Govt to buy stocks from support fund next week: Tarin

ISLAMABAD: The government will start taking positions in the stock market from the next week with the help of Rs20 billion market support fund.This was stated by Advisor to Prime Minister for Finance, Shaukat Tarin during the meeting of National Assembly Standing Committee for Finance.He said the government will ensure protection to the small investors while providing safeguarding of big brokers is not among the priorities of the government.Shaukat Tarin told the meeting that 500 million dollars will be received from the World Bank during this quarter. Similar amount is also expected to come form China in the first week of January, he added.He informed the rate of inflation is steadily dropping.

Wall Street gains as GMAC gets financing

NEW YORK – Wall Street staged a big advance in the next to last session of 2008 Tuesday after Washington's latest lifeline to the auto industry bolstered hopes that the government will do whatever is necessary to cut short the recession.
Investors found solace in news that General Motors Corp.'s troubled financing arm received $5 billion of financing. The Treasury Department said late Monday it would provide the money to GMAC Financial Services LLC from the $700 billion bank rescue program.
The injection is on top of the $17.4 billion in loans the Bush Administration agreed to provide to the auto industry on Dec. 19. GMAC said Tuesday it would immediately resume lending to certain customers it had previously said were too great a risk for auto loans because of tight credit markets.
"This is trying to slow down the economic train wreck," said Jack Ablin, chief investment officer at Harris Private Bank. "Investors are taking a step back, and realizing that this will enable auto buyers to finance their cars and add liquidity to the market."
Ablin also said the move will have an effect on the entire economy, especially amid a backdrop of sluggish consumer spending, which drives more than two-thirds of the U.S. economy.
Wall Street got another disappointing reading about the mood of Americans after the Conference Board reported its Consumer Confidence index dropped to a record low. The trade group reported the index's reading fell to a 38 in December from a revised 44.7 in November, well below the expectation of 45 economists surveyed by Thomson Reuters.
Investors were well prepared for a downbeat report after consumers reluctant to spend left retailers with their worst holiday season in years. The International Council of Shopping Centers said Tuesday that weekly same-store sales, those from stores open a year or more, dropped 1.5 percent last week at the 40 retailers it polls.
The Dow Jones industrial average rose 184.46, or 2.17 percent, to 8,668.39. But even with that advance, the blue chips are still down 36.04 percent for the year with one more trading day remaining.
Broader indexes also moved higher. The Standard & Poor's 500 index rose 21.22, or 2.44 percent, to 890.64, leaving it down 40.79 percent for the year; while the Nasdaq composite index added 40.38, or 2.67 percent, to 1,550.70, leaving it down 43.06 percent for 2008.
With many traders away for the holidays, volume was low, which can exaggerate price moves. Advancing issues led decliners by 4 to 1 on the New York Stock Exchange, with consolidated volume at a light 3.23 billion shares, up from 2.98 billion on Monday.
Most investors are looking past 2008 for clues about how stocks will fare in the coming year.
Subodh Kumar, global investment strategist at Subodh Kumar & Associates in Toronto, said the market's moves in the final days of the year are more noteworthy than some investors realize; stocks have been fairly steady despite low volume that could easily lead to sharp declines. But he predicts trading will remain volatile into mid-2009.
"It's still relatively encouraging that the markets have been able to hold up," he said.
Investors might have been able to overlook the disappointing consumer data after a surprise uptick in the Chicago Purchasing Managers' index, which measures business conditions across Illinois, Michigan and Indiana. It advanced in December for the first time since August. Wall Street had expected a decline. The index, which rose 34.1 from 33.8 in November, is considered a precursor to the Institute for Supply Management's manufacturing survey on Friday.
Bond prices were higher. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 2.06 percent from 2.10 percent late Monday. The yield on the three-month T-bill, in great demand because it is considered one of the safest investments, rose to 0.06 percent from 0.03 percent late Monday.
Light, sweet crude fell 99 cents to $39.03 on the New York Mercantile Exchange. Oil prices rose Monday as investors worried fighting between Israel and Hamas in Gaza would disrupt oil shipments.
The dollar was mixed against other major currencies, while gold prices fell.
In corporate news, shares of GM rose 20 cents, or 5.6 percent, to $3.80 after GMAC was given government financing. GM owns 49 percent of GMAC, while private equity firm Cerberus Capital Management holds the remainder.
The Federal Reserve last week approved GMAC's application to become a bank holding company, a move that cleared the way for the company to receive money from the financial rescue fund. In addition to the cash infusion for GMAC, the government also agreed to lend $1 billion to GM so it can contribute to the financing arm's reorganization as a bank holding company.
Meanwhile, General Motors said it is offering financing as low as zero percent over the next week for several 2008 and 2009 models in a big year-end sales push.
The Russell 2000 index of smaller companies rose 16.62, or 3.57 percent, to 482.77.
Overseas, Japan's Nikkei stock average rose 1.28 percent in the final session of the year, ending 2008 with a loss of 42 percent. Markets in Japan are closed for a holiday Wednesday. Britain's FTSE 100 rose 1.70 percent, Germany's DAX index rose 2.24 percent, and France's CAC-40 rose 2.76 percent.

KSE decides to utilize MPFs

KARACHI: Karachi Stock Exchange (KSE) has decided to utilize Members Protection Funds (MPFs) in view of the prevailing market conditions.This will provide an opportunity of borrowing up to Rs500 million each from the fund for a particular time period. The opportunity is for those stock members who are unable to clear payments against losses.Presently there is more than Rs2 billion in KSE Members Protection Funds.

Asian markets open mixed

Tokyo stocks opened only slightly lower Friday after a down day on Wall Street, buoyed by the possibility of an interest rate cut by the Bank of Japan.

Asia stocks opened mixed, but with little movement.

The Japanese government said Friday it expected a shrunken economy when the fiscal year ends in March. But investors on the Nikkei index, concerned with the growing recession, held out hope for the interest rate drop and held the index to a .16 percent fall.
Elsewhere, stocks were mixed, but with little movement. Australia's All Ordinaries index fell .41 percent and the Shanghai composite index was down .39 percent. But Seoul's KOSPI index was up .56 percent and Hong Kong's Hang Seng index rose .24 percent.
On Wall Street Thursday, a selloff accelerated in the last hour of a volatile session as traders squared up positions for a handful of options expiring Friday, known as "quadruple witching."
The Dow Jones industrial average ended down 219 points, or 2.5 percent. The broader Standard & Poor's 500 index fell 19 points, or 2.1 percent, and the Nasdaq composite shed 27 points, or 1.7 percent. All three indexes seesawed in early trading.
The market is typically more volatile ahead of "quadruple witching," when equity options, stock index futures, stock options and single-stock futures all expire on the same day. There are four such Fridays in the year, and they tend to be preceded by increased market volatility.
"Most of the action around that occurs the day before," said Fred Dickson, chief market strategist at D.A. Davidson & Co. "What we are seeing at the end of the day is an option and futures selloff related to tomorrow's expiration."
Investors also focused on the recession, which has delivered a slew of sour economic reports and has chipped away at global demand for oil.
A torrent of bad news that had been ignored in the previous session came back to haunt the markets in the afternoon session. "We have had a market that has really, up until yesterday, been pretty resilient in the face of negative news," said Art Hogan, chief market analyst at Jefferies & Co. "The market has been ignoring a lot of bad news and it is not ignoring it today."
With the holiday week approaching, trading has also slowed. "Volume is fairly low," said James Shelton, chief investment officer at Kanaly Trust Company. "The markets are getting ready for the holidays."
Market breadth was negative. On the New York Stock Exchange decliners beat out advancers 3 to 2 on a volume of 1.4 billion shares. Meanwhile on the Nasdaq, decliners beat out advancers nearly 2 to 1 with a total market volume of 2 billion.
The dollar gained against other major currencies, with the yen just off the 13-year high it reached against the dollar Wednesday. Meanwhile, the 15-nation euro and the British pound both lost against the greenback.
Treasury prices, meanwhile, continued to rally, sending yields to record lows. The benchmark 10-year note rose 1-4/32 to 114-30/32 and its yield fell to an all-time low of 2.07 percent, down from 2.18 percent late Wednesday.

Swift measures to prevent KSE members from defaulter

KARACHI: Karachi Stock Exchange (KSE) Board has resolved to take swift measures to prevent its members, having expired membership cards, from going to default on Thursday.

According to sources, the special committee, formed for CFS market, has decided to buy the shares of expired membership cards holders below 12.5 percent prices of the market price of December 24.

KESC Board said that CFS financers would buy their shares costing Rs. 3.90 billion below 12.5 percent price of market price of December 24.

