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Get ready for IPOs on bourses, more ETFs
December 31, 2009--Here is our take on 10 market trends to watch out for in 2010.
Exchange-traded funds (ETFs): ETFs linked to gold, Nifty and Bankex are already there. The National Stock Exchange (NSE) is developing more ETFs based on its indices. It is also in touch with investment bankers to launch ETFs in overseas market based on Indian indices. Sources said Indian investors might also get to invest in the S&P 500 or the BRIC Index through ETFs.
Further, Benchmark Assets Management Company, a pioneer in ETFs in India, has sought the Securities and Exchange Board of India’s (Sebi’s) nod to launch ETFs based on government securities. This will enable small investors to invest in these securities. Benchmark is also launching an ETF based on Hang Sang in early January, besides an ETF based on NSE’s infrastructure index.
Consolidation among mutual funds (MFs): A decade ago, fund houses had to struggle to find investors. This year, after Sebi barred them from charging entry load, which used to go to MF distributors, the MF distribution network is at standstill.
Reliance Mutual Fund has filed for an ETF
December 31, 2009--Reliance Mutual Fund filed on December 17, 2009 for an ETF with the Securities and Exchange Board of India for
Reliance Liquid Exchange Traded Fund
view filing
Tata Mutual Fund has filed for an ETF
December 31, 2009-- On December 10, 2009 Tata Mutual Fund filed for the following
TATA GOLD FUND with the Securities and Exchange Board of India (SEBI)
view filing
Chinese shares gain 80% in 2009
December 31, 2009--China's main stock index ended 2009 with an annual gain of 80 percent after shares edged up on Thursday following a year of heavy government stimulus spending and bank lending.
The benchmark Shanghai Composite Index gained 0.5 percent, or 14.54 points, to 3 277.14, up from 1 820.81 on the last trading day of 2008. The Shenzhen Composite Index for China's smaller second exchange added 0.6 percent, or 7.44 points, to 1 201.34.
Japan warns on trend to US-style fair value
December 30, 2009--Atsushi Saito, president and chief executive of the Tokyo Stock Exchange, said a move to bring international accounting standards closer to the US “full fair value” system could jeopardise any Japanese decision to adopt the global rules.
In an interview with the Financial Times, Mr Saito said Japanese companies were worried about the differing positions of the US and the International Accounting Standards Board, which makes the rules for most countries, except the US and Japan, on the use of the fair value system.
Putin warns Russia intends to curb capital inflows that threaten recovery
December 31, 2009--Vladimir Putin, Russia's prime minister, said yesterday that Moscow would try to restrain the capital inflows that have caused the rouble to strengthen in recent months - so threatening the country's delicate economic recovery following the global financial crisis.
His comments had an immediate impact on markets, with the Russian rouble falling 1.4 per cent and the RTS stock market index down 0.75 per cent from Monday's close.
"We need to correct the rules so that it is less interesting for speculative capital to come running into Russia," Mr Putin told journalists while on a trip to Vladivostok, in the far east of Russia.
CIMB Islamic Lists RM2 Billion Sukuk On Bursa Malaysia
December 29, 2009--Bursa Malaysia received the first Ringgit sukuk listing by CIMB Islamic Bank Berhad (CIMB Islamic) for their Tier 2 Junior Sukuk Programme of up to RM2.0 billion in Nominal Value.
The listing from CIMB Islamic further strengthens Bursa Malaysia's proposition to develop Malaysia as an international Islamic financial centre as well as CIMB Islamic's position as a global leader in Islamic finance.
Badlisyah Abdul Ghani, Chief Executive Officer of CIMB Islamic said, "The listing of our Islamic sub-debt on Bursa Malaysia further strengthens our commitment to the development of the Islamic finance industry, in this case, the Islamic debt capital market. Though not a retail offering as yet, we hope this listing will be a precursor to the development of a vibrant retail sukuk market tradable on Bursa Malaysia."
Dato' Yusli Mohamed Yusoff, Chief Executive Officer of Bursa Malaysia said, "CIMB Islamic's listing marks a milestone for us as they are the first Islamic financial institution to list their sukuk on the Exchange. This move signifies the relevance and appeal of Bursa Malaysia to bigger players in the Islamic finance industry, as well as boosts investor confidence."
Bursa Malaysia registered its first sukuk and bond listings by Petronas and Cagamas in August this year, followed by GE Capital's non-Ringgit sukuk listing in November.
The investor-friendly regime coupled with a robust regulatory and Shari'ah framework has been a conducive platform for sukuk listings and issuance. This enables Malaysia to attract over 60% of worldwide sukuk issuances, making this country a global hub for Islamic finance and investments.
Revisions to the Index Guidebook Regarding Stock-Swaps and Absorption-Type Mergers
December 28, 2009-In order to enhance convenience of indices as benchmarks, revisions will be made to the rules in the Index Guidebook when listed companies of TSE index constituent issues carry out stock-swaps or absorption-type mergers. Contents of the changes and revisions are as follows.
1. Cases for application of revisions
A TSE index constituent issue* is delisted due to a stock-swap or an absorption-type merger in which a listed company of another TSE index constituent issue is a surviving company.
* Domestic common stocks, domestic preferred equity investment securities, domestic classified stocks with participation rights, single listed foreign stocks, and REITs listed on the markets of the Exchange.
2. Details of revisions
Days for making adjustments to the indices in conjunction with mergers, etc. (i.e. days for changing the number of listed shares of the surviving company used for indices) shall be revised as follows.
Japan drafts record budget; revenues slump
December 25, 2009--Japan’s government on Friday approved a record 92.3 trillion yen ($1 trillion) draft budget for the year to March 2011, achieving its self-imposed cap on new bond issues amid investor worries about a bulging Public debt.
The first budget under the Democratic Party-led government, in office for just three months, keeps new borrowing at 44.3 trillion yen, a record amount but in line with its promise to keep fresh debt issuance to 44 trillion yen as public debt nears 200 percent of GDP.
DB Index Research -- Weekly ETF Reports -- Asia-Pacific
December 22, 2009--Highlights
ETF Liquidity Trends
Market Overview
There are 199 equity based ETFs in the Asia Pacific region with 258 listings across 12 countries and 15 exchanges. Japan has the largest market share by AUM accounting for 42.03% of the whole market, whilst China has the largest market share by turnover with 53.13%.
There were two new listings in the last week. Sensible Asset Management listed one new Equity ETF in Hong Kong Stock Exchange and KTB Asset Management listed one new Equity ETF in Korea Stock Exchange
Turnover
Monthly average daily turnover remained at about the same level in the last week. Turnover for the previous week was USD 1184m. The largest ETF by turnover was the China 50 ETF issued by China Asset Management with USD 337m accounting for 28.5% of total turnover.
Assets Under Management
AUM remained at about the same level in the previous week. AUM as of Dec 21st were USD 60.4bn. The largest ETF by AUM is the Nomura Nikkei 225 ETF managed by Nomura Asset Management with AUM of USD 6.3bn.
