Category Archives: Stock Market

American companies in the 1st half of the year reduced the issue of bonds by 15%

American companies in the first half of the year reduced bond issuance amid rising interest rates, increased inflation and economic uncertainty, writes The Wall Street Journal.

The total volume of placements of companies with an investment-grade rating amounted to $515.71 billion compared to $603.34 billion in January-June last year, that is, it decreased by about 15%, according to Refinitiv data.

The number of large ones included the placement of an online retailer Amazon.com Inc (NASDAQ:AMZN). for $12.7 billion, pharmaceutical Bristol Myers Squibb (SPB: BMY) for almost $6 billion and home goods store chain Lowe”s Cos. for about $5 billion.

At the same time, bankers expect a further decline in volumes in the second half of the year.

“With the increase in financing costs,” such fundraising becomes less attractive, says Dan Mead of Bank of America (NYSE:BAC). “Over the past two years, issuers have accumulated quite large cash positions, and some of them now intend to use some of the money to repay the debt instead of refinancing,” he believes.

Companies with “speculative” ratings raised $54.77 billion in the first half of the year by issuing bonds against $256.1 billion in the same period last year. Thus, the drop was almost 79%.

The number of issuers in this category included the automaker Ford Motor (NYSE:F), social network Twitter (NYSE:TWTR) and retailer Macy’s Inc.

In January-March, American companies placed convertible bonds in the amount of $8.5 billion, which is significantly lower than last year’s figure of $52.47 billion.

Meanwhile, the volume of raising funds with the help of “revolving” loans in January-June increased by almost 12% – to $840.67 billion from $752 billion a year earlier. In particular, they were used by retailer American Eagle Outfitters Inc. and packaging manufacturer Ball Corp (NYSE:BALL).

The US stock market has moved to growth

The main indicators of the US stock market moved to growth during trading on Friday after an initial decline.

The US stock market ended the last trading of the second quarter on the eve of a significant drop. At the same time, the decline in the S&P 500 index in the first half of the year was the highest since 1970. Market participants evaluate statistical data and a fresh batch of corporate news.

The index of business activity in the US manufacturing sector (ISM Manufacturing) in June fell to 53 points compared with 56.1 points a month earlier, according to data from the Institute of Supply Management (ISM).

This is the minimum level for the last two years. Experts on average expected a less significant decline – up to 54.9 points, according to Trading Economics. The index value above 50 points indicates an increase in business activity in the manufacturing sector, below – its weakening.

The value of the Dow Jones Industrial Average rose by 0.09% to 30,803.20 points by 17:04 Moscow time.

The Standard & Poor’s 500 has risen 0.15% to 3,790.93 points since the market opened.

The Nasdaq Composite gained 0.25% by this time and amounted to 11056.37 points.

The American manufacturer of memory chips Micron Technolog Inc. increased its net profit in the third fiscal quarter of 2022 by 1.5 times, revenue by 16%, but the company gave a forecast for the current quarter that did not meet analysts’ expectations. The company’s shares are falling by 4.6% during preliminary trading.

Shares of automaker General Motors (NYSE:GM) Co. are up 1.5%, although the company disappointed investors with its profit forecast for the second quarter of this year amid a shortage of semiconductor components.

Meanwhile, Kohl’s Corp (NYSE:KSS) securities. they are falling by 20.9%. The American retailer confirmed that it had stopped negotiations with the Franchise Group Inc. holding on the sale of the business. In addition, the company lowered its revenue forecast for the second fiscal quarter, citing a decrease in consumer spending amid high inflation.

Mosbirzha will create a Club to protect investors from sanctions

The Moscow Exchange will create an Investor Protection Club “to defend their rights and interests,” according to a press release from the platform. The exchange plans to protect the interests of market participants in European jurisdiction, in particular, to challenge the EU decision to include the National Settlement Depository (NSD) in the sanctions lists. The press release also says that “special attention will be paid to the protection of the rights of unqualified investors.”

At a meeting with professional participants of the financial market on July 1, representatives of the Moscow Stock Exchange, NSD, major Russian banks, brokers and management companies, as well as professional associations discussed the protection of investors’ rights under EU sanctions against NSD.

