MARKET ACTIVITY/TRADING NOTES FOR DAY ENDING FRIDAY DECEMBER 19, 1997 (1)
Saturday, December 20, 1997
Japan jitters grip Street
Financial Post
North American stocks fell steeply after news of the third largest bankruptcy in Japanese history, but pared losses as investors went bargain-hunting in the afternoon
The Toronto Stock Exchange 300 composite index fell 59.6 points, or 0.9%, to 6535.34, retreating from its intraday low of 6464.98. Declining issues sharply outpaced advancers 646 to 410. Trading volume was 123.8 million shares, compared with Thursday's 127.1 million shares.
On the week, the TSE 300 was down 106.55 points or 1.6%.
Overall, 13 of the 14 TSE stock groups fell, but several backed up from their lows. The gold subindex ended down 1.5% at 6030.73, compared with its intraday low of 5942.18. The underlying bullion price on the Comex division of the New YorkMercantile Exchange rose US$2.30 to US$289.50 an ounce. In the group, Barrick Gold Corp. (ABX/TSE) fell 70› to $25.45.
The pipeline group was the only one to advance. In turbulent times, investors tend to put their money into pipeline and other stocks that are considered safe havens.
The banks, which traditionally fall into this category, fell 1.2% because the strong price appreciation in the stocks makes them prime targets for investors looking to lock in profits, said Paul Devlin, vice-president of MMA Investment Managers Ltd.
The decline in Asian markets is expected to hurt earnings of computer-related and telecommunication companies in particular. Newbridge Networks Corp. (NNC/TSE) slipped $1.30 to $51 and Northern Telecom Ltd. (NTL/TSE) fell $4.25 to $122.75.
Banks and other financial services issues, which account for 23% of the TSE 300, also dragged the broader market down. Royal Bank of Canada (RY/TSE) slipped $1.10 to $74.95, Toronto-Dominion Bank (TD/TSE) fell 55› to $53.40 and Canadian Imperial Bank of Commerce (CM/TSE) dropped $1.10 to $44.50.
Other major Canadian markets closed mixed. The Montreal Exchange portfolio fell 47.69 points, or 1.4%, to 3299.71. On the week it was down 75.17 points or 2.2%. The Vancouver Stock Exchange index rose 0.63 of a point to 596.08. On the week it was up 2.3 points or 0.4%.
HOT STOCKS
Regulatory ruling boosts BCE, sends small telcos lower. BCE Inc. (BCE/TSE), up 35› to $45.25, on volume of 3.2 million shares. Telus Corp. (T/TSE), down $1.10 to $32, on volume of 576,413 shares. Call-Net Enterprises Inc. (CN/TSE), down $1.10 to $21.15, on volume of 428,145 shares. Maritime Telegraph & Telephone Co. Ltd. (MTT/TSE), down $1.25 to $34, on volume of 15,577 shares. The Toronto Stock Exchange's telephone utilities subgroup fell slightly, with many smaller companies losing ground but heavily-weighted BCE moving up. The activity followed a regulatory ruling released after the market closed Thursday, which gave BCE most of a local phone rate increase it was seeking, but held other companies to smaller rises. The regulators also lifted most restrictions on long-distance pricing. BCE was the most active issue on the TSE. It traded for as little at $44.40 and was below Thursday's close of $44.90 until 2:30 EST, when the sentiment changed. BCE climbed steadily in the last hour.
The most likely fate of troubled software maker Corel Corp. is the sale of its principal product lines to U.S. competitors, analysts said Friday. The Ottawa-based company said it does not intend to fire any staff, but such a buyout would almost certainly result in layoffs. This week, Corel revealed preliminary fourth-quarter results that included both a bigger loss and lower sales than had been expected. It will issue formal results in January, but many investors chose to bail out of the stock Friday, sending it down 15%. Corel has about US$2.35 a share in revenue, which, when applied with a reasonable share price multiple of 0.3, gives it a share price of US71›, Stewart says. Throw in its US40› a share in cash, and the stock is worth at least US$1.11, or $1.60. Corel (COS/TSE) closed at $2.17 in Toronto Friday, down 37›, and (cosff/nasdaq) at US$1 1/2 in New York, down 1/4.
Ballard Power Systems Inc. (BLD/TSE), down $8.20 to $105.05, on volume of 157,881 shares. The shares are still up more than $17 after a week of wild moves. First Ford Motor Co. bought 3.7 million shares for $80.80 each, which pushed the stock to $115 on Wednesday. Then on Thursday GEC-Alsthom NV of Paris invested $53 million in a Ballard subsidiary, which knocked the market down.
