Knowledge is Power: Sensex and Shanghai Indices Correlation Edition

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Sensex and Shanghai index show high positive correlation. The movements of Sensex and the Shanghai Composite Index show a high positive correlation at 0.9 in 2008 and 2009. This linear relationship appears to have strengthened in the decline since January 2008.Chinese curse on Indian shares

China-India-markets

Shares in five Nigerian banks, which were bailed out by the government last week, have been suspended.  Shares suspended in Nigeria banks

Fidelity’s John Ford says the prospects for further recovery have not been adequately priced into Asian equities.More buying opportunities of Asian shares over next 18 months

China received 5.36 billion U.S. dollars of foreign direct investment (FDI) in July, down 35.7 percent year on year, said Ministry of Commerce spokesman Yao Jian on Monday.China’s FDI falls 35.7% in July

After going into a tailspin for a year, the German economy is experiencing slight growth once again. But experts are divided over whether it is merely a temporary respite or a sign of genuine recovery.Is the Recession Really Over?

Despite the Bank of Canada’s most recent economic forecast that the current recession is over, diminished..Commercial real estate activity remains down: CBRE

Top Performing Asian and Latin American ADRs

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As of July 31,2009 the S&P; 500 Index and the Dow Jones Composite Index are up 10.97% and 2.47% respectively . But many of the ADR indices are gone up much higher. The Year-To-Date (YTD) performance of some of ADR indices are as follows:

BNY Mellon ADR Index: 21.44%
BNY Mellon Asia ADR Index: 27.54%
BNY Mellon Dev Mkts ADR Index: 16.65%
BNY Mellon Emg Mkts ADR Index: 43.22%
BNY Mellon Europe ADR Index: 15.59%
BNY Mellon Lat. Amer. ADR Index: 53.96%

So far this year, the developed markets are lagging the performance of emerging markets.

The Top Performing Latin American ADRs for the Month of July are listed below:

Gafisa S.A.(GFA) – Up 55.21%
Gruma S.A.B. de C.V. (GMK) – Up 44.50%
Votorantim Celulose e Papel S.A. (VCP) – Up 39.50%
Nortel Inversora S.A. (NTL) – Up 36.42%
Aracruz Celulose S.A. (ARA) – Up 34.50%
GOL Linhas Aereas Inteligentes S.A. (GOL) – Up 30.69%
TIM Participacoes S.A. (TIM) – Up 26.33%
Desarrolladora Homex S.A.B. de C.V.(HXM) -Up 26.32%
Telemig Celular Participacoes S.A.(TMB)- Up 22.18%
Companhia Brasileira de Distribuicao(CBD) – Up 21.68%

The Top Performing Asian ADRs for the Month of July are listed below:

Woori Finance Holdings Co. Ltd.(WF) – Up 45.21%
Internet Initiative Japan Inc. (IIJI) – Up 43.49%
China Eastern Airlines Corp. Ltd. (CEA) – Up 43.02%
WNS (Holdings) Ltd. (WNS) – Up 41.67%
Patni Computer Systems Ltd. (PTI) – Up 39.14%
SINOPEC Shanghai Petrochemical Co. Ltd. (SHI) – Up 32.72%
Shinhan Financial Group Co. Ltd. (SHG) – Up 32.36%
CNinsure Inc. (CISG) – Up 31.39%
KB Financial Group Inc. (KB) – Up 28.82%
China Southern Airlines Co. Ltd. (ZNH) – Up 27.18%

Note: ADRs under $5 per share are not included in the list above.

Many of the top performers for July have also performed very well year-to-date. For example Korean Bank Kookmin is up 62.90% YTD. Last month alone KB went up 28.82%. The above picks can be starting point for investors looking to gain exposure to the Latin American and Asian markets. However many of the emerging markets have soared already this year. The main indices of China and India may experience pullbacks as some folks consider them to be over-priced relative to earnings and growth.