“We expect to find a common solution to release the blocking of securities that are accounted for in NSD’s accounts in global European depositories. Such blocking, which significantly violates the property rights of a large number of investors, undermines the traditional trust in the European financial industry and is regrettable,” said Alexey Timofeev, President of NAUFOR.

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The text was prepared by Timur Aliyev

LUKOIL has scheduled the start of commercial oil production at the Greifera field in the Caspian Sea for 2023

The start of commercial oil production at the V.I. Greifer field in the Caspian Sea is scheduled for 2023 after the completion of commissioning and obtaining permits for the commissioning of facilities, Director General of LUKOIL-Nizhnevolzhskneft Nikolay Lyashko said at a round table meeting of the State Duma Committee on Energy.

The shelf of production at the field will amount to 1.2 million tons of oil per year. Recoverable reserves – 19.2 million tons.

Currently, the support blocks and the upper structure of the residential module platform, as well as the support blocks of the drilling platform (LSP) are installed in the sea. The upper structure of the drilling platform is pushed onto the transport and installation barge and is waiting to be put into the sea for its sliding and completion of completion works.

Asian stock markets ended trading in the red

Stock markets in the Asia-Pacific region ended trading down after the release of Japanese statistics showing a decline in confidence in the country’s economy among large industrial enterprises.

The Tankan optimism index in April-June fell to the lowest value since the first quarter of 2021 and amounted to 9 points against 14 points in the first quarter, the Bank of Japan reported. The indicator turned out to be worse than the forecasts of experts who expected a decline to 13 points, according to Trading Economics.

The positive value of the index means that the percentage of respondents who consider the business environment favorable was higher than the proportion of those who do not think so. Nevertheless, the decline in the index value means that there is growing concern among Japanese industrialists about the prospects for economic growth against the backdrop of rising commodity prices and the outbreak of coronavirus in Asia.

The Bank of Japan attaches great importance to the indicator when determining the key rate. The indicator for the second quarter may provoke criticism of the regulator’s ultra-soft monetary policy, which led to a drop in the value of the yen, said Stefan Innes, managing partner of SPI Asset Management. “The bank can wait until the release of the third quarter survey before abandoning the ultra-dovish policy,” Innes also added.

In addition, unemployment in Japan unexpectedly rose to 2.6% in May from 2.5% in April, data from the country’s Ministry of Internal Affairs and Communications showed. Experts expected it to remain at the level of the previous month, Trading Economics notes.

The Japanese Nikkei 225 index decreased by 1.7% by the close of the session.

Among the leaders of the decline in the index were the stock quotes of Tokyo Gas Co. Ltd. (-9.8%) and Osaka Gas Co. Ltd. (-6.9%).

Securities of traders Mitsui & Co. Ltd. and Mitsubishi Corp. They fell by 5.5% and 5.4%, respectively, on news about Russia’s reorganization of the Sakhalin-2 gas project.

China’s Shanghai Composite index dropped 0.32%. Trading on the Hong Kong Stock Exchange on Friday is not held due to the weekend on the occasion of the Day of the creation of the Hong Kong Special Administrative Region.

Shares of industrial equipment manufacturer Ningbo Techmation Co. Ltd. (-10.4%), travel company Tibet Tourism Co. Ltd. (-10%) and hotel chain operator Jinling Hotel Corp. were among the leaders of the decline in the Shanghai index. Ltd. (-10%).

The index of business activity in China’s industrial sector in June rose for the first time in four months and amounted to 51.7 points against May’s 48.1 points, according to the Purchasing managers’ Index (PMI) calculated by Caixin Media and S&P Global. Experts surveyed by Trading Economics, on average, expected the index to rise to 50.1 points.

South Korea’s Kospi index fell 1.2%.

The market value of the automaker Hyundai Motor (KS:005380) decreased by 0.3%, one of the world’s largest manufacturers of chips and consumer electronics Samsung Electronics Co. (KS:005930) – by 1.4%.

The Australian S&P/ASX 200 declined by 0.4%.