Shares of Toronto-based Thomson Corp. (TOC/TSE) closed Friday at $37.35, down 25› on volume of 850,197 shares. On the heels of a favorable British competition ruling, London-based Thomson Travel Group has acquired Fritidsresor AB of Sweden, giving it a beachhead in the growing European travel market. On Friday, Britain's Monopolies & Mergers Commission said after an investigation it is satisfied there is sufficient competition in the travel industry. The commission accepts that vertically integrated companies, such as Thomson Travel, which own both retail travel agencies and tour operators, do not work against the public interest and could lead to lower prices for travellers. Nigel Harrison, chief financial officer for parent Thomson Corp., said the timing of the competition ruling and the acquisition was a coincidence. The Swedish purchase, worth about $618 million, gives Thomson Travel a long-sought presence in northern Europe.
Bracknell Corp. (BRK/TSE), up 40› to $4.15, on volume of 62,590 shares. The construction and privatization company said net earnings in the fourth quarter ended Oct. 31 were $4.7 million (18› a share), up from $2.8 million (11›)a year earlier.
BioChem Pharma Inc. is investing US$20 million in a private U.S. biotech company in exchange for its research into hepatitis B treatments and drugs that mimic therapeutic proteins. Shares in BioChem (BCH/ME) closed Friday at $34.40, up 40›, and (BCHE/Nasdaq) at US$24 1/8, up 5/16 on the news. Under the terms of the deal, BioChem will hold 20% of the equity of Massachusetts-based Scriptgen Pharmaceuticals Inc., and five-year warrants for an additional 5% of the company. BioChem receives exclusive rights to Scriptgen's small molecule drug candidates for hepatitis B, a liver disease for which BioChem and partner Glaxo Wellcome PLC are already testing a drug, Lamivudine.
Four Seasons Hotels Inc. (FSH/TSE), up 80› to $40.75, on volume of 24,600 shares. Douglas Ludwig, chief financial officer, told Dow Jones better than expected performance from company managed hotels in Europe and North America will offset weakness from Asian operations. He acknowledged that, except for the recent Asian crisis, Four Seasons had expected to beat analysts' forecasts for fourth-quarter earnings. But it will meet those expectations of between 55› and 60› a share. Four Seasons made 39› in last year's fourth quarter.
Xillix Technologies Corp. has passed its final hurdle for European approval of its medical device for detecting lung cancer. The Richmond, B.C.-based company said Friday its Life-Lung Fluorescence Endoscopy System received the CE Mark for compliance with the Medical Device Directive of the European Union. "They were already available in major European markets such as France and Germany," said Montreal-based analyst Mike Jams of L‚vesque Beaubien Geoffrion Inc. "But this expands the market to the entire Union." The imaging device, which helps doctors locate cancerous and pre-cancerous cells when tissue is exposed to light, is marketed by Olympus Optical Co. Ltd. of Tokyo. Xillix (XLX/TSE) shares closed up $0.18 to $2.18 on Friday.
CHC Helicopter Corp. (FLYb/TSE), down 1.75› to $9.25, on volume of 416 shares. On Tuesday, CHC gained access to the $37 million net proceeds of a $13-a-share financing done in September. The stock price fell $2.75 a share last week.
Botswana Diamondfields Inc. (BWD/VSE), up 20› to $1.70, on volume of 1.3 million shares. Canaccord Capital Corp. crossed one million shares at $1.60 each. The trade was mainly done for tax purposes, said Peter Barnes, chief financial officer.
NEW YORK
Traders are looking forward to next week more than just because Christmas and Hanukah (as well as a lot of vacations) are on the calendar. There's also the expectation that stocks will parlay the remarkable recovery staged Friday afternoon into some gains to begin the week.
True, the Dow still finished Friday's session in arrears, but the fact that the index came way back from the depths of 269 points down and tech stocks led the way as they pushed the Nasdaq into positive territory, has some traders optimistic. That said, trading is expected to ebb considerably from this week's action and many players remained concerned about the outlook for 1998. Activity in Asia's major markets will continue to play a role, but holiday sentiment will dominate.
"I think it will quiet down quite a bit next week," said Eugene Peroni, director of technical research at Janney Montgomery Scott. "The damage we did (Friday) was relatively minor in nature. Triple witching could have played a significant role. Now that we're beyond it, I think we'll get a Santa Claus rally, though it may not be until after Christmas."
