Tuesday, February 20, 2007
MANILA
Shares across the Asia-Pacific region finished the day mixed in thin holiday trade with most markets closed for the Lunar New Year celebrations in Asia, although merger hopes spurred active buying in Tokyo and sent the Nikkei index to new highs in more than six years while a turnaround in sentiment also sent the All Ordinaries in Sydney to a fresh closing high. Tokyo shares ended higher across the board, buoyed by M&A hopes as the fiscal yearend in March approaches and with investors expecting the market to weather a possible 25-basis-point hike in the overnight call rate when the Bank of Japan's policy board meets this week. Widespread hopes for an economic recovery also prompted investors to chase prices higher. The blue-chip Nikkei 225 Stock Average closed up 64.44 points or 0.36 pct at 17,940.09, off a high of 17,974.00. The TOPIX index of all issues listed on the Tokyo Stock Exchanges first section ended the session up 5.43 points, or 0.31 pct, at 1,779.96, off a high of 1,782.58. Daimaru finished up 145 yen or 8.63 pct at 1,825 while Matsuzakaya shot up 100 yen or 10.28 pct to 1,073, its limit-high for the day, after local media reported over the weekend that the two were mulling a merger to cope with declining sales. However, many investors also held back from buying ahead of the Bank of Japan's two-day policy board meeting which starts tomorrow. In Australia, share prices finished higher as investor sentiment bounced back from Friday's profit-taking, sending the All Ordinaries index to a fresh record close. Banks led the market higher, including Australia & New Zealand Banking Group (ANZ) after it announced a 4.05 aud a share bid for the remaining 65.8 pct of online share-trading firm ETrade Australia that it does not already own. The S&P/ASX 200 ended up 36.4 points or 0.61 pct at 5,990.1, edging closer to Thursday's record close of 5,992.8. The index hit an intraday record high of 6,003.2. The broader All Ordinaries index climbed 33.8 points to a record close of 5,969.3, beating Thursday's previous record close of 5,969.1. The index also set a new intraday record of 5,983.0. ANZ shares rose 0.58 aud to finish at 29.83, Westpac advanced 0.29 to 25.64, National Australia Bank was up 0.31 at 40.85 but Commonwealth Bank lost 0.30 to 50.90 after trading ex-dividend. Shares in New Zealand closed 0.96 pct lower as the recent flood of company reports slowed to a trickle, giving investors a chance to pause. The benchmark NZX-50 index ended 39.67 points lower at 4,140.22 on light value turnover of 99.06 mln nzd. Among the top three stocks here, Telecom fell 0.11 nzd to 4.96, Fletcher Building was steady at 10.92 and Contact Energy shed 0.17 to 8.65. In Manila, shares ended mixed as some investors locked in recent gains on select stocks like Philippine Long Distance Telephone Co (PLDT), while others picked up small caps. Most investors took to the sidelines pending more positive trading leads and with many key markets in Asia, including Hong Kong and Singapore, shut today and tomorrow for the Lunar New Year holidays. The 30-company main index finished down 4.53 points at 3,329.03, after moving between 3,318.09 and 3,356.70. The broader all-share index rose 1.84 points to 2,110.71.
