China Shipping Container Lines (2866)

HONG KONG, Aug 1 (Reuters) - Shares in China Shipping Container Lines (CSCL) <2866.HK> tumbled 6.7 percent on Friday, falling to a 15 month low, after Lehman Brothers slashed its target price on the stock by nearly 28 percent on a gloomy industry outlook.

The stock dropped to HK$2.38, a level last seen in late-April 2007. Lehman Brothers cut its target price on the stock to HK$2.1 from HK$2.9 while maintaining its underweight rating on the stock.

China's second largest container operator extended Thursday's 4.5 percent drop after its peer Oriental Overseas (International) Ltd <0316.HK> reported weaker-than-expected earnings on Thursday and warned of more challenges in the second half owing to a demand slowdown and sky-high energy costs.[ID:nHKG134505]

"We expect freight rates to decline due to a continued slowdown in demand, and we think it is unlikely to improve in 2009," said Lehman analysts Andrew Lee and Ceclia Chan in a research note on Thursday.

The brokerage also said weakening Asia-Europe demand in recent times is likely to drive the CSCL stock lower.

Blogged with the Flock Browser

Neptunes Orient Lines ( NOL .Sin)

SINGAPORE, Aug 7 (Reuters) - Neptunes Orient Lines, the world's seventh-largest container shipping firm, plunged as much as 8.4 percent to hit a 19-month low after it warned business will be more difficult in the second half of the year.

NOL fell to S$2.52 with almost four million shares changing hands.

The shipping firm posted a 19 percent fall in net profit on Thursday due to tough conditions and higher costs, and said it faced a worsening shipping market and expensive fuel. [ID:nSP112524]

"Although its results are not that bad compared to other shipping lines, investors are reacting to the bleak outlook. Freight rates can't really sustain at this level, and will definitely not go higher," a dealer at a local broking house said.

"Moving ahead, NOL will face rising fuel and oil prices and over the long term, we need to look at how the management can hedge oil prices and manage costs," he added.

0125 GMT - Straits Times Index <.FTSTI> was down 0.6 percent.

COSCO FALLS ON PRESIDENT'S SHOCK EXIT

Ship building and repair firm Cosco Corp (Singapore) <COSC.SI> fell as much as 7.8 percent to hit a 17-month low on news of its president Ji Hai Sheng's shock exit.

Shares of Cosco fell to S$2.49 with more than four million shares changing hands.

"A new and sudden change in a key management role does not bode well in this weak investor climate," said DMG & Partners analyst Serene Lim. "The share price is likely to be pressured, at least in the near term."

Cosco announced on Wednesday that Ji, who was also the vice-chairman and executive director of Cosco, will be stepping down with effect from Thursday.

A report in the Straits Times said Ji was informed of the board's decision only on Wednesday.

He will be replaced by Jiang Lijun, the chief executive officer of Cosco Shipping since 2002.

0105 GMT - Straits Times Index <.FTSTI> was down 0.54 percent.

Blogged with the Flock Browser

Shanghai electric (2727.hk)

HONG KONG, Aug 1 (Reuters) - Shares in Shanghai Electric Group Co Ltd <2727.HK>, China's top power generation equipment maker, fell as much as 5.5 percent on Friday after Reuters reported that its margins will fall by as much as 3 percentage points as it grapples with rising steel prices.

But executives say they do not expect a fall in gross margins to show up on financial results until 2009, because most of the products to be delivered this year had been ordered two years ago.

Still, the company chalked up around 60 billion yuan ($9 billion) of new orders in the first half, hitting 95 percent of its full-year target, senior executives told Reuters on Thursday.

Blogged with the Flock Browser

HKEx 0388

HONG KONG, July 31 (Reuters) - Credit Suisse has downgraded shares in Asia's top bourse operator, Hong Kong Exchanges and Clearing (HKEx) <0388.HK>, to underperform from neutral, on dwindling trading activity and falling investment income.

Credit Suisse also slashed its target price on HKEx to HK$90 from HK$150. The stock closed Wednesday at HK$116.50.

"HKEx revenues are coming under pressure on multiple fronts. Trading activity in both equity and derivative markets has faded while investment income on margin and clearing house funds is expected to suffer as a result of lower deposit rates," analysts Christopher Esson and Frances Feng wrote in a note to investors.

Turnover on the main exchange has been fading fast, falling to a 16-month low of HK$41.5 billion on Monday, with investors staying on the sidelines in the face of increased uncertainties in the global financial markets.

With a year-to-date fall of 47.33 percent, HKEx is one of the worst performing stocks on the benchmark Hang Seng Index <.HSI>

Blogged with the Flock Browser

HKEx 0388

HONG KONG, July 31 (Reuters) - Credit Suisse has downgraded shares in Asia's top bourse operator, Hong Kong Exchanges and Clearing (HKEx) <0388.HK>, to underperform from neutral, on dwindling trading activity and falling investment income.