As for technical analysis, Peroni said the Dow's breach of 7,800 is a concern, but not "catastrophic." As for the tech-rich Nasdaq, the technician said its turnaround Friday reflects the "oversold" state of many big tech stocks. Peroni listed Motorola (MOT), Iomega (IOM), Compaq Computer (CPQ) and Micron Technology (MU) as examples of industry leads overdue for a bounce, but he is not a proponent of making big bets on the tech sector.
"I'm still cautious because they're in a basic downtrend. You have to be fairly agile to trade the big tech names," the technician said. "Technology has been in a decade-long advance, so much good news is already built in. Until new technology emerges to push the industry on its next leap forward, they're probably going to languish. Maybe the group will be a market performer, but it's losing its leadership role."
Peroni is not alone in predicting that tech stocks are on the wane. In addition, many market mavens say the weakness in tech stocks in the past six weeks or so is a prelude to what will happen to the market as a whole. The exposure to Asia's faltering markets has been cited as the culprit for the declines in technology, and there are worries about earnings of most multinationals that do business in the region. But the performance of the bond market and 3M's (MMM) warning this week -- in which it mentioned slowing in domestic markets -- has many players concerned about economic growth closer to home.
"The real deal is that most people are still forecasting 2% to 3% GDP growth next year. I'm projecting zero to 1% domestic GDP growth," said Scott Bleier, chief investment strategist at Prime Charter. "Lower growth means lower earnings growth and lower valuations."
Noting that earnings growth and low interest rates have fueled the market's advance, Bleier said: "If we take one of those away, there's no reason to power higher. And what the bond market is telling us is that we will have a slowdown."
However, lower interest rates "will continue to prove a floor for themarket," he said, pegging the low 7,000s as the nadir for the Dow.
And what of that bond market? Fixed-income traders -- those who weren't short -- are embracing the current environment, whichmseems only to get better and better. Further unrest overseas and more worries about the performance of the U.S. stock market will continue to generate gains next week for the bond market. There's no data on the docket next week that could shake traders' optimism. And aside from the weekly figures -- like the same-store sales figures and jobless claims -- and Tuesday's final third-quarter GDP report and durable-goods numbers, there's hardly any data atall.
"Technically, things are very positive. To close where we closed (Friday) points to a test of 5.80% on the long bond," said Michelle Laughlin, Treasury market strategist at Prudential Securities. "Part of it is due to Asia and the 'flight to quality trade,' part about revised expectations about profit growth in the U.S. and subsequent revision of asset allocation out of stocks into bonds. Plus, there's a generally favorable backdrop with low inflation, no Fed tightening in the near term, and a budget surplus. Everything is very positive."
Cabletron Systems (CS) reports earnings Monday. Other than that, there are no earning reports of significance on the calendar.
After The Bell
Digital Link (DLNK) warned that it will lose as much as 7 cents per share in the fourth quarter. Analysts were expecting the manufacturer of high-speed digital access products to earn 20 cents per share in the quarter.
Waste Management (WMX) said it has met with Sunbeam (SOC)CEO Al Dunlap to discuss the company's permanent search for a CEO.
BJ Services (BJS) approved a plan to buy back up to $150 million shares.
An FDA advisory panel rejected NeoPharm's (NEO) breast-cancer rug, Neomark. The drug is designed to help doctors determine the extent of the disease, rather than cure it.
Friday's Markets
Unlike Chairman Mao and his followers, Wall Street's "long march" on Friday proved too much for blue-chip stocks to overcome. Dow stocks bounced back dramatically from some early morning losses, but worries about corporate profits and Asia's ongoing woes conspired to send the blue-chip index down 90 points. Tech stocks, however, successfully completed their revolutionary charge, sending the Nasdaq up 1.55 points on the day that began with a woeful start.
Reminiscent of how IBM's (IBM) share-buyback program helped stem the damage the day after "Gray Monday," a repurchase announcement by General Electric (GE) was partially credited withspurring the turnaround Friday; GE increased its share buyback program by $4 billion. In addition to GE's news, the reversal of fortunes in technology stocks helped the major indices close far offtheir worst levels of the session, when the Dow was off 269 points and the Nasdaq declined 37 points.
