SHANGHAI, April 29 |
SHANGHAI, April 29 (Reuters) - Citic Securities , China's biggest listed brokerage, posted a worse-than-expected 9.5 percent drop in first-quarter earnings, despite a rebound in the domestic stock market, a source with direct knowledge of the figures said on Friday.
Net income during the January-March period dropped to 1.36 billion yuan ($209 million), compared with 1.5 billion yuan a year earlier, the source said.
That compares with an average forecast of 1.65 billion yuan by two analysts contacted by Reuters.
Earnings per share fell to 0.14 yuan, the source said, from 0.23 yuan per share in the first quarter of 2010. ($1 = 6.502 yuan) (Reporting by Samuel Shen and Jason Subler)
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* BSE Sensex drops for fifth straight session
* Foreign funds net sellers of Indian shares Mon-Wed
* Sentiment cautious ahead of cbank policy next week (Updates to close)
By Ami Shah
MUMBAI, April 29 (Reuters) - Indian shares declined for the third month out of the four in 2011, and ended lower for the fifth straight session on Friday, as investors exercised caution on expectations the central bank may adopt a hawkish approach at its policy on Tuesday.
They also posted their worst weekly loss since late February, after foreign institutional investors (FIIs) sold Indian equities for the first three sessions this week.
Traders expect the market to take cues from the Reserve Bank of India's action next week, but ruled out a sell-off by foreign funds.
Financials were the top losers as the market expected the RBI to raise key short-term rates by at least 25 basis points, which would mark the ninth increase since mid-March last year, to curtail persistently high inflation. For a Take a Look [ID:nL3E7FT0L9]
"The RBI may hike rates by 25 basis points, but a very harsh action is not likely," said Sandeep Sabharwal, CEO of portfolio management services at brokerage Prabhudas Lilladher.
"A bigger move will not be of much help as inflation is largely driven by commodity prices.'
The banking sector index slipped 1.7 percent.
The 30-share BSE index slipped 0.81 percent, or 156.06 points, at 19,135.96 points, with 21 components losing ground.
It declined 2.4 percent for the week, taking losses for the month to 1.6 percent.
The 50-share NSE index dropped 0.6 percent to 5,749.50.
More than two shares declined for every share that advanced in the broader market on a volume of 711 million shares on NSE, higher than their 30-day average daily volume of 645 million shares.
"I don't think there is a directional sell off by FIIs. We are just seeing some correction after the steep run up in March," Sabharwal said. "People are jittery before the RBI policy."
Foreign funds, who had been net sellers in January and February, have bought a total of $3.2 billion over the past eight weeks.
"With Fed's easy policy stance, inflows are likely to be good," he added.
Leading lenders State Bank of India , ICICI Bank and HDFC Bank fell between 0.3 percent and 1.8 percent.
Mortgage lender Housing Development Finance Corp shed 1.5 percent.
Energy giant Reliance Industries rose 1.2 percent after falling 6.6 percent over four previous sessions.
State-run explorer Oil & Natural Gas Corp slipped 2.8 percent, after gaining nearly 5 percent over the previous three sessions.
World equities as measured by the MSCI index edged 0.1 percent higher by 1032 GMT, while its emerging markets index slipped 0.1 percent.
STOCKS THAT MOVED
* Crompton Greaves tumbled 10.1 percent to 252.20 rupees after the power equipment maker reported late on Thursday a 6 percent decline in March-quarter profit. [ID:nBMB012762]
Credit Suisse said in a note a sharp fall in margins was a concern.
* Uco Bank dived 9 percent to 104.45 rupees after the state-run reported a 40.5 percent decline in its quarterly net profit.[ID:nBMB012774]
* Oriental Bank of Commerce declined nearly 6 percent to 345.55 rupees after the state-run lender reported a lower-than-expected 5.4 percent increase in its March quarter net profit.[ID:nBMB012771]
* Steel Authority of India closed 1.6 percent lower at 159.30 rupees, ahead of its March-quarter earnings announcement.
MAIN TOP THREE BY VOLUME ON NSE
* Ambuja Cements on 63.7 million shares
* Unitech on nearly 30 million shares
* Alok Industries on 29.5 million shares
FACTORS TO WATCH * For technical analysis see: www.reuterstechnicals.com * Indian rupee report * Indian bonds report * Dollar stuck near 3-yr lows; month-end flows weigh * Brent falls to $124.70 on fears over slower U.S. growth * Dollar still friendless, stocks pause for breath * U.S. stock index futures slip; earnings, data eyed * For closing rates of Indian ADRs (Reporting by Ami Shah; Editing by Aradhana Aravindan) (If you have a query or comment on this story, send an email to newsfeedback.asia@thomsonreuters.com)
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DIARIES & DATA: Indian Data Watch [ID:nINDATA] Asia earnings diary U.S. earnings diary European diary Indian diary Wall Street Week Ahead Eurostocks Week Ahead
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JAKARTA, April 29 |
JAKARTA, April 29 (Reuters) - Bank Mandiri , Indonesia's biggest lender, said on Friday its first-quarter net profit rose 89 percent, driven mostly by a one-time gain from the stake sale in Garuda Indonesia's public offering earlier this year.