Credit Suisse also slashed its target price on HKEx to HK$90 from HK$150. The stock closed Wednesday at HK$116.50.

"HKEx revenues are coming under pressure on multiple fronts. Trading activity in both equity and derivative markets has faded while investment income on margin and clearing house funds is expected to suffer as a result of lower deposit rates," analysts Christopher Esson and Frances Feng wrote in a note to investors.

Turnover on the main exchange has been fading fast, falling to a 16-month low of HK$41.5 billion on Monday, with investors staying on the sidelines in the face of increased uncertainties in the global financial markets.

With a year-to-date fall of 47.33 percent, HKEx is one of the worst performing stocks on the benchmark Hang Seng Index <.HSI>

Blogged with the Flock Browser

HKEx 0388

HONG KONG, July 31 (Reuters) - Credit Suisse has downgraded shares in Asia's top bourse operator, Hong Kong Exchanges and Clearing (HKEx) <0388.HK>, to underperform from neutral, on dwindling trading activity and falling investment income.

Credit Suisse also slashed its target price on HKEx to HK$90 from HK$150. The stock closed Wednesday at HK$116.50.

"HKEx revenues are coming under pressure on multiple fronts. Trading activity in both equity and derivative markets has faded while investment income on margin and clearing house funds is expected to suffer as a result of lower deposit rates," analysts Christopher Esson and Frances Feng wrote in a note to investors.

Turnover on the main exchange has been fading fast, falling to a 16-month low of HK$41.5 billion on Monday, with investors staying on the sidelines in the face of increased uncertainties in the global financial markets.

With a year-to-date fall of 47.33 percent, HKEx is one of the worst performing stocks on the benchmark Hang Seng Index <.HSI>

Blogged with the Flock Browser

FACTBOX - Quotes from Merrill's Thain on capital needs

July 28 (Reuters) - Merrill Lynch & Co Inc <MER.N> said on Monday it would raise $8.5 billion by selling new stock. (see [ID:nN28254377]) But CEO John Thain has consistently denied that the investment bank would need to raise more capital. Here is a selection of comments by Thain or about his views since the end of last year:

"One of my first priorities at Merrill Lynch was to strengthen the firm's balance sheet, and today we have made great progress towards that by bolstering our capital position through these investments and our announced sale of Merrill Lynch Capital." (Dec. 24, 2007 -- Thain in a statement when Merrill announced a $6.2 billion capital raising)

"...These transactions make certain that Merrill is well-capitalized." (Jan. 15, 2008 -- Thain in a statement after selling $6.6 billion of preferred shares to a group that included Japanese and Kuwaiti investors)

"We're very confident that we have the capital base now that we need to go forward in 2008." (Jan. 18, 2008 -- Thain as quoted by the New York Times).

"...Today I can say that we will not need additional funds. These problems are behind us. We will not return to the market." (March 8, 2008 -- Thain in an interview with France's Le Figaro newspaper)

"We have more capital than we need, so we can say to the market that we don't need more injections. We can confirm that we have tackled the problem." (March 16, 2008 -- Thain in an interview with Spain's El Pais newspaper)

"In 2007, we lost 8.6 billion dollars after tax, but we raised 12.8 billion dollars in new capital. We raised significantly more capital than we lost. And we did that on purpose so that we could say to the marketplace that we raised more than enough capital. We replaced all the capital we lost. We have plenty of capital going forward, and we don't need to come back into the equity market. The goal is to maintain our current ratings. No more capital raising; I'm sure we have enough capital." (April 4, 2008 -- Thain in an interview with Japan's Nihon Keizai Shimbun)

"We deliberately raised more capital than we lost last year ... we believe that will allow us to not have to go back to the equity market in the foreseeable future." (April 8, 2008 -- Thain to reporters in Tokyo, as reported by Reuters)

"John Thain has been very clear that we have sufficient capital and don't have a need to raise additional common equity for the foreseeable future. When we raised this capital in January, we had a lot of demand so we went beyond what we needed." (May 12, 2008 -- Merrill President Greg Fleming in an interview with the Times of London)

"Today on a pro forma basis we have about $44 billion of equity capital, which actually isn't very much below the all-time high that Merrill ever had. And our philosophy about this is that we are well-capitalized. We're comfortable with our capital position. We, like everyone else, are deleveraging our balance sheet." (June 11, 2008 -- Thain on a conference call hosted by Deutsche Bank)

"Right now we believe that we are in a very comfortable spot in terms of our capital." (July 17, 2008 -- Thain on a conference call after posting Merrill's second-quarter results)

Blogged with the Flock Browser