Staying in the Red Zone

Composite Stock Price Index (CSPI) closed the trading in the red zone last weekend, after the afternoon session experienced selling pressure on stocks of excellence. Closure Composite Index at the end of this week driven by market sentiment in Asia is also a red zone.
Almost all seed stocks experienced selling pressure from investors who decided to take profit-taking (profit taking). Only the shares of Astra International (ASII) still remained in the green zone.
Strong enough action happening on the sale of stock trading sentiment this weekend following the Asian regional bourses are also all experiencing a correction in today’s trading.
At the close of trading Friday (04/23/2010), Jakarta Composite Index closed down 1.8 points (0.06%) to the level of 2924.731. LQ 45 Index also fell 0.7 points (0.14%) to a level of 567.98.
Quite a busy trade with the frequency of transactions across the market to reach 96 675 times the volume of 4.645 billion shares worth Rp 3.206 trillion. A total of 86 shares rose, 108 stocks fell and 75 shares remain stagnant.
Asian bourses almost entirely through a correction. Only the Strait Times index who successfully turned into a positive direction.

• Shanghai Index fell 15.95 points (0.53%) to a level of 2983.54.

• Hang Seng Index fell 210.45 points (0.98%) to the level of 21244.49.

• Nikkei-225 index fell 34.63 points (0.32%) to the level of 10914.46.

• Straits Times Index rose 2.41 points (0.08%) to 2983.1.

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Wariness On Bank Tax Proposal

U.S. stocks rose Tuesday as positive results from companies including Harley-Davidson Inc. (HOG) and Coach Inc. (COH) buoyed confidence on consumer spending. The S&P 500 and Nasdaq Composite each climbed 0.8%, though concerns over Coca-Cola Co.'s (KO) revenue and International Business Machines' bookings limited gains for the blue-chip Dow Jones Industrial Average to 0.2%.

 U.S. stock futures were mixed Wednesday as optimism over Apple's blowout earnings was tempered with wariness over a proposal that could tax banks to the tune of $2 trillion.
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Futures on the tech-heavy Nasdaq 100 climbed 5.25 points to 2029.50, while S&P 500 futures fell 2.2 points to 1203.20 and those on the Dow Jones Industrial Average fell 27 points.

After markets shut on Tuesday, Apple Inc. (AAPL) reported a 90% jump in quarterly profit on 49% revenue growth, both well ahead of estimates as iPhone, iPod and Macintosh shipments climbed.

"We believe Apple's fiscal second-quarter report was very strong and that the company's EPS and gross margin guidance is quite conservative for the fiscal third quarter. We continue to believe Apple's valuation is very attractive and we look forward to even more new products including a major iPhone upgrade cycle later this year," said Ben Reitzes, an analyst at Barclays Capital, who hiked his price target to $315 from $300.

Apple shares rose 5% in premarket trade. Apple's suppliers in Europe including ARM Holdings PLC (ARMH, ARM.LN) advanced as well.

Outside of techs, however, the bank sector could see pressure as the BBC and The Wall Street Journal reported that the International Monetary Fund is proposing that the Group of 20 leading industrialized nations should adopt two banks taxes: one on balance sheet size, and another based on profits and compensation.

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Toyota Sienna

It really seems hard to buy a car from Toyota Motors today. You are not sure when your car will be included in the recall list of Toyota vehicles affected. From last year millions of recalled cars include the Toyota Prius, Camry, Matrix, etc, among others, to the newest Lexus GX460, Toyota seems to continue considering their cars because of security concerns.


In the latest blow to reminded of Toyota, Toyota’s latest model is no longer affected car an SUV but called the Toyota Sienna minivan. Therefore, Toyota recall of approximately 270,000 from the 1998-2010 model year Toyota Sienna minivan being sold in Canada and about 600,000 sold in the United States.
Based on their findings, Toyota can find out the potential problems with the cable that secures the spare tire Sienna car model. Spare tire cord rust could break and create hazards on the road between its users. This is especially true in cold-weather climates where road salt can corrode and cause the cable to snap causing the spare tire to fall into the street.

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ADB and ASEAN +3 Forms Insurance Agency Loan of U.S. $ 700 Million

Asian Development Bank (ADB) and ASEAN countries plus China, Japan and South Korea, known as ASEAN +3 agreed to establish a credit guarantee facility worth U.S. $ 700 Million.
Of the total credit guarantee facility, the ADB will support the U.S. $ 130 million, while U.S. $ 570 million supported the ASEAN +3 countries. Of the total of which supported the ASEAN +3, the details are China contributes U.S. $ 200 million, Japan U.S. $ 200 million, U.S. $ 100 Million South Korea and ASEAN U.S. $ 70 million.
ADB's Board of Directors has approved ADB's contribution to Credit and Investment Guarantee Facility (CGIF method). The plan, CGIF trial will commence operations in 2011.
CGIF will provide guarantees for securities denominated in local currency issued by companies in ASEAN. The existence of this guarantee will make firms more easily publish local securities with a longer term.
"CGIF will allow the companies to publish the letter of the value in the domestic market and neighboring markets as well as across the ASEAN +3," says Noy Siackhachanh, adviser to the ADB for regional economic cooperation in a press release, Wednesday (14/4/2010).
"Connecting the regional savings into regional investment will support economic growth, create employment and reduce poverty," he added. So that later can reduce the mismatch between the currency and tenor securities, which was the trigger of the Asian financial crisis in 1997-1998. The facility is also expected to make ASEAN financial systems more resilient in the face of global capital flow volatility and external shocks.
Local securities markets in developing countries of East Asia region has experienced a dramatic expansion in recent years to U.S. $ 4.4 trillion in 2009. But that number is low ie only 7% of the total global securities. While corporate bonds only about 30% of the total local papers in this area.
CGIF will later be overseen by representatives from 8 countries, and 1 representative of ADB. Location CGIF placements it is not certain. Once CGIF funds were utilized, the board will review the role CGIF, organizational structure and operations in order to decide whether capital or leverage ratio of 1:1 should be improved.

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