Profit-Taking Sweeps Most Asian Markets
Profit-taking swept most Asian-Pacific markets Tuesday, with Singapore suffering steep losses as the market continued to reject Singapore Telecom's offer for Australia's Cable & Wireless Optus.
Profit-taking struck shares in Hong Kong, Japan, Taiwan, the Philippines, Singapore and Thailand.
In Singapore, after dropping 9.3% Monday, SingTel shares continued to decline, losing 31 Singapore cents, or 14.2%, to end at an all-time low of 1.88 Singapore dollars. The two-day fall was estimated to have erased around S$8.3 billion from SingTel's market capitalization.
Investors worried about a share overhang: SingTel could issue up to 4 billion new shares for its proposed acquisition of Optus -- a deal questioned both for its price and merits, fund managers said.
Australian stocks closed higher, with Wall Street-inspired gains in index heavyweight News Corp. and the insurance sector offsetting scattered losses elsewhere. Optus's shares continued to fall as investors opted to exit the stock rather than accept SingTel's share-swap offer. Optus shares fell 20 Australian cents, or 5.3%, to 3.60 Australian dollars.
In Japan, struggling audio-equipment maker Aiwa's shares jumped 11.7% to go limit-up at 955 yen and closed at that level in ex-dividend trading after Monday announcing a massive restructuring plan. Shares of Aiwa's parent Sony also got a boost from the restructuring plan. Despite an overall slide in the high tech sector and ex-dividend trading, Sony added 0.9% to 9,370 yen.
In Hong Kong, following news of an investment in a mobile network, China Unicom's shares dropped 6.5%, or 60 Hong Kong cents, to a new closing low of 8.60 Hong Kong dollars.
Shares of electronic learning-devices manufacturer VTech Holdings fell 10% to HK$3.60 after the impact of Monday's profit warning was offset somewhat by news it will shed 16% of its work force -- 4,500 jobs worldwide -- and cut annual operating costs by US$30 million. The stock slid 42% in London Monday on the profit warning.
Pacific Century CyberWorks broke a seven-session string of declines, rising 5 cents, or 1.5%, to HK$3.50. The telecom and broadband multimedia services provider was expected to report Wednesday that 2000 earnings have been dragged into the red by hefty write-downs on investments, but this is well discounted in the market by now, dealers said.
South Korean shares dropped sharply as disappointing 2000 earnings from Hyundai Engineering & Construction jolted the market. Hyundai Engineering, a heavily indebted construction concern, reported a net loss for last year that totaled 2.9 trillion won, according to Korea Exchange Bank. The company's shares dropped 14.8%, or 215 won, to 1,235 won. Shares of Korea Exchange Bank, which is Hyundai Engineering's largest creditor, fell 3.6%, or 85 won, to 2,250 won.
Hyundai Engineering's loss pulled down the stocks of other Hyundai Group units. Hyundai Merchant Marine slipped 195 won to 2,500 won, Hyundai Heavy Industries fell 900 won to 28,900 won, Hyundai Securities dropped 740 won, or 10.9%, to 6,080 won and Hyundai Corp. slid 290 won, or 11.2%, to 2,310 won.
In Taiwan, stocks for dynamic random-access memory, or DRAM, and PC-related stocks gained on foreign buying. "Inventories have come down substantially and this will supposedly boost shares of many DRAM and PC makers," said Janet Sheng, an analyst at China Securities. Chip maker Mosel Vitelic added 2.92% to NT$28.20 and Acer, Taiwan's largest personal computer maker, gained 1.23% to NT$24.60.
Indonesian shares ended lower on caution ahead of President Abdurrahman Wahid's appearance in Parliament Wednesday to respond to a censure memorandum over two multimillion-dollar scandals. Many observers were waiting to see whether Mr. Wahid will continue his often confrontational approach to Parliament or take a more conciliatory stance in a bid to avoid an impeachment process. Some political parties said a special session to impeach Mr. Wahid could be called at any time.
Indian shares rose as foreign funds went bargain hunting in technology shares. Infosys added 7.95% to 4,653 rupees.
Malaysian shares finished lower as economic worries continued despite the pump-priming measures announced by Prime Minister Mahathir Mohamad Monday.
China's hard-currency Class B shares continued to climb on the move by regulators to open the shares to domestic investors.
In dollar terms, around 6:00 a.m. EST, the Asian-Pacific sector of the Dow Jones Global Indexes slipped 0.86 to 89.38 after rising 3 in the previous session. The Dow Jones World Stock Index shed 0.11 to 184.18 after adding 3.94 in the previous session.
Paper-product and distiller and brewer shares led the Dow Jones Global Industry Groups, while trucking and toy issues were among the laggers.
Copyright (c) 2001 Dow Jones & Company, Inc.
All Rights Reserved.
Copyright (C) 2001 Dow Jones & Company, Inc. All Rights Reserved.