The leaders of the fall in Australia are the shares of mining companies: Liontown Resources Ltd. (-5.2%), Woodside Energy Group Ltd. (-4.4%) and Mineral Resources Ltd. (-4.1%).

Rosneft shares soared by 9% after the decision on dividends

Quotes of the oil-producing company Rosneft rose by 8.7% at the opening of trading on Friday, July 1, reaching 393.7 rubles per share, according to trading data on the Moscow Exchange.

By 10:50 Moscow time, the share price had adjusted to 376.2 rubles (+3.85% by the close of previous trading).

On the eve of June 30, the general meeting of shareholders of Rosneft approved the final dividends for 2021 in the amount of 23.63 rubles. per share.

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The text was prepared by Timur Aliyev

“SPB Exchange” does not conduct trading in securities with a listing on the Hong Kong Stock Exchange today, on July 4 – with a listing in the USA

St. Petersburg Exchange does not conduct trading and settlement of securities listed on the Hong Kong Stock Exchange (HKEX) on July 1, according to information on the exchange’s website.

Hong Kong celebrates the 25th anniversary of its return to the PRC on July 1.

Trades and settlements of other foreign and Russian securities will be conducted according to the established schedule.

On Monday, July 4, when Independence Day is celebrated in the USA, there will be no trading in securities with a listing in the USA and mutual investment funds, as well as settlements on transactions with shares of PJSC SPB Exchange with settlements in US dollars.

Trading in securities listed on the Hong Kong Stock Exchange, Russian securities with settlements in rubles, as well as depositary receipts for shares of Fix Price (MCX:FIXPDR) Group Ltd and TCS Group (MCX:TCSGDR) Holding PLC with settlement currency in US dollars will be conducted according to the established schedule.

Asian stock markets are mostly falling today

Today, stock markets in the Asia-Pacific region are mostly declining after the release of Japanese statistics, which showed a decrease in confidence in the country’s economy among large industrial enterprises. The only exception is the Australian index, which shows weak positive dynamics.

The Tankan optimism index in April-June fell to the lowest value since the 1st quarter of 2021 and amounted to 9 points against 14 points in the first quarter, the Bank of Japan reported. The indicator turned out to be worse than the forecasts of experts who expected a decline to 13 points, according to Trading Economics.

The positive value of the index means that the percentage of respondents who consider the business environment favorable was higher than the proportion of those who do not think so. Nevertheless, the decline in the index value means that there is growing concern among Japanese industrialists about the prospects for economic growth against the backdrop of rising commodity prices and the outbreak of coronavirus in Asia.

The Bank of Japan attaches great importance to the indicator when determining the key rate. The indicator for the second quarter may provoke criticism of the regulator’s ultra-soft monetary policy, which led to a drop in the value of the yen, said Stefan Innes, managing partner of SPI Asset Management.

“The bank can wait until the release of the 3rd quarter survey before abandoning the ultra-dovish policy,” Innes also added.

The Japanese Nikkei 225 index fell by 1.88% by 8:36 Moscow time.

Tokyo Gas Co. Ltd. (-9.69%) and Osaka Gas Co. Ltd. (-7.6%), as well as automakers Mitsubishi Motors Corp. are among the leaders of the decline in the index. (TYO:7211) (-5.9%) and Mazda Motor Corp. (TYO:7261) (-5,6%).

The Chinese Shanghai Composite index fell by 0.33% by 8:40 Moscow time. Trading on the Hong Kong Stock Exchange on Friday is not held due to the weekend on the occasion of the Day of the creation of the Hong Kong Special Administrative Region.

Among the leaders of the decline in the Shanghai index are shares of the Chinese operator of the Jinling Hotel Corp. hotel chain. Ltd. (-10%), Anhui Jiuhuashan Tourism Development Co. Ltd. (-9.9%) and Chongqing Qin’an M&E Plc automatic transmission manufacturer (-9.9%).

The index of business activity in the industrial sector of China in June rose for the first time in 4 months and amounted to 51.7 points against May’s 48.1 points, according to the Purchasing managers’ Index (PMI) calculated by Caixin Media and S&P Global. Experts surveyed by Trading Economics, on average, expected the index to rise to 50.1 points.