Stock market turmoil to hit banks

KARACHI: The current equity market turmoil has raised concerns over its impact on various stakeholders, particularly the banking sector, which carries substantial exposure through a combination of direct investment, margin financing and CFS financing.“The banking sector is already going through a tough phase due to declining deposit growth and rising bad loans because of high interest rates and credit crunch. Our estimates suggest that banks have an exposure in the range of Rs100-150 billion in the stock market, which is 20-25 per cent of their equity base,” stated Farhan Rizvi, analyst at JS Research, in a report.With the Karachi Stock Exchange index already down 24 per cent since the lifting of floor on Dec 15, “we think further erosion in the sector’s book value along with capital adequacy ratio (CAR). Moreover, default on margin financing and Continuous Funding System (CFS) exposures also remain significant risks for the sector.”According to an analysis of 11 JS Universe banks (78 per cent of the banking sector), he said the exposure in capital markets was in excess of Rs100 billion ($1.3bn) as of Sept 30, which was 24.6 per cent of their equity. That did not include margin financing against shares whose statistics were not available and were reported to be in the range of Rs30-50bn for all banks.“We have already seen a sharp decline in revaluation surplus during the quarter ended Sept 30, with Rs23bn fall in investment revaluation reserve,” he added.Apart from concerns over equity investment, other major risk facing the banking sector is exposure in CFS MK-II and margin financing. The CFS has been particularly in the limelight due to a lawsuit filed by a few brokers and counter-suit by some banks.According to Sept 30 financial accounts, total exposure of banks in JS Universe in CFS MK-II was Rs9bn (60 per cent of total outstanding amount of Rs15.2bn). Moreover, according to various news reports, exposure in margin financing was in the range of Rs35-50bn.The banking sector continues to remain under stress due to a combination of economic slowdown, liquidity crunch and increasing asset quality concerns, which has forced banks to make heavy provisions for non-performing loans (NPLs).According to official data released by the State Bank, total banking sector provisions rose by Rs44bn till Dec 13.

Asian markets fall

TOKYO: Asian stock markets were mostly lower on Monday as a US pledge to loan troubled automakers $17.4 billion failed to ease worries about a deteriorating world economy. Hong Kong's Hang Seng Index dropped 1.7 percent to 14,874.61, and Australia's key index was down 1.6 percent. South Korea's Kospi dipped 0.2 percent after opening higher and Singapore's benchmark was down 0.5 percent. Tokyo bucked the regional trend, with its Nikkei 225 stock average rising 130.68 points, or 1.5 percent, to 8,719.20 despite the latest bad news about the country's exports. Last week in New York, Wall Street finished a choppy session mostly higher. The Dow fell 25.88, or 0.30 percent, to 8,579.11. The Standard & Poor's 500 index rose 2.60, or 0.29 percent, to 887.88. U.S. futures were up modestly, meaning Wall Street was poised for a higher open. In currencies, the dollar strengthened to 89.98 yen, up from 89.24 yen, and the euro rose to $1.4007 from $1.3913 late Friday.

Global stock markets downbeat, despite US auto bailout

NEW YORK: Global stock markets last week remained struggling in the grip of negative trend, despite US and Japan cut down in interest rates and US approval of $17.40 billion auto bailout package.The investors all across the world this week remained cautious and preferred selling the shares for profit taking. At the end of this week, US Dow Jones index eroded 50 points, while NESDEQ index gained by 20 points. In the Asian markets this week, Japan’s Nikkei-225 index crashed by 239 points, while Hong Kong’s Hang Seng index by 236 points. And India’s Sensix-30 index was seen breaching 10,000 marks at the end of the week, closing at 10099 points. European stock markets also this week remained in sagging mood, as France’s CAC-40 index dropped by 32 points and in Germany dipped by 22 points, while Britain’s FTSE-100 index rose by 7 points.

Satyam stock rebounds, Maytas still falling

Mumbai, Dec 18 (IANS) The Satyam scrip recovered somewhat Thursday after Wednesday’s rout at the Indian stock markets following its management’s decision to take over two group companies, a decision it had to revoke within hours. The scrip of Maytas Infra - one of the group companies Satyam was hoping to acquire - kept falling Thursday for the second day in succession.
Satyam’s stock was trading about 6 percent higher on the 30-share sensitive index of the Bombay Stock Exchange (Sensex), with the scrip ruling at Rs.168-levels in midday trading, compared to Wednesday’s close of Rs.158.05.
“The IT business of the company is not a bad bet and at current levels, it seems a good buy, hence the rise in prices for Satyam,” said an analyst from a leading brokerage firm.
Satyam’s bid to buy out Maytas Properties and Maytas Infra has not gone down well with investors, analysts and industry trackers, which forced the company to shelve the acquisition plans.
The Maytas Infra scrip was at Rs.310.65 at the Bombay Stock Exchange around midday, falling almost 20 percent since its previous close of Rs.388.25. The scrip, which was trading above the Rs.500-level till Tuesday, fell 20 percent Wednesday to close at Rs.388.25.
Maytas Properties is an unlisted company.
Satyam’s stock was hammered on the bourses Wednesday, with over 33 million shares changing hands, and the scrip shedding over 30 percent or Rs.68.45 to close at Rs.158.05.

Country’s stock markets melt for the third day in a row

KARACHI: Karachi Stock Exchange (KSE) amid the bourses all across the country today remained passive and tame for the third consecutive day, which saw the index during the brief three days losing 11 percent.KSE opened today on a negative note, which remained pervasive until the end of business session, which culminated into the KSE-100 index melting down by 260 points to 8184 at close. KSE during the last three days has evaporated enormous 1000 points, while the KSE system glitch alarmingly showed index eroding 4001 points to peg at 4444. The volume of trade today aggregated to 57.8 million shares. Volume leader TRG Pakistan shares price down by Rs0.54 closed at Rs1.28.Lahore Stock Exchange (LSE)-index after a minor loss of 6 points wrapped up at 2468, while the Islamabad stock market at the very onset recorded 5 percent lower locks sending the trade into an early suspension. Analysts said that the pessimistic trend in the market would continue until the issue of existing Rs11 billion worth of shares in CFS financing was resolved.

KSE Meezan 30 Index re-composed

KARACHI: Karachi Stock Exchange (KSE) has undertaken re-composition of KSE-Meezan 30 Index for the review period from January 1, 2009 to June 30, 2008.As a result six companies of the Index will be replaced by Lucky Cement, Dawood Hercules Chemicals, Glaxo Smith Kline Pakistan, BankIslami Pakistan, Mari Gas Company and Crescent Steel & Allied Products.The outgoing companies are: Thal Limited, Kohat Cement, Pioneer Cement, Attock Petroleum, Abbott Laboratories Pakistan and BOC Pakistan limited.

SECP to challenge SHC decision over KSE floor

KARACHI: The Securities and Exchange Commission of Pakistan (SECP) would abide by the decision of Sindh High Court (SHC) to retain the Karachi Stock Exchange floor, however, it has decided to challenge the verdict as well.This was stated by SECP chairman Razi-ur-Rahman after the SHC issued stay order here on Saturday to retain the minimum floor index at KSE. He said SECP would respect court’s verdict as regards KSE but Lahore and Islamabad Stock Exchanges would have to remove the floor from December 15.It is worth mentioning that the SECP chairman had earlier issued directives to remove KSE floor from December 15. However, the brokers had asked the government not to remove floor without introducing Market Support Fund (MSF) otherwise the number of defaulters would increase.

KSE continues to witness dull activity

KARACHI: The 100-Index of Karachi Stock Exchange(KSE) closed unchanged at 9,187.10 on Friday amid lack of interest.The turnover volume was low at 56,000 shares as four scrips recorded gains while one sustained loss and two remained unchanged out of a total of only 7 companies.The market capitalization was eroded by Rs 8.542 million to Rs2.808 trillion.Dealers said that trading volume was down again due to lack of interest coupled with the fear of lifting of price flouring on December 15, 2008 on the instruction of SECP.National Assets was the volume leader with a turnover of 39,500shares followed by Saritow Sp 6,000 shares, Pak PTA 5,000 shares, JOV& Co 2,000 and Habib-ADM Ltd 2,000 shares and UDL Modaraba 1,000 shares.Habib-ADM Ltd closed at 9.63, Pak PTA 3.18, Saritow Sp 1.50, JOV& Co 21.12 and UDL Modaraba 3.07.Taxila Engg recorded the highest gains of Rs 1 to 5.46 and Saritow Sp moved up by 14 paisa to 1.50 while Habib-ADM Ltd dipped by6 paisa to 9.63.

Trading improves on KSE

KARACHI (December 08 2008): Trading at Karachi share market improved during the week ending on December 7, 2008, with average daily volume increasing by 300 percent to 197,300 shares as compared to the previous week's 64,920 shares. However, KSE-100 index remained unchanged at 9,187.10 points, while no trading was seen at the futures counter.Market capitalisation declined by Rs 3 billion to Rs 2.817 trillion. A fresh inflow of $1.203 million of foreign portfolio investment at the equity market was witnessed. "The average daily volume reflecting investor confidence in the market jumped by a deceptive 301 percent, demonstrating a low base effect", Muniba Saeed, an analyst at Invest Capital & Securities said.With the floor scoring a century during the week, being in place since August 28, the KSE-100 index practically stagnant at the level of 9,187 points as activity remained insufficient to cause any visible movement in the index.The week was exceptionally eventful with terrorist attacks breaking out in Mumbai, and attention of the leadership was diverted towards effective dealing of political nuances arising after the attack. Besides, decrease in petrol and diesel prices, along with a 26.4 percent increase in forex reserves cheered up investor interest. However, all this was overweighed by uncertainty brought about with Pakistan's admission in the IMF programme.

