Market Update
Asian markets started the week higher Monday with the Sensex scaling back from a record high in early trade to end only marginally higher.
The Nikkei rose 1%. The Shanghai Composite was up 0.3% while the Hang Seng was ended flat. The Sensex edged up 0.1% while the All Ordinaries was up 0.4%.
The markets also received positive cues from the U.S. where the S&P 500 index on Friday closed at a record high. The U.K. is closed for a public holiday Monday and the U.S. markets will also remain closed for the Memorial Day Holiday.
Over the weekend, the Ukrainian elections passed without incident.
Stocks on the Move
Exporters, the usual suspects, were among the major gainers in Tokyo. Sony rose 3.1% while NEC Corp. and Fujitsu added 3.3% and 3% each, respectively.
Fuji Heavy lifted 2.4% while Bridgestone Corp. moved ahead 2.2%.
Over on the Chinese mainland, CCID Consulting Company was up 2% after a Financial Times article said China had instructed state-owned companies to terminate agreements with U.S. consultants.
BYD Company swung to gains as it reversed steep losses and ended up 0.1%. The stock resumed trading after the company struck a deal to raise around $550 million through a share placement.
Chinese developers mostly extended last week’s gains on the back of a media report Beijing is set to loosen restrictions on housing purchases, except probably in the largest cities. New World Development was up 0.2% while Henderson Land Development gained 0.7%. However, Poly Property Group ended flat while China Overseas Land also gave up all of the day’s gains and ended down half a percent.
The Sensex surged in morning trade to a record ahead of the new Prime Minister Narendra Modi’s swearing-in ceremony set for later this evening. The heads of state of all SAARC countries had all earlier accepted the invitation to the event and confirmed their attendance for what it is set to be a power-packed gathering in the Indian subcontinent as India swears in its 15th Prime Minister.
The Sensex is up 27% since September 2013 and up 12% in May alone.
However, the market gave up all of its gains as investors took profits after a heady rise.
M&M led gains, up 6.2%, followed by SSLT, up 4.2%, and Wipro, up 3.2%. Tata Motors added 2.8% while L&T was up 2.2%.
In Sydney, NAB edged 0.2% lower after a broker downgrade.