UK MARKET TALK ROUNDUP: SHARES GAINING -2-

22nd Jul 2010 10:58

0658 GMT [Dow Jones] HSI reverses morning's losses (intraday low 20,384.73), +0.1% at 20,514.99, as A-shares again come to rescue, with Shanghai Composite last +0.9%. Taifook Securities says A-shares "ripe for bottom-fishing," tips HK-listed mainland index-linked exchange traded funds or ETFs offer lucrative upside. A50 China Tracker (2823.HK) +0.6% at HK$12.64, is 3rd most heavily traded HK stock with HK$875.6 million. Most blue chips in positive territory now, although nobody rising more than 2.0%; China Unicom (0762.HK) rebounds 1.7% to HK$10.56, best-performing index member; China Resources Power (0836.HK) down 2.2% at HK$16.62 on profit-taking after 2.8% rise yesterday. Market volume improves but not terribly exciting at HK$34.53 billion; index may hover around 20,500 for rest of session. ([email protected]) 0653 GMT [Dow Jones] India overnight inter-bank call rates firm as banks continue to grapple with tight liquidity, borrowing from Reserve Bank's discount window high, says dealer with state-run bank; for session, call rates on negotiated dealing system likely to be at 5.75%, same as now and last close. Collateralized Borrowing and Lending Obligation or CBLO too likely to hold on to current rates around 5.40%-5.60%. "We had expected liquidity to ease in mid-July but government spending has yet to kick-in keeping call rates firm," says dealer. Notes, call rates may breach 6.00% if RBI hikes policy rates by 25 basis points on July 27. ([email protected]) 0645 GMT [Dow Jones] India government bonds slip to day's lows after data shows wholesale price index for primary articles up in week to July 10, says dealer with state-run bank; 7.80% 2020 benchmark bond at 100.89, 100.96 pre-data, 100.75 last close. "The data will not have a major impact given that the more significant event of RBI policy is awaited next week," says dealer. Adds, markets were trading up tracking upbeat sentiment in U.S. Treasurys, also yields of 7.69%-7.70% on 10-year paper good levels to buy. Tips market may trend to yield of 7.69% later, 7.66% now. Wholesale price index for primary articles in India rose 0.4% to 307.5, food articles index was up by 0.6% from a week earlier to 297.6 while fuel products index was unchanged at 386.7 in week. ([email protected]) 0733 GMT [Dow Jones] Seymour Pierce upgrades Rexam (REX.LN) to buy from outperform and lifts its target price to 370p from 350p. It cites evidence of growth in demand for beverage cans in the Coca Cola (KO) 2Q numbers Wednesday, given Rexam is the leading supplier to Coca-Cola in North America and in Europe. Seymour says Rexam shares are trading on just 11.3x the brokerage's FY2010 EPS forecast, which is well below the peer group. Shares +1.1% at 334p. ([email protected]) Contact us in London. +44-20-7842-9288 [email protected] (END) Dow Jones Newswires July 22, 2010 05:58 ET (09:58 GMT)