UK MARKET TALK ROUNDUP: BROKERS COMMENTS -2-

21st Jul 2010 10:37

annualized in May vs April's +7.5%, according to Westpac Banking and Melbourne University's Institute of Applied Economic & Social Research. Spot gold at $1,188.40/oz, down $3.80 vs NY close. September Nymex crude oil futures up 3 cents at $77.61/bbl. ([email protected]) 0634 GMT [Dow Jones] Bank of Thailand's Monetary Policy Committee set to serve up another 25 bp rate hike in late August after Commerce Ministry unveils strong export data for June, says HSBC economist Wellian Wiranto; says by destination, exports remain broad-based, with shipments to Japan rising almost 50% on-year, with U.S., Europe-bound goods clocking up 37%-38% on-year growth. "While we expect a slower period to be setting in for exports - not just for Thailand but for the rest of the region too - it is worth emphasizing that we do not see an extremely sharp slowdown in exports growth," he says. Reckons strength of economy may also warrant another rate increase by MPC in October. ([email protected]) 0628 GMT [Dow Jones] HK short-selling volume down 18.7% at HK$1.145 billion at interval, 3.8% of market's total volume vs 4.7% Tuesday's half-day, indicating bears reluctant to add positions as HSI extends gains (+0.6% midday). Angang Steel (0347.HK) leads with HK$84.57 million, then A50 (2823.HK) with HK$72.25 million, Sun Hung Kai Properties (0016.HK) with HK$52.79 million, China Life (2628.HK) with HK$48.73 million and HSBC (0005.HK) with HK$47.19 million. ([email protected]) 0617 GMT [Dow Jones] Taiwan government bonds end higher in response to short squeeze while ample liquidity supports some off-the-run paper, new 20-year bond, which starts when-issued trade tomorrow, says local bank trader. 5-year bond yield takes out 1-year moving average support of 0.94%, ends at near 4-month low of 0.9314% vs 0.9472% Tuesday; tipped in 0.91%-0.95% band tomorrow. 10-year yield ends down at 2-week low of 1.3988%; current 20-year yield ends down at 1.8018% vs 1.8210%, lowest since Dec. 2008. Another local brokerage trader tips 20-year bond to rise as insurers expected to buy; yield likely in 1.7800%-1.8100% range in when-issued trade. ([email protected]) 0604 GMT [Dow Jones] S&P/ASX 200 remains tied to offshore markets, despite the revamp, earlier this month, of the proposed mining tax, after concern about the tax triggered underperformance in May. Northern hemisphere summer holidays appear to be compounding the lack of interest in Australian equities before the earnings period fires up next month. Political uncertainty is another factor, ahead of the federal election on Aug. 21. "The Australian market is at the mercy of global leads at the moment," says IG Markets strategist Ben Potter. "I think you will see that continue before earnings season. I'm not overly bullish at the moment. I think the market is just going to plod along until the back end of this year." But S&P/ASX 200 has found late support above 4400.0, as Shanghai Composite has risen 0.7% to 2545.0 breaking above its 50-day moving average, currently at 2540.0, for the first time in 3 months. ([email protected]) 0558 GMT [Dow Jones] Indonesia shares by midday up 0.2% at 3002.12 in light volume, off 3011.90 all-time intraday high, led by buying in most commodity-related and bank blue chips, traders say; tip index in 2990-3020 range rest of day. "The main index could close at another fresh record high despite profit-taking by foreign funds," says trader at Lautandhana Securities. Foreigners net sellers of IDR268 billion worth of shares. Among gainers; nickel miner Antam (ANTM.JK) up 1.0% at IDR1,990, coal miner Bayan Resources (BYAN.JK) up 2.1% at IDR7,350, while Bank Rakyat (BBRI.JK) up 1.5% at IDR9,900. Profit-taking hits palm oil producer Astra Agro Lestari (AALI.JK) down 1.2% at IDR20,000. ([email protected]) 0650 GMT [Dow Jones] Land Securities' (LAND.LN) first-quarter update is "reasonably upbeat," says an analyst at Evolution Securities. There are "no surprises and basically decent progress." The analyst adds that Land Securities has a very large City and West End development program, is bullish on the London office cycle and that both void rate and units in administration continue to fall, which is good. Still, he says he prefers rival British Land. (BLND.LN). Add rating on Land Securities, 630p target. Shares closed Tuesday at 581p. ([email protected]) 0645 GMT [Dow Jones] Ocado Group's 180p/share pricing of its IPO is at the lower end of the range, but the valuation is still very high at that level, says Nick Bubb at Arden Partners. The company will be hoping the lower pricing will mean good aftermarket demand, but there are lots of people queuing up to short the stock, he adds. ([email protected]) Contact us in London. +44-20-7842-9288 [email protected] (END) Dow Jones Newswires July 21, 2010 05:37 ET (09:37 GMT)