NSE's global indices futures get more takers in A'bad
September 16, 2011--At a time when global equity markets keep fluttering amid economic uncertainty, Ahmedabad region has emerged as one of the early takers of the futures trading in global indices S&P 500 and Dow Jones Industrial Average (DJIA) launched by National Stock Exchange (NSE) later last month.
NSE launched the derivatives contracts for the two indices on August 29, 2011. Since launch the exchange has achieved an average daily volume of more than Rs 100 crore.
As per the latest data provided by NSE about the regions generating highest volumes from the newly launched contracts, Ahmedabad region stood fourth ahead of Chennai region in percentage share to the total traded volumes. Ahmedabad region holds 4.22 per cent share in the total traded volumes, while Chennai region holds 3.28 per cent sharer
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Source: Business Standard
Two New Indian Companies Join FTSE IDFC India Infrastructure 30 Index – Following 2011 Semi-Annual Review
September 15, 2011--FTSE Group (“FTSE”), the award-winning global index provider, and Infrastructure Development Finance Company Limited (“IDFC”) today announced that Engineers India Limited and Fortis Healthcare India Limited will replace Jaiprakash Hydro Power Limited and Torrent Power Limited in the FTSE IDFC India Infrastructure 30 Index, following the semi-annual review of the FTSE IDFC India Infrastructure Index Series today.
The rapid growth of the Indian economy has stimulated both domestic and global investor interest in the Indian infrastructure sector. Created in 2007, the FTSE IDFC India Infrastructure Index Series provides unique access to the infrastructure-related subsectors of the Indian market and is designed to represent the performance of those Indian companies that generate the majority of their revenue from infrastructure.
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Source: FTSE Group
India inflation mounts, augurs another rate rise
September 14, 2011--Indian inflation climbed to its highest in more than a year as prices of food and manufactured goods surged, reinforcing the case for another rate hike on Friday despite weakening growth and a worsening global outlook.
The Reserve Bank of India has raised interest rates 11 times in 18 months but inflation remains at more than twice its comfort level, putting it in the awkward position of fighting high prices amid mounting worries about the health of the global economy.
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Source: Todays Zaman
Deutsche Bank - Equities Research-Asia-Pac ETF+ Monthly Directory : August 2011 ETPs: August 2011 ETPs
September 12, 2011--This document includes all Asia-Pacific listed exchange-traded funds (ETFs) and exchange-traded commodities (ETCs).
The directory is organized by country and asset-class-related sub sections. Within each sub section it has been sorted by ETP issuer by alphabetical order and by AUM in descending order. A number of key information per product has been included in order to enable the reader to get an overview in their respective area of interest. Among the key numeric information we include avg. daily turnover, assets under management, and cash flows (all in $US).
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Source:Deutsche Bank - Equity Research - Asia Pacific
DB - Equity Research - Asia Pacific ETF Weekly Review-Market downturn sweeps 2% away from ETP AUM
September 12, 2011--Market Review
After a two-week winning streak, Asian markets went back to the negative territory due to concerns over weakening U.S. economy and European financial crisis.
From north to south, Japan (Nikkei 225) dropped by 2.38%, Korea (KOSPI2) sank by 2.81%, China (CSI 300) decreased by 1.88%, Hong Kong (HSI) retreated by 1.71%, Singapore (FSSTI) declined by 0.63% and Australia (S&P/ASX 200) lost 1.14% over the previous week.
New Launch Review
Last week, only one new product was launched in the Asia-Pacific region. Korea Investment Trust Management listed KINDEX Inverse ETF on Korea Stock Exchange replicating inversed daily performance of the KOSPI 200 Future Index. (See Figure 4 for further details).
Turnover Review: Volatility keeps markets active
Asia-Pacific ETP turnover totaled $7.4bn for the last week, 8.8% above previous week’s total and 54.7% up from last year’s weekly average. South Korea continues to be on top of the turnover ranking with $3.8bn (up 12.4%), followed by Hong Kong ($1.1bn, down 5.7%), China ($1.1bn, up 4.4%), Japan ($610m, up 5.6%), and Taiwan ($210m, down 9.2%). Among Equity ETFs, Emerging Country, Short Strategy, Leveraged Strategy and Asia Pac Developed Country ETFs had total turnover of $2.5bn, $1.7bn, $1.5bn and $856m respectively. Under the Commodity asset class, turnover on Gold ETPs totaled $473m, 139.8% up from last week.
Assets Under Management Review
Amid declining markets, Asia-Pacific ETP AUM lost $1.8bn or 2% last week and ended at $90.5bn. However, on a year to date basis, Asia-Pacific ETF assets are $6.4bn or 7.5% above last year’s closing.
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Source: Deutsche Bank - Equity Research - Asia Pacific
Japan economy contracts 2.1%
September 9, 2011--Japan's economy shrank in the second quarter at a faster pace than initially reported as companies held back on capital expenditure due to worries about a rising yen and faltering global growth.
Economists say Japan is likely to resume growing in the third quarter after three consecutive quarters of contraction, boosted by a rapid recovery in supply chains following the March 11 earthquake, but the outlook further ahead looks increasingly in doubt.
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Source: FIN24
China inflation falls to 6.2% from 3-year high
September 9, 2011--Producer prices climbed 7.3% last month from a year earlier, the statistics bureau said today. That compared with a 7.5% jump in July and the 7.2% median estimate
China’s key inflation rate moderated slightly in August from a three-year high, giving some elbow room to the policy makers in fighting the global slowdown led by the US and the eurozone.
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Source: IIFL
Hong Kong faces dollar peg inflation dilemma
September 8, 2011--While Switzerland this week in effect pegged the franc to the euro, a debate is intensifying in Hong Kong over whether to sever the city’s 27-year-old peg to the US dollar.
The mechanism that links the Hong Kong and US dollars at a rate of HK$7.80 to US$1 has served the city well since its introduction in 1983. It has survived the hand-over of sovereignty from Britain to China, the Asian financial crisis and repeated attacks from speculators.
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Source: FT.com
BSE aims to generate investor interest in derivatives
September 8, 2011--The Bombay Stock Exchange (BSE) has launched a market making scheme to generate more investor interest in derivatives, based on its benchmark Sensex and the underlying 30 stocks. The exchange has earmarked a total of Rs 107 crore for the scheme that will be in force for six months.
According to a release issued by the exchange, the Liquidity Enhancement Incentive Programmes (LEIPS) will reward derivative members for building a ‘healthy’ order book with the goal of creating ‘lasting, self-sustaining liquidity in BSE’s derivatives segment.’
Market making liquidity enhancement scheme, in regulatory parlance, is essentially a way in which an exchange can reward entities that generate a certain amount of volume in a segment. The Securities and Exchange Board of India (Sebi), in June, allowed bourses to introduce such schemes for equity derivatives and any new instruments to be launched.
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Source: Business Standard India
Indian exchanges seek equity derivatives liquidity boost
September 7, 2011--India’s two major exchanges have released details of liquidity enhancement programme for equity derivatives following a recent circular from national regulator the Securities and Exchange Board of India allowing such schemes.
The National Stock Exchange (NSE), which currently accounts for around 80% of Indian equity market share according to Thomson Reuters, will introduce a liquidity enhancement scheme for S&P 500 and Dow Jones Industrial Average (DJIA) contracts on 15 September. Meanwhile, the Bombay Stock Exchange (BSE) will go live with its own two-stage liquidity enhancement incentive programme for derivatives based on the SENSEX index and its underlyings on 28 September.
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Source: The Trade News
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