World markets - 3 March 2005
March 3, 2005
Pacific rim
Hong Kong - Markets put in another varied performance yesterday as swings on Wall Street left investors lost for direction amid continuing concerns over high oil prices and inflation.
Japanese share prices closed 0.28 percent higher, extending gains for a fifth straight day, after recent strong local data boosted confidence in the economic outlook, dealers said.
However, there could be a ceiling to any significant rallies because of profit taking by many Japanese firms aimed at eking out gains before closing their books for the fiscal year-end on March 31.
Hong Kong closed 1.5 percent lower as investors took profits in the property sector and HSBC after the global banking giant was downgraded following its 2004 results.
Chinese shares listed in Hong Kong were dragged down by a sharp fall in Sinopec after news that ExxonMobil was selling its stake in the company.
Reports that Hong Kong chief executive Tung Chee-hwa had offered his resignation gave rise to some political uncertainties.
Chinese shares extended losses by 1.23 percent in what is becoming a sustained correction as steel makers were hit by concerns over the recent sharp increase in iron ore costs.
Europe
London - European shares closed mixed yesterday as Belgian brewer InBev, mining stocks and utilities weighed on the indices.
Higher oil prices and weaker bond yields added to a bearish brew.
Shares in InBev fell 5.2 percent after the maker of Stella Artois and Beck's beers told analysts it expected lower earnings per share this year. Also yesterday, it unveiled a surge in profit for 2004, when it acquired Brazil's AmBev.
Telecoms equipment maker Ericsson and Credit Suisse were bright spots. Ericsson rose after Moody's raised its debt rating on the group, and Credit Suisse got a boost when Merrill Lynch raised its share price target on the stock.
Mining groups Anglo American, Xstrata, Rio Tinto and BHP Billiton all fell sharply as base metals prices extended their losses from Tuesday into yesterday.
Utilities were a sore spot. Their traditional status as a high-yielding sector came under pressure as government bond yields weakened, offering a more attractive alternative for investors.
Oil companies Shell, Total, ENI and BP all registered modest gains.
US
New York - US stocks rose yesterday, spurred higher by energy shares such as Exxon Mobil as oil prices climbed above $52 a barrel.
"There is strength in these energy names and I do think they'll continue to drive the market," said Oscar Nelson, a trader at US Global Investors of San Antonio, Texas. "At $52 oil, these companies are making a lot of cash."
Benchmark indices erased earlier losses as Federal Reserve chairman Alan Greenspan told congress that the economy was "developing its own momentum" and that more company executives saw business improving.
Energy shares had the biggest gain among the 10 industry groups on the Standard & Poor's 500, rising 0.6 percent as oil prices climbed after a government report showed that US refineries were operating at the lowest rate since October.
Exxon, which had a record fourth-quarter profit, added 29c to $62.39. ChevronTexaco advanced 34c to $61.28.
Valero Energy, the third-largest US oil refiner, climbed $1.61 to $69.67 after it said profit would rise. Energy shares are the best-performing group this year, climbing 20 percent.
-Bloomberg-Reuters-AFP
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