Stocks get bailout boost

NEW YORK (CNNMoney.com) -- Stocks rallied Wednesday, recovering from a mid-afternoon retreat, as investors welcomed reports that Congress and the White House have struck a deal to provide a $14 billion bailout to the struggling auto industry.
The Dow Jones industrial average (INDU) added 0.8%. The Standard & Poor's 500 (SPX) index gained 1.2% and the Nasdaq composite (COMP) also gained 1.2%.
Stocks rallied through the early afternoon in response to the auto bailout news, lost steam after the release of the November Treasury budget, and then recharged the advance near the close.
The Treasury budget widened to $164.4 billion last month from $98.2 billion in the previous month, versus forecasts for a $171 billion gap.
The budget deficit now totals $401.6 billion in just the first two months of the fiscal year, October and November. The budget deficit for all of fiscal year 2008 was $455 billion.
Stocks slipped Tuesday as investors pulled back after a big rally in the previous 2 1/2 weeks. Between hitting the most recent bear market lows on Nov. 20 and Monday's close, the S&P 500 rose 21%.
After that selloff, stocks managed some gains Wednesday, which partly reflected that an auto package is looking more likely, said Michael Sheldon, chief market strategist at RDM Financial Group.
While the advance was likely a bear market rally, there is also some genuine optimism that has been lifting stocks of late, he said.
Investors are getting hit by awful economic news and corporate profit forecasts. But they are also seeing the significant policy response by the Federal Reserve and government, as well as central banks and governments around the world.
"With an auto rescue package likely and a very large stimulus package likely early next year, some investors are starting to see the light at the end of the tunnel," Sheldon said.
Automakers: Congress and the White House have reached a deal on a $14 billion auto sector bailout that could bring a vote later Wednesday. The package would enable GM and Chrysler to avoid filing for bankruptcy through at least the end of March.
It is assumed that this would be sufficient time for the Obama administration and the new Congress to come up with a longer-term solution for the ailing automakers.
Ford Motor is also eligible for part of the loan, but the company says it has enough cash to avoid bankruptcy for now and just wants access to the money as a backstop.
However, investors took a sell-the-news approach and sent shares of GM (GM, Fortune 500) and Ford Motor (F, Fortune 500) lower.
Meanwhile, GMAC Financial Services, General Motors' finance unit, is struggling to raise enough capital to become a bank holding company, something it must do to access much-needed federal funds.
Experts worry that the failure of any one of the Big Three could trigger massive job losses and send the U.S. deeper into recession.
The U.S. has been in a recession since December 2007, according to a National Bureau of Economic Research report released last week. A majority of top-level executives think the recession will last at least another year, according to a survey by Duke University released Wednesday.
In economic news Wednesday, October wholesale inventories fell 1.1% versus forecasts for a decline of 0.2%. Inventories fell a revised 0.4% in the previous month.

Stocks struggle after recent rally

NEW YORK (CNNMoney.com) -- Technology shares managed gains Tuesday afternoon while the broader market retreated in choppy trading as investors considered the fate of the automakers and opted to retreat after the recent run.
The Dow Jones industrial average (INDU) declined by 0.9% with around 3 hours left in the session. The Standard & Poor's 500 (SPX) index was barely changed and the Nasdaq composite (COMP) gained 0.9%
Stocks had been on both sides of unchanged through the session as investors digested the day's batch of negative corporate news and kept an eye on the latest news on a potential automaker loan package.
An agreement on a loan package for the auto industry had been expected late Monday. But lawmakers were still debating the details Tuesday, with a package now expected later today.
The back-and-forth was perhaps causing some of the stock weakness Tuesday, with investors eager to see a resolution, said Ron Kiddoo, chief investment officer at Cozad Asset Management.
"The automaker talk is part of it, but really we've had some pretty good moves off that Nov. 20 low and so people are taking a breather," he said.
Since hitting the most recent bear market lows on Nov. 20, stocks, as represented by the S&P 500, have risen 21% through Monday's close.
Monday was a big day on Wall Street, with all three major gauges gaining at least 3.5% in response to President-elect Barack Obama's plan to create 2.5 million jobs by 2011 and reports that a bailout for the automakers is en route.

Court closes Kuwaiti stock market

The Kuwait stock exchange has been closed until 17 November following an unprecedented court order.
A local court ordered the closure after investors complained that the government was not doing enough to stem heavy stock market losses.
The emirate's stock exchange, the second largest in the Arab world, has fallen 43% since June.
Kuwaiti sovereign wealth funds have bought hundreds of millions of dollars of stock, but the slide has continued.
The central bank has also injected billions of dollars into the system in an effort to protect the Kuwait from the global financial turmoil.
Protests
The court's decision follows recent demonstrations and walk-outs by share traders.
A BBC correspondent said the government faced increasing calls to do more to protect the local economy from the effects of the global financial crisis.
One of the main Kuwaiti lenders, the Gulf Bank, is reported to have lost up to $1bn in failed derivative deals.
Other Middle Eastern markets have also been affected recently, with Saudi Arabia's stock market, the Arab world's biggest, having fallen by more than 40% since the start of the year.
Analysts say investors in the Gulf are worried that the global financial crisis and the recent fall in oil prices could prompt governments to cut public spending - a main engine of the region's economies.

Stocks rallied toward the end of last week despite abysmal news on the economy. This week brings readings on housing, consumer spending and the trade

NEW YORK (CNNMoney.com) -- The worst monthly jobs report in 34 years failed to send stocks lower late last week, begging the question of whether the market has finally found that elusive bottom.
Not likely, analysts say. But the stock gains on Friday and over eight of the last 10 sessions, despite a barrage of increasingly awful economic news, are certainly notable.
The week ahead tests the trend, as investors digest reports on housing, inventories, jobless claims, the trade gap, producer prices, retail sales and consumer sentiment. All are expected to show weakness. (For details click here).
The week ahead also could bring a breakthrough for the automaker industry, with Congress expected to come up with some sort of proposition to help the Big Three. GM, Ford Motor and Chrysler went to Capitol Hill last week to plead for a $34 billion bailout for the troubled industry. (Full story)
Polls show a majority of Americans don't want to see a government bailout of the automakers - not when so many other industries are ailing too. But economists say the impact to the economy and to the labor market should any one of the companies fail would be devastating.
And the last thing investors need is more abysmal news on the economy. On Friday, the government said the economy shed 533,000 jobs in November, and its September and October job-loss numbers were revised upward. In total, the economy has lost 1.9 million jobs in 2008, worse than what it lost in the 2001 recession. During the week, AT&T, JP Morgan and other companies announced more than 43,000 job cuts.
Early last week, the National Bureau of Economic Research confirmed what many have long assumed: that the economy is in a recession. NBER put the start date at around Dec. 2007.
"Given the economic environment we are in and the startling job loss in November, this would probably be as bad a time as I can think of to let the Big Three go without funding," said Stuart Hoffman, chief economist at PNC Financial Services Group.
Even with some sort of loan package, the companies will still restructure and shrink, but it's the difference between an orderly slowdown and a fast retreat, he said. And the economy is in no shape for a fast retreat.
Alternately, "if the auto funding matters get resolved, that is going to be a big boost for both consumer spending and the market psychology," said Tim Speiss, head of the Wealth Advisory Practice at Eisner LLP.
Stocks don't need any more bad news. Between closing at an all-time high on Oct. 9, 2007 and the recent low on Nov. 20, the S&P 500 shed 52%.
"The big question is how much of the negative news has been priced in," said Ryan Detrick, senior technical strategist at Schaeffer's Investment Research. "Was that 52% enough?"
Stocks have rallied 16% since that November low. While that's encouraging, Detrick said investors are bound to sell into year-end, with both individuals and professionals looking to cash out.
Last week, investors pulled roughly $12 billion out of equity mutual funds, after putting $!0.4 billion into funds in the previous week. Investors have cashed out of equity mutual funds in 16 of the last 18 weeks.

Asia stocks mixed

TOKYO: Asian markets were mixed Thursday as investors waited for key interest rate decisions in Europe later in the day and braced for more bad news from Friday's U.S. jobs report. Oil prices fell to fresh three-year lows. Japan's Nikkei 225 average fell 79.86 points, or 1 percent, to7, 924.24.Hong Kong's Hang Seng index dipped 0.6 percent to 13,509 points, but mainland China's Shanghai Composite index rose 1.9 percent to2001.5 on news that a government fund announced it had bought sharesin a major bank. New Zealand's share index rose 0.9 percent after the central bankslashed its cash rate by a record 1.5 percentage points. Elsewhere, markets in Singapore, India and Indonesia rose, but those in Taiwan, Thailand, the Philippines and Malaysia fell.

Little trading in KSE persists, index ends unchanged

KARACHI: Karachi Stock Exchange (KSE) sloppy trading activities continued for the third consecutive day in a row today.The market today also opened on negative note, which remained the order of the day till the closing of the business session, when KSE-100 index unchanged wrapped up at 9,187 points.The volume of business stood at 41,200 shares. Volume leader Habib ADM shares price up by paisa 1 reached at Rs9.75. Experts think that the trading activities in the days to come could remain dull and dreary.

