Tag Archives: recover

Shares unlikely to recover yesterday’s losses today

By finance reporter Rebecca HyamUpdated February 22, 2013 09:25:37

The Australian share market looks unlikely to bounce back straight after yesterday’s big fall, with more weak leads from overseas.

Signs of further weakness in Europe and lingering concerns about the latest US Federal Reserve minutes have hurt global share markets overnight.

A report on the euro area’s economy signalled the region is struggling to recover from a recession.

In the US, the Fed minutes released yesterday showed policy makers think the central bank should be ready to vary the pace of its $US85 billion in monthly bond purchases, fuelling concern stimulus will be curtailed.

In official economic news, US data showed jobless claims rose more than forecast, with applications for unemployment benefits rising by 20,000 last week to 362,000.

A separate report revealed Philadelphia-area manufacturing has shrunk unexpectedly.

The Dow Jones Industrial Average closed down 47 points to 13,881, the S&P 500 Index fell 0.6 per cent to 1,502, and the Nasdaq gave up 33 points, or just over 1 per cent, to 3,131.

Across the Atlantic, UK insurance firm Aviva recovered some of its losses from the previous session.

However, losses among mining stocks weighed on the broader market and, by the close, London’s FTSE 100 Index had fallen 104 points, or 1.6 per cent, to 6,291.

It is set to be a flat start on the Australian share market after yesterday’s 2.3 per cent slide, and in futures trading the Share Price Index 200 was down 6 points to 4,961.

The Australian dollar was also weak, and was worth 102.4 US cents around 9:00am (AEDT).

West Texas crude oil eased to $US92.85 a barrel, Tapis was also weaker at $US120.06.

However, spot gold was fighting back from recent weakness, trading at $US1,577 an ounce.

Topics: business-economics-and-finance, markets, currency, futures, stockmarket, australia, united-kingdom, united-states

First posted February 22, 2013 09:24:28

Horsemeat scandal: Can brands like Findus recover?

 Its still unclear how much the Findus brand has been damaged by the horsemeat scandal Horsemeat is a tough sell, even for the the most revered advertising executives.


In the US TV series Mad Men, 1960s ad man Don Draper is asked what a client should do when its popular brand of dog food is found to contain horsemeat – much to the disgust of its customers.


“Change the name,” he says. “The name has been poisoned.”


Amid the current horsemeat scandal, the question is whether names like Findus are now toxic.


Findus is the most prominent brand so far named in the scandal, which has linked big-name supermarkets in the UK and France to abattoirs in Romania via meat suppliers in Ireland and Cyprus.


The frozen ready-meal maker has been a firm fixture in the UK for more than 50 years, and the company had global sales of more than £1bn ($1.5bn) in 2011.


Those sales are likely to plunge in the aftermath of the scandal.


Its beef lasagne has been taken off the shelves after being found to contain up to 100% horsemeat, and analysts warn its wider sales of processed meat will suffer.

‘Knock-on effect’

“It’s not just Findus that is going to suffer here, it’s the processed beef brand more generally,” said Vince Mitchell, professor of consumer marketing at Cass Business School in London.


“We are increasingly trusting supermarkets when we buy processed meat, so that failure of trust will mean a knock-on effect. That is where the damage is to come.”


But branding experts say the future of Findus depends on how the company responds the fallout of the scandal.


Shailendra Kumar, founding partner of the UK-based branding agency Equilibrium, said apologising should be an important part of the company’s response.


“The situation is recoverable,” he said. “As long as they put out their message of contrition and are seen to be acting on it, they will recover quite quickly.”


If this is done effectively, he said, the scandal should not bring the Findus brand down.


“Of course there has been some damage to the brand, but they are a big brand in the food industry,” he added.


“It’s a bit like the Perrier scandal – they found benzene in the water but within a year their market share was back to where it was.”

Continue reading the main story
They have to be completely transparent now… and convince people that they have learned from the experience”

End Quote Stephen Izatt Managing director of brand consultancy Thinkfarm Benzene was found in bottles of Perrier mineral water in 1990, forcing the recall of 160 million bottles from markets worldwide, and provoking criticism of the firm’s handling of the situation.

‘Established name’

Prof Mitchell argues that it is the handling of the crisis, rather than the crisis itself, that will affect whether consumers continue to trust the Findus brand.


He pointed to the BP Gulf of Mexico oil spill in 2010, when chief executive Tony Hayward was roundly criticised for his slow response.


“People do forget. In the BP crisis what sticks in people’s minds is not the specifics of the disaster, but the way the company responded to it.”


The fact that the horsemeat is not believed to be harmful is a blessing, analysts say, and should limit much of the reputational damage. Findus initially described the horsemeat problem as simply “a labelling issue”.


Other brand experts argue that the horsemeat scandal is simply not grave enough to hurt Findus, with its long history in the frozen food market.


“It’s a very established name that’s been around for a long time. I think it will take time, but I think they will get over it,” said Stephen Izatt, managing director of the brand consultancy Thinkfarm.


