclosed by Chinese lenders to USD 634.8 million.
China Construction Bank Corp, the country's second-largest commercial lender by assets, said in a statement issued through the Hong Kong Stock Exchange that it holds USD 191.4 million in Lehman bonds. That was the biggest exposure reported so far for a Chinese bank to the failed Wall Street house.
A midsize lender, China CITIC Bank Corp said in a separate statement it has USD 76 million in Lehman bonds.
Analysts say the impact of Lehman's failure on Chinese banks should be limited.
Other state-owned banks have reported holding Lehman debt but say it accounts for only a tiny fraction of their assets.
China's biggest lender, Industrial & Commercial Bank of China Ltd., says it owns Lehman bonds worth USD 151.8 million.
Construction Bank's Lehman holdings are 0.29 percent of net assets and should have no effect on its financial position, the bank said. It said the bank would make allowances for possible losses.
Bank of China Ltd., the country's No. 3 lender by assets, says it owns Lehman bonds worth USD 75.6 million. Bank of Communications Ltd, the country's fifth-largest commercial lender, says it has USD 70 million in Lehman bonds.
Another midsize lender, China Merchants Bank Ltd., says its Lehman bonds are valued at USD 70 million.
Last week, China's Hua An Fund Management Co, warned of possible heavy losses due to Lehman's failure. Hua An said its International Balanced Fund is invested in notes provided by Lehman that are linked to stocks, bonds and other assets.
Taken from another Blog:
China Construction Bank Corp, the country's second-largest commercial lender by assets, said in a statement issued through the Hong Kong Stock Exchange that it holds USD 191.4 million in Lehman bonds. That was the biggest exposure reported so far for a Chinese bank to the failed Wall Street house.
A midsize lender, China CITIC Bank Corp said in a separate statement it has USD 76 million in Lehman bonds.
Analysts say the impact of Lehman's failure on Chinese banks should be limited.
Other state-owned banks have reported holding Lehman debt but say it accounts for only a tiny fraction of their assets.
China's biggest lender, Industrial & Commercial Bank of China Ltd., says it owns Lehman bonds worth USD 151.8 million.
Construction Bank's Lehman holdings are 0.29 percent of net assets and should have no effect on its financial position, the bank said. It said the bank would make allowances for possible losses.
Bank of China Ltd., the country's No. 3 lender by assets, says it owns Lehman bonds worth USD 75.6 million. Bank of Communications Ltd, the country's fifth-largest commercial lender, says it has USD 70 million in Lehman bonds.
Another midsize lender, China Merchants Bank Ltd., says its Lehman bonds are valued at USD 70 million.
Last week, China's Hua An Fund Management Co, warned of possible heavy losses due to Lehman's failure. Hua An said its International Balanced Fund is invested in notes provided by Lehman that are linked to stocks, bonds and other assets.
Taken from another Blog:
Sunday, September 21, 2008
Shri Lakshmi Cotsyn soars on fund raising plan
Shri Lakshmi Cotsyn spurted 7.07% to Rs 64.35 at 14:58 IST on BSE after the company said it would consider raising funds overseas as well as from private equity players.
The company made the announcement during market hours today, 19 September 2008.
The stock hit a high of Rs 65.90 and a low of Rs 63 so far during the day. The stock had a 52-week high of Rs 203.50 on 31 December 2007 and a 52-week low of Rs 56.75 on 18 September 2008.
The small-cap textiles firm has an equity capital of Rs 14.80 crore. Face value per share is Rs 10.
The current price of Rs 64.35 discounts its Q4 June 2008 annualised EPS of Rs 52.05, by a PE multiple of 1.23.
The company also said it would increase its stake in a joint venture with UK-based Armet Armoured Vehicles to 75% from 49%.
The net profit of Shri Lakshmi Cotsyn rose 36.2% to Rs 19.26 crore on a 0.7% decline in sales to Rs 223.27 crore in Q4 June 2008 over Q4 June 2007.
Shiri Lakshmi Cotsyn manufactures and processes cotton fabrics. The company offers a wide variety of embroided fabrics, towels, denim, shirtings, and safety garments for the Army.
The company made the announcement during market hours today, 19 September 2008.
The stock hit a high of Rs 65.90 and a low of Rs 63 so far during the day. The stock had a 52-week high of Rs 203.50 on 31 December 2007 and a 52-week low of Rs 56.75 on 18 September 2008.
The small-cap textiles firm has an equity capital of Rs 14.80 crore. Face value per share is Rs 10.
The current price of Rs 64.35 discounts its Q4 June 2008 annualised EPS of Rs 52.05, by a PE multiple of 1.23.
The company also said it would increase its stake in a joint venture with UK-based Armet Armoured Vehicles to 75% from 49%.
The net profit of Shri Lakshmi Cotsyn rose 36.2% to Rs 19.26 crore on a 0.7% decline in sales to Rs 223.27 crore in Q4 June 2008 over Q4 June 2007.
Shiri Lakshmi Cotsyn manufactures and processes cotton fabrics. The company offers a wide variety of embroided fabrics, towels, denim, shirtings, and safety garments for the Army.
Himadri Chemicals spurts on overseas deal
Himadri Chemicals & Industries rose 9.80% to Rs 361.80 at 14:27 IST on BSE, after the company said its unit Himadri Global Investment has formed a joint venture with Chinese company to takeover existing coal tar distillation plant in Xiaoyi, Shanxi.
The company made this announcement during trading hours today, 19 September 2008.
The stock hit a high of Rs 362 and a low of Rs 329.95 so far during the day. The stock has a 52-week high of Rs 800 on 8 January 2008 and a 52-week low of Rs 281.50 on 1 September 2008.
The company’s current equity is Rs 31.85 crore. Face value per share is Rs 10.
The current price of Rs 361.80 discounts Q1 June 2008 annualized EPS of Rs 26.39, a PE multiple of 8.35.
Himadri Global Investment (HGIL) will hold 90% equity interest in the joint venture company (JVC) and the Chinese company will hold the balance 10%.
Himadri Chemicals & Industries’ net profit rose 13.4% to Rs 21.01 crore on 20.70% increase in net sales to Rs 91.50 crore in Q1 June 2008 over Q1 June 2007.
Himadri Chemicals & Industries’ principal activities are to manufacture and export coal tar distillation products including coal tar pitch, naphthalene, oils and corrosion protection products like coal tar.
The company made this announcement during trading hours today, 19 September 2008.
The stock hit a high of Rs 362 and a low of Rs 329.95 so far during the day. The stock has a 52-week high of Rs 800 on 8 January 2008 and a 52-week low of Rs 281.50 on 1 September 2008.
The company’s current equity is Rs 31.85 crore. Face value per share is Rs 10.
The current price of Rs 361.80 discounts Q1 June 2008 annualized EPS of Rs 26.39, a PE multiple of 8.35.
Himadri Global Investment (HGIL) will hold 90% equity interest in the joint venture company (JVC) and the Chinese company will hold the balance 10%.
Himadri Chemicals & Industries’ net profit rose 13.4% to Rs 21.01 crore on 20.70% increase in net sales to Rs 91.50 crore in Q1 June 2008 over Q1 June 2007.
Himadri Chemicals & Industries’ principal activities are to manufacture and export coal tar distillation products including coal tar pitch, naphthalene, oils and corrosion protection products like coal tar.
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