Shares in Thailand's top coal miner, Banpu Pcl fell to their lowest in two-and-a-half years, in contrast with the broader market's advance, as weak coal prices weighed on its earnings outlook.
Banpu shares were down 2.5 percent at 472 baht ($15.06), the lowest since November 2009, compared with a 0.5 percent rise in the broader market and a 0.34 percent fall in energy shares.
Broker CIMB Securities (Thailand) cut the stock target price to 649 baht ($20.71) from 695 baht ($22.17), following its earnings downgrade along with lower coal price expectation. The brokerage maintained its outperform rating on the stock.
"We lower our 2012 earnings per share forecast by 1.12 percent to reflect weaker spot coal prices in the second half ... We also cut our earnings per share for 2013 by 5.8 percent," it said in a report.
"Our downgrade was spurred by expectations of a global economic slowdown caused by the European crisis. That said, Banpu should be saved by its highly sustainable power business in Thailand and China," it said.
Nineteen out of 21 analysts tracking the company rate it a buy or strong buy, one rates it a hold and another gives it a strong sell rating.
1530 (0830 GMT)
(Reporting by Viparat Jantraprap in Bangkok, viparat.jantraprapaweth@thomsonreuters.com)
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13:47 Outflows pull index to 3-month low
Foreign investors have been selling Thai equities in May, stock exchange data shows, reversing four consecutive months of strong buying and pulling the benchmark SET index .SETI to its lowest in almost three months.
Net foreign selling in the month to Monday totalled $310 million, after $2.73 billion of net foreign buying in the four months that ended in April.
The fund outflows came in line with the trend in most Southeast Asian stock markets, including Indonesia's .JKSE $445 million in outflows for the same period, the Philippines' .PSI $255 million and Vietnam's .VNI $1.72 million, according to Thomson Reuters data.
Foreign flow data for Singapore .FTSTI and Malaysia .KLSE is not available.
The benchmark SET index .SETI rose 0.65 percent to 1,142.55 at the mid-session break at 0530 GMT, recovering on improving sentiment elsewhere in Asia. Citigroup maintains its year-end SET index target at 1,240.
"While bullish medium-to-long term on the private investment up-cycle, we prefer to maintain our year-end SET ... Near-term threats from deteriorating global and regional growth sentiment and rising cost pressure could trigger a correction toward 1,060," Citi said in a report.
"The imminent correction will likely be milder," it said, citing better domestic growth visibility, driven by the private investment cycle. The Chinese authorities ending tightening policies and clearer liquidity policy stance from all major Central Banks would be supportive, it said.
1317 (0617 GMT)
(Reporting by Viparat Jantraprap in Bangkok; viparat.jantraprapaweth@thomsonreuters.com; Editing by Gopakumar Warrier)
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11:38 Stanley up on auto sector recovery
Shares in auto-parts manufacturer Thai Stanley Electric Pcl STAN.BK hit a one-week high on expectation of a recovery in auto production which was hit by floods in Thailand late last year.
Stanley shares were up 1.6 percent at 191 baht ($6.09), climbing at one point to 193 baht ($6.16), the highest since May 14, outpacing a 0.8 percent gain of the auto subindex .SETAU and a 0.3 percent rise of the benchmark SET index .SETI.
Four out of six analysts tracking the company rate it a buy or strong buy, one rate it a hold and one gives it a sell rating.
Broker Phillip Securities pegged the stock's target price at 210 baht ($6.70), reflecting an earnings upgrade partly due to a resumption of production at Honda 7267.T, one of Stanley's major clients, and its capacity expansion.
"To reflect a faster-than-expected earnings recovery in the fourth quarter, a resumption of production at Honda in early May 2012 and new orders for eco-cars from Mitsubishi and Suzuki, we raise our fiscal year 2013 sales projection by 3 percent," the broker said in a report.
"Even though the daily minimum wage hike effective in April 2012 would erode Stanley's profitability ... the impact could be offset by corporate income tax cuts and economies of scale," it said.
1130 (0430 GMT)
(Reporting by Viparat Jantraprap in Bangkok; viparat.jantraprapaweth@thomsonreuters.com; Editing by Robert Birsel)
($1 = 31.345 baht)
CANADA STOCKS-TSX set to rebound on catch-up, EU action hopes - Reuters UK
May 22 (Reuters) - Toronto's main stock index looked set for a strong rebound on Tuesday, catching up with global markets after a long weekend, on hopes of strong action from EU leaders to tackle the crisis in an informal meeting on Wednesday.
Global stocks rose on Monday, when Canadian markets were closed for the Victoria Day holiday, as world leaders emphasized support for growth in the euro zone.
