950807

Asian market highlights

TOKYO: Tokyo stocks closed moderately lower on Monday on arbitrage-linked selling, brokers said.

The 225-share Nikkei average fell 125.74 points, or 0.75 percent, to 16,615.46. Turnover was only 237 million shares, down from Friday's 345 million.

Trade was subdued as many domestic investors were taking holidays, brokers said. Foreigners, although net buyers, were reluctant to buy actively, they said.

"The market has been top-heavy in the last few sessions. This is because foreigners, who used to be aggressive buyers, are not bidding up shares," said Kazumi Shimokawa, general manager at New Japan Securities.

HONG KONG: The blue chip Hang Seng Index ended a dull summer's day down 44.43 points, or 0.47 percent, at 9,318.40 after trading in a tight 55-point range, said brokers.

Turnover was a thin HK$2.18 billion (US$282.02 million) versus Friday's adjusted HK$2.77 billion (US$358.34 million).

"It's somnambulistic," said Nial Gooding, dealing director at Kleinwort Benson.

Brokers said the summer lull when many fund managers and brokers are on vacation and a lack of fresh news combined to stifle trading activity.

BANGKOK: Thai stocks fell on anxiety over a rising inflation rate and selling of finance counters, brokers said.

The SET index finished off 30.72 points, or 2.26 percent, at 1,327.47 in thin trade.

Heavy selling of finance issues came as no surprise to most analysts as the majority of major finance and securities firms have posted poorer first-half results, a broker at a local house said.

BOMBAY: Shares on the Bombay Stock Exchange finished slightly higher but brokers said volumes were light.

The BSE 30-share index rose 18.31 points, or 0.54 percent, to a provisional 3,413.48. The composite National index gained 7.30 points to a provisional 1,576.06.

"We should see more squaring up tomorrow as it is the last day of the account. There were a lot of short sellers in this settlement because of the Enron news," said Vijay Bhatia at brokers Pashupati Advani.

The rightwing government in the western state of Maharashtra last Thursday cancelled Enron Corp's US$2.8 billion power project, India's single largest foreign investment.

COLOMBO: Sri Lanka stocks fell back after getting off to a promising start following Monday morning's suicide bomb attack in Colombo that killed 21 people, brokers said.

The Colombo Stock Exchange all share index eased 0.05 of a point to 752.70.

"The market opened optimistically but ended on a subdued note mainly on retail jitters after the bomb went off," said Prasanna Chandrasekera of John Keells Stock Brokers.

JAKARTA: Jakarta shares prices closed slightly higher on active buying of financial issues on market talk of better earnings growth for financial institutions, brokers said.

The Jakarta composite index rose 1.90 points, or 0.37 percent, to 515.74 after reaching the day's high of 516.39.

"Sustained buying interest was seen in financial stocks following some market talk of a possible merger and acquisition in the banking indutry in the short term," one broker with a foreign brokerage said.

KUALA LUMPUR: Moderate selling of heavyweight stocks by foreign institutions dragged the key market index down 1.35 percent at the close, traders said.

The Kuala Lumpur Stock Exchange's Composite Index dropped 14.50 points to 1,056.57.

Malaysia's widening current account deficit and sluggish blue chip performance in recent weeks were reasons for the fall, traders said.

"When you have widening deficit when the market is not cheap, you have this reaction," said a research manager at a foreign brokerage.

MANILA: Manila shares floundered lower in light trading, damped by a glitch in the computer system linking the two Philippine bourses, brokers said.

The index dropped 9.24 points, or 0.32 percent, to 2,888.84, according to official figures released by the Philippine Stock Exchange.

"A lot of brokers did not get to complete their orders," said Archie Arambulo at Crosby Securities.

SEOUL: South Korean stocks were down after trading in negative territory all day as institutional investors continued to sell, brokers said.

The composite stock index fell 6.32 points, or 0.69 percent, to 907.84.

"Institutional investors are trying to reduce their exposure to securities," said a Daishin Securities analyst.

General market sentiment remained weak, brokers said.

SHANGHAI: Shanghai's B share index was higher on improved market sentiment but volume was thin with many investors waiting for fresh market-moving news, brokers said.

The B index jumped 0.927 of a point, or 1.54 percent, to 61.285 on volume of 8.627 million shares.

Brokers said investor confidence remained strong after the index had gained about six percent last week on better-than-expected company interim results and improvement in China's economy the first half of this year.

Shanghai's A share index closed up 9.979 points, or 1.36 percent, to 743.978 on turnover of 1.184 billion yuan.

SHENZHEN: Shenzhen A shares soared 2.23 percent on expectations new rules on investment funds would be announced soon and on market talk of a lower interest subsidy rate for September, brokers said.

The A share index gained 4.33 points to 138.40 on turnover of 441 million yuan, against 241 million yuan on Thursday. There was no trading on Friday due to a malfunction in the exchange's satellite communications system.

The B share index broached the 70-point level, gaining 0.81 of a point, or 1.10 percent, to 70.88. Turnover reached HK$15.14 million from HK$7.40 million on Thursday.

The composite index rose 4.02 points, or 3.08 percent, to 134.40 on total turnover of 724 million yuan.

SINGAPORE: Singapore shares were led lower by financial companies and banks after recent unimpressive first-half bank results.

The Straits Times Industrial Index fell 14.10 points, or 0.67 percent, to 2,096.44.

Dealers said most banks' earnings results were disappointing, compounding worries raised by recent lacklustre results for maritime companies.

"The results are not bad but they are not as good as we're used to," said a dealer at a local bank.

SYDNEY: The Australian share market closed marginally easier after firm offshore metal prices kept the resources sector strong in trade lightened by a bank holiday in the state of New South Wales.

The All Ordinaries index eased 0.5 of a point, or 0.02 percent, to 2152.8. The September share price index contract was one point down at 2,183, a 30.2-point premium to the physical market.

"The resource stocks have been driving the market all day but some of the industrials, particularly the banks, were strong early on but came off this afternoon," said Andrew Sekely of Intersuisse Ltd.

TAIPEI: Taiwan share prices were sharply higher as investor confidence stabilised somewhat on expectations that International Bills Finance should be able to weather a fraud scandal, brokers said.

The index was down most of the session but surged late to end 95.25 points, or 1.97 percent, ahead at 4,919.11. Turnover was an active T$33.3 billion ($1.24 billion).

"Despite no tangible resolution yet for this financial crisis, market sentiment improved late today as investors think the central bank and other institutions will step in to help out International Bills when necessary," said Raymond Chou of China Securities.

WELLINGTON: The New Zealand share market was marginally softer but still staged a reasonable recovery from its low point of the day.

The NZSE-40 capital index closed at 2,124.80, down 3.70 points or 0.17 percent, but comfortably off its low of 2,113.87.

"Quite a reasonable bounce," said Murray Doyle at Doyle Paterson Brown, adding that the move had been underpinned by Fletcher Challenge, which came off a low of NZ$4.43 to close at NZ$4.48. "It's been relatively quiet overall though.-Reuter