Asian stocks rebound

TOKYO: Asian stocks clawed back some ground in early trade Wednesday after Wall Street rebounded overnight on hopes for a US government rescue for ailing Detroit automakers. Stocks rose 1.0 percent in Tokyo, 1.4 percent in Hong Kong, 1.5 percent in Seoul and 2.2 percent in Sydney, after substantial falls Tuesday. The Dow Jones Industrial Average rallied 270.00 points or 3.31 percent, clawing back from a 679-point loss the previous day. In London, the FTSE 100 closed 1.41 percent higher, while Paris's CAC 40 added 2.35 percent and Frankfurt's DAX jumped 3.12 percent.

Indian stocks fall in wake of terror attacks

MUMBAI: India's stock market fell sharply Monday, reversing early gains, amid uncertainty over the political and economic outlook after terrorist attacks killed more than 180 people in the country's financial capital.Also weighing on investors were fresh signs that economic downturns in the U.S. and Europe, both major export markets, were weakening demand for Indian-made goods.The Bombay Stock Exchange Sensitive Index, or Sensex, closed down 252.85 points, or about 2.8 per cent, at 8,839.87 on light volume after opening higher. The index rose 0.7 per cent on Friday after being shut on Friday.While the attacks could keep tourists and foreign investors away, at least in the short term, analysts attributed Monday's declines to a temporary hit to sentiment rather than a loss of confidence about India's economic prospects."There's nobody interested in the market right at this moment," said Gul Teckchandani, a Mumbai-based investment analyst. "Everybody is glued to the television as to what the politicians are going to do in improving security in the city and how they plan to tackle problems going forward."Don't forget, people involved in the market have lost friends and family," he added. "It is playing on our minds, there is discomfort."Adding to the unease, government data showed Monday the country's exports fell 12.1 per cent last month compared to a year ago, further evidence that the global slowdown was taking a toll on India's economy.Shares of Maruti Suzuki India Ltd., the nation's largest car company, tumbled 8.7 per cent after it reported a sharp drop in sales last month. It dragged down other automakers along the way, with Tata Motors Ltd. and Mahindra & Mahindra Ltd. losing 3.1 per cent each.Banks were also lower as some investors lost hope that the central bank would cut interest rates further anytime soon.The decline came as Indian Prime Minister Manmohan Singh took charge of the finance ministry. He replaced the current top finance official, who in turn replaced a chief security official, who resigned over the attacks.

KSE traded sloppy

KARACHI: Karachi Stock Exchange (KSE) today for the second consecutive day remained lackluster, however the volume of trade recorded one hundred percent increase.Trading today remained restrained since the very outset, while this trend persisted for the whole day, resulting in the KSE-100 index wrapping up unchanged at 9187. However, the volume of trade as compared yesterday jumped up by over one hundred percent, as 1,97,000 shares changed hands. Volume leader National Asset shares price up by paisa 4 pegged at paisa 44. Experts predicted that dormancy in the market could end after Eid ul Azha.

KSE market capitalization down by over Rs6 billion

KARACHI: Karachi Stock Exchange (KSE) market capitalization this week recorded a fall by over Rs6 billion.KSE released data stated that the total market capitalization this week valued at Rs2820 billion, while the KSE-100 index listed companies’ aggregate value dwindled by Rs5 billion stood at Rs2490 billion as against Rs2495 billion last week.

CCP decides to issue show cause notice to KSE

KARACHI: The Competition Commission of Pakistan (CCP) has decided to issue a show cause notice to Karachi Stocks Market over imposing a price floor. Speaking to Geo News here on Friday, CCP Chairman Khalid Mirza said KSE’s decision to impose a floor in the market is unjustified. “One section of the investors was adversely affected over floor , he said, adding that Stock Market would be asked to clarify its position in this regard.

KSE witnesses dull session

KARACHI: Trade activities remained dull at the Karachi Stock Exchange (KSE) and volume hit lower than 100,000 shares on Tuesday.Investors mostly stayed away, due to which trade volume reached only 44,600 shares.The KSE 100-index today closed without any change at 9,187 points.However, investors showed some interest in the shares of Pak Commercial Leasing. Analysts say that trade activities would remain limited till the opening of market floor.

KSE inches up 3 points

KARACHI: The Trade volume partially improved at the Karachi Stock Exchange (KSE) as the benchmark KSE-100 index closed at 9,187 points this week.

Activity this week at the local bourse remained thin and the turnover even plunged to 9,600 shares.

Investors were seen taking interest in the telecom sector.

The investors mostly remained sidelined due to delay in the launch of the support fund.

Analysts believed that until a support fund comes forward trading activity would remain lean.

No progress in friends’ meeting, KSE clings onto previous level

Staff ReportKARACHI: The Karachi stock market continued to remain motionless on Tuesday, as the meeting of ‘Friends of Pakistan’ on Monday was inconclusive and there was no change in Moody’s negative views for Pakistan’s credit rating, which forced investors to adopt a wait-and-see policy, analysts said.The day was marked by the lowest ever volume of 19,660 shares, which is a record in the history of the stock market. The Karachi Stock Exchange (KSE) 100-share index remained unchanged at 9,184.09 points. The KSE 30 index and KMI 30 index also remained at 9,981.93 points and 10,003.99 points respectively. The market turnover went down 77.45 percent and traded 19,660 shares as compared to 87,200 shares traded in the previous session. The overall market capitalisation fell 0.03 percent and closed at Rs 2.826 trillion compared to Rs 2.827 trillion traded in the previous session. Out of seven companies, two closed in positive zone, three in negative while two remained unchanged. Like previous sessions, futures market continued to remain static as no activity was witnessed during the session. Analyst at Aziz Fida Hussein and Co said local bourses might soon witness a louder version of the ongoing silent protest as depicted by the turnover, which marginally managed to register five digit numbers, and it took 180 minutes after the opening bell for the first trade to take place. With no more commitments in the pipeline, friends have, as expected, opted for a more of consolatory attitude, delay in materialisation of any form of support is the way it looks it would be, thereby leaving no excuse for further extension of the freezing regime. Connecting unfreezing with the availability of the government fund is no longer a valid excuse, as the local bourses are no more the darling children of the government therefore expecting anything out of the way seems unrealistic as the authorities do not look keen in developing local equity markets for getting higher privatisation and the GDR proceeds rather they have shown comfort in using conventional tools, as displayed by recent step of going to the IMF.Analyst at Shahzad Chamdia Securities said investors remained concerned over delay in the market’s bailout plan of Rs 50 billion, despite various commitments from adviser to PM on finance.Southern Electric was the volume leader in the share market with 0.90 million shares as it closed at Rs 3.62 after opening at Rs 3.61 making a financial gain of one paisa. Gharibwal Cement traded 0.60 million shares as it closed at Rs 16.38 after opening at Rs 16.66 losing 28 paisas. Habib –ADM traded 0.30 million shares as it closed at Rs 9.69 after opening at Rs 9.99 losing 30 paisas. Mohammad Farooq traded 0.05 million shares as it closed at Rs 2.00 after opening at Rs 2.01 losing one paisa. Haydery Const traded 0.05 million shares as it closed at Rs 1.05 after opening at Rs 1.03 losing two paisas.

Prices higher on Taipei futures market

Prices on Taipei's stock futures market were higher Friday, with the Taiwan Stock Exchange Capitalization Weighted Index for December advancing 219 points to end at 4,121, with 125,163 contract transactions.
TAIEX Index futures for January gained 196 points to finish at 4,063, with 532 contracts traded, while March futures increased 200 points to close at 4,028, with 64 contracts changing hands.
June futures advanced 201 points to close at 4,015, with 54 contract transactions, while September futures rose 187 points to finish at 3,834, with 30 contract transactions.
Taiwan International Mercantile Exchange reference levels for TAIEX Index futures trading were set Friday at 3,902 for December, 3,867 for January, 3,828 for March, 3,814 for June and 3,647 for September.
The Taiwan stock exchange's benchmark TAIEX index gained 81.17 points to finish at 4,171.1, on turnover of NT$51.85 billion (US$1.55 billion).
Electronics (TE) and financial (TF) futures, which are sub-index futures based on Taiwan Stock Exchange-listed electronics shares and financial stocks, were mostly higher, with TE futures for December and March both surging by the maximum allowable 7 percent.
December TE futures rose 9.95 points to close at 152.35, with 6,211 contracts traded, while January TE futures increased 9.8 points to finish at 150.7, with 98 contract transactions.
March TE futures gained 9.65 points to finish at 147.75, with four contract transactions, while September TE futures rose 1.9 points to end at 132, with four contract transactions. No transactions were recorded for June.
December TF futures gained eight points to finish at 463, with 4,609 contracts changing hands, while January TF futures increased 0.4 points to finish at 456.4, with 71 contracts traded.
March TF futures lost 13 points to end at 447, with two contracts traded, while June TF futures declined 17 points to close at 442, with one contract traded. No transactions were recorded for September.

