Archive for May 2nd, 2008
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SYDNEY, May 2 (Reuters) - The New Zealand Stock Exchange has this week launched two new bond indices in response to a growing debt market.
Debt indices are typically used by professional investors to benchmark the performance of fixed interest investments.
The two new indices, called NZX Kauri Bond Index and NZX Composite AAA Bond Index, are alternative benchmarks to the existing Government, Corporate Bond and Swap indices.
“Demand has come from domestic bank liquidity managers, institutional fund managers and international investors,” said ANZ’s Head of Markets John Body who led the new indices initiative.
Issuance of Kauri Bonds surged in 2007 after the Reserve Bank of New Zealand expanded the range of securities it accepts as collateral from local banks at its overnight repo operations.
Kauri bonds are issued in New Zealand dollars by foreign issuers. They usually target institutional investors and are not traded on the local stock exchange.
Kauri issuance last year soared to NZ$6.7 billion ($5.1 billion), seven times the amount raised in 2006, also a record year, according to financial magazine KangaNews.
The Kauri Bond Index, valued at NZ$5.3 billion, accepts fixed rate triple A securities issued by supranationals, sovereign or semi-government and agencies that are repo-eligible.
The Composite Index, valued at NZ$31.5 billion, includes securities eligible in the Kauri Index and government bonds. ($1=NZ$1.29) (Reporting by Cecile Lefort)
Source:- http://in.reuters.com/article/asiaCompanyAndMarkets/idINSYD10611120080502
May 2nd, 2008
The Securities & Exchange Board of India (SEBI) vide its circular no.MRD/DoP/SE/Cir-7/2008 dated April 03, 2008 as per Annexure I, has approved and given necessary guidelines for providing Direct Market Access (DMA).
Direct Market Access (DMA) facility through various connectivity modes will permit the trading members of the Bombay Stock Exchange Limited to provide direct trading terminals to their DMA clients.
As quoted in the SEBI circular ‘Direct Market Access (DMA) is a facility which allows brokers to offer clients direct access to the exchange trading system through the broker’s infrastructure without manual intervention by the broker. Some of the advantages offered by DMA are direct control of clients over orders, faster execution of client orders, reduced risk of errors associated with manual order entry, greater transparency, increased liquidity, lower impact costs for large orders, better audit trails and better use of hedging and arbitrage opportunities through the use of decision support tools / algorithms for trading.’
For compliance of the said circular, the guidelines are as follows:
Eligibility:
As per the SEBI Circular, DMA facility initially is being restricted to institutional clients only.
Operational Instructions
Application for permission:
Trading members of the Exchange desirous of facilitating DMA to their clients are required to make an application to the Exchange in the format appended as Annexure II.
Member-client agreement:
Members will have to execute an agreement with clients who are availing the DMA facility. Members shall ensure that the agreement entered into with their clients for DMA facility should not be less stringent/contrary to the conditions prescribed in the model agreement as prescribed by Bombay Stock Exchange Limited. The model Agreement will be available to the members shortly.
Prerequisites to granting of permission for Direct Market Access (DMA):
The Exchange shall grant permission to members for Direct Market Access (DMA) on a case-to-case basis.
The Exchange shall provide a test environment during a pre-specified time, which shall be intimated shortly. The trading Members are required to test their software using the said test environment.
On satisfactory completion of testing on the test environment, the member is required to give demonstration of their Direct Market Access (DMA) facility to the Exchange.
The software and systems proposed for DMA shall be duly certified by the Exchange empanelled System Auditor before grant of permission.
Only on fulfillment of the minimum requirements mentioned in the SEBI / Exchange Circulars, permission for commencing Direct Market Access (DMA) would be granted to the trading member.
Pursuant to the Trading member’s activation on the DMA facility:
The Trading members shall provide the Exchange with details of user-ids activated for DMA on a periodic basis as per format which shall be intimated separately.
Members at their end are required to comply fully with the operational specifications and risk management mentioned in the SEBI circular. Also, Members must be compliant with guidelines issued by the Exchange for DMA, from time to time.
Source:- http://www.bseindia.com/dma.asp
May 2nd, 2008
KARACHI: After losing 2.4 per cent in the first four consecutive sessions, the Friday’s twin-trading session helped the Karachi bourse recover about one-third losses of the week on buying in leading bank, cement and some of energy stocks.
KSE 100-index recovered 130 points or 0.85 per cent to close at 15,435 points. Its junior partner the 30-index regained 255 points or 1.38 per cent and concluded at 18,647 points.
MCB Bank alone contributed 46 points to the total surge of 100-index otherwise all the day active stocks, either in positive or negative columns, included their points in single digits.
The second biggest contributor was also from banking sector and that was National Bank, which added another 9.8 points to the index. The onslaught continued on opening and the index made an intra day low of 15,228 points (-77 points), the news that budgetary assistance has been offered by UK and Saudi Arabia, and healthy profits announced by PPL invited buying interest, Hasnain Asghar Ali at Aziz Fidahusein said.
Bottom fishing was witnessed in the stocks trading below their book values and the news that the companies are likely to disclose strategy to capitalize the gains led the show.
Buying in group specific stocks therefore allowed the 100-index (after wiping gains during initial minutes of second half) to gear up closing at the highest level of the day, he added.
Banking sector remained the primary mover of the index with blue chip of MCB gaining Rs20.15 with 5.5 million shares traded on board. Ample support was provided by NBP and some second tier stocks in this sector.
The sector has seen some pressure during the week however better investment options and lower non-performing loans (NPLs) may see better earnings potential of the sector largely supported by better earnings of MCB and HBL than was expected, said S Kashif Mustafa at ECL.
E&P sector remained primary gainer while the actives of OGDC and POL saw intraday gains with the other active PPL experienced profit-taking stance of the investors. With international oil prices soaring at record high levels, the overall oil and gas sectors are anticipated to look at comparatively good results backed by increasing demand and producing activities undertaken by major oil companies, he said.
Actives, DGKC and LUCK led the cement sector into the green zone with better earning posted by the giants with DGKC standing amongst the volume leaders. As index leaps towards newer heights, the cement sector is to witness promising outlook with increasing demand for cement in the local market well-supported by jacking up export requirements from India, UAE and South Africa, he added.
The day turnover in the ready market slightly surged to 259.9 million shares as compared to 237.7 million shares changed hands a day earlier. The future market turnover again skyrocketed remarkably by 74 per cent to 167.9 million shares against 96.8 million shares of yesterday. The reason behind recording this healthy turnover in future market was said to be the last day of rollover week of April-2008 futures contract.
In line with the overall performance of the broader bazaar, the market capitalisation hiked by Rs37 billion and stands at Rs4.724 trillion.
In terms of winners and losers, the broader market remained balanced 161 stocks advanced against 162 scrips declined. The value of 39 stocks closed pegged at the pre-opening levels with total 362 active counters on board.
Highest volumes were witnessed in DG Khan Cement at 20.6 million closing at Rs112.90 with a gain of Rs2.90, followed by Bank Alfalah at 20.1 million closing at Rs56.50 with a gain of Rs2.10, JS Bank at 16.6 million closing at Rs23 with a gain of Rs1.05, Bank of Punjab at 12.8 million closing at Rs61.70 with a gain of 85 paisa and Azgard Nine at 11 million closing at Rs90.05 with a gain of Rs4.25.
Source:- http://www.thenews.com.pk/print1.asp?id=108918
May 2nd, 2008