“They have to be completely transparent now, they have to lay out what they have done and convince people that they have learned from the experience.”

Cement stocks help KSE index recover 25 points


KARACHI: The Karachi Stock Exchange’s (KSE) benchmark 100-index recovered 25 points on Thursday on select buying, particularly in cement stocks on strong speculations about their healthy earnings outlook, said dealers.


“Strong earnings growth in cement stocks kept investors interest alive in the sector,” said Samar Iqbal, an equity dealer at Topline Securities.


The KSE-100 index regained 24.57 points, or 0.16 percent, to 15,679.19 points. Earlier during the session, the index moved on both sides of the fence by 99.82 points, making the intraday high of 15,754.44 points and the low of 15,654.62 points.


In the previous two sessions, the index lost approximately 93 points.


The KSE-30 index increased by 23.15 points, or 0.18 percent, to 12,869.67 points in the session.


Iqbal said that the activity remained confined towards cement and oil stocks with the result season gearing up into full swing.


She said that below expectation earnings announcement by Pakistan Oilfields Limited for the quarter ended September 30 created selling pressure in the stocks, while its group company Attock Refinery Limited closed at the upper cap on account of above expectation earnings announcement.


Hasnain Asghar Ali, chief operating officer at Escorts Capital, said that the cement stocks led the rally as they were expected to announce healthy earnings on the back of massive decline in the interest rates in recent times.


“Most of cement companies are running on banks’ financing and the decline in the interest rates has resulted in reducing their cost of operations,” he said.


He said that leading bank and fertiliser stocks also invited significant buying and made good contribution in the rally. The oil stocks, however, remained subject to profit-selling.


Stocks that played leading role in driving the index up included Pakistan Telecommunication Company Limited (PTCL), DG Khan Cement-XD, Nishat Mills Limited-SPOT, Lucky Cement-XD, Hub Power Company-XD, Attock Petroleum Limited-XD, IGI Insurance and National Foods-XD.


Stocks that resisted a greater increase included Pakistan Oilfields Limited-XD, Oil and Gas Development Company-XD, Unilever Pakistan and Nestle Pakistan.


Maple Leaf Cement was the volume leader with a turnover of 24.01 million shares as it closed at Rs9.35 with an increase of 14 paisas followed by Fauji Cement with a turnover of 13.60 million shares as it closed at Rs6.34, up by one paisa. Pakistan Telecommunication Company Limited closed at Rs19.11 with a gain of 55 paisas on a turnover of 9.50 million shares.


Shares turnover increased by 48 percent to 134.89 million from 91.25 million shares traded in the previous session. The turnover in the futures market surged to 14.54 million shares from 11.45 million shares traded a day earlier. Market capitalisation reduced by Rs10 billion to Rs3,922 billion. As many as 338 companies shares were traded, of which 179 advanced, 138 declined and 21 remained unchanged.


Rafhan Maize Rs60.00


Closing Rs3,760.00


Bata Pak Rs59.50


Closing Rs1,249.50


Shezan Int Rs23.70


Closing Rs497.73


Nestle Pak Rs267.30


Closing Rs5,078.70


Unilever Pak Rs199.99


Closing Rs9,700.01


Colgate Palm Rs69.30


Closing Rs1,319.70

Keddie trustee to recover millions from wife

Updated October 19, 2012 17:15:38

The trustee of bankrupt Sydney personal injury solicitor Russell Keddie says the lawyer’s wife has offered $4.5 million to settle claims against her.

In June Mr Keddie was struck off the legal roll for charging grossly excessive fees to a woman left paraplegic in a bus crash.

In the same month he filed for bankruptcy.

However, Mr Keddie had already sold to his wife, Sarah Key, his half-share of their Double Bay home – worth around $3.5 million – for $1.

Creditors accused Mr Keddie of offloading family assets from his name to avoid paying them money owed as compensation for the legal fee overcharging that saw Mr Keddie struck off.

Max Donnelly, the trustee of Mr Keddie’s bankrupt estate, says claims against the estate total up to $23 million.

He says Ms Key’s offer includes a 50 per cent share in the Bungan Beach and Double Bay properties, funds contributed by Mr Keddie in capital improvements to the family trust property, the recovery of livestock sales and assets related to the couple’s farm, Mr Keddie’s 2006 Range Rover, and plant and equipment valued at $26,000.

Mr Donnelly says the settlement does not include any claim the trustee may have on a London apartment that was transferred from Mr Keddie to his wife one month prior to his bankruptcy.

Mr Donnelly says payment will be made in two tranches – $3 million within a week and the balance of $1.5 million over six months.

He says creditors can expect a first dividend in December and another payment in May.

“This is a very satisfying result, representing almost 100 per cent of the claim the trustee had against Mrs Keddie and her entities without the cost or delay associated with litigation,” Mr Donnelly said.

“Mrs Keddie has been extremely cooperative and accepted the reality of the situation.”