Stock markets tread water while investors question direction

TORONTO - Stock markets struggled to keep their head above water throughout the early afternoon as investors questioned if it was time to pick up the pieces or continue to drive markets lower.
The S&P/TSX composite index was essentially flat, up 10.18 points to 7,733.31, after gaining as much as 321 points earlier in the session.
The gold index was the major gainer, up 22 per cent, as the December bullion contract increased $51.80 to US$800.50. Barrick Gold Corp. (TSX:ABX) was ahead $7.10 to $33.83.
The mining index rose 12.6 per cent. Energy stocks were also higher, up 2.5 per cent as the December crude contract rose 44 cents to US$49.86 per barrel.
Bank and insurance stocks crumbled 5.1 per cent as TD Bank (TSX:TD) shares continued to decline, down a further eight per cent to $40.13. The bank disclosed Thursday a $350 million in quarterly credit trading losses.
Since the end of last week, TD's shares have fallen 26 per cent from $53.57.
The beaten-down Canadian dollar - which plunged 2.52 cents Thursday - was at 77.61 cents US, up 0.30 of a cent after Statistics Canada reported the headline inflation rate eased last month to 2.6 per cent, from 3.4 per cent in September.
Wall Street stocks also face a volatile session with the Dow Jones industrial average rose 41.89 points to 7,594. The Nasdaq composite was behind one point at 1,315 and the S&P 500 moved up 4.14 to 757.
The market is digesting a Wall Street Journal report that Citigroup Inc. is considering selling all or part of itself following a plunge in its stock price - 26 per cent on Thursday alone.
HudBay Minerals Inc. (TSX:HBM) and Lundin Mining Corp. (TSX:LUN) plan to merge in an all-stock deal worth $814 million, based on current market prices. HudBay shares were down 41 per cent to $3.10 and Lundin rose 11 per cent to $1.12.
In earnings, Sears Canada Inc. (TSX:SCC) reported a third-quarter profit of $68.9 million as same-store sales increased 0.9 per cent from the comparable period a year ago despite a tough retail environment. Its shares fell 35 cents to $16.19.
Catalyst Paper Corp. (TSX:CTL) fell four cents to 26 cents after the company announced a tentative four-year contract agreement with the Communications, Energy and Paperworkers Union of Canada at its B.C. pulp and paper operations.
Research in Motion (TSX:RIM) shares were ahead 54 cents to $54.53 on the day the company debuts the BlackBerry Storm touch-screen mobile device in North America - a product intended to steal market share from Apple Inc.'s iPhone.
The decrease in selling pressure on Friday was somewhat expected with key markets sliding drastically in recent sessions.
On Thursday, Toronto's main index dropped nine per cent or more than 750 points at its lowest level since October 2003, and down 49 per cent from its June peak of 15,073.

Toronto Stock Exchange Revised Listing Fee Schedule

21/11/08
TMX Group Inc. (TSX: X) yesterday announced a revised listing fee schedule for Toronto Stock Exchange (TSX). The new fee schedule will apply starting January 1, 2009.
TSX expects most of its individual listed issuers to experience a reduction in sustaining fees in 2009, due to lower market capitalization. Overall, this reduction will be partially offset by an estimated $3M to $4M aggregate increase in sustaining fees, as a result of the introduction of the new schedule. The estimated increase in sustaining fees is based on market capitalization as of November 4, 2008. Listing fees at all major exchanges were reviewed to ensure TSX fees remain competitive with those marketplaces.
The amendments to the listing fee schedule include changes to the base and maximum sustaining fees for corporate issuers (variable fee rates remain unchanged); the fees payable for corporate reorganizations, which include income trust conversions; and the maximum fees payable for security-based compensation arrangements (minimum fees and the variable fee rates remain unchanged). Original listing and additional listing fees (other than for security-based compensation arrangements) remain unchanged.

Idearc delisted from New York Stock Exchange

03:59 PM CST on Friday, November 21, 2008
By ANDREW D. SMITH / The Dallas Morning Newsasmith@dallasnews.com
Shares of the Yellow Pages publisher Idearc Inc. began trading over-the-counter Friday, one day after the Grapevine-based company was delisted from the New York Stock Exchange.
The company, which was spun off from Verizon Communications in late 2006, has struggled to make the transition from print to Web. Although Idearc remains profitable, its sales have steadily fallen in recent quarters.
The company's stock has fallen, too, from the $25 mark a year ago to 8 cents at the close of trading Friday. This very low valuation caused the delisting.

SBP issues over Rs23 bln T-Bills

Friday, November 21, 2008 KARACHI: The State Bank of Pakistan (SBP) Friday mopped up Rs23.70 billion at 6.4 per cent interest for one day by issuing treasury bills.The SBP performed the open market operation to absorb excess liquidity from the banking system.

European, Asian markets rebound despite US losses

Friday, November 21, 2008 LONDON: European and Asian stock markets rebounded Friday as expectations of a recovery on Wall Street prompted investors to scoop up battered financial and energy shares.The FTSE 100 index of leading British shares was up 42.78 points, or 1.1 percent, at 3,917.77, while Germany's DAX was 46.59 points, or 1.1 percent, higher at 4,266.79. The CAC-40 in France was up 34.62 points, or 1.2 percent, at 3,015.04.The modest bounceback in Europe came after Asian markets recouped early losses in the wake of the sell-off on Wall Street to end up in positive territory. Japan's Nikkei 225 stock average rose 207.75, or 2.7 percent, to 7,910.79, and Hong Kong's Hang Seng index jumped 360.64 points, or 2.9 percent, to 12,763.81.Worries about the future of both the U.S. car industry and Citigroup Inc., as well as the fall in the price of oil to three-year lows below $50 a barrel fueled the selling on Wall Street Thursday. The Dow Jones index of leading U.S. shares suffered its worst two-day percentage decline — 10.6 percent — since October 1987's stock market crash, while the broader Standard & Poor's 500 index slumped to its lowest level in 11 years.However, U.S. stock index futures were sharply higher as investors look to buy up heavily beaten stocks. Dow futures were up 303 points, or 4 percent, at 7,787 while S&P futures were up 31.9 points, or 4.3 percent, at 780.2."The only saving grace is that the cherry pickers may now come in and start buying up some keenly priced stock," said Matt Buckland, a dealer at CMC Markets.Financial stocks in Europe, such as BNP Paribas SA, HSBC PLC and UBS AG, have led the way in Europe Friday, though heavyweight energy stocks in London, like BP PLC and Royal Dutch Shell have recovered strongly as oil prices pushed back up above $50 a barrel.With a dearth of economic news on Friday, stock markets in Europe and the U.S. will be keeping a close eye at developments at Citigroup, which saw its shares tumble Thursday to their lowest level in more than 15 years, below $5 a share, despite a Saudi prince's decision to boost his stake in the bank.Prince Alwaleed bin Talal, a longtime investor in Citigroup, said he plans to increase his stake in the bank to 5 percent from less than 4 percent. He also expressed "his full and complete support" of the bank's management — including Vikram Pandit, who has been CEO for less than a year.Citigroup is widely considered the most vulnerable among the major U.S. banks, failing to turn a profit in the past four quarters when rivals such as JPMorgan Chase & Co. and Bank of America Corp. managed to do so."Today will likely be another fluid day with rumors driving the market," said Hans Redeker, an analyst at BNP Paribas.Earlier in Asia, South Korea's Kospi surged 5.8 percent and Australia's market closed up 1.9 percent after initially falling more than 3 percent. But mainland China's Shanghai Composite index slipped 0.7 percent and markets in the Philippines and Indonesia also sank.Financial, real estate and technology stocks led the recovery in Asia, particularly in Hong Kong, where HSBC Holdings PCL jumped 4.5 percent, China Construction Bank Corp. rose 6.7 percent and Standard Chartered Bank increased 4.5 percent."There's a little bit of strength coming back into beaten-down stocks," said Andrew Yates, vice president of foreign institutional sales at Asia Plus Securities in Bangkok. "But the volumes are not great so it's difficult to call a bottom particularly with the macro picture being so weak."Oil prices, which have fallen to a third of their July peak, edged up in London trading. Light, sweet oil for January delivery rose 85 cents to $50.27 a barrel on the New York Mercantile Exchange after earlier falling as low as $48.25, the lowest since May 2005.In currencies, the dollar rose 1.8 percent to 95.29 yen while the euro was up 1.3 percent at $1.2597.