The firm's first-quarter net profit was 3.8 trillion Indonesian rupiah, compared with 2 trillion rupiah in the same period a year earlier, said Pahala Mansury, Mandiri's director for finance and strategy.
It reported a first-quarter net interest income of 5.8 trillion rupiah. That compared with net interest income of 4.63 trillion rupiah in the year-ago period.
The one-time gain was estimated at about 1.3 trillion rupiah when it sold its stake in flag carrier Garuda in February.
Analysts forecast Mandiri's 2011 net profit to rise 28 percent to 11.79 trillion rupiah, according to Thomson Reuters data.
Shares in Mandiri rose 1.4 percent ahead of the results, and have gained more than 6 percent in the first quarter to outperform a Jakarta index that was down around 0.7 percent in the same period. (Reporting by Fathiya Dahrul; Editing by Muralikumar Anantharaman)
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BUDAPEST, April 29 |
BUDAPEST, April 29 (Reuters) - Hungary's OTP Bank OTPB.BU shareholders on Friday approved a dividend of 72 forints per share after its 2010 results.
OTP will distribute the dividend attached to its treasury shares among its outside investors, who can expect to receive about 73 forints per share.
The dividend will be disbursed from June 14, 2011, OTP said. (Reporting by Marton Dunai)
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FRANKFURT, April 29 |
FRANKFURT, April 29 (Reuters) - Key euro-priced bank-to-bank lending rates hit their highest levels in two years on Friday as a fresh jump in euro zone inflation boosted expectations of further ECB rate hikes in the months ahead.
New euro zone figures showed inflation in the 17-country bloc hit 2.8 percent in April, its fastest annual rate in more than 2-1/2 years and supporting expectations the ECB will raise rates again as soon as June.
The three-month Euribor rate EURIBOR3MD= -- traditionally the main gauge of unsecured interbank euro lending and a mix of interest rate expectations and banks' appetite for lending -- rose to 1.385 percent on Friday, the highest since late April 2009 and up from 1.375 percent the previous day.
Six-month rates EURIBOR6MD= rose to 1.675 percent from 1.669 percent, shorter-term one-week rates EURIBORSWD= increased to 1.226 percent from 1.222 percent while longer-term 12-month rates EURIBOR1YD= rose to 2.132 percent.
EONIA overnight interest rates EONIA= fell to 1.282 percent on Thursday.
Excess liquidity currently stands at 25 billion euros after banks upped their intake of ECB funding this week, according to Reuters calculations.
The central bank raised euro zone rates by a quarter of a percentage point to 1.25 percent earlier this month, ending almost two years of record-low interest rates. [ID:nLDE7351QH]
Two-thirds of the 62 economists polled by Reuters after the rate hike, which until last month would have shocked experts, expect another rate rise by July at the latest. [ECB/INT]
Besides ECB policy rates, attention is intensifying on what the central bank will do with its unlimited liquidity policy in the coming months.
In March it left all its operations at full allotment until July, putting its exit strategy on hold for the second quarter running. But recent comments from Ewald Nowotny and Axel Weber have increased expectations that the bank will soon restart the phasing out process.
It is already back to its pre-crisis range of funding operations. Three-month loans are again the longest maturity on offer and banks have now paid back all the six-month and 12-month loans the ECB injected during the turmoil. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
For graphic of EONIA trading volumes click here
For graphic of euro zone liquidity levels click r.reuters.com/wer86p ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
Euribor rates are fixed daily by the Banking Federation of the European Union (FBE) shortly after 0900 GMT.
* For a table of the latest Euribor fixings for terms of one week to one year, double click on EURIBOR=
* For a table of the previous day's fixings of EONIA swap rates, which show market expectations for future overnight lending rates, double click on EONIAINDEX
* For graphs of historic Euribor and EONIA swap rates, right click on the links in angle brackets below, and select 'Related Graph' 1 week EURIBORSWD= EONIAINDEXSW= 2 week EURIBOR2WD= EONIAINDEX2W= 3 week EURIBOR3WD= EONIAINDEX3W= 1 month EURIBOR1MD= EONIAINDEX1M= 2 month EURIBOR2MD= EONIAINDEX2M= 3 month EURIBOR3MD= EONIAINDEX3M= 4 month EURIBOR4MD= EONIAINDEX4M= 5 month EURIBOR5MD= EONIAINDEX5M= 6 month EURIBOR6MD= EONIAINDEX6M= 7 month EURIBOR7MD= EONIAINDEX7M= 8 month EURIBORS8M= EONIAINDEX8M= 9 month EURIBOR9MD= EONIAINDEX9M= 10 month EURIBOR10MD= EONIAINDEX10M= 11 month EURIBOR11MD= EONIAINDEX11M= 1 year EURIBOR1YD= EONIAINDEX1Y= (Reporting by Frankfurt newsroom; Editing by Ruth Pitchford)
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MOSCOW, April 29 (Reuters) - Russian companies are launching
a fresh wave of London IPO attempts as the high oil price and
growing Russian economy lure private issuers back to equity
markets.
