Global Equity Market Performance
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Weekly Equity Capital Markets Newsletter Piper Jaffray Asia Securities Limited December 13, 2010 Global Equity Market Performance Global Equity Market Update Piper Jaffray Asia Capital Markets Group U.S. stocks advanced last week due to upbeat economic data. The J. West Riggs (Head of Asia ECM), [email protected], Tel: 852 3755 - 2333 U.S. Commerce Department announced that the country’s trade Derrick Lau (MD ECM), [email protected], Tel: 852 3755 - 2338 deficit in October 2010 had narrowed faster than expected, raising optimism about the economic growth. Additionally, the better-than- Michael Cheung (Principal), [email protected], Tel: 852 3755 - 2323 expp,ected increase in consumer sentiment in December 2010, Amanda Lui (Associate), amanda. my. lui@pjc. com, Tel: 852 3755 - 2318 reported by the Thomson Reuters/University of Michigan survey, also boosted investor confidence. Stocks also advanced on back of Michael Bassett (Associate), [email protected], Tel: 852 3755 - 2322 positive imports and exports data from China. Last week, the Gaby Zhang (Analyst), [email protected], Tel: 852 3755 - 2321 S&P500 was up 1.3 percent to close at a two-year high of 1,240.4, the NASDAQ increased 1.8 percent to close at 2,637.5, and the Dow Global Market Performance inched up 0.2 percent to close at 11,410.3. European stocks posted overall gains with the Stoxx Europe 600 Performance (%) Index closing at 276.2—its 26-month high—as investors remained Last price 1 day 1 week 1 month YTD optimistic that corporate profits and the improving macro- economic data would overcome the region’s sovereign-debt crisis . GGobalobal Ind dcesices Stocks also advanced on back of upbeat U.S. economic and Dow Jones 11,410.3 0.4% 0.2% 0.5% 9.4% consumer sentiment data. The FTSE was up 1.2 percent for the 1,240.4 week, to close at 5,813.0. S&P500 0.6% 1.3% 1.8% 11.2% Asian stocks fluctuated last week. Strong industrial output data NASDAQ 2,637.5 0.8% 1.8% 2.3% 16.2% pulled Indian shares out of a three-day losing streak. However, FTSE 5,813.0 0.1% 1.2% (0.1%) 7.4% stocks declined in a cautious trading session on Friday as robust Asian Indices China trade data raised concerns of an imminent interest-rate hike in the country. Continued concerns over the Euro-zone sovereign Hang Seng 23,162.9 (0.04%) (0.7%) (5.5%) 5.9% debt also weighed on the investor sentiments. Despite the HSCEI 12,661.0 (0.6%) (2.1%) (8.8%) (1.0%) monetary tightening concerns, China-listed shares ended higher, 2,975.3 1.07% (0.05%) (8.8%) (13.4%) driven by demand for mining and telecommunications companies. Shanghai A The Nikkei edged up 0.7 percent for the week, to close at 10,212.0. Nikkei 225 10,212.0 (0.7%) 0.3% 3.9% (3.2%) HK Weekly Market Update Global Indices Performance (Rebased to 100) Hong Kong stocks witnessed modest losses and tepid volumes last 200 week as investors continued to anticipate risks ahead of Chinese inflation data due over the weekend. Additionally, worries that China 180 may raise interest rates weighed on the investor sentiments. For the week,,ggg the Hang Seng index edged down 0 07p,g.7 percent, ending almost 160 flat, to close at 23,162.9. 140 Among Index constituents, 14 gained and 27 declined while four remained unchanged. Among gainers, COSCO Pacific increased 5.2 120 percent, China Unicom gained 5.0 percent and Tencent Group was up 3.9 percent. Among losers, CITIC Pacific declined 4.5 percent, 100 China Merchants Holdings fell by 4.4 percent and China Resources 80 Power slid 4.3 percent. 60 China’s customs agency reported that the country’s November 1-Jan-09 22-May-09 11-Oct-09 1-Mar-10 21-Jul-10 10-Dec-10 2010 expp349port rose 34.9 percent, while the imp orts rose 3 3p7.7 percent, y-o-y. Further, National Bureau of Statistics reported a 28-month S&P 500 NASDAQ FTSE Hang Seng Shanghai A high CPI of 5.1 percent in November 2010 as compared to 4.4 percent rise in October 2010. HSI Sectoral Weekly Performance HSI Weekly Performance 15 24,000 1% 23,428.2 0.3% 23,237.7 23,092.0 23,171.8 23,162.9 0% 10 23,000 (0.1%) (1%) 989.8 9.4 10. 