Asian Weekly News
Due to the holiday period, the next Market Updates will be w/c 5th January 2009.
Week ended 12 December 2008
Australia: Several companies intend to raise capital and lower debt: Rio Tinto, for example, will cut its workforce, scale back capex, sell some assets and abandon plans to increase its dividend. Meanwhile, Westpac Banking raised A$2.5bn through a share placement.
China/Hong Kong: Texwinca posted strong first-half results helped by growth in its retail business. Café de Coral’s 31 new outlets boosted its topline growth. China Merchants Bank expects to increase loans to SMEs in 2009. CLP Holdings will invest in two nuclear projects in Shenzhen in a bid to diversify its portfolio. PetroChina’s profits rose in November after the fall in oil prices.
India: Godrej Consumer Products bought out its Swedish partner in Godrej SCA Hygiene. Bosch imposed an indefinite lockout at its Jaipur plant owing to a workers’ strike.
Indonesia: Ramayana’s November sales growth fell below its target, suggesting weaker local consumption.
Japan: Sony, will reduce its workforce, shut several plants and increase prices in Europe to offset the impact of the weaker euro. Toyota Motor is reported to be cutting production targets for 2009.
Korea: Shinsegae saw strong sales in November at both department stores and Emarts. Conversely, Samsung Electronics is unlikely to meet profit targets in the fourth quarter and will lower its capex next year.
Malaysia: SP Setia’s results were weak for the current year owing to the sluggish property market. Tenaga Nasional’s operating margin is expected to be hit next year by an anticipated fall in demand.
Singapore: A group of SATS minority shareholders objected to the company’s plan to buy Singapore Food Industries. Oil-rig builder Sembcorp Marine won a contract worth S$200m. Singapore Petroleum’s 2008 earnings deteriorated following steep falls in crude oil prices and a slowdown in demand.
Taiwan: Both TSMC and Taiwan Mobile reported a decline in November revenue as Taiwan consumers cut spending.
Thailand: Central Pattana succeeded in renewing its lease of Lad Prao land owned by the State Railway of Thailand.
We hold all the above companies highlighted.