European, Asian markets rebound despite US losses

Friday, November 21, 2008 LONDON: European and Asian stock markets rebounded Friday as expectations of a recovery on Wall Street prompted investors to scoop up battered financial and energy shares.The FTSE 100 index of leading British shares was up 42.78 points, or 1.1 percent, at 3,917.77, while Germany's DAX was 46.59 points, or 1.1 percent, higher at 4,266.79. The CAC-40 in France was up 34.62 points, or 1.2 percent, at 3,015.04.The modest bounceback in Europe came after Asian markets recouped early losses in the wake of the sell-off on Wall Street to end up in positive territory. Japan's Nikkei 225 stock average rose 207.75, or 2.7 percent, to 7,910.79, and Hong Kong's Hang Seng index jumped 360.64 points, or 2.9 percent, to 12,763.81.Worries about the future of both the U.S. car industry and Citigroup Inc., as well as the fall in the price of oil to three-year lows below $50 a barrel fueled the selling on Wall Street Thursday. The Dow Jones index of leading U.S. shares suffered its worst two-day percentage decline — 10.6 percent — since October 1987's stock market crash, while the broader Standard & Poor's 500 index slumped to its lowest level in 11 years.However, U.S. stock index futures were sharply higher as investors look to buy up heavily beaten stocks. Dow futures were up 303 points, or 4 percent, at 7,787 while S&P futures were up 31.9 points, or 4.3 percent, at 780.2."The only saving grace is that the cherry pickers may now come in and start buying up some keenly priced stock," said Matt Buckland, a dealer at CMC Markets.Financial stocks in Europe, such as BNP Paribas SA, HSBC PLC and UBS AG, have led the way in Europe Friday, though heavyweight energy stocks in London, like BP PLC and Royal Dutch Shell have recovered strongly as oil prices pushed back up above $50 a barrel.With a dearth of economic news on Friday, stock markets in Europe and the U.S. will be keeping a close eye at developments at Citigroup, which saw its shares tumble Thursday to their lowest level in more than 15 years, below $5 a share, despite a Saudi prince's decision to boost his stake in the bank.Prince Alwaleed bin Talal, a longtime investor in Citigroup, said he plans to increase his stake in the bank to 5 percent from less than 4 percent. He also expressed "his full and complete support" of the bank's management — including Vikram Pandit, who has been CEO for less than a year.Citigroup is widely considered the most vulnerable among the major U.S. banks, failing to turn a profit in the past four quarters when rivals such as JPMorgan Chase & Co. and Bank of America Corp. managed to do so."Today will likely be another fluid day with rumors driving the market," said Hans Redeker, an analyst at BNP Paribas.Earlier in Asia, South Korea's Kospi surged 5.8 percent and Australia's market closed up 1.9 percent after initially falling more than 3 percent. But mainland China's Shanghai Composite index slipped 0.7 percent and markets in the Philippines and Indonesia also sank.Financial, real estate and technology stocks led the recovery in Asia, particularly in Hong Kong, where HSBC Holdings PCL jumped 4.5 percent, China Construction Bank Corp. rose 6.7 percent and Standard Chartered Bank increased 4.5 percent."There's a little bit of strength coming back into beaten-down stocks," said Andrew Yates, vice president of foreign institutional sales at Asia Plus Securities in Bangkok. "But the volumes are not great so it's difficult to call a bottom particularly with the macro picture being so weak."Oil prices, which have fallen to a third of their July peak, edged up in London trading. Light, sweet oil for January delivery rose 85 cents to $50.27 a barrel on the New York Mercantile Exchange after earlier falling as low as $48.25, the lowest since May 2005.In currencies, the dollar rose 1.8 percent to 95.29 yen while the euro was up 1.3 percent at $1.2597.

Gas prices sink below $2

For the first time in more than three-and-a-half years, the average price of gasoline fell below $2 a gallon, according to a national survey released Friday.
The nationwide average price dropped to $1.989 a gallon, down from $2.02 on Thursday, according to motorist group AAA, which bases its information on credit card swipes from up to 100,000 service stations.
This is the first time that gas has dipped below $2 a gallon since March 9, 2005, when the nationwide average was $1.9932, according to Ben Brockwell, director of data and pricing services for Oil Price Information Services.
OPIS tracks fuel prices in conjunction with AAA and Wright Express, an information provider for the commercial and government vehicle fleet industries.
Inexpensive gasoline stands in stark contrast to this summer's record high prices, which sparked a plunge in sales of pickups and sport utility vehicles, became a headline issue in the presidential campaign and provoked widespread public outrage.
The nationwide average price of unleaded hit its all-time high of $4.114 a gallon on July 17, 2008 - or more than double the current price.
"This summer, we thought [gas for $2 a gallon] was impossible, and now we have crossed the threshold," said Brockwell. "It's an important psychological barrier."
Of course, lower gas prices will help drivers, but Americans are suffering from a troubled economy marked by mounting job losses and rising unemployment

ASIA MARKETS: Regional Stocks Extend String Of Losses

Asian markets fell sharply Friday on worries about the impact of deteriorating global economic conditions, with South Korean shares sliding for a ninth straight session and Australia, Taiwan and Hong Kong extending losses into a fifth consecutive trading day.
In Japan, the Nikkei slid as well, with Inpex Holdings Inc. declining as crude-oil prices dropped below $50 a barrel. Exporters such as Honda Motor Co. also lost ground after U.S. stocks dived overnight, and on an appreciation in the yen against the U.S. dollar as investors rolled back risky carry trades.
"The worrying thing is that the declines aren't slowing down, they're speeding up," said Benjamin Collett, head of hedge-fund sales trading at Daiwa Securities SMBC in Hong Kong. "We're looking forward to four quarters of economic data declining at an increasing rate. We're also seeing more layoffs even in the region here ... that is the corporate equivalent of what consumers globally are doing -- look at what they've got and where they can save money.".
China's Shanghai Composite sank 4% to 1,905.01 on reports that mainland unemployment was likely to worsen in the wake of the global economic crisis.
The decline came after Yin Weimin, the minister of human resources and social security, reportedly said the global slowdown had a deep impact on exporters and labor-intensive industries. "Our judgment is that in the first quarter of next year, there will be even greater difficulties," Yin said, according to a Wall Street Journal report.
South Korea's Kospi slipped 0.9% to 940.08, after losing 17.7% in the previous eight sessions.
In Tokyo, the Nikkei 225 Average dropped as low as 7,406.18 in the morning session before narrowing losses in the afternoon. The benchmark recently was down 1.4% at 7,599.11 while the broader Topix fell 1.7% to 769.47.
Australia's S&P/ASX 200 lost 2.7% to 3,261.70 and New Zealand's NZX 50 index gave up 2.6% to 2,576.92.
Singapore's Straits Times index slid 2% to 1,581.93, while Taiwan's Taiex gave up 1.6% to 4,024.65.
Regional detail
Shares declined across the board in Shanghai, with China Eastern Airlines Corp. (CEA) shedding 9.2%, Baoshan Iron & Steel Co. shrinking 5.1% and China Life Insurance Co. (LFC) dropping 3.9%.
Construction and financial companies ranked among the big losers in Seoul on worries about economic growth, with Daewoo Engineering & Construction Co. losing 6% and GS Engineering & Construction Corp. (GSNGF) slumping 8.4%. Shares of KB Financial Group (KB) plunged 7.3%.
Among Japanese exporters, Honda Motor Co. (HMC) shrank 2.5% and Nintendo Co. ( NTDOY) lost 3%.
The drop in Honda shares, also for a fourth straight session, came after The Wall Street Journal reported the Japanese automaker planned to reduce output in North America by another 18,000 units by the end of March 31, in response to lower sales. Including cuts announced earlier, the company will have reduced production by 50,000 units since August.
In currency trading, the U.S. dollar bought 94.26 yen, compared with 95.01 yen late Thursday.
Energy-related stocks also were hurt after December crude-oil prices dropped below $50 a barrel Thursday on the New York Mercantile Exchange, ending down $4 at $49.62. The December contract expired overnight. January futures, which closed at $49.42 a barrel Thursday on the Nymex, slipped as much as 82 cents to $48.60 a barrel in electronic trading.
In Tokyo, Inpex Holdings fell 2.4% and commodities trader Marubeni Corp. ( MARUY) slid 2.5%. In Sydney trading, Woodside Petroleum (WOPEY) stock gave up 7.6%, while BHP Billiton (BHP) lost 3.1% for its eighth loss in nine sessions.
In Hong Kong, Cnooc (CEO) lost 5.2% while PetroChina Co. (PTR) gave up 3.3%.
On Wall Street, the S&P 500 index (SPX) slumped 6.7% to 752.44, a closing level it hasn't seen in more than 11 years. The Dow Jones Industrial Average ( DJI) gave up 5.6% to 7,552.29 and the Nasdaq Composite (RIXF) lost 5.1% to 1, 316.12.

Most Asian markets rebounded strongly in afternoon trading Friday, with financials such as Mizuho Financial Group and HSBC Holdings leading the bounce after a string of recent declines.
The recovery came in the wake of a Wall Street Journal report that Citigroup was weighing the possibility of auctioning off pieces of the financial giant or even selling the company outright.
Hong Kong's Hang Seng Index dropped as low as 11,814.81 before bouncing sharply to end the morning session at 12,851.78, 4.5% higher.
South Korea's Kospi, which dropped during the previous eight sessions, jumped 3.2% to 978.72.
In Tokyo, the Nikkei rebounded as well and was recently up 0.9% at 7,770.50, while the broader Topix index climbed 0.3% to 784.83.
Australia's S&P/ASX 200 rose 1.7% to 3,408.60 and New Zealand's NZX 50 index gave up 2.5% to 2,578.10.
Singapore's Straits Times index gained 0.9% to 1,628.23, while Taiwan's Taiex rose 1.8% to 4,164.01.
China's Shanghai Composite, which sank more than 4% at one point during the session on reports that mainland unemployment was likely to worsen in the wake of the global economic crisis, was recently down 0.9% to 1,966.92.
"We're looking forward to four quarters of economic data declining at an increasing rate. We're also seeing more layoffs even in the region here ... that is the corporate equivalent of what consumers globally are doing -- look at what they've got and where they can save money," said Benjamin Collett, head of hedge-fund sales trading at Daiwa Securities SMBC in Hong Kong.
Regional detail
Banks led the regionwide gains, with HSBC Holdings (HBC) gaining 4.5% and China Construction Bank soaring 6.7%, reversing early declines.
In Tokyo, Mizuho Financial Group (MFG) bounced 10.1%, while Commonwealth Bank of Australia bounced 4.4% in Sydney.
In currency trading, the U.S. dollar bought 94.55 yen, compared with 95.01 yen late Thursday.
Overnight on the New York Mercantile Exchange, December crude-oil prices dropped below $50 a barrel Thursday on the New York Mercantile Exchange, ending down $4 at $49.62. The contract expired overnight. January crude-oil futures, which closed at $49.42 a barrel on the Nymex, slipped as much as 82 cents to $ 48.60 a barrel in electronic trading.
On Wall Street, the S&P 500 index (SPX) slumped 6.7% to 752.44, a closing level it hasn't seen in more than 11 years. The Dow Jones Industrial Average ( DJI) gave up 5.6% to 7,552.29 and the Nasdaq Composite (RIXF) lost 5.1% to 1, 316.12.

