ASEAN Markets to Consolidate on Gains

US stocks rallied again overnight as an uptick in mergers and acquisitions and signs of progress in securing European financial backing for the debt in Greece eased investor fears.

ASEAN markets rallied today as expected and tomorrow look set to consolidate those gains with a flattish day expected. India, China and Hong Kong should see good rallies.

NYSE Technologies and four leading ASEAN equities exchanges–Bursa Malaysia (BM), the Philippine Stock Exchange (PSE), Singapore Exchange (SGX) and the Stock Exchange of Thailand (SET)–today during the 10th ASEAN Exchanges CEO’s Meeting in Manila signed a Letter of Intent that designates NYSE Technologies as the solutions provider for the ASEAN Trading Link. The award marks a significant first step towards the establishment of an integrated ASEAN Capital Market that will raise the profile of the ASEAN markets around the world.

In Singapore the government revised its forecast of the nation’s gross domestic product (GDP) growth in 2010 from 3-5 percent to 4.5-6.5 percent. The state’s industrial production in January recorded a strong increase of 40 percent over the same period last year while its tourism sector grew by 17.6 percent year-on-year, welcoming 908,000 visitors.

In the Philippines – Local shares closed higher on Monday led by market heavyweight Philippine Long Distance Telephone Co. (PLDT), which was expected to report strong earnings for 2009.

The Philippine Stock Exchange composite index rose 35.16 points or 1.16% to 3,078.91.

The broader all-share index gained 16.16 points or 0.84% at 1,944.50.

Gainers beat losers, 81 to 34, while 56 issues were unchanged.

A total of 1.77 billion shares worth P3.23 billion were traded.

In Indonesia The government’s top investment official on Tuesday appealed to the Indonesian people not to fall under the spell of a counter-productive economic nationalism, saying foreign investment was needed to develop the economy.

“Nationalism gets defined in a better way when we can start seeing capital moving into this country from outside,” said Gita Wirjawan, the chairman of the Investment Coordinating Board (BKPM).

“[Foreign investors should start] partnerships with local entrepreneurs so local entrepreneurs can start crawling first and then walking.”

Thai Banks’ Profit May Rise on Exports, JPMorgan Says
 Thai bank earnings may climb this year as a rebound in overseas orders increases demand among exporters for loans, JPMorgan Chase & Co. said.

The brokerage recommends Kasikornbank Pcl and Siam Commercial Bank Pcl for their focus on lending to small- and medium-sized companies, Sriyan Pietersz, JPMorgan’s head of research for Southeast Asia, said in a Bloomberg Television interview in Bangkok today. Pietersz in 2009 was ranked third in Thailand research by Institutional Investor magazine.

In Malaysia 

Hong Leong Bank Ventures Into China
Hong Leong Bank said that its JV with strategic partner Bank of Chengdu (BOCD) has been given the nod by Chinese authorities to offer consumer financing in central and western China. “Given the strong potential in China and positive impact on bottomline, the news should trigger buying interest in the stock,” said a dealer quoted by the Dow Jones Newswires.
OSK Research said that JV was an inexpensive entry for Hong Leong Bank into China. “The strategic tie-up allows Hong Leong Bank to leverage on BOCD’s current infrastructure while giving the group a greater share of the lucrative and fast growing and relatively under-penetrated consumer banking market in Chengdu.” The brokerage noted that profit contribution from 20% associate BOCD has been consistently surprising on upside. OSK Research has a Buy rating with RM8.80 target price.

Domestic Retail Sales May Grow 1-3%
“A retail sales growth of between 1-3% is probably sustainable this year based on the 5% GDP projection for 2010,” Eddy Chan, president of the Malaysia Association Retailers, told Business Times. Last week, PM Najib announced that Malaysia’s economy will grow by 5% after suffering a 1.7% contraction in 2009. Chan was optimistic that food, mid-range fashion and cosmetics will be the main beneficiaries of the overall economic recovery. He was however less sanguine on retailers in the furniture, jewellery and electrical appliances segment.

Allianz Kept At Hold By TA Research
TA Research kept Allianz at Hold but raised its target price for the lender to RM5.50 from RM5.10 prompted by an upwards revision in FY10 net profit forecast to RM119.4m from RM98.1m as well as FY11 earnings. TA Research said Allianz’s FY09 earnings of MYR118.9m was better than expected. “While we remain positive on Allianz, we do not expect a repeat of its FY09 strong double-digit earnings growth due to the high base effect,” says TA

Overnight Trading

Adding to optimism, fertilizer maker CF Industries raised its hostile bid for Terra Industries Inc, while Dow Chemical said it will sell one of its units that make latex, rubber and related plastics to private equity firm Bain Capital Partners.

We have been seeing some big M&A deals yesterday and today, and the market certainly loves this activity. It shows that companies, not just average investors, are finding value in the future of market place.

The Dow Jones industrial average was up 27.66 points, or 0.27 per cent, at 10,431.45. The Standard & Poor’s 500 Index was up 4.91 points, or 0.44 per cent, at 1120.62. The Nasdaq Composite Index was up 10.04 points, or 0.44 per cent, at 2283.61.

Greece’s borrowing costs fell to their lowest level in weeks amid expectations the government will announce new austerity measures to win European debt guarantees for the cash-strapped European Union member.

The Chicago Board Options Exchange Volatility Index, Wall Street’s favorite measure of investor anxiety, fell more than 3 per cent to 18.67.