TOP STORIES
* The United States and Japan are leading a fragile economic recovery among developed countries that could yet be blown off course if the euro zone fails to contain the damage from its problem debtor states, the OECD said.
* China will fast track approvals for infrastructure investment to combat a slowdown in the economy, a state-backed newspaper reported, showing how Premier Wen Jiabao's call for policies to support growth is being put into action.
* Mobile operator Vodafone made a writedown of 4 billion pounds ($6.3 billion) and cut its medium-term sales target as the debt crisis squeezed customers in southern Europe, forcing them to save money on phone calls.
* Retailer Sears Canada Inc said Don Ross has been appointed to its board of directors.
* The largest U.S. auto parts retail chain AutoZone Inc's quarterly profit beat market expectations on better margins, but sales growth slowed. ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ To receive an early e-mail of Reuters Morning News Call - Canada -- a preview of market moving news -- Thomson Reuters subscribers can register at ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
MARKET SNAPSHOT
* Canada stock futures <0#SXF:> traded up 2.12 percent
* U.S. stock futures <0#SP:>, <0#DJ:>, <0#ND:> were up around 0.1-0.3 percent
* European shares, were up
COMMODITY PRICE MOVES
* Thomson Reuters-Jeffries CRB Index : 289.66; was down 0.05 percent
* Gold Futures : 1576; fell 0.78 percent
* US Crude : 92.55; fell 0.02 percent
* Brent Crude : 109.16; rose 0.32 percent
* LME 3-month Copper : 7760; fell 0.38 percent
CANADIAN STOCKS TO WATCH
* Fairfax Financial Holdings Ltd. : The property and casualty insurer will buy Thomas Cook Group's 77 percent stake in its India operations for about $150 million, as the UK holiday firm continues to pay down its debt.
* Niko Resources Ltd. : The oil and gas producer said it will relinquish its interest in the D4 block at the Mahanadi basin, off India's east coast. Niko has a 15 percent interest in the D4 Block.
ANALYST RECOMMENDATIONS
Following is a summary of research actions on Canadian companies reported by Reuters.
* Artis Real Estate Investment Trust : CIBC ups price target to C$18 from C$17.50 on solid 1st-quarter results
* Canaccord Financial : KBW cuts target to C$8.50 from C$10 on difficult operating environment in Canadian capital markets, keeps market perform rating
* IGM Financial : CIBC and National Bank Financial cut price target on the Canadian mutual fund company on reduction of its management fees
* Sabina Gold and Silver Corp : RBC cuts target price to C$5 from C$9 on valuation, keeps outperform rating
ON THE CALENDAR
* No major Canadian economic data due to be released
* Major U.S. events and data includes existing home sales data
($1= $1.01 Canadian) (Reporting By Mohit Malukani; Editing by Jeffrey Hodgson)
STOCKS NEWS THAILAND-Outflows pull index to 3-month low - Reuters UK
Foreign investors have been selling Thai equities in May, stock exchange data shows, reversing four consecutive months of strong buying and pulling the benchmark SET index to its lowest in almost three months.
Net foreign selling in the month to Monday totalled $310 million, after $2.73 billion of net foreign buying in the four months that ended in April.
The fund outflows came in line with the trend in most Southeast Asian stock markets, including Indonesia's $445 million in outflows for the same period, the Philippines' $255 million and Vietnam's $1.72 million, according to Thomson Reuters data.
Foreign flow data for Singapore and Malaysia is not available.
The benchmark SET index rose 0.65 percent to 1,142.55 at the mid-session break at 0530 GMT, recovering on improving sentiment elsewhere in Asia. Citigroup maintains its year-end SET index target at 1,240.
"While bullish medium-to-long term on the private investment up-cycle, we prefer to maintain our year-end SET ... Near-term threats from deteriorating global and regional growth sentiment and rising cost pressure could trigger a correction toward 1,060," Citi said in a report.
"The imminent correction will likely be milder," it said, citing better domestic growth visibility, driven by the private investment cycle. The Chinese authorities ending tightening policies and clearer liquidity policy stance from all major Central Banks would be supportive, it said.
1317 (0617 GMT) (Reporting by Viparat Jantraprap in Bangkok; viparat.jantraprapaweth@thomsonreuters.com; Editing by Gopakumar Warrier)
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11:38 Stanley up on auto sector recovery
Shares in auto-parts manufacturer Thai Stanley Electric Pcl STAN.BK hit a one-week high on expectation of a recovery in auto production which was hit by floods in Thailand late last year.