Amsterdam
Amsterdam shares close higher, tracking Europe; Rodamco rises
The AEX closed 3.12 points or 0.62 pct higher at 509.22, after trading in a range of 507.00-510.87. Government bonds traded lower while the euro stood at 1.3142 usd versus 1.3126 usd late on Friday. The AEX has not reached levels like this since the end of April 2002, as the index initially took its lead from Asian markets and tracked European indexes with Wall Street closed for President's Day. Gainers on the AEX were led by Rodamco Europe, which put on 2.95 pct to 111.50 eur due to continued merger and acquisition speculation, traders said. Fellow property group Corio led gainers on the midcap, rising 3.35 pct to 74.88 eur, while Vastned Retail climbed 2.43 pct to 78.56. ABN Amro was the biggest mover by volume on the AEX, rising 2.09 pct to 25.93, based on continued merger and acquisition talk, traders said. Among other financials, Aegon gained 1.31 pct to 15.42, Fortis rose 0.73 pct to 34.51 and ING added 0.23 pct at 34.13. KPN rose 1.99 pct to 11.81 following an upgrade to 'overweight' from 'neutral' by JP Morgan. Nutreco rose 2.93 pct to 53.06 after acquiring BASF AG's animal feed blends operations in eight countries. Fellow food-related issue Numico rose 1.46 pct to 41.11 ahead of results expected Wednesday. Another notable midcap gainer included Heijmans, which rose 2.57 pct to 43.88 after unit Heijmans Infra won a contract worth over 85 mln eur from the Dutch Directorate General for Public Works and Water Management. Techs traded mixed, as Philips rose 0.20 pct to 29.59 after the company said it will recommend the reappointment of CEO Gerard Kleisterlee for another four years at its next AGM. Philips also said it has invested 400 mln eur in the last five years in green products and that is plans to up that investment by 100 mln eur yearly over coming years. By contrast, ASML shed 0.96 pct to 19.59 eur and Getronics slid 1,48 pct to 7.33 after Ordina CEO Ronald Kasteel denied on Dutch television on Friday that he had any interest in acquiring Getronics. Analysts said Ordina could still be interested in parts of Getronics. Ordina was the second biggest decliner on the midcap, falling 1.40 pct to 17.61. LogicaCMG rose 2.34 pct to 2.62 eur following an upgrade to 'buy' from 'hold' at Deutsche Bank. DSM put on 0.55 pct to 35.04 after the company bought a stake in Harland Medical Systems of the US for an undisclosed amount. Among oils, SBM Offshore strengthened 0.40 pct to 27.90 and Royal Dutch Shell traded flat. Reed Elsevier was the strongest decliner on the AEX, falling 1.60 pct to 14.15 after a downgrade to 'hold' from 'buy' at CitiGroup. Akzo Nobel was another of the few AEX decliners, off 1.15 pct to 46.24. On the midcap, Pharming shed 2.72 pct to 3.57, still suffering from Friday's release of "disappointing" full year results, analysts said.
The AEX closed 3.12 points or 0.62 pct higher at 509.22, after trading in a range of 507.00-510.87. Government bonds traded lower while the euro stood at 1.3142 usd versus 1.3126 usd late on Friday. The AEX has not reached levels like this since the end of April 2002, as the index initially took its lead from Asian markets and tracked European indexes with Wall Street closed for President's Day. Gainers on the AEX were led by Rodamco Europe, which put on 2.95 pct to 111.50 eur due to continued merger and acquisition speculation, traders said. Fellow property group Corio led gainers on the midcap, rising 3.35 pct to 74.88 eur, while Vastned Retail climbed 2.43 pct to 78.56. ABN Amro was the biggest mover by volume on the AEX, rising 2.09 pct to 25.93, based on continued merger and acquisition talk, traders said. Among other financials, Aegon gained 1.31 pct to 15.42, Fortis rose 0.73 pct to 34.51 and ING added 0.23 pct at 34.13. KPN rose 1.99 pct to 11.81 following an upgrade to 'overweight' from 'neutral' by JP Morgan. Nutreco rose 2.93 pct to 53.06 after acquiring BASF AG's animal feed blends operations in eight countries. Fellow food-related issue Numico rose 1.46 pct to 41.11 ahead of results expected Wednesday. Another notable midcap gainer included Heijmans, which rose 2.57 pct to 43.88 after unit Heijmans Infra won a contract worth over 85 mln eur from the Dutch Directorate General for Public Works and Water Management. Techs traded mixed, as Philips rose 0.20 pct to 29.59 after the company said it will recommend the reappointment of CEO Gerard Kleisterlee for another four years at its next AGM. Philips also said it has invested 400 mln eur in the last five years in green products and that is plans to up that investment by 100 mln eur yearly over coming years. By contrast, ASML shed 0.96 pct to 19.59 eur and Getronics slid 1,48 pct to 7.33 after Ordina CEO Ronald Kasteel denied on Dutch television on Friday that he had any interest in acquiring Getronics. Analysts said Ordina could still be interested in parts of Getronics. Ordina was the second biggest decliner on the midcap, falling 1.40 pct to 17.61. LogicaCMG rose 2.34 pct to 2.62 eur following an upgrade to 'buy' from 'hold' at Deutsche Bank. DSM put on 0.55 pct to 35.04 after the company bought a stake in Harland Medical Systems of the US for an undisclosed amount. Among oils, SBM Offshore strengthened 0.40 pct to 27.90 and Royal Dutch Shell traded flat. Reed Elsevier was the strongest decliner on the AEX, falling 1.60 pct to 14.15 after a downgrade to 'hold' from 'buy' at CitiGroup. Akzo Nobel was another of the few AEX decliners, off 1.15 pct to 46.24. On the midcap, Pharming shed 2.72 pct to 3.57, still suffering from Friday's release of "disappointing" full year results, analysts said.
