Indian Weekly Market Update June 5 2009
General Motors Corporation filed for bankruptcy on June 1, 2009. Despite its global repercussion, equity markets remained buoyant during the week ended June 5, 2009, in anticipation of an economic revival. In the UK, housing prices rose 2.6 percent month-on-month in May 2009, the first since 2002. This led to the expectation of an economic recovery. Furthermore, signs of economic revival were highlighted by the 0.2 percent month-on-month increase in retail sales in the 16–nation Euro area in April 2009. The Dow Jones Industrial Average (DJIA) and FTSE100 rose 3.09 percent and 0.47 percent, respectively, during the week ended June 5, 2009. The indices have risen 33.8 percent and 26.4 percent, respectively, from their lows in March 2009.
Improvement in macroeconomic indicators across Asian economies enhanced investor sentiments as five of the seven indices ended in green. China’s Shanghai SE Composite Index was the top gainer among Asian indices (up 4.59 percent) during the week under review led by improved Purchasing Managers’ Index (PMI). India’s benchmark index, BSE Sensex, gained 3.27 percent, led by anticipation of reforms benefiting companies and lower interest rates, which pushed the index higher.
The rupee depreciated 0.03 percent during the week led by the heavy buying of dollars by the Reserve Bank of India (RBI). Crude oil prices rose 3.2 percent to close at US$68.44 per barrel after increasing 7.5 percent the previous week. Since February 18, 2009, crude oil prices moved up 61.3 percent due to the optimism of an economic recovery.
______________________________________________________________________________
To read complete commentary, please download the file.
______________________________________________________________________________
ARANCA is a leading provider of customized end-to-end investment research, business and IP research and IRC 409A valuation services to global clients. To know more about us and our services, click here.