The Dow Jones Industrial Average ($INDUA) stumbled early amid worries about corporate earnings and big declines in Asia's major markets. The index shed more than 100 points in the first 30 minutes of trading, then losses accelerated. Shortly after 11 a.m. EST, the Dow was off 269 points and players were wondering whether the action would trigger a halt in trading. Thereafter, the index began its long climb back toward breakeven. At 1 p.m. the index was off a relatively modest 100 points, then slipped back again before chugging forward through much of the afternoon. The blue-chip proxy rose within 70 points of neutral in the last hour of trading, but finished off 90.21 points at 7,756.29, its first close under 7,800 since Nov. 24. The Dow lost 1.05% for the week.
In contrast to recent history, the Nasdaq Composite Index (COMP) demonstrated strength relative to its blue-chip brethren. The tech-plastered index suffered early-morning losses as well, reaching a nadir of down 37 points 90 minutes into the trading day. With semiconductor and equipment names and Internet-related stocks leading the way, the Nasdaq marched higher in more direct fashion than the Dow, save for a brief dip after about 1 p.m. EST. By 2 p.m., the index was lower by less than 10 points and continued to push higher in the last two hours of trading. The index closed up 1.55 points at 1,524.74. For the week, the Nasdaq slid 0.77%.
The S&P 500 (SPX) finished off 8.52 points to 946.78, and dipped 0.7% for the week. The Russell 2000 Index (RUT) shed 0.32 on the session to 420.03, and slid 0.6% for the week.
Trading activity was the second-highest volume ever recorded, thanks in part to the triple-witching expiration of futures and options on stocks and index futures. On the NYSE, 805 million shares were traded while declining stocks swamped advancers by a 19- to-9 spread. In Nasdaq activity, 802 million shares were exchanged while the breadth of the market favored declining stocks by a 13-to-9 margin.
Overnight weakness in Asia was a prime factor in Wall Street's unease Friday. The bankruptcy of one of Japan's largest food distributors, Toshoku, helped send the Nikkei down more than 5.2%. The filing exacerbated concerns about the state of the Japanese economy, as it was the first large non-financial-related failure in the nation. Korea's stock market also declined more than 5% on worries about what the victory of Kim Dae Jung means for the nation and its ongoing economic crisis. Kim did pledge to support the $57 billion bailout package provided to Korea by the International Monetary Fund. In sympathy with its bigger neighbors, Hong Kong's Hang Seng Index fell more than 3%.
Once again, the worries about international markets and profitability of U.S. corporations worked to the benefit of the bond market. More demand for the perceived "safety" of U.S. Treasury bonds helped send the yield on the benchmark 30-year bond down to 5.92% Friday as prices rose a quarter-point.
Technology Stocks
The chip-equipment makers were showing signs of life Friday, and helped lead the Nasdaq's rebound. Novellus Systems (NVLS) rose2 5/32 to 33 1/4 despite being downgraded by Lehman Brothers to "neutral" from "outperform." The brokerage firm was kinder to KLA-Tencor (KLAC), upping its rating to "buy" from "outperform, and the stock rose 3 9/16 to 37 13/16. Feeling a hit from Lehma down grades were Kulicke & Soffa (KLIC) and Electroglas (EGLS), but losses were only fractional.
Elsewhere in the group, Applied Materials (AMAT) rose 1 7/8 to 30, Lam Research (LRCX) gained 9/16 to 29 1/8, Teradyne (TER) closed up 2 7/16 to 33, Asyst Technologies (ASYT) rose 1 3/8 to 21 3/8, and ASM Lithography Holding (ASMLF) jumped 2 5/8 to 64.
Chip-industry leader Intel (INTC) reversed some early-morning weakness to close up 7/8 to 70. On the NYSE, Texas Instruments (TXN) rose 2 to 45 3/8, Micron Technology (MU) climbed 3 1/2 to 27 1/2, and Advanced Micro Devices (AMD) gained 1/2 to 18 3/4.
Among other chip names, SGS-Thomson Microelectronics (STM) climbed 5 to 58 11/16, Lattice Semiconductor (LSCC) rose 3 31/32 to 52 5/8, and Micrel (MCRL) climbed 4 3/8 to 27 3/8, thanks to an upgrade from Hambrecht & Quist.
Among Internet-related stocks, America Online (AOL) rose 1 1/4 to 85, Amazon.com (AMZN) jumped 2 1/2 to 54, Yahoo! (YHOO) gained 3 3/4 to 61 7/8, Excite (XCIT) closed up 1 15/32 to 24 31/32, and Lycos (LCOS) rose 1 7/8 to 36 3/4.
