Sensex

Tuesday, December 19, 2006

$$ DreamGains !! $$ FW: Sharekhan Post-Market Report dated December 19, 2006

 


From: The Sharekhan Research Team [mailto:marketwatch@research.sharekhan.com]
Sent: Tuesday, December 19, 2006 4:54 PM
To: The Sharekhan Research Team
Subject: Sharekhan Post-Market Report dated December 19, 2006

 
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December 19, 2006
Index Performance
Index

Sensex

Nifty
Open 13,737.36 3,928.85
High 13,748.62 3,931.90
Low 13,237.39 3,783.45
Today's Cls 13,382.01 3,832.00
Prev Cls 13,731.09 3,928.75
Change -349.08 -96.75
% Change -2.54 -2.46
 

Market Indicators
Top Movers (Group A)
Company Price 
(Rs)
%
chg

Gainers

Ramco Systems 191.60 4.16
J&K Bank 636.45 3.54
Nestle 1,070.00 2.66
iGate Global 263.00 2.27
Fertilisers & Chemicals 22.80 2.24

Losers

Crompton Greaves 193.05 -6.29
Century Textiles 633.85 -4.91
Adani Enterprises 226.00 -4.72
NTPC 134.25 -4.58
BHEL 2,286.55 -4.38
Market Statistics
- BSE NSE
Advances 925 428
Declines 1,632 856
Unchanged 62 22
Volume(Nos) 21.03cr

29.75cr

 Market Commentary 
Sensex plummets 349 points
After crashing 493 points in intra-day trades, the market closed at 13382 and shed 2.54% for the day.
The market took a sharp dip after a positive open and continued moving down, as shares across sectors witnessed substantial selling pressure amid fears  
that the government may follow the footsteps of Thailand to restrict the volatility caused by foreign financial investors. The session opened with a positive gap of five points at 13737 and saw considerable volatility through the day. The selling pressure in front-line stocks kept the consumer durables, tech, information technology and FMCG stocks in the red that dragged down the index to an intra-day low of 13237. The Sensex finally ended the session with losses of 2.54% and was down 349 points at 13382, while the Nifty tumbled 2.46% and was down 97 points at 3832.

The breadth of the market was extremely negative. Of the 2,619 stocks traded on the BSE, 1,632 stocks declined, 925 stocks advanced and 62 stocks ended unchanged. Among the sectoral indices the BSE CG index shed 3.28% at 8894 followed by the BSE IT index (down 3.02% at 5047), the BSE Teck index (down 2.76% at 3489) and the BSE FMCG index (down 2.34% at 1904).

Among the Sensex stocks, only Hero Honda managed to close in positive territory. NTPC tumbled 4.58% at Rs134, BHEL plunged 4.38% at Rs2,287, L&T slumped 3.81% at Rs1,416, Reliance Communication dropped 3.58% at Rs451, Satyam Computers shed 3.39% at Rs464, TCS lost 3.39% at Rs1,142 and ACC declined 3.36% at Rs1,018. The other front-line stocks were also down 2-3% each. However, Hero Honda was marginally up at Rs753.
European Indices at 16:30 IST on 19-12-2006
Index Level Change (pts) Change (%)
FTSE 100 Index 6213.30 -34.10 -0.55
CAC 40 Index 5485.67 -44.65 -0.81
DAX Index 6545.15 -52.10 -0.79
Asian Indices at close on 19-12-2006
Index Level Change (pts) Change (%)
Nikkei 225 16776.88 -185.23 -1.09
Hang Seng Index 18964.55 -228.36 -1.19
Kospi Index 1427.76 -5.47 -0.38
Straits Times Index 2897.30 -66.14 -2.23
Jakarta Composite Index 1736.67 -50.95 -2.85

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$$ DreamGains !! $$ Thai Stocks, Baht Slide as Investors Withdraw on Currency Curbs

Thai Stocks, Baht Slide as Investors Withdraw on Currency Curbs

By Margo Towie

Dec. 19 (Bloomberg) -- Thai stocks plunged after regulators yesterday told banks to lock up 30 percent of new foreign- currency deposits for a year to curb speculation. The baht dropped the most in three years.

The benchmark Stock Exchange of Thailand index slid as much as 8.9 percent, the heaviest in more than three years, and the baht almost doubled yesterday's 0.8 percent drop after central bank Governor Tarisa Watanagase said she was ``confident'' the measures will reduce inflows. The currency, Asia-Pacific's best performer, had surged 16 percent this year before yesterday as overseas investors bought the nation's stocks.

``Foreign investors will rush to take money out as they're afraid the baht may weaken further,'' said Visit Tantisuthorn, Secretary General of the Government Pension Fund, the country' biggest fund with more than $7.8 billion in assets. ``It'll help exporters and the country's trade balance.''

The baht climbed this year to a nine-year high yesterday amid optimism the economy will accelerate after a Sept. 19 coup ended a political deadlock that curbed spending and confidence. Exporters including Thai Union Frozen Products Pcl, the world's second-biggest tuna canner, on Nov. 16 asked the central bank to stem baht gains that are undermining their competitiveness.

The baht lost as much as 1.5 percent, the biggest fluctuation of any currency today, to 36.08 against the dollar. It traded at 35.66 at 10:03 a.m. in Bangkok. It last fell more on Sept. 14, 2003. The Stock Exchange of Thailand index slid the most since February 2003.

Lock Up

Starting today, overseas investors buying the baht will only be able to invest 70 percent of what they transfer and recoup all of their funds if they keep the money in Thailand for more than a year. Those who withdraw the reserved amount in less than a year will be fined 33 percent of that 30 percent portion.

A stronger baht hands overseas investors greater capital returns when they convert proceeds from sales back to dollars or their own currencies. China's yuan has added 3.1 percent against the dollar this year, Malaysia's ringgit has gained 6.3 percent and Singapore's dollar has climbed 7.9 percent.

``It's basically as if they're putting a tax on any trades less than a year,'' said Magnus Prim, a senior foreign-exchange strategist at Skandinaviska Enskilda Banken in Singapore. ``It's going to stop any buying pressure and with the stock market likely to be hit, we could see the baht falling some more.''

A rising baht hurts exporters by cutting the value of their local currency-denominated profits and making their products more expensive compared with those of Asian rivals.

A military coup on Sept. 19 ousted prime Minister Thaksin Shinawatra and ended seven months of political turmoil. Prime Minister Surayud Chulanont, installed by the military junta after the coup, is planning record spending on roads, subways and other infrastructure projects.

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