(%modification_date PT)
Profit-taking swept most Asian-Pacific markets Tuesday, with Singapore suffering steep losses as the market continued to reject Singapore Telecom's offer for Australia's Cable & Wireless Optus.
Profit-taking struck shares in Hong Kong, Japan, Taiwan, the Philippines, Singapore and Thailand.
In Singapore, after dropping 9.3% Monday, SingTel shares continued to decline, losing 31 Singapore cents, or 14.2%, to end at an all-time low of 1.88 Singapore dollars. The two-day fall was estimated to have erased around S$8.3 billion from SingTel's market capitalization.
Investors worried about a share overhang: SingTel could issue up to 4 billion new shares for its proposed acquisition of Optus -- a deal questioned both for its price and merits, fund managers said.
Australian stocks closed higher, with Wall Street-inspired gains in index heavyweight News Corp. and the insurance sector offsetting scattered losses elsewhere. Optus's shares continued to fall as investors opted to exit the stock rather than accept SingTel's share-swap offer. Optus shares fell 20 Australian cents, or 5.3%, to 3.60 Australian dollars.
In Japan, struggling audio-equipment maker Aiwa's shares jumped 11.7% to go limit-up at 955 yen and closed at that level in ex-dividend trading after Monday announcing a massive restructuring plan. Shares of Aiwa's parent Sony also got a boost from the restructuring plan. Despite an overall slide in the high tech sector and ex-dividend trading, Sony added 0.9% to 9,370 yen.
In Hong Kong, following news of an investment in a mobile network, China Unicom's shares dropped 6.5%, or 60 Hong Kong cents, to a new closing low of 8.60 Hong Kong dollars.
Shares of electronic learning-devices manufacturer VTech Holdings fell 10% to HK$3.60 after the impact of Monday's profit warning was offset somewhat by news it will shed 16% of its work force -- 4,500 jobs worldwide -- and cut annual operating costs by US$30 million. The stock slid 42% in London Monday on the profit warning.
Pacific Century CyberWorks broke a seven-session string of declines, rising 5 cents, or 1.5%, to HK$3.50. The telecom and broadband multimedia services provider was expected to report Wednesday that 2000 earnings have been dragged into the red by hefty write-downs on investments, but this is well discounted in the market by now, dealers said.
South Korean shares dropped sharply as disappointing 2000 earnings from Hyundai Engineering & Construction jolted the market. Hyundai Engineering, a heavily indebted construction concern, reported a net loss for last year that totaled 2.9 trillion won, according to Korea Exchange Bank. The company's shares dropped 14.8%, or 215 won, to 1,235 won. Shares of Korea Exchange Bank, which is Hyundai Engineering's largest creditor, fell 3.6%, or 85 won, to 2,250 won.
Hyundai Engineering's loss pulled down the stocks of other Hyundai Group units. Hyundai Merchant Marine slipped 195 won to 2,500 won, Hyundai Heavy Industries fell 900 won to 28,900 won, Hyundai Securities dropped 740 won, or 10.9%, to 6,080 won and Hyundai Corp. slid 290 won, or 11.2%, to 2,310 won.
In Taiwan, stocks for dynamic random-access memory, or DRAM, and PC-related stocks gained on foreign buying. "Inventories have come down substantially and this will supposedly boost shares of many DRAM and PC makers," said Janet Sheng, an analyst at China Securities. Chip maker Mosel Vitelic added 2.92% to NT$28.20 and Acer, Taiwan's largest personal computer maker, gained 1.23% to NT$24.60.
Indonesian shares ended lower on caution ahead of President Abdurrahman Wahid's appearance in Parliament Wednesday to respond to a censure memorandum over two multimillion-dollar scandals. Many observers were waiting to see whether Mr. Wahid will continue his often confrontational approach to Parliament or take a more conciliatory stance in a bid to avoid an impeachment process. Some political parties said a special session to impeach Mr. Wahid could be called at any time.
Indian shares rose as foreign funds went bargain hunting in technology shares. Infosys added 7.95% to 4,653 rupees.
Malaysian shares finished lower as economic worries continued despite the pump-priming measures announced by Prime Minister Mahathir Mohamad Monday.
China's hard-currency Class B shares continued to climb on the move by regulators to open the shares to domestic investors.
In dollar terms, around 6:00 a.m. EST, the Asian-Pacific sector of the Dow Jones Global Indexes slipped 0.86 to 89.38 after rising 3 in the previous session. The Dow Jones World Stock Index shed 0.11 to 184.18 after adding 3.94 in the previous session.
Paper-product and distiller and brewer shares led the Dow Jones Global Industry Groups, while trucking and toy issues were among the laggers.
Copyright (c) 2001 Dow Jones & Company, Inc.
All Rights Reserved.
Copyright (C) 2001 Dow Jones & Company, Inc. All Rights Reserved.
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