The South Korean Kospi index fell by 1.39% by 8:55 Moscow time.

The market value of the automaker Hyundai Motor (KS:005380) fell by 0.3%, one of the world’s largest manufacturers of chips and consumer electronics Samsung Electronics Co. (KS:005930) – by 1.9%.

The Australian S&P/ASX 200 sank by 0.04% by 8:56 Moscow time.

The growth leaders in Australia are the shares of biopharmaceutical Mesoblast Ltd. (+13.9%), biotech Imugene Ltd. (+8.3%) and mining Regis Resources Ltd. (8.1%).

GAZ Group’s plants will operate on a full-time schedule in July

The enterprises of the GAZ Group will operate on a full-time schedule in July, the company’s press service told Interfax. “The actual operating mode of the enterprise is determined on a regular basis, taking into account the current load of production. The decision on the future schedule will also be made based on the current situation,” the press service said.

As previously reported, an order was issued at the enterprises of the GAZ Group on the possible transition to a 4-day working week from May 19 to November 18, 2022. In May and June, a 4-day working week was not introduced.

The order was issued “in connection with a possible drop in production volumes caused by problems with the supply of components and disruption of logistics chains,” the press service explained.

On May 25, US sanctions against the GAZ group came into force, the application of which the US Treasury delayed for 4 years.

Earlier, OFAC (the department of the US Treasury responsible for the application of sanctions) regularly extended the sanctions deadline for GAZ from the moment the group fell under sanctions in 2018, publishing the relevant licenses. GAZ has repeatedly stated that the sanctions have a bad effect on the financial situation of the company.

The GAZ Group unites enterprises producing light and medium-tonnage commercial vehicles, buses, and automotive components. The group’s key asset is the Gorky Automobile Plant.

Walgreens Boots and JetBlue fell in premarket, while Constellation rose

Walgreens Boots (NASDAQ:WBA) shares fell 1.9% after the pharmacy chain reported a 76% drop in quarterly profit due to the settlement of a dispute with the state of Florida regarding opioids and a decline in pharmacy sales in the United States amid declining demand for COVID-19 vaccines.

Constellation Brands (NYSE:STZ) shares rose 0.5% after the brewing company beat quarterly estimates and presented an optimistic outlook for the full year, as demand for beer remains high.

RH (NYSE:RH) shares fell 9% after the furniture chain sharply cut its revenue forecast for 2022, citing a deteriorating economy and slowing home sales.

Shares of Xerox (NASDAQ:XRX) fell 1.79% after the printer maker announced the unexpected death of chief executive John Vicentin, 59, due to complications caused by a long illness.

Spirit Airlines (NYSE:SAVE) shares rose 2.1% after the budget carrier postponed a shareholder vote on Frontier Group’s (NASDAQ:ULCC) merger proposal until next week, suggesting that it has not sufficiently convinced shareholders to support the deal, which is being challenged by JetBlue Airways (NASDAQ:JBLU). JetBlue shares fell 3.7% and Frontier shares fell 0.6%.

Pfizer (NYSE:PFE) shares fell 0.7% amid general weakness as the drugmaker seeks full U.S. approval of its COVID-19 oral antiviral drug Paxlovid, which is currently available for emergency use

Shares of Nio (NYSE:NIO) fell 2.3%, despite the fact that Morgan Stanley (NYSE:MS) maintains an “above-average” rating for the Chinese electric car manufacturer, saying that it can recover in the second half of the year thanks to a strong product line.

By Peter Ners

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Big Tech Stocks are having their Worst Year Ever

Hard times have come for almost all major stock indexes in the United States: NASDAQ and Russell 2000 are experiencing the worst year in history, while the Dow Jones has had the worst start since 1962, and the S&P 500 since 1970, Yahoo writes.

Investors are wondering what will happen in the rest of the year, knowing that all paths for stock investors tend to lead to the Federal Reserve.

Let’s start with the Nasdaq, which has fallen by a record 29% this year, and has fallen by 10% 8 times in the first half of the year. Its average yield in the second half of the year was 5.8%, and the median was 8.7%.

