Archive for February, 2007

China’s Stocks Fall

Tuesday, February 27th, 2007

China’s stockmarkets saw their biggest tumble since 10 years. It is believed that a possible crackdown by Chinese authorities on investments caused the tumble. China’s stock market capitalization accounts for about 2% of of the world’s total, at 1.6 trillion dollars. The Shanghai and Shenzhen 300 Index dropped by 9.2 precent.

Today’s rout wiped out $107.8 billion from a stock market that doubled in the past year as 249 of the key index’s 300 shares plunged by the 10 percent limit. The 300 index is valued at 38 times earnings, compared with 16 times for the Morgan Stanley Capital International Emerging Markets Index.

The State Council, China’s highest ruling body, has approved a special task force to clamp down on illegal share offerings and other banned activities in the market, the government said. The group will provide advice on regulations and policy explanations of the securities market, according to a statement published Feb. 25 on the central government’s Web site.

Source : BloomBerg.com

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Japanese Stocks at 7-year high

Monday, February 19th, 2007

The Nikkei index closed 64.4 points higher at 17,940.09, an increase of 0.36%. It is the highest close since 8 May 2000. Reports about a possible merger that could create a huge retail business in Japan pushed stocks up. The companies involved in the merger reports are Daimuru and the department store business of Matsukakaya.

Japanese stocks hit their highest level in seven years, buoyed by reports of a possible merger that would create a retail giant in the country.
The benchmark Nikkei index closed 64.4 points, or 0.36%, higher at 17,940.09 - its highest close since 8 May 2000.

According to newspaper reports Daimuru and the department store business of Matsukakaya are in talks to merge.

Source : BBC News

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