UK MARKET TALK ROUNDUP: BROKERS COMMENTS -2-

15th Jun 2010 07:52

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 02:52 ET (06:52 GMT)