It is noteworthy that the worst growth of the index until 2022 was 20 years ago, in 2002, when the burst technology bubble went into its second year. By the end of 2002, the Nasdaq index had lost another 8.7%, and its total loss was 32%.

As the economy began to recover from the recession, at the end of 2002, the Fed made another series of rate cuts — for the first time since 1961, lowering it to 1.25% — and stocks finally found their footing.

However, the technology index did not return to its previous record high until 2015.

Looking at the Dow Jones indicators, we see few modern parallels — 3 of the 4 worst years of the index took place even before the United States entered World War II. By the close on Wednesday, the Dow Jones index was at the fifth worst level in the entire history of observations. The Dow lost 14.4% in the first 6 months of 2008, and then fell another 22.7% for the entire year, when the global economy was on the verge of collapse.

In the same year, the Nasdaq fell 13.6% by the end of June. In September of the same year, with the collapse of Lehman Brothers, the technology index suffered additional losses of 31%, losing about 40.5% by the end of the year.

The final reversal occurred only when the Fed announced its then unprecedented quantitative easing program in March 2009.

Long periods of bull markets — such as the 20-year market of the 1980s and 1990s – are usually followed by a bear market, when old market paradigms give way to new ones amid strong portfolio adjustments.

For example, in 2000-2009, the bear market became a “lost decade” for investors. In the end, this period gave way to the second technological boom, the reversal of which we are now witnessing.

As in the early 2000s, the rapidly changing macro environment led to a sharp rotation of portfolios by asset classes, so it is no coincidence that today the traditional 60/40 portfolio is experiencing the worst period since 1970.

The 1970s, of course, are the last period in US economic history known for persistently high inflation, which the late Paul Volcker, as head of the Fed, destroyed with a sharp rate hike in the early 80s.

If we recall the 1973 oil embargo, it marked the beginning of a 3-year bear market on the Nasdaq, during which the index eventually lost half of its value. In the same year, the Dow index fell by 16%.

The rapid rise in energy prices has become a characteristic feature of a new era of persistently high inflation, which put an end to 40 years of interest rate cuts.

If you take the Fed’s word for it — that the US central bank is exclusively engaged in fighting inflation, you should not expect Powell to help investors in the near future. But if the Fed does change its position, as the market eventually assumes in 2023, we will have an echo of the “bubble” in the future.

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p dir=”ltr”>— Yahoo materials were used in the preparation

Grayscale Sued the SEC for Rejecting an application for a Bitcoin ETF

Grayscale sued the SEC for rejecting an application for a bitcoin ETF sued the U.S. Securities and Exchange Commission (SEC) after the regulator rejected its application to create a bitcoin ETF, writes Business Insider.

Grayscale applied to open a bitcoin fund in October 2021, but faced numerous delays. Only after the Securities and Exchange Commission rejected her application to list a bitcoin ETF, Grayscale Investments announced its intention to sue the SEC. She realized her intention an hour after the SEC rejected the application, announcing that she had begun legal proceedings to appeal the decision by filing a petition to the US Court of Appeals.

On Wednesday, the SEC said the crypto investment company failed to answer questions about market manipulation.

“Today we received notification that our application to convert GBTC into a spot ETF was rejected by the SEC,” Grayscale, which manages the world’s largest bitcoin fund, said in a statement. “We are deeply disappointed and disagree with her decision.”

An ETF or exchange—traded fund is an investment fund that tracks a specific sector or asset class. In October 2021, Grayscale applied to convert its Grayscale Bitcoin Trust (GBTC) ETF into a fund that will track the spot price of bitcoin.

Although the SEC has not yet approved a spot bitcoin ETF, it previously allowed exchange-traded funds tracking bitcoin futures contracts to list in the US. Grayscale lawyers said that this is an inconsistent approach to regulating the entire crypto sector.

“The SEC cannot apply a consistent approach to BTC investment instruments, as evidenced by the rejection of GBTC’s application to convert into a spot ETF and the approval of several other futures ETFs for BTC,” the company’s lawyers said.

— Business Insider materials were used in the preparation

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