EUROPE MARKETS: Shares Gain In Europe After Report Citi May Be Sold

Stocks in Europe edged higher in early trading on Friday, with a report that Citigroup may be sold helping shares on the Continent to look past the pummeling taken on Wall Street in the prior session.
On Thursday, the S&P 500 fell to levels not seen since the spring of 1997 as U.S. stocks were crushed again.
But with a report that Citigroup may sell itself, U.S. stock futures surged, with futures on the Dow Jones Industrial Average up 304 points.
The Dow Jones Stoxx 600 rose 0.6% to 187.82, led by the miners and insurers that fell sharply on Thursday.
The U.K. FTSE 100 rose 0.4% to 3,888.77, the French CAC 40 added 0.7% to 3, 002.56 and the German DAX 30 added 0.4% to 4,236.47.
Strategists at Goldman Sachs said earnings estimates have been revised downward for 70% of the companies in the Stoxx 600.
"Equity markets continue to face a steady stream of bad corporate and macroeconomic news. What is worse, the market still sells off on such news, suggesting that it is not all in the price," they said.
"We would wait until the market stops falling on bad news before we turn positive."
Of stocks in the spotlight, Barclays (BCS) rose 3.3% as one of its top shareholders, Legal & General, said it would support the 7 billion pound ($10.4 billion) fund-raising plan because of the "exceptional circumstances" that a failure to raise the money could bring. But it said in the future it will "vote against capital raisings that disregard preemption rights."
Legal & General , which has been erratic through the week, rose 4.5%.
Sacyr-Vallehermoso shot up 16.7% after a report that a Libyan investment fund may want to buy Sacyr's 20% stake in Repsol (REP).
Meanwhile, Lukoil also is said to be in talks to buy Repsol stakes both from Sacyr and from Criteria .
Repsol and Criteria shares were both halted by the Spanish securities regulator.
SolarWorld rose 8.4%, recovering some of the losses from its heavily criticized attempt to buy four plants from the Opel unit of General Motors.

ASIA MARKETS: Stocks In Asia Erase Early Losses To End Higher

Most Asian markets sprang from sharp intraday losses to end higher Friday, with trader speculation that China may cut interest rates further and that the U.S. may announce stops auto industry over the weekend contributing to the bounce.
Financials such as Mizuho Financial Group and HSBC Holdings led the advance after a string of declines recently.
The gains came in the wake of a Wall Street Journal report that Citigroup was weighing the possibility of auctioning off pieces of the financial giant or even selling the company outright.
Linus Yip, strategist at First Shanghai Securities, said expectation of a rate cut by the Chinese central bank over the weekend helped lift China-related shares in Hong Kong, where the market declined during the previous four sessions, but not on the mainland, as the Shanghai market had come off its lows and was undergoing a consolidation.
Hong Kong's Hang Seng Index dropped as low as 11,814.81 during the session, before bouncing to end the day 2.9% up at 12,659.20.
China's Shanghai Composite, which slumped as much as 4.6% at one point on reports that the mainland's unemployment was likely to worsen in the wake of the global economic crisis, briefly ventured into positive territory in the afternoon, before slipping back into the red to end at 1,983.76, a decline of 0.7%.
"We're looking forward to four quarters of economic data declining at an increasing rate. We're also seeing more layoffs even in the region here ... that is the corporate equivalent of what consumers globally are doing -- look at what they've got and where they can save money," said Benjamin Collett, head of hedge-fund sales trading at Daiwa Securities SMBC in Hong Kong.
In an interview with the CNBC news channel separately, Marc Faber, editor and publisher of the Gloom, Boom and Doom report said weakening consumer demand in the U.S. would hurt exporters such as China the most.
"I'd be very careful about the Chinese economy. I think the Chinese economy isn't growing at 8% at the present time. Most likely it's already in contraction," he said.
In Tokyo, the Nikkei 225 rebounded as well, ending 2.7% higher at 7,910.79, while the broader Topix index climbed 2.6% to 802.69. The Bank of Japan as expected held interest rates at 0.3%.
South Korea's Kospi, which dropped during the previous eight sessions, jumped 5.8% to end at 802.69.
Taiwan's Taiex rose 2% to 4,171.10, while in afternoon trading, India's Sensex rose 3.5% to 8,748.97 and Singapore's Straits Times index gained 3% to 1,662.10.
Australia's S&P/ASX 200 rose 1.9% to 3,416.50 and New Zealand's NZX 50 index gave up 2.5% to 2,578.10.
Speculation of U.S. auto industry rescue
Traders said rumors that the U.S. may announce measures to rescue the auto industry also swirled the markets, contributing to the market's rebound in the afternoon.
"I think investors are watching [developments in] the U.S. car market. Any rescue package from the government should help the markets rebound," said Patrick Shum, strategist at Karl Thomson Securities.
Banks led the regionwide gains, with market heavyweight HSBC Holdings (HBC) gaining 1.9% and China Construction Bank soaring 6.1%, reversing early declines.
In Tokyo, Mizuho Financial Group (MFG) surged 13.9%, while Commonwealth Bank of Australia bounced 5.6% in Sydney, while KB Financial Group (KB), which at one point slumped more than 13%, ended 1.8% up in Seoul.
Some energy-related shares broadly declined after crude-oil prices plunged overnight. Woodside Petroleum (WOPEY) dropped 5.4% in Sydney and Cnooc (CEO) lost 2.5% in Hong Kong, while PetroChina Co. (PTR) slipped 0.5% in Shanghai.
Overnight on the New York Mercantile Exchange, December crude-oil prices dropped below $50 a barrel Thursday on the New York Mercantile Exchange, ending down $4 at $49.62. The contract expired overnight.
January crude-oil futures, which closed at $49.42 a barrel on the Nymex, rose 75 cents to $50.17 a barrel in electronic trading, after dropping as low as $ 48.25 earlier in the day.
In currency trading, the U.S. dollar bought 95.13 yen, compared with 95.01 yen late Thursday.
On Wall Street, the S&P 500 index (SPX) slumped 6.7% to 752.44, a closing level it hasn't seen in more than 11 years. The Dow Jones Industrial Average ( DJI) gave up 5.6% to 7,552.29 and the Nasdaq Composite (RIXF) lost 5.1% to 1, 316.12.

New York Stock Exchange Today Launches NYSE Realtime Stock Prices

The New York Stock Exchange (NYSE), a subsidiary of NYSE Euronext (NYX), today will introduce NYSE Realtime Stock Prices, a new data product that enables Internet and media organizations to buy real-time, last-trade market data from the NYSE and provide it broadly and free of charge to the public. Google and CNBC are the first organizations to make the product available to the public, effective today.
“NYSE Realtime Stock Prices will provide investors with free, immediate and easily accessible information, without requiring them to complete any administrative forms or contracts. We are excited to partner with Google and CNBC, two great names in the information space, to offer this useful data to the public,” said Ronald Jordan, Executive Vice President, Market Data.
"Providing real-time market data on Google Finance is an important step towards helping investors make more informed and timely investment decisions," said Marissa Mayer, Vice President of Search Products and User Experience. "Access to real-time financial information has traditionally been limited to investors with brokerage accounts and other users via subscription fees. We are pleased to be making this information freely available to all of our users on Google Finance, Google.com and other Google search properties."
"This service will enable any CNBC viewer or user the ability to make better investing decisions, no matter what platform they use or where they are in the world," said Scott Drake, Vice President, CNBC Digital.
The NYSE first proposed the idea for NYSE Realtime Stock Prices in January 2007, with an innovative approach: information providers disseminating the data do not have to count and report the number of users to the Exchange, nor contract with each user. Instead, the providers purchase the data from the NYSE for a flat monthly fee. The Securities and Exchange Commission last week approved NYSE Realtime Stock Prices for a four-month pilot period.

Rolls-Royce appoints John Neill as a Non-Executive director

14 November 2008
Rolls-Royce today announced the appointment of John Neill CBE as a non-executive director.
Announcing the appointment, the Chairman of Rolls-Royce, Simon Robertson said: "I am delighted to welcome John Neill as a non-executive director of Rolls-Royce. He brings with him a wealth of experience in component manufacturing, supply-chain management and logistics which will all be extremely valuable to our Company."
John Neill is the Chief Executive of the Unipart Group of Companies. He is a member of the Council and Board of Business in the Community and is a Non-Executive Director of Charter PLC.