Microsoft (MSFT) continued to suffer under the scrutiny of the Justice Department's antitrust charge. The software maker's stock fell 2 5/16 to 128 9/16 as U.S. District Court Judge Thomas Penfield Jackson set a Jan. 13 hearing for arguments on the government's request that Microsoft be held in contempt for violating a court order. Comments from the judge seemed to indicate he is skeptical about Microsoft's claim that its Windows operating systems will not perform as intended without Internet Explorer.
Bear, Stearns recommended investors pare their holdings in Microsoft in favor of Computer Associates (CA). Computer Associates shares closed up 1/8 at 50.
The other big drag on the Nasdaq was Dell Computer (DELL), which fell 2 7/16 to 78 5/16. Other PC makers fared better. Compaq Computer (CPQ) closed off 9/16 to while Gateway 2000 (GTW) jumped 2 15/16 to 33 1/16, and Digital Equipment (DEC) rose 1 to 37 1/4.
Elsewhere in the software sector, Software Artistry (SWRT) jumped 6 1/2 to 24 1/4 on news that International Business Machines (IBM) is buying the company for $24.50 per share. After falling early on, IBM powered back to close up 2 to 102. Fellow Dow tech component Hewlett Packard (HWP) dropped 11/16 to 61 5/16 but well off its worst levels of the day.
Adobe Systems (ADBE) parlayed beating the Street by a penny with its fourth quarter earnings of 56 cents per share into a rise of 2 1/4 to 36 7/8.
Great Plains Software (GPSI) rose 1 5/8 to 22 1/4 after it beat estimates by 2 cents, earning 15 cents per share in its secon quarter.
PeopleSoft (PSFT) continued to demonstrate strength, rising 11/16 to 32 7/8.
3Com (COMS) fell 1/2 to 32 5/8, but finished well off its worst level of the session. On Thursday, 3Com said it earned 4 cents per share in its second quarter, a penny below predictions, according to Zacks, but in line with First Call's consensus. Those expectations had already been trimmed lower after 3Com's warning on Dec. 3. Soundview lowered its 1998 and 1999 earning estimates and kept its short-term "hold" rating on 3Com. BA Robertson Stephens, however, lifted its 1998 and 1999 estimates on the networker.
Elsewhere in the group, Sun Microsystems (SUNW) rose 1 5/8 to 38 11/16, Ascend Communications (ASND) powered up 3 1/16 to 27 5/16, but Cisco Systems (CSCO) slid 1/8 to 53 7/16.
In the wireless space, there was a mixed performance. Motorola (MOT) rose 2 3/16 to 58, while Nokia (NOK/A) fell 13/16 to 69 3/16, Lucent Technologies (LU) slid 1 1/4 to 76, and Ericsson (ERICY) closed off 3/8 to 36 1/4.
National Data (NDC) fell 1 3/8 to 33 after being downgraded by Lehman Brothers to "outperform" from "buy."
Active Issues
The Dow's decline was led by J.P. Morgan (JPM), which once again succumbed to worries about its exposure to Asia despite a rallying bond market, falling 2 7/8 to 116. Other Dow laggards included 3M (MMM), off 2 5/16 to 83 5/8; The Travelers Group (TRV), which shed 2 1/8 to 53; and Merck (MRK), off 3 1/8 to 102.
General Electric fell 13/16 to 73 3/16 although the firm's board upped its share-buyback program to $17 billion from $13 billion and increased its dividend. AT&T (T), the strongest Dow component of late, rose 2 3/16 to 61 5/16 after Morgan Stanley Dean Witter reiterated its "buy" rating on the stock. Chairman Michael Armstrong has frozen all hiring, set stringent new compensation guidelines, and redirected more than $2 billion in local-phone services spending, the Wall Street Journal reported.
Other Dow gainers included McDonald's (MCD), up 15/16 to 45 15/16; Coca-Cola (KO), which gained 1 3/16 to 65 7/16; and Procter & Gamble (PG), which rose 1/2 to 79 7/8.
Nike (NKE) tumbled 3 7/16 to 40 1/16 after reporting second-quarter earnings late Thursday that missed estimates by 7 cents. The athletic-apparel marker also said it expects negative earnings comparisons for the next two quarters. Goldman Sachs cut its rating on the firm to "market perform" from "market outperform" and Dain Bosworth downgraded the stock as well.