Frankfurt
German shares close higher, led by DaimlerChrysler on M&A reports
The DAX was up 30.01 points or 0.43 pct at 6,987.08 after trading between 6,965.91 and 6,996.01. The MDAX added 86.54 points or 0.85 pct to 10,215.92, while the TecDAX gained 10.88 points or 1.28 pct to 858.18. Dax futures were up 14.50 points at 7,004.50. DaimlerChrysler, up 1.96 eur or 3.62 pct 56.08, was the top performer as speculation mounted that it would choose an outright sale of its underperforming Chrysler unit over an alliance or restructuring, dealers said. Handelsblatt newspaper said DaimlerChrysler will take a definitive decision on the underperforming unit's future before year-end and that its management board is leaning towards favouring an outright sale. Volkswagen was up 0.31 or 0.35 pct at 87.94 while Bayerische Motoren Werke added 0.33 or 0.72 pct to 46.38. Frankfurter Allgemeine Sonntagszeitung said yesterday VW is considering setting up its heavy truck operation's headquarters in the Netherlands should it succeed in a three-way merger with Scania AB and MAN AG. The move could break some of the resistance on the part of Scania and its larger shareholders against a three-way tie-up, the newspaper said. Deutsche Boerse, up 3.65 eur or 2.28 pct at 163.60, gained ahead of its publication of full year results on Thursday. Tourism and airlines stocks were mixed, with Lufthansa closing down 0.09 or 0.40 pct at 22.21 after it unexpectedly announced full year 2006 operating profit rising to 845 mln eur from 577 mln and net profit up 77 pct at around 800 mln. It proposed to pay a dividend of 0.70 eur per share from 0.50 eur per share. TUI improved 0.25 or 1.34 pct to 18.89 on persistent rumours that chief executive Michael Frenzel may be forced to resign. Siemens, up 0.71 or 0.84 pct at 84.97, said it has signed an agreement to acquire a majority stake in Czech-based electrical distribution technology company OEZ for an undisclosed amount. Deutsche Post was down 0.23 or 0.94 pct at 24.27. The postal carrier said over the weekend it wants to build up its capacity in Dubai to ensure its position as market leader in the Middle East. On the MDAX, K+S was the top performer, adding 3.02 or 3.44 pct at 90.88. EADS was 0.74 higher, or 2.95 pct, at 25.79 as rumours surfaced that the state-run investment agency of Qatar might be interested in buying up to a 10 pct stake in the aeronautics giant. EADS' unit Airbus had announced too that work on the major restructuring plan, 'power8', for its troubled aircraft maker, Airbus, will be suspended as agreement between the French and German sides could not be found. Puma dropped 9.47 eur or 3.27 pct to 280.52 after it released sub-consensus fourth-quarter figures that showed EBIT dropped to 41.6 mln eur from 55 mln in the same period a year ago, as marketing costs and investment in its brands weighed on profits. On the TecDAX, Solon gained 5.37 or 16.14 to 38.64 after it disclosed full year results that exceeded market forecast. Software AG lost 1.38 eur or 2.43 pct to 55.38.