CF Industries Holdings Inc raised its offer to $US47.40 per share in cash and stock, sending Terra Industries’ Inc shares up 12 per cent to $US46.06. CF shares shed 3.3 per cent to $US104.01.

Dow Chemical Co said it would sell its Styron basic plastics unit to Bain Capital Partners for $US1.63 billion. Dow shares were up 1 per cent at $US29.93.

Wall Street ended higher for a second straight day on Monday, boosted by AIG’s record-setting deal to sell a major Asian unit for $US35.5 billion and other M&A news.

Tuesday’s advance pushed the Dow index into positive territory for 2010, a day after both the S&P 500 and Nasdaq moved above the break-even mark for the year.

In auto sales for February, Ford Motor Co posted a 43 per cent surge and set higher production targets for second the quarter in North America. But the stock fell nearly 1 per cent to $US12.30.

General Motors Co posted a nearly 12 per cent gain in US February sales, but that was weaker than some analysts had expected.

On the Nasdaq, technology bellwether Qualcomm Inc, rose more than 5 per cent to $US37.34 after the company announced a new $US3 billion share buyback plan and raised its quarterly dividend by 12 per cent.

Shares of Sequenom Inc jumped 20 per cent to $US8.34 after Cantor Fitzgerald upgraded the firm and raised its price target to $US16 from $US4.

UBS raised its 2010 estimate for global semiconductor company revenue growth, saying the first quarter appeared to be tracking ahead of seasonal trends with strong personal computer sales that should continue to support demand for DRAM microchips.

Global Market Indexes

Americas

Price

Change (%)

1 Year %

Last Updated

Toronto Composite

11832.94

+104.88 (0.89%)

+53.92%

Mar 02, 3:00pm

Mexican Bolsa IPC Index

32021.48

+256.34 (0.81%)

+89.14%

Mar 02, 3:00pm

Brazil Bovespa Index

67989.07

+761.14 (1.13%)

+87.63%

Mar 02, 3:00pm

Argentina Merval Index

2287.03

+21.89 (0.97%)

+142.33%

Mar 02, 3:00pm

Chile IPSA Index

3762.04

-20.00 (-0.53%)

+56.11%

Mar 02, 3:00pm

Asian Pacific

Price

Change (%)

1 Year %

Last Updated

Nikkei 225 Index

10221.84

+49.78 (0.49%)

+40.41%

Mar 02, 3:00pm

ASX All Ordinaries

4709.90

+0.00 (0.00%)

+47.01%

Mar 02, 3:00pm

Seoul Composite

1615.12

+20.54 (1.29%)

+58.53%

Mar 02, 3:00pm

Hong Kong Hang Seng

20906.11

-150.82 (-0.72%)

+69.73%

Mar 02, 3:00pm

Shanghai

3073.11

-14.73 (-0.48%)

+46.80%

Mar 02, 3:00pm

Taiwan Weighted

7597.62

+19.87 (0.26%)

+71.67%

Mar 02, 3:00pm

Singapore Straits Times

2772.20

-1.86 (-0.07%)

+80.79%

Mar 02, 3:00pm

Bombay Sensex Index

16772.56

+343.01 (2.09%)

+94.87%

Mar 02, 3:00pm

Jakarta Composite

2576.59

+0.00 (0.00%)

+105.12%

Mar 02, 3:00pm

Kuala Lumpur Composite

1288.07

+4.67 (0.36%)

+46.95%

Mar 02, 3:00pm

PSE Composite

3061.89

-17.02 (-0.55%)

+64.93%

Mar 02, 3:00pm

Sri Lanka All Share

3820.66

-4.64 (-0.12%)

+128.55%

Mar 02, 3:00pm

Europe

Price

Change (%)

1 Year %

Last Updated

FTSE 100 Index

5484.06

+78.12 (1.45%)

+51.25%

Mar 02, 3:00pm

Paris CAC 40

4012.91

-1.06 (-0.03%)

+55.45%

Mar 02, 3:00pm

Frankfurt Index

5776.56

+63.05 (1.10%)

+55.70%

Mar 02, 3:00pm

Milan BCI General

15743.00

+0.00 (0.00%)

+33.23%

Mar 01, 5:30pm

Belgium 20 Index

2470.55

-38.93 (-1.55%)

+53.40%

Mar 02, 3:00pm

Swiss Market Index

6820.04

+28.56 (0.42%)

+53.66%

Mar 02, 3:00pm

OSE Norway All Share

407.71

+1.20 (0.29%)

+63.61%

Mar 02, 3:00pm

ATX Vienna

2470.91

+17.30 (0.71%)

+74.32%

Mar 02, 3:00pm

Amsterdam Total Return General

312.88

-2.55 (-0.81%)

+49.82%

Mar 02, 3:00pm

Madrid General

1092.66

+8.30 (0.77%)

+42.57%

Mar 02, 3:00pm

Stockholm General Index

307.42

+2.13 (0.70%)

+61.20%

Mar 02, 3:00pm

Africa/Middle East

Price

Change (%)

1 Year %

Last Updated

Israel TA 100 Index

1124.31

+8.21 (0.74%)

+94.14%

Mar 02, 10:45am

TEL-TECH INDEX

311.90

+5.11 (1.67%)

+95.25%

Mar 02, 10:45am

TEL-TECH-15 INDEX

265.59

+3.47 (1.32%)

+80.09%

Mar 02, 10:45am

Shayne Heffernan www.livetradingnews.com

THE HOT LIST

Ebeling Heffernan Strong Buy on Molycorp Inc MCP