Depotech (DEPO) shed 8 7/8 to 4 1/8 on word that a Food & Drug Administration advisory panel has recommended rejection of the firm's treatment for neoplastic menegitis, which arises from cancerous tumors. SBC Warburg Dillon Reed and Vector Securities lowered ratings on the drug maker.
A profit warning (for its second quarter) from Briggs & Stratton (BGG) helped send the stock down 3 3/16 to 49 1/16.
Worries about a slowdown in Asia-related traffic grounded the recently high-flying airline stocks Friday. UAL (UAL) slid 1 1/16 to 89 9/16, AMR (AMR) fell 2 15/16 to 124 7/8 and US Airways Group (U) tumbled 2 1/4 to 59 1/8. Those results helped send the Dow's Transportation Index down 30.53 points to 3143.24.
Following J.P. Morgan's lead, most big bank stocks were lower on the session as well. Chase Manhattan Bank (CMB) slid 1 to 108 1/8, NationsBank (NB) lost 2 5/8 to 59 1/8, BankAmerica (BAC) shed 1 7/16 to 73 1/2, BankBoston (BKB) fell 1 11/16 to 94 3/8, and Wachovia (WB) closed down 1 7/16 to 80 7/8.
Oil-drilling and equipment stocks were hit by selling once more. Smith International (SII) slid 2 1/2 to 58 1/8, Schlumberger (SLB) fell 2 5/16 to 74 13/16, Diamond Offshore (DO) dipped 1 3/4 to 45 15/16, Camco (CAM) closed off 1 1/8 to 56 3/8, and Transocean Offshore (RIG) fell 2 to 43.
Big drug stocks were mixed. Pfizer (PFE) fell 2 to 72 1/8, and Bristol-Myers Squibb (BMY) lost 1 3/8 to 91 3/16, while Warner-Lambert (WLA) rose 2 3/16 to 120 1/16.
Showboat (SBO) jumped 8 7/16 to 29 9/16 on word that it is being acquired by Harrah's Entertainment (HET) in a deal valued at $1.2 billion. Harrah's said it will acquire Showboat for $30.75 cash per share, or $519 million, and assume $635 million of Showboat debt. Harrah's closed up 1 to 18 3/16.
Incredibly, FIRSTPLUS Financial Group (FPFG) shares jumped 4 9/16 to 33 5/8 although the company said it expects reduced earnings for 1997, 1998 and 1999.
KN Energy (KNE) fell 7/8 to 47 5/8 after agreeing to acquire Occidental Petroleum's (OXY) natural-gas pipeline business for $3.5 billion in cash and debt assumption of $500 million. Occidental closed down 1/16 at 29 3/16.
New York Times (NYT) shares fell 3 3/16 to 61 3/8 afterWasserstein Perella lowered its rating on the media firm to "hold" from "buy."
Chancellor Media (AMFM) rose 3 1/2 to 71 3/4 thanks to some positive comments from Furman Setz, which upped its 1998 and 1998 earning estimates on the firm.
Continental Homes (CON) jumped 4 5/8 to 39 11/16 after agreeing to be acquired by D.H. Horton (DHI) in a stock swap that valued Continental Homes at $44.50 per share. D.H. Horton fell 2 5/16 to 16 15/16.
PacifiCorp (PPW) rose 1 1/8 to 25 7/16 on word that U.K. regulators have cleared the way for its $9.7 billion takeover of Energy Group PLC.
The major overseas markets all closed lower.
London: British shares sank to their lowest level in two weeks as fears that "Asian flu" would spread brought stocks under pressure. The FT-SE 100 index closed at 5020.2, down 148.1 points or 2.9%, and down 25 points or 0.5% on the week.
Frankfurt: German stock prices settled lower with little corporate news to spur trading. The Dax index closed at 4084.75, down 81.49 points or 2%, but up 2.15 points on the week.
Tokyo: Japanese stocks plunged at the close after Toshoku's failure triggered panic selling of companies seen as financially weak. The 225-share Nikkei average closed at 15,314.89, down 846.75 points or 5.2%, and down 589.41 points or 3.7% on the week.
Hong Kong: Share prices ended the session sharply lower, dragged down by the fall in Tokyo. The Hang Seng index closed at 10,405.81, down 348.3 points or 3.2%., and down 208.85 points or 2% on the week.
Sydney: The Australian market closed weaker, undermined by the Tokyo and Hong Kong markets. The all ordinaries index closed at 2528.1, down 35 points or 1.4%. On the week it was up 34.1 points or 1.4%.
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