For those investors in Asia/Australia -- Australian Stocks Gain as News Rises, Hyundai Electronics Leads Korea Up
By Victoria Batchelor
Asian Stocks: Australia Gains, Led by News Corp., Korea Rises
Sydney, March 20 (Bloomberg) -- Australian stocks rose for a
third day, led by News Corp., as investors bet the company can boost the value of its assets through forming alliances or selling shares in its satellite business.
Australia's All Ordinaries index rose 14.8, or 0.5 percent,
to 3218.20. News Corp. on anticipation of a sale of shares in its satellite division amid expectations it will form alliances with companies such as Yahoo! Inc., the world's largest Internet search engine.
``It's not expensive if it can generate the earnings growth
and it may be able to in a low inflation, low interest rate
environment,' said Michael Fitzsimmons, who helps manage A$250 million ($150 million) in Australian equities at Jardine Fleming Capital Partners in Melbourne.
In other markets, Korea's Kospi rose 0.3 percent, led by
Korea Telecom Corp. and other companies with large market values as investors bet the key stock index's 6 percent tumble last week was overdone. New Zealand's Top 40 index fell 0.3 percent, led by Warehouse Group Ltd. and Contact Energy Ltd., which were among more than 25 stocks that shed dividends today.
Japan's financial markets are closed for Vernal Equinox Day.
News Corp rose 5.6 percent to A$24.80. Morgan Stanley Dean
Witter last week raised its 2001 price target on News Corp.'s American depositary receipts to $74 from $48. News Corp.'s American depositary receipts, which represent four ordinary shares, on Friday rose 2.9 percent to 60 1/8.
Lenders such as National Australia Bank Ltd. gained as a
string of weaker economic releases boosted expectations Australia's central bank won't raise rates much further before the July 1 introduction of a 10 percent tax on most goods and services.
National Australia Bank rose 0.6 percent to A$20.95.
Australia & New Zealand Banking Group Ltd. gained 0.2 percent to A$10.76.
Solution 6 Holdings Ltd. rose 9.4 percent to A$10.45 after Solution 6 and Sausage Software Ltd. said they've agreed to merge and Telstra Corp., Australia's No.1 phone company, said it would take a 40 percent stake in the merged business. I like this deal!
Miners such as Broken Hill Proprietary Co. and Rio Tinto Ltd. declined after the U.S. metals index fell 5.2 percent to 184.65, having gained about 11 percent the previous two sessions. Broken Hill, the nation's largest miner, fell 2.5 percent to A$17.55. Rio Tinto dropped 5.2 percent to A$24.40.
Korea
The Kospi index rose 2.55 to 858.11. Computer shares rose
tracking gains by similar shares in the U.S. Hyundai Electronics Industries Co. rose 6.3 percent, to 22,100, and was the most actively traded stock by value at 66.8 billion won ($29.8 million). Daou Technology Inc., a software maker, rose 2.3 percent, to 28,950 won.
``Investors are betting that semiconductor shares are cheap
compared to the counterparts in U.S. market,' said Woo Min Ki, a market analyst at Shinyoung Securities in Seoul.
Micron Technology Inc., the third largest dynamic random access memory chipmaker after two Korean companies, surged 13.7 percent on Friday. Micron's price to earnings ratio stands at 110.15, while Hyundai Electronics, the largest DRAM chipmaker in terms of capacity saw its estimated price earnings ratio at 23.1.
Samsung Electronics Co., the world's largest computer memory
chip maker, gained 2.2 percent to 280,000, becoming the second most actively traded stock by value. The company said it had entered into an agreement with the world's eight major computer-related giants such as International Business Machines to set up a electronic commerce network with which they will exchange real time chip production information.
Gains were limited after telecommunications-related shares
fell as investors bet the shares' gains last year were overdone.
``Telecom companies are still struggling with making profits
under upcoming call-charge discount and the lagging growth in their subscribers,' said Woo at Shinyoung.
SK Telecom Co. fell 2.7 percent to 4.03 million won, snapping a two-day gain. Korea's largest mobile phone service operator shed 1.7 percent this year, after jumping nearly six times in value last year.
New Zealand
New Zealand's Top 40 index fell 6.8 to 1992.50. Weighing on
New Zealand's stock market, more than 25 stocks went ex-dividend.
Stocks typically fall when they go ex-dividend. Friday was the last day to hold stocks such as Warehouse, Contact Energy Ltd. and Air New Zealand Ltd. and still be entitled to first-half dividends.
``We've got a whole heap of stocks going ex-dividend before
the March 31 government's tax increase,' which will boost tax payments for higher-income earning investors, said Peter Lynds, a broker at Cavill White Securities.
Warehouse Group fell 4 percent to NZ$4.20 after it shed a 17
cents first-half dividend and an 18 cents special dividend and issued one share for every one held.
Natural Gas Corp. dropped 2.1 percent to NZ$1.39 after the
company said it will raise NZ$366 million (US$177 million) through a rights offer to fund its purchase of TransAlta New Zealand Ltd.
The Commerce Commission, the nation's antitrust authority, late Friday cleared Natural Gas to buy the stake of TransAlta. TransAlta New Zealand rose 3.1 percent to NZ$2.30.
Insurers rose on speculation Commonwealth Bank of Australia's planned purchase of Colonial Ltd. may lead to other financial services mergers. Tower Corp. rose 3 percent to NZ$5.20. AMP Ltd. gained 5.5 percent to NZ$16.55.
Around Asia
Taiwan stocks will probably tumble by their new maximum limit of 3.5 percent within minutes of the open, led by big companies such as Taiwan Semiconductor Manufacturing Co., after the ruling Nationalist party was unexpectedly unseated in a landmark weekend election.
Stocks are likely to fall on concern that relations between
China and Taiwan may deteriorate following the Saturday's election of Chen Shui-bian of the Democratic Progressive Party as the nation's new president. Some analysts said the DPP's pro-independence leanings could harm fragile relations with China.
The Finance Ministry last night cut the daily down limit on
stocks by half, to 3.5 percent, to head off a slide when the
market reopens today for the first time since the election.
Singapore stocks may rise, led by property developers and DBS Group Holdings Ltd. as investors switch from technology stocks after those shares rose to levels some investors see as too high.
Malaysia's technology stocks may rise for a second day, led
by Telekom Malaysia Bhd. and other technology companies as
investors bet their Internet businesses will help earnings.
Tenaga Nasional Bhd. and other large shares may fall, leaving the market mixed, on concern U.S. Federal Reserve policy-makers whatever -- lost this part
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