NST Online Business Times : latest

Asian shares climb ahead of Fed decision

Posted: 17 Dec 2013 07:11 PM PST

HONG KONG: Asian markets rose on Wednesday, with attention focused on Washington as investors await the end of a Federal Reserve policy meeting to find out its plans for its huge stimulus programme.

Japanese equities were the stand-out performers after official data showed a surge in exports thanks to a weaker yen.

Tokyo climbed 1.54 per cent by the break, Sydney added 0.10 per cent and Seoul strengthened 0.26 per cent while Shanghai gained 0.10 per cent and Hong Kong was 0.43 per cent higher.

Regional traders were given a soft lead from Wall Street, where the three main indexes ended in the red following a tepid set of economic figures.

With the Fed due to wrap up its two-day policy meeting later in the day, opinion is split on whether or not it will announce a cut in its US$85 billion a month bond-buying scheme.

While some analysts point to a string of figures that indicate a healthy pick-up in the US economy, boosting the argument for a slight reduction, others say the central bank will likely wait until early next year to see if the recovery can be sustained.

"Wednesday's Federal Reserve monetary policy announcement is one of the most anticipated events of the year," said Kathy Lien of BK Asset Management.

John Kicklighter, chief currency strategist at DailyFX, said speculation about the Fed decision "has run rampant".

The latest numbers showed the economy is still fragile. Consumer prices were unchanged in November compared with October and up a tame 1.2 per cent from the previous year.

Inflation remains well below the Fed's 2.0 per cent annual target.

Income growth for Americans — a key indicator of the health of the economy — remained modest at 1.1 per cent year-on-year .

The Dow edged a touch lower, the S&P 500 fell 0.31 per cent and the Nasdaq eased 0.14 per cent.

On currency markets, the dollar rose to 102.82 yen in early trade from 102.63 yen in New York late Tuesday.

The euro bought US$1.3762 and 141.50 yen against US$1.3765 and 141.28 yen.

Japanese shares outperformed the region after Tokyo released figures showing exports last month rose 18.4 per cent year-on-year, boosted by shipments of automobiles and a weaker yen.

Expectations had been for a 17.3 per cent rise, according to Dow Jones Newswires.

However, while the likes of Toyota and Sony benefited, the softer currency also sent the price of imports higher, especially for energy.

Imports soared 21.1 per cent, leaving Tokyo with a trade deficit for the 17th straight month.

Oil prices edged up. New York's main contract, West Texas Intermediate for January delivery, was up seven cents at US$97.29 in early Asian trading while Brent North Sea crude for February gained seven cents to US$108.51.

Gold fetched US$1,234.40 at 0220 GMT compared with US$1,239.20 late Tuesday. -- AFP

Sunway's stock to be on limelight

Posted: 17 Dec 2013 07:06 PM PST

KUALA LUMPUR: Sunway Bhd's share on Bursa Malaysia is expected to be on the limelight today following its 24.5-acre land acquisition announcement yesterday.

The land was acquired through its wholly-owned subsidiary, Sunway City (Penang) Sdn Bhd, with the intention to establish its first landmark development in Penang.

In a filing to Bursa Malaysia yesterday, Sunway said the proposed acquisition will provide an estimated gross development value (GDV) of RM1.5 billion when fully developed, as the land is strategically located within the vibrant centre of Penang Island and surrounded by tourism spots as well as matured residential townships.

The acquisition is expected to be completed within three months.

Meanwhile, Hong Leong Investment Bank has maintained its "buy" call on Sunway following this acquisition, with unchanged target price of RM3.35.

"Despite the potential headwinds from property tightening measures and slower contract flows, its recapitalised balance sheet and large order book will be able to sustain earnings growth.

"With the latest acquisition, it will lift Sunway's landbank in Penang to 145 acres, with total Penang GDV of RM3.3 billion, which represents six per cent of Sunway's overall GDV," it said in a note.

As at 10.16 am, the property developer share gained one sen to RM2.65, with 11,200 lots transacted. -- Bernama

Kredit: www.nst.com.my

Selasa, 17 Disember 2013

NST Online Business Times : latest

NST Online Business Times : latest

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