Analysts had earlier predicted private issuers could raise
as much as $30 billion this year given the right market
conditions, up from around $5.5 billion last year, though a
series of recent flops has tempered expectations.
The total raised in 2011 to date is now just over $2
billion.
Below is a list of IPOs in the pipeline for 2011, including
the successful and postponed placements:
DONE DEALS IN 2011
ISSUER PROCEEDS TIMING
==========================================================
*Nomos (NMOSq.L) $718 mln April
Mid-size Russian bank became the biggest private issuer of the year to date when it announced plans to raise at least $718 million in London and Moscow.
The company priced the IPO at just above the middle of the indicated range, despite pledging little more than a quarter of the proceeds to development of the business. [ID:nLDE73H1YF]
*Etalon (ETLNGq.L) $575 mln April
Russian real estate developer Etalon Group priced a London IPO at the bottom end of its price range to raise $575 million.
Most of the proceeds came from the sale of new shares, while the company's existing shareholders accepted $75 million -- about half the amount they wanted.
Etalon needs cash to fund expansion in Russia's recovering real estate market. [ID:nLDE73E0CH]
*Rusagro (AGRORq.L) $330 mln April
Russian sugar and pork producer Rusagro priced a London IPO of new shares towards the lower end of its price range to raise $330 million for business expansion, but the shares jumped 6 percent on debut.
*Hydraulic (HMSGq.L) c. $360 mln Feb
Russian pumps manufacturer HMS Hydraulic was forced to cut the price and scale of original plans to raise up to $652 million from a London IPO, the only member of a quartet of February candidates to get away. [ID:nLDE7170TR]
LATEST WAVE
ISSUER PROCEEDS TIMING
========================================================
*Russian Helicopters $500 mln May
State-controlled Russian Helicopters has set an early price range of $19-25 a share for a potentially ground-breaking London IPO that could give investors a rare chance of exposure to Russia's defence and arms sector.
The company hopes the deal will raise $250 million from an issue of new shares and about the same amount from existing stock, partly to pay down debt. [ID:nLDE73P0IQ]
*Yandex $1 bln May
Russia's most popular search engine Yandex is hoping to become the country's biggest IPO of the year -- and first outside London or Moscow -- when it lists on U.S. exchange Nasdaq in May.
The company plans to sell both new and existing shares and
will hope to emulate the initial success of last year's Mail.ru
(MAILRq.L) [ID:nL3E7FS4Z1].
POSTPONED
ISSUER PROCEEDS TIMING
==========================================================
*Euroset $1.52 bln
Russia's biggest mobile phone retailer scrapped plans to raise up to $1.52 billion in April, citing market volatility.
The company, which has nearly 4,500 bright yellow fronted stores in Russia and the CIS, had wanted the vast majority of the proceeds to go to owner Alexander Mamut. [ID:nLDE73C0B4]
*EuroSibEnergo c. $1 bln
Russian billionaire Oleg Deripaska's power company EuroSibEnergo said on Tuesday it saw no need to raise funds for the remainder of 2011, pushing back its planned $1 billion Hong Kong listing to later this year due to volatile markets. [ID:nL3E7EM0VO]
It had originally planned to start pre-marketing for its proposed initial public offering on Feb. 21.
*KOKS c.$520 mln
Russian pig iron and coking coal producer KOKS was hoping to raise more than $500 million for around 20 percent of its shares to be split between its owners and the business itself. The company pulled the IPO on Feb. 4 citing market conditions in the wake of violence in Egypt. [ID:nLDE7110P9]
*ChelPipe up to $688 mln
Russian steel pipe maker ChelPipe was seeking up to $688 million from new and existing shares in London and Moscow to pay down debt and raise cash for its owner.