Stanley shares were up 1.6 percent at 191 baht ($6.09), climbing at one point to 193 baht ($6.16), the highest since May 14, outpacing a 0.8 percent gain of the auto subindex .SETAU and a 0.3 percent rise of the benchmark SET index .SETI.
Four out of six analysts tracking the company rate it a buy or strong buy, one rate it a hold and one gives it a sell rating.
Broker Phillip Securities pegged the stock's target price at 210 baht ($6.70), reflecting an earnings upgrade partly due to a resumption of production at Honda 7267.T, one of Stanley's major clients, and its capacity expansion.
"To reflect a faster-than-expected earnings recovery in the fourth quarter, a resumption of production at Honda in early May 2012 and new orders for eco-cars from Mitsubishi and Suzuki, we raise our fiscal year 2013 sales projection by 3 percent," the broker said in a report.
"Even though the daily minimum wage hike effective in April 2012 would erode Stanley's profitability ... the impact could be offset by corporate income tax cuts and economies of scale," it said.
1130 (0430 GMT) (Reporting by Viparat Jantraprap in Bangkok; viparat.jantraprapaweth@thomsonreuters.com; Editing by Robert Birsel) ($1 = 31.345 baht)
Is it time to start your own business? - Daily Telegraph
If you use your car for business, invite clients into your home, offer advice or are the main breadwinner for your family, then you need the appropriate cover. Home-based firms are vulnerable to business disruption, legal claims and damage to property just like site-based ones.
But the message is clear. If you can start a lean business, attract clients and cover yourself against the worst-case scenario, now could be the best time yet to take the plunge into self-employment, regardless of the choppy waters.
What AXA can do for you
AXA’s new website for businesses — axainsurance.com/business — allows start-ups to assess their insurance needs and buy cover in a clear and simple way.
Business owners who want to keep an eye on what they spend can strip out the add-ons and be safe in the knowledge that they have the basics sorted, while others can select add-ons appropriate to their structure and the service they provide — all at the click of a mouse.
Customers decide their own premium and can see at a glance how much various elements of cover cost. This modular approach, written in plain English, is a quick and pain-free way to protect your business, giving you more time to concentrate on your big idea. And for customers who want the comfort of knowing they have all the bases covered at the right level, AXA’s helpline operators are on hand to give you the best advice around the clock.
Stocks fall on Europe, worrisome economic reports - Yahoo Finance
NEW YORK (AP) -- Stocks slipped Thursday after a couple of downbeat economic reports from the U.S. and unease over Europe overshadowed positive earnings from the largest American retailer and an encouraging jobs report.
The Dow Jones industrial average was down 64 points at 12,534 shortly after noon. The Dow is on its way to its 11th loss in the past 12 trading days. It's down 6 percent for the month so far and could be headed for its first down month since September.
The Standard & Poor's 500 index fell 10 points to 1,314. The Nasdaq composite fell 30 points to 2,844.
Caterpillar fell 4 percent, the most of the 30 stocks in the Dow Jones index, after reporting that global sales growth of construction and mining machinery slowed in the three months through April. Wal-Mart stock rose 5 percent, the most in the Dow, after reporting a 10 percent jump in first-quarter income, beating Wall Street expectations.
Indexes opened lower on Wall Street following declines in European markets. The declines accelerated at mid-morning after the Federal Reserve Bank of Philadelphia said manufacturing slowed in the mid-Atlantic region for the first time in eight months. New orders decreased and firms cut jobs.
Also, the Conference Board said its measure of future U.S. economic growth fell in April after six months of increases. The drop reflected fewer requests for building permits and a spike in applications for unemployment benefits.
These gloomy reports were a surprise and came as investors continued to fret about whether Greece might be forced to exit the euro bloc, something that investors fear would cause turmoil on global markets.
"The U.S. economy is growing slowly and not going gangbusters," said Brian Gendreau, market strategist at broker-dealer Cetera Financial Group. "But Europe is very much on investors' minds. It's been two years with multiple bailouts involving Ireland, Portugal and Greece and things don't seem to be getting better."
Greece's caretaker Cabinet was sworn in Thursday and will hold power at least until next month's election. In the recently-held elections Greeks didn't given any party a majority, but they did give strong support to politicians who rejected the tough austerity measures that came with the country's financial bailout.
Without that rescue package, Greece will likely default and be forced to leave the 17-country euro zone, which would destabilize other countries that use the euro. German, French and Spanish stock markets all fell more than 1 percent.
Collateral economic damage is already being felt by other members of the euro bloc.
Spain was forced to pay sharply higher interest rates to raise $3.18 billion in a debt auction Thursday. And shares of Bankia, which Spain nationalized last week, plunged 20 percent on a report from the newspaper El Mundo stating that depositors have withdrawn over $1 billion since last Wednesday.