Topics: business-economics-and-finance, fraud-and-corporate-crime, judges-and-legal-profession, australia, sydney-2000

First posted October 19, 2012 16:13:55

World oil prices recover in Asia

SINGAPORE: World oil prices recovered in Asian trade Tuesday as investors bought on the dip amid Syria-Turkey tensions, but bad news on the regional and global economy fostered an atmosphere of caution.

New York’s main contract, light sweet crude for delivery in November, was up 92 cents to $90.25 a barrel in morning trade, while Brent North Sea crude also for November advanced 91 cents to $112.73.

Both futures contracts were down in overnight trade.

Analysts said trading sentiment was being clouded by a gloomy economic outlook after the IMF and World Bank slashed their 2012 growth forecasts.

The International Monetary Fund cut its forecast for Chinese economic growth this year to 7.8 percent, while the World Bank said it expected the world’s second-largest economy to grow at a slower-than-expected 7.7 percent.

Crude oil prices are “facing plenty of downward pressure as China growth expectations continue to be pared back”, said Justin Harper, an analyst with IG Markets Singapore.

He said forecasts of slower growth have left “a thick black cloud of uncertainty” over a region still outpacing the rest of the world economy.

Oil prices however were being supported by concerns over an escalation of violence in the Middle East as Turkey and Syria engage each other in artillery exchanges across their border, Harper said.

Phillip Futures said in a report that “China’s economic growth and demand for petroleum have been key supports for oil prices since global energy demand was hit by recession after the financial crisis in 2008″.(AFP)

World oil prices recover in Asia

SINGAPORE: World oil prices recovered in Asian trade Tuesday as investors bought on the dip amid Syria-Turkey tensions, but bad news on the regional and global economy fostered an atmosphere of caution.


New York’s main contract, light sweet crude for delivery in November, was up 92 cents to $90.25 a barrel in morning trade, while Brent North Sea crude also for November advanced 91 cents to $112.73.


Both futures contracts were down in overnight trade.


Analysts said trading sentiment was being clouded by a gloomy economic outlook after the IMF and World Bank slashed their 2012 growth forecasts.


The International Monetary Fund cut its forecast for Chinese economic growth this year to 7.8 percent, while the World Bank said it expected the world’s second-largest economy to grow at a slower-than-expected 7.7 percent.


Crude oil prices are “facing plenty of downward pressure as China growth expectations continue to be pared back”, said Justin Harper, an analyst with IG Markets Singapore.


He said forecasts of slower growth have left “a thick black cloud of uncertainty” over a region still outpacing the rest of the world economy.


Oil prices however were being supported by concerns over an escalation of violence in the Middle East as Turkey and Syria engage each other in artillery exchanges across their border, Harper said.


Phillip Futures said in a report that “China’s economic growth and demand for petroleum have been key supports for oil prices since global energy demand was hit by recession after the financial crisis in 2008″.(AFP)

Market watch: Stocks recover on lower inflation in September

Benchm­ark KSE-100 index up 115 points.  The value of shares traded during the day was Rs4.73 billion.


KARACHI: News reports suggesting a substantial abatement in inflationary pressure during the month of September triggered a rush among investors to snap up stock in anticipation of spillover benefits. The State Bank is expected to announce its monetary policy on October 5, and market players expect a further cut in the central bank’s benchmark policy rate.


The Karachi Stock Exchange’s (KSE) benchmark 100-share index gained 0.75% or 115.12 points to end at the 15,559.94 points level. Trade volumes rose to 136 million shares compared with Friday’s tally of 114 million shares. The value of shares traded during the day was Rs4.73 billion.


The market rallied by 0.8% after the announcement of inflation figures for the month of September, which were at a 33-month low, Samar Iqbal, equity dealer at Topline Securities said. “Leveraged companies and dividend-yielding stocks came in the limelight amid expectations of better earnings and higher dividend yields. Banking stocks fell as investors believe that a decline in interest rate will hurt their margins,” she added.


Shares of 361 companies were traded on Monday. At the end of the day 167 stocks closed higher, 140 declined while 54 remained unchanged.


“The KSE-100 index after consolidating for the past few sessions managed to gain … and ended the day up…,” reported JS Global analyst Shakir Padela. “Pakistan Oilfields closed the day up 1.6% on the news of a discovery in Mamikhel II, which should further help the company’s bottomline grow next year,” he added.


“There were gains in the cement sector, with DG Khan Cement gaining 1.4% today on better-than-expected increase in export sales for the previous month. Fauji Fertilizer Bin Qasim also ended the day on the upper circuit, as sales for the month of September show a significant increase.”


Lafarge Pakistan was the volume leader with 17.26 million shares gaining Rs0.16 to finish at Rs6.01. It was followed by Pakistan Telecommunication Company with 10.64 million shares gaining Rs0.46 to close at Rs19.85 and Dewan Cement with 10.64 million shares gaining Rs0.48 to close at Rs5.38.


Foreign institutional investors were buyers of Rs361.69 million and sellers of Rs391.86 million, according to data maintained by the National Clearing Company of Pakistan Limited.


Published in The Express Tribune, October 2nd, 2012.