Rolls-Royce power increases efficiency for SPE in Belgium

18 November 2008
SPE, the second largest electrical utility in the Belgium, has commissioned its Rolls-Royce Trent 60 powered electrical generating plant at the Ham power station in the centre of Ghent. The simple cycle plant, which is the most powerful and fuel-efficient of its type in the world, is also environmentally friendly due to the high efficiency of the Rolls-Royce engines.
Charles Athanasia, Vice President of Power Generation for the Rolls-Royce energy business said, “This represents a significant achievement for Rolls-Royce. The Trent 60 delivers performance levels to SPE that are not available from any other aero derivative gas turbine. Our experience, together with our technology, will enable SPE to run its plant at peak efficiency."
The Rolls-Royce gas turbines have made a significant improvement to the plant’s environmental impact and were a key factor in the decision to replace the diesel engines used at the station for the past 40 years. Two Trent 60 aero derivative gas turbines will provide over 100MW of power during times of peak demand at the Meuse River site, where a power station has been sited for over 80 years.
The noise level of the new plant is now even lower than the ambient noise level on the streets of Ghent. Vibrations from the plant when the diesel engines were running have almost completely disappeared. This environmental improvement was one of the main drivers for the project, given its city centre location.
Following on from this successful installation in Ghent, SPE and Rolls-Royce have joined forces to build another Trent 60 power station on an existing SPE site at Angleur near Liège.
Rolls-Royce has now installed eleven Trent gas turbine generating sets at power station sites in Europe with an additional 12 units on order.
The Trent 60 gas turbine, derived from the Rolls-Royce Trent aero engine for the Boeing 777, is currently the most powerful aero derivative gas turbine available in the world with a power output up to 64MW.

Rolls-Royce nets CorporateCare® contracts with NetJets Middle East

18 November 2008
Rolls-Royce, the world leader in engines for the business jet market, today announced NetJets Middle East, owned and operated by National Air Service, has signed six Rolls-Royce powered aircraft to CorporateCare®, the industry’s most comprehensive engine maintenance and management programme.
The aircraft are three Tay 611-8-powered Gulfstream GIVs and three Gulfstream G450s powered by Tay 611-8C engines.
Jamal Kashkari, Director of Maintenance - NetJets Middle East said: “The utilisation of the CorporateCare® programme will increase the reliability of our aircraft.”
Stephen Friedrich, Vice President - Aftermarket Business, Corporate & Regional Engines, Rolls-Royce, said: “We are delighted to extend our partnership with NetJets Middle East. The combination of Rolls-Royce product and service solutions delivers NetJets Middle East enhanced operations, increased efficiency and superior product performance.”
CorporateCare is one of the most successful service solutions in the Rolls-Royce suite of aftermarket offerings for civil aerospace, delivering record contract numbers in each of the last four years. Strong demand continues with more than 55 per cent of BR710 operators, 50 per cent of Tay 611-8C operators and 80 per cent of AE 3007 operators now enrolled in CorporateCare.
With CorporateCare, customers benefit from improved asset value, predictable engine maintenance costs, reduced acquisition costs and minimized administrative burdens. Basic coverage extends to scheduled and unscheduled shop visit expenses; all parts expenses (LRUs through line item parts) incurred during line maintenance; engine removal and reinstallation; and lease engine expenses. All applicable Service Bulletins, mandatory or recommended, are included as standard, both in the overhaul shop and during line maintenance, in accordance with Rolls-Royce Engine Management Programmes.
CorporateCare supports Rolls-Royce’s entire line of corporate aircraft engines: BR725, BR710, RB282, AE 3007, Tay and Viper.

Notes to Editors:
NetJets Middle East is a division of National Air Services and is headquartered in Jeddah, Saudi Arabia. All flights are operated by NAS. The NetJets Middle East fractional aircraft ownership programme is affiliated with NetJets Inc. and is operated under the principles of the NetJets U.S. programme created in 1986 by NetJets Inc. Chairman and CEO Richard Santulli.
Rolls-Royce has a growing presence in the Middle East, where it is playing an important role in the development of the region across all the Group’s sectors - civil aerospace, defence aerospace, marine and energy.
Rolls-Royce forecasts the size of the global corporate aircraft market opportunity at 79,000 engines worth US$110 billion over the next 20 years. Much of this demand is anticipated to come from the Middle East where the company expects a substantial increase in the region’s 220 aircraft fleet, 30 per cent of which is Rolls-Royce powered.
Rolls-Royce powers 15 different in-service business jet types in a fleet of 2,100 aircraft. Over one third of this fleet is covered by a long-term maintenance agreement with Rolls-Royce.
The company’s services activity continues to expand and is valued highly by customers worldwide. Service agreements broaden the opportunity to increase aftermarket revenues, which in turn provide considerable visibility of earnings into the future.
Rolls-Royce has a long history of offering programmes that provide service support of the operator’s engines in return for a fixed payment per hour flown. Its trademarked “Power by the Hour” programme has been in existence against the Viper engine, installed in the Raytheon (HS) 125 corporate jet, for well over 30 years. The company has also managed Fleet Hour Contracts with several customers since the inception of the RB211 engine in the early 1970s. Today, Rolls-Royce has taken its service to new levels with its CorporateCare®, TotalCare™ and On-Wing Care service centre support programmes.
Further details on CorporateCare® are available at www.rolls-royce.com or contact Steve Friedrich, Vice President – Aftermarket Business, at +1(703) 621-2715.

REG-Rolls-Royce Grp Plc: ROLLS-ROYCE CONSULTS WITH EMPLOYEES ON FUTURE EMPLOYMENT

20 November 2008Rolls-Royce consults with employees on future employmentRolls-Royce announced today that it is consulting employee representativesabout a proposed reduction of 140 jobs at its Assembly and Test facility inDerby, UK, which forms part of the Group's Civil Aerospace business.Today's announcement represents the first stage in a more general programmeaimed at matching the Group's capacity more closely with the expected load inits facilities. The Group currently employs around 39,000 people globally, ofwhom around 60 per cent work in the UK.Rolls-Royce has been reviewing the possible impact of current economicuncertainties, delays on individual programmes, such as the Airbus A380 and theBoeing 787, and the benefits of the Group's continuing focus on efficiency.While it is too early to be specific about the precise implications for thenumber and location of job reductions, the Group's current assessment is thatin 2009 it will be necessary to implement job reductions across the varioussectors and functions of around 1,500 to 2,000 on a worldwide basis, includingthe reduction announced today.These proposals have no effect on the Group's 2008 financial guidance and thecosts in 2009 are expected to be balanced by the savings achieved in the courseof the year, as is the case in 2008.These reductions account for around four per cent of the total workforce andwill have an effect globally. As the precise scale and location of thereductions become clear, Rolls-Royce will enter into detailed consultations inthe relevant locations. It is possible that in some areas there will be littleor no impact.To put these proposed reductions into context, Rolls-Royce announced in Januarythat it would continue its focus on efficiency by reducing by 2,300 during 2008the number of staff working in overhead functions, a programme that is nowlargely complete. To minimise compulsory redundancies, the Group reduced itstemporary workforce and, where possible, relied on voluntary severance, naturalattrition and avoided recruitment. It has continued to recruit to supportgrowth in key areas of the business and, importantly, maintained its commitmentto apprentice and graduate recruitment. Rolls-Royce will adopt a similarapproach in 2009 so as to mitigate, as far as possible, the impact of theproposed reductions.Sir John Rose, Chief Executive, said: "We are determined to maintain our focuson cost reduction and competitiveness as the world economy enters a challengingperiod. It is too early to determine the precise effects of the global economicdownturn and programme delays. However, we wanted to give all our employees anearly indication of the likely scale of the job reductions we expect in 2009."Note to Editors 1. Rolls-Royce, a world-leading provider of power systems and services for use on land, at sea and in the air, has over the last ten years established a strong position in fast growing global markets - civil aerospace, defence aerospace, marine and energy. 2. At the end of September 2008 Rolls-Royce employed around 39,000 people in 50 countries. Around 22,100 are employed in the UK, 8,250 in North America, 6,900 in the rest of Europe, 780 in Asia, about 480 in the rest of the world and a further 550 on a range of international assignments. 3. Annual underlying sales were £7.8 billion in 2007. New product development is carried out on a global basis with 50 per cent of new programmes developed outside the UK. Overall 55 per cent of the Group's 2007 annual sales came from services revenues and less than 20 per cent came from Original Equipment sales to the civil sector. The firm and announced order book at 30 June 2008 was £53.5 billion, an increase of 17 per cent from December 2007. 4. The Group has businesses headquartered in a wide range of countries including the UK, US, Canada, Germany, Scandinavia and China. This global presence allows the Group to access long-term international growth opportunities with its technology, presence, partnerships and people. 5. Rolls-Royce invests in core technologies, products, people and capabilities with the objective of broadening and strengthening the product portfolio, improving efficiency and enhancing the environmental performance of its products. Capital investments made by the Group over the last five years exceeded £1.3 billion. Sales per employee have improved by more than seven per cent compound over the last ten years.