FactSheet: Dow Jones STOXX® Select Dividend Indices

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Dow Jones and Stoxx publish many stock indices. One such index is the Dow Jones STOXX® Select Dividend Indices which comprises of the following indices:

Dow Jones STOXX® Global Select Dividend 100 Index
Dow Jones STOXX® Americas Select Dividend 40 Index
Dow Jones STOXX® Select Dividend 30 Index
Dow Jones STOXX® Asia/Pacific Select Dividend 30 Index
Dow Jones EURO STOXX® Select Dividend 30 Index
Dow Jones STOXX® NORDIC Select Dividend 20 Index
Dow Jones STOXX® EU Enlarged Select Dividend 15 Index

The above indices have excellent dividend yields ranging from 3.97% to 6.28% as of June30,2009. For example, the  Dow Jones STOXX® EU Enlarged Select Dividend 15 Index has an yield of 6.28%. These indices can be used to identify top dividend paying stocks. The Global Selec Dividend Index has 10 stocks including BB&T Corp (BBT)  and New York Community Bancorp Inc (NYB). BBT acquired the deposits of Colonial Bank of Alabama which failed on Friday.

To download the complete factsheet click Dow-Jones-STOXX-Select-Dividend-Indices.

For other Dow Jones Select Dividend Indices factsheets, go here.

A Look at the Petroleum Sector of Norway

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The Petroleum Sector is the largest industry of Norway. Today there are 60 oil fields in production on the Norwegian Continental Shelf. In 2008, they produced 2.5 Million barrels of crude oil per day. Norway is one of the top oil producing countries in the western world. In 2008, Norway is projected to surpass Canada to become the second largest natural gas producer in the world.

The Norwegian government receives significant revenues in the form of tax revenues from the sector. In 2008, this sector accounted for 34% of the state’s total revenues.  The revenues are allocated to a special fund called the “Government Pension Fund – Global” which had a value of NOK 2275 Billion at the end of last year. (Note: 1 NOK = 0.1644 US$ on August 15,2009)

Growth of the Government Pension Fund – Global

Government Pension Fund – Global

Importance of the Petroleum Sector for Norway (click to enlarge)

Norway-Oil-Sector

The largest oil and natural gas company in Norway is  StatOilHydro (STO) which was formed by the merger of Statoil and Norsk Hydro’s oil and gas operations  in 2007. StatOilHydro has presence in 24 countries and operates 2,300 service stations in Scandinavia, Poland, the Baltic States and Russia. Year-to-Date the stock is up nearly 31%.

5-Year Performance of StatOilHydro (STO):

STO-performance-5-year

Top Countries to which Norway exported its natural gas in 2008:
(click to enlarge)

Norway-Top-Natural-Gas-Exports

Source: Facts 2009, The Norwegian Petroleum
Ministry of Petroleum, Norway

Knowledge is Power: China Exporters, Australia Property Edition

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Retirement (Special report): 10 stocks for the long term.They aren’t sexy. But for a retirement nest egg, they’re keepers.

Half of Europe’s festive products are made in or traded through the city of Yiwu, but business this year is at a record low.Chinese exporters hit by global recession

The UK is at risk of bankruptcy tourism as indebted people turn to Britain to take advantage of its leniencey, an insolvency expert claims.UK could face wave of bankruptcy tourism

Government Pension Fund-Global, Oslo, returned 12.7% on its investments in the quarter ended June 30 on the strength of its equity allocation. Equities help Norwegian fund return 12.7% for quarter

The Sage of Omaha has redefined the idea of value investing. But will its principles survive his inevitable passing? What Would Warren Do?

The inside story of how the government forced Bank of America to acquire the financial management giant and its spiraling losses. The Final Days of Merrill Lynch

Aussie property about to ride a big wave.AUSTRALIA’S property sector is about to catch a wave but homeowners and investors do not need to worry about a wipe-out.

Money-Market-Funds