0 9.0 9.0 5 22,000 (1.3%) 6-Dec-10 7-Dec-10 8-Dec-10 9-Dec-10 10-Dec-10 (2%) (1.6%) Turnover (in US$ billion) Close Comm/Indu Utilities Finance Property Source: DataStream, Reuters, Hang Seng Index Website 1 Weekly Equity Capital Markets Newsletter Piper Jaffray Asia Securities Limited December 13, 2010 Piper Jaff r ay Chin a In dex PJ China Index Performance Since January 2009 Sector Breakdown and Performance Current Level: 2,512.66 Financial/Real Estate 3,000 4% Clean Tech/Energy 12% Telecom, Media & 2,500 Technology 31% Consum er 2,000 12% 1,500 Health Care 13% 1,000 Business Services and Industrial Growth 28% 500 1-Jan-09 22-May-09 11-Oct-09 1-Mar-10 21-Jul-10 10-Dec-10 2.0% 1.2% PJ China Index Week-to-date change (30.31) -1.19% 0.0% 2010 Year-to-date change 386.47 18.18% (1.0%) (1.1%) (2.0%) (1.7%) LTM change 394.09 18.60% (2.5%) (2.7%) 6-month change 509.42 25.43% (4.0%) 2010 Year-to-date high (pts) 2,711.88 8-Nov-10 Clean Tech/Energy Health Care 2010 Year-to-date low (pts) 1,915.46 29-Jan-10 Consumer Financial/Real Estate Telecom, Media & Technology Business Services andIndustrialand Industrial Growth Top Five Weekly Gainers and Losers 35.0% 26.7% 25.0% 13.7% 12.8% 12.1% 15.0% 10.1% 5.0% (5.0% ) (15.0% ) (16.3% ) (17.0% ) (25.0% ) (20.3% ) (21.5% ) (35.0% ) (45.0% ) (44.2% ) Sm artHeat China Valves China-Biotics Global Sources Origin CDC Software ShengdaTech Ku6 Media China Rino Technology Agritech Education International Alliance Note: Piper Jaffray China Index is a modified market capitalization weighted index comprised of U.S. exchange listed securities of companies with significant exposure to the Chinese economy and market capitalization over US$100m. The index was developed with a base level of 1,000 as of January 1, 09 (Please refer to the last page of this report for constituents) Source: Bloomberg 2 Weekly Equity Capital Markets Newsletter Piper Jaffray Asia Securities Limited December 13, 2010 Macro Indicators and Global Currencies Performance – Since January 2009 Gold (UBS-IB) Copper (NYC) CBOE Volatility Index (VIX) US$/oz US$/lb Current Level: US$1,385.65 per ounce Current Level: US$4.1540 per pound Current Level: 17.61 1,500 5 60 14001,400 50 4 1,300 1,200 40 3 1,100 30 1,000 2 20 900 800 1 10 1-Jan-09 22-May-09 11-Oct-09 1-Mar-10 21-Jul-10 10-Dec-10 2-Jan-09 23-May-09 11-Oct-09 2-Mar-10 21-Jul-10 10-Dec-10 2-Jan-09 23-May-09 11-Oct-09 2-Mar-10 21-Jul-10 10-Dec-10 Spot WTI Crude Stowe Global Coal Index Baltic Dry Index US$/barrel Current Level: US$87.79 per barrel Current Level: 6,113.57 Current Level: 2,095.0 100 7,000 5,000 90 6,000 4,000 80 5,000 70 3,000 4,000 60 2,000 3,000 50 1,000 40 2,000 30 1,000 0 2-JJ9an-09 233y9-May-09 11-Oct-09 2-Mar-10 21-Jul-10 10-Dec-10 2-J9Jan-09 23y93-May-09 11-Oct-09 2-Mar-10 21-Jul-10 10-Dec-10 2-Jan-09 23-May-09 11-Oct-09 2-Mar-10 21-Jul-10 10-Dec-10 Euro Sterling Japanese Yen EUR/US$ GBP/US$ JPY/US$ Current Level: 1.3233 Current Level: 1.5816 Current Level: 83.91 1.6 1.8 105 151.5 117.7 100 1.4 1.6 95 1.3 1.5 90 1.2 1.4 85 1.1 1.3 80 1.0 1.2 75 1-Jan-09 22-May-09 11-Oct-09 1-Mar-10 21-Jul-10 10-Dec-10 1-Jan-09 22-May-09 11-Oct-09 1-Mar-10 21-Jul-10 10-Dec-10 1-Jan-09 22-May-09 11-Oct-09 1-Mar-10 21-Jul-10 10-Dec-10 Source: DataStream, Reuters 3 Weekly Equity Capital Markets Newsletter Piper Jaffray Asia Securities Limited December 13, 2010 HK an d U. S. China IPO A cti vit y HK and U.S. China IPO Activity by Month 18 25,000 15 20,000 12 Capital Raised (US$m) Raised Capital 15,000 9 # of IPOs # of 10,000 6 5,000 3 0 0 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 US China IPOs HK IPOs US China IPOs Capital Raised HK IPOs Capital Raised U.S.