Oil prices continued to trade lower, falling below $93 a barrel on Thursday, extending a sharp two-week sell-off, as traders worried about the potential impact on global growth from the European crisis. Crude oil has plummeted about 12 percent from $106 two weeks ago.
Energy companies fell. Chesapeake Energy fell 4 percent, while WPX Energy declined 6 percent.
Among stocks making big moves:
— Media General soared 38 percent after billionaire Warren Buffett's company Berkshire Hathaway agreed to buy 63 newspapers from the company for $142 million.
— GameStop fell 9 percent after the world's largest video game retailer reported its first-quarter profit fell 9.8 percent, as fewer customers visited its stores and bought new games and systems.
— Sears Holdings rose 8 percent after the beleaguered retailer turned a profit in the first quarter, benefiting from a gain on the sale of some stores.
Business travel is back, with frugal emphasis - Seattle Times
Companies are sending their employees on the road again. But with travel costs almost back to where they were before the recession, companies are trying various tacks to control spending.
About a fifth of business travelers operate under mandated travel programs, which require them to use the airlines, hotels and car rental companies their employer has chosen, according to the Global Business Travel Association Foundation's Global Business Traveler Study 2012, sponsored by Concur.
Roughly a third work for a company that has no preferred travel vendors, the study found. The rest, almost half of business travelers, fall in between — their employer encourages them to use specific airlines, hotels and car rental companies, but does not mandate it.
But beyond trying to keep more direct control over travel costs, companies are turning to other methods to hold down their travel bills, including use of videoconferencing equipment, offering less expensive hotels within the same brand and staggering the number of employees sent to a meeting. Even per diems, which had disappeared almost a decade ago, have come back, said Bjorn Hanson, divisional dean of the Tisch Center for Hospitality, Tourism and Sports Management at New York University.
Travel prices peaked in 2007, then fell the next two years. They began to rise again in 2010, Hanson said, and are expected to continue to increase this year by 4 to 6 percent, depending on the sector and the region.
But even with higher costs, business travel has come back. "The market actually recovered from what it lost in 2009 by the end of 2011, almost," said Lorraine Sileo, vice president of research for the travel market research firm PhoCusWright. The total corporate travel market in the United States — defined as corporate travel revenue from airlines, car rentals and hotels — grew to $90.7 billion in 2011, up from $72.4 billion in 2009, though still not back to the $98.3 billion of 2008, according to PhoCusWright. Revenue is expected to grow 6 percent this year to about $96 billion, and another 4 percent next year.
"Cost-cutting," Sileo said, "continues to be center stage for corporations."
To keep a closer eye on spending, some companies have created individual profiles in their online booking systems. "If you try to do something outside of policy, the system will kick off a message to your manager," said Christa Degnan Manning, director of research for American Express Global Business Travel. Or your profile may not allow you to book a business-class airline seat.
But even as companies try to hold the line on travel spending, they are also seeking to avoid being seen as too strict. "You have to be kind, gentle and still be educating," said Jim McMullan, global travel manager at Research Triangle Institute in North Carolina.
"You want the place to be viewed as a good place to work," McMullan said: "I'm not here to stop your travel. I'm here to ensure you spend the travel money wisely."
Degnan Manning of American Express agrees. "Corporations want to be seen as supporting employees not just about cutting costs."
One of the ways some corporations (and the federal government) sweeten travel for employees is to allow them keep their loyalty points, including frequent-flier miles and hotel points.
"They're a big deal," said Steve Simmons, who works out of San Francisco as assistant vice president for strategic alliances with Cognizant Technology Solutions, and logs more than 100,000 miles a year with trips to India, Europe and throughout North America.
Some corporations require employees to book travel through the corporate booking channel. Hewlett-Packard, for instance, has about 300,000 employees worldwide, and about a third of them travel for business, said Maria Chevalier, global director of travel and meeting services for the company. With an annual travel and entertainment budget of $1.3 billion, HP uses its large volume of airline tickets and hotel and car rentals to secure negotiated rates.
Travel companies guarantee to match a fare or rate if a traveler finds a lower one with the same airline, hotel or rental car company, Chevalier said. Though value for dollars spent is important, "travelers' safety and security comes first," she said. Corporations want to be able to track their employees in the event of a natural disaster, terrorist attack or other emergency.
Rather than imposing penalties, some corporations are rewarding travelers who stick to policy. HP and Coca-Cola, for example, have begun using computer game techniques to encourage behavior that complies with corporate travel policy. Employees who earn high scores for following the rules may even bring that score to their performance review. "It's another data point to reinforce that you're a good employee," Chevalier said.
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