The DAX was up 30.01 points or 0.43 pct at 6,987.08 after trading between 6,965.91 and 6,996.01. The MDAX added 86.54 points or 0.85 pct to 10,215.92, while the TecDAX gained 10.88 points or 1.28 pct to 858.18. Dax futures were up 14.50 points at 7,004.50. DaimlerChrysler, up 1.96 eur or 3.62 pct 56.08, was the top performer as speculation mounted that it would choose an outright sale of its underperforming Chrysler unit over an alliance or restructuring, dealers said. Handelsblatt newspaper said DaimlerChrysler will take a definitive decision on the underperforming unit's future before year-end and that its management board is leaning towards favouring an outright sale. Volkswagen was up 0.31 or 0.35 pct at 87.94 while Bayerische Motoren Werke added 0.33 or 0.72 pct to 46.38. Frankfurter Allgemeine Sonntagszeitung said yesterday VW is considering setting up its heavy truck operation's headquarters in the Netherlands should it succeed in a three-way merger with Scania AB and MAN AG. The move could break some of the resistance on the part of Scania and its larger shareholders against a three-way tie-up, the newspaper said. Deutsche Boerse, up 3.65 eur or 2.28 pct at 163.60, gained ahead of its publication of full year results on Thursday. Tourism and airlines stocks were mixed, with Lufthansa closing down 0.09 or 0.40 pct at 22.21 after it unexpectedly announced full year 2006 operating profit rising to 845 mln eur from 577 mln and net profit up 77 pct at around 800 mln. It proposed to pay a dividend of 0.70 eur per share from 0.50 eur per share. TUI improved 0.25 or 1.34 pct to 18.89 on persistent rumours that chief executive Michael Frenzel may be forced to resign. Siemens, up 0.71 or 0.84 pct at 84.97, said it has signed an agreement to acquire a majority stake in Czech-based electrical distribution technology company OEZ for an undisclosed amount. Deutsche Post was down 0.23 or 0.94 pct at 24.27. The postal carrier said over the weekend it wants to build up its capacity in Dubai to ensure its position as market leader in the Middle East. On the MDAX, K+S was the top performer, adding 3.02 or 3.44 pct at 90.88. EADS was 0.74 higher, or 2.95 pct, at 25.79 as rumours surfaced that the state-run investment agency of Qatar might be interested in buying up to a 10 pct stake in the aeronautics giant. EADS' unit Airbus had announced too that work on the major restructuring plan, 'power8', for its troubled aircraft maker, Airbus, will be suspended as agreement between the French and German sides could not be found. Puma dropped 9.47 eur or 3.27 pct to 280.52 after it released sub-consensus fourth-quarter figures that showed EBIT dropped to 41.6 mln eur from 55 mln in the same period a year ago, as marketing costs and investment in its brands weighed on profits. On the TecDAX, Solon gained 5.37 or 16.14 to 38.64 after it disclosed full year results that exceeded market forecast. Software AG lost 1.38 eur or 2.43 pct to 55.38.
LONDON
London shares close firm, mining issues lend support; Wall Street closed UK blue chips closed up, albeit off session highs, with strength in mining issues the main prop for gains in London, and with volume thin on the ground as Wall Street was closed for Presidents' Day holiday, dealers said. At the close, the FTSE 100 index was 24.9 points higher at 6,444.4, off session highs of 6,451.4. All the broader FTSE indices were also stronger. However, volume remained light, with just 1.707 bln shares changing hands in 289,934 transactions, as UK equities lacked guidance from across the Atlantic, with Wall Street closed. On the London trading floor, mining issues continued to offer the main support for UK blue chips. Anglo American remained the top FTSE 100 riser, up 84 pence to 2,622, helped by a report in yesterday's Sunday Times that Russia's Polyus Gold had made an approach to buy the miner's 2.25 bln stg stake in AngloGold Ashanti. Today's Financial Times, meanwhile, reported that Anglo American is expected to accompany Wednesday's interim results with news of a share buyback plan that would return up to 4 bln stg to shareholders. Firm commodity prices, notably for copper, also helped lift the mining sector, with Kazakhmys gaining 27 pence at 1,126, Lonmin up 94 pence to 3,290, Vedanta up 23 pence to 1,309, and Xstrata up 28 pence to 2,533 while Rio Tinto clocked up 29 pence to 2,828. Elsewhere, Sainsbury was in fine fettle, taking on 8-3/4 pence at 512-3/4 after yesterday's Sunday Telegraph reported that a secretive Middle Eastern investment fund, which owns a stake in the food retailer, has discussed a potential joint bid for the UK's second biggest supermarket chain with Stuart Rose, the head of Marks & Spencer.
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