It postponed the IPO on Feb 10, although sources say the company is planning fresh meetings with investors to discuss plans for a fresh attempt. [ID:nLDE71908R]
*Nord Gold $1 bln
Russian gold miner Nord Gold had been looking to raise $1
billion in a London float of a 25 percent stake to repay debts
to its Russian mining parent Severstal (CHMF.MM), but postponed
plans after refusing to cut its price range. [ID:nLDE71A0BZ]
*Vital Development $22 mln
Biochemical company had been planning a small float on Moscow bourses but postponed plans until the second half due to competition from bigger IPOs. [ID:nLDE73B05B]
WIDER PIPELINE
ISSUER PROCEEDS TIMING
==========================================================
*PHOSAGRO $500 mln June
Russian fertilizer producer Phosagro is planning to push ahead with plans for a London stock market float in June, a source close to the deal told Reuters on Friday, and aims to raise at least $500 million. [ID:nWLA9223]
*SUEK c.$1 bln spring/summer
Russia's largest steam coal producer SUEK is hoping to revive long-held plans for an IPO ahead of the summer lull, having improved its corporate governance standards and grown on the back of higher demand, the Independent on Sunday reported. [ID:nLDE7320BZ]
*UTV Media c.$250 mln Q2/Q3 2011
The media holding company is looking to raise $250 million in London before the autumn, according to a source. [ID:nLDE71E26K]
*Centrobuv TBC 2011
The Russian shoe retailer is planning a London float later this year and has chosen Morgan Stanley and Renaissance Capital as organisers, sources told Reuters. [ID:nLDE71A1D4]
*Yug Rusi TBC 2011
Russia's biggest vegetable oil producer has picked ING and Morgan Stanley to organise a London listing this year, two financial market sources told Reuters. [ID:nLDE70K1L7]
*Alrosa $1.5-3.0 bln 2012
Russian state-owned diamond miner could raise $1.5 billion to $3 billion in a share sale next year, Chief Executive Fyodor Andreyev told Reuters. [ID:nLDE72H1BK]
*Metalloinvest c. $1 bln 2011
Alisher Usmanov, the co-owner of iron and steel firm Metalloinvest, has said he is prepared to float up to 20 percent of the company's shares this year if market conditions are right. [ID:nLDE61G2B1]
*Kamchatka Gold TBC 2011
Tycoon Viktor Vekselberg is targeting Hong Kong for an IPO of his Kamchatka Gold mining firm as its assets are dependent on Chinese demand. Vekselberg in July postponed the float until at least 2011, but insisted it would still go ahead. [ID:nLDE61E1PX] [ID:nLDE66E0AB]
*Transaero $200 mln 2011
Russia's second-biggest airline was planning a $200 million IPO in the autumn of 2010, but a source said in October its plans had been pushed back until 2011. [ID:nLDE64K1DD] [ID:nLDE69C0TY] (Compiled by John Bowker and Maria Kiselyova)
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AMSTERDAM, April 29 |
AMSTERDAM, April 29 (Reuters) - Dutch electricity grid operator TenneT said on Friday it had asked institutional investors to buy stakes in two German offshore power cables as it seeks to recoup some of the 1.2 billion euros investment.
TenneT hopes to receive expressions of interest for the cables, dubbed BorWin 1 and BorWin 2, next week, a spokesman for the company told Reuters.
"It is too soon to say whether this may become a model (for future investments in offshore power cables). We need to check how this will work first," the TenneT spokesman said.
Sources familiar with the matter told Reuters that TenneT was offering to sell up to 49 percent of the equity in the cables and that it had tapped Deutsche Bank (DBKGn.DE) and Royal Bank of Scotland (RBS.L) to find investors such as infrastructure funds.
Borwin 2's investment amounts to 800 million euros, double that of BorWin 1, the TenneT spokesman said. One of the sources said that because 60 percent of the projects were financed by debt, TenneT could fetch some 240 million euros from the sale.
TenneT's spokesman declined to comment on the size of the stakes on offer and amount that could be raised.
The stakes are high for TenneT as, if successful, the deal could be replicated to help fund more offshore wind farm cables. More than 50 offshore wind farms are scheduled to be constructed in TenneT's grid connection area, just in the North Sea. (Reporting by Greg Roumeliotis and Ivana Sekularac)
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BUDAPEST, April 29 |
BUDAPEST, April 29 (Reuters) - Hungary's OTP Bank OTPB.BU expects consolidation in the region's financial markets and wants to acquire market share in countries whose potential growth is favourable, the bank's chief said on Friday.
The bank, emerging Europe's largest independent lender, already satisfies expected Basel III criteria, but uncertainties about the regulation mean it cannot see how much capital it will have left once it fulfills the criteria, Sandor Csanyi told an annual meeting of shareholders on Friday.
"We are looking for acquisition targets in markets where the growth potential is sizeable and our market share is below the satisfactory level," Csanyi said, adding that Romania, Slovakia, Croatia and Serbia were specifically on OTP's target list. (Reporting by Marton Dunai; Editing by Hans Peters)
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