Showing posts from February, 2011

Olam victim of market ignorance?

Just a day after Olam’s stock was sharply sold down following a critical report from CLSA, at least two investment houses have come out to say that the stock of the commodity trader was dumped by a market which did not understand its business.

How to overcome setbacks in losing trades

Setbacks are the rule rather than the exception when it comes to trading.

Outflow from emerging markets will not last, says Citi

However, Citi Asia Pacific’s head of markets Rodrigo Zorrilla believes that the recent outflows from emerging market funds to the developed world to be a temporary ‘rebalancing of risk and portfolio’, rather than a long-term trend.

This is not a bear market: Soc Gen

The recent outflow of funds from Asia and back into developed markets is just an underperformance cycle that is unlikely to signify the end of the bull run for funds focused on the emerging region, said Todd Martin, Societe Generale Corporate and Investment Banking’s Asia equity strategist.

U.S. lawsuits against China companies face hurdles

As more Chinese companies trade on U.S. stock exchanges, investors are increasingly suing them for securities fraud in U.S. courts -- and slamming into a host of legal and bureaucratic barriers.

Vietnam devaluation offers reminder for China

An investment theme that is getting aired more frequently this year is to favour developed markets over emerging markets. Did BRICs really fall out of favour so quickly?

Liquidity crunch hangs China banks out to dry

Lenders under pressure from savers, central-bank regulators

Momentum and liquidity are still key

It is a fact of life that when momentum shifts and liquidity drains from a market, no amount of talk about valuations still being cheap or earnings still being compelling, or fundamentals being unchanged, will get people to buy. Ah, for the good old days of 2009 and 2010 when such talk did in fact have its intended effect.

Deutsche consortium buys 54.7% of Jaya

A Deutsche Bank-led consortium has acquired a majority stake in Singapore offshore chartering and shipbuilding company Jaya Holdings from a private equity firm for $202.6 million.

Drought a reminder that it never rains but it pours

Suddenly the battle to bring inflation under control is looking a lot more urgent. On Tuesday, the People’s Bank of China announced an increase in interest rates. The latest rise was the third since October last year, and came just weeks after the mainland authorities instructed banks to lock away a greater proportion of their deposits as reserves.

New listing rules sure to draw same old excuses

It is curious that mainland companies listing in Hong Kong enjoy more latitude in making board appointments here than at home. If the stock exchange has its way, that will change by the end of next year, when at least one third of a firm’s directors will be independent, bringing the city into line with the mainland, though still not with Singapore, the United States and Britain. The exchange also wants companies to ensure that all directors, including the city’s best-known tycoons, have eight hours of training every year, and to limit the number of boards a person can serve on to avoid them spreading themselves too thin.

Asian equities moving towards bubble

‘Very overvalued’ over the next 18 months: RBS

China, emerging markets face risk of ‘hard landing’, warns Roubini

Nouriel Roubini, the New York University professor who predicted the credit crisis, said China and other emerging markets risk a ‘hard landing’ as they start raising interest rates to fight inflation.

In 2011, be ready to run

The Year of the Rabbit looks set to follow in the footsteps of the tiger, bringing some good moves for the economy but danger, too, as the dragon gets closer.

Do more to boost liquidity - for everyone’s benefit

Intuitively, most investors would know that an illiquid stock is riskier than a liquid one and, all other things being equal, should therefore command a lower price.