UK MARKET TALK ROUNDUP: BROKERS COMMENTS -2-

15th Jun 2010 08:10

0602 GMT [Dow Jones] Thai shares +0.1% at 782.01 midday break but moderate volume suggests lack of conviction; "due to the absence of domestic driver, European markets' movement may dictate the Thai stock market in the afternoon trading session," says Capital Nomura Securities strategist Chai Jirasevenupraphund. Resistance tipped at 785-787, support at 774-772. Among top actives, Charoen Pokphand Foods (CPF.TH) +3.2% at THB19.50, Thaicom (THCOM.TH) +5.7% at THB7.45, Banpu (BANPU.TH) +1.3% at THB620, PTT (PTT.TH) flat at THB246. Stocks added in blue chip SET50 Index, effective from July 1, also higher: TPI Polene (TPIPL.TH) +8.2% at THB9.95, Tisco Financial Group (TISCO.TH) +2.7% at THB29, Home Product Center (HMPRO.TH) +3.8% at THB6.80. ([email protected]) 0555 GMT [Dow Jones] Taiwan government bonds end higher on short-covering after bond bears fail to push benchmark 10-year yield through key resistance level, says local brokerage trader. Fresh buying into off-the-run 10-year bond capped its yield at 1.51%, forcing short-covering in current 10-year near 1.50%, he says; but adds yield downside limited because "the reason why yields rose nearly 15 basis points (in past 2.5 weeks), namely concerns over selling by the postal service, is still valid." Tips bonds to range-trade Thursday (markets closed tomorrow for Dragon Boat Festival holiday). Yield on benchmark 10-year bond ends down at 1.4700% vs yesterday's close 1.4876% (which was highest close for bond since it was issued) and off intraday high of 1.4949%, tipped in 1.46%-1.50% band Thursday; 5-year down at 1.0589% vs 1.0695%. ([email protected]) 0554 GMT [Dow Jones] Taiwan shares end +0.9% at 7454.06, highest since May 19, led by banks, tourism companies, transportation stocks as they continue to be boosted by recent positive news on progress in planned Taiwan-China trade pact, says Grand Cathay Securities analyst Mars Hsu. Still, says "the resistance of the 240-day moving average at 7532 is likely to cap the Taiex's gains in short term," he says. Tips Taiex to consolidate in 7100-7500 band this week. Markets shut Wednesday for Dragon Boat Festival. China Airlines (2610.TW) +4.0% at over 2-year high of NT$16.05, most heaviest traded stock in Taiwan bourse; EVA Airways (2618.TW) +4.1% at NT$19.15, highest since April 2008, second heaviest traded stock in bourse. Formosa International (2707.TW) +2.1% at NT$390.00. Cathay (2882.TW) +3.0% at NT$48.05. ([email protected]) 0527 GMT [Dow Jones] Indonesia shares +0.7% at 2846.638 midday in light volume, off earlier low of 2824.745, tracking gains across Asian markets, traders say; add, firmer rupiah also helps; tip immediate resistance at 2850. "Foreign buying in bank and consumer-related blue chips has driven the main index higher despite sporadic selling by local players," says trader at Valbury Securities. BCA (BBCA.JK) +2.8% at IDR5,600, Bank Danamon (BDMN.JK) +2.0% at IDR5,150, car maker Astra (ASII.JK) +3.0% at IDR45,600. Meanwhile, Bakrie Telecom (BTEL.JK) +2.4% at IDR172, while heavyweight Telkom (TLKM.JK) still unchanged at IDR8,000 after sources tell Dow Jones the two companies are nearing deal to merge their CDMA operations. ([email protected]) 0526 GMT [Dow Jones] Spot gold steady in Asia at $1221.30/oz, down 10 cents but could be poised for some volatility later as EUR/USD sitting on 1.22 support level after Moody's downgrade of Greek debt rating late Monday, and ahead of EU summit in Brussels Thursday where Germany, France reportedly to attempt to put on united front with regard to fiscal issues. Gold in euros at EUR1,000.30/oz after dipping below EUR1,000 overnight after strong euro zone industrial production data. Could attract more dip buying after 5% retreat from last week's record highs with many FX analysts still gloomy on medium to long term prospects for EUR, regarding recent EUR rally as counter-trend. ([email protected]) 0521 GMT [Dow Jones] HK morning's short-selling volume edged up 0.8% at HK$953.83 million; percentage of market total below 5% for second day in a row, at 4.3% at HK$4.6% at Monday's half-day, suggesting bears deterred by HSI's 6-day winning streak. Tencent (0700.HK) leads with HK$137.89 million, followed by BYD Company(1211.HK) with HK$53.80 million, then Li Ning (2331.HK) with HK$52.32 million. No other stocks even manage more than HK$100 million worth of shorts. ([email protected]) 0627 GMT [Dow Jones] UBS raises Weir Group (WEIR.LN) price target to 1200p from 1150p. "While Weir has already delivered four decent-sized upgrades to '10 estimates this year we believe the momentum will keep on going, albeit probably not at the same pace that has seen '10 estimates," says UBS. It adds that the acquisition of Linatex provides further earnings accretion into '11. It raises '10 EPS estimate to 88p from 74p and '11 EPS estimate to 94.3p from 76.8p. Keeps the stock at buy. Shares closed Monday at 1066p. ([email protected]) 0624 GMT [Dow Jones] Bellway's (BWY.LN) trading statement is encouraging for both the company and the rest of the sector, says Liberum Capital analyst. Says while Bellway saw a reduction in sales after the general election this was only small. Says the market has been very nervous about the housing sector falling since the election. Adds the rest of the statement reads well with good average selling prices and a small uptick to sales guidance. Still, sees better value elsewhere in the sector, so has a hold rating and target price of 820p. ([email protected]) Contact us in London. +44-20-7842-9288 [email protected] (END) Dow Jones Newswires June 15, 2010 03:10 ET (07:10 GMT)