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rffrydr
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 Posted: Wed Oct 17, 2007 6:57 am Post subject: India Jitters |
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India was limit down last night on govt. restrictions to market; Govt. reversed and market recovered.
http://www.marketwatch.com/news/story/india-markets-plunge-9-before/story.aspx?guid=%7BC2541060%2DF246%2D4D65%2D8143%2D24383C20E8F5%7D
| Quote: | "The big idea is to control the rupee movement and control foreign fund inflows into the country," said Anagram Securities' director and head of research in Ahmedabad, Vinod Sharma.
The rupee had appreciated 11.7% against the U.S. dollar so far this year. In Wednesday's trading the rupee weakened by about 0.8% to 39.545 to the dollar. |
| Quote: | Indian stock market
Published: October 17 2007 09:21 | Last updated: October 17 2007 19:58
Has India not learnt a lesson from Thailand’s experience? Last December, the Thai authorities announced rules to limit capital inflows. When stock prices fell, they were forced to backtrack. Late on Tuesday, India’s stock market regulator proposed restricting the use of offshore participatory notes, known as PNs – an instrument much favoured by foreign investors. The stock market promptly fell 9 per cent yesterday, triggering a temporary halt to trading, although it closed just 2 per cent lower.
An immediate ban on the issuance of PNs linked to underlying stock derivatives is proposed, along with restrictions on the issuance of PNs in the cash market. Many positions will have to be unwound over the next 18 months. The notional value of PNs outstanding in August 2007 was $90bn, of which a third were linked to underlying derivatives. Since margins of only, say, 20 per cent will have been paid on the portion of PNs linked to derivatives, the potential outflows by April 2009 will look relatively small in the context of a stock market capitalised at more than $1,100bn. But the restrictions on future issuance could have a significant impact. |
India feeling pain of rupee is becoming more and more of an outsourcer.
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rffrydr
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| Posted: Thu Oct 18, 2007 8:00 am Post subject: |
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IFN off 10% from highs, even PTR off today: trouble has started for EEM.
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rffrydr
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| Posted: Thu Oct 18, 2007 9:52 pm Post subject: |
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Over a 100 dead in Bhutto bombing: will be test of the teflon EEM.
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Last edited by rffrydr on Fri Dec 28, 2007 10:16 am; edited 1 time in total |
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rffrydr
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HenryTo
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| Posted: Mon Dec 17, 2007 9:59 am Post subject: |
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India fell the most in four months last night. The INP is down 13% as I am typing this:
http://www.bloomberg.com/apps/news?pid=20601091&sid=aPT6oI2OI_xk&refer=india
| Quote: | The Bombay Stock Exchange's benchmark Sensitive Index, or Sensex, dropped 769.48, or 3.8 percent, to 19,261.35, the biggest fluctuation among markets included in global benchmarks and its largest decline since Aug. 16. All but one of the 30 stocks in the Sensex fell.
The S&P/CNX Nifty Index on the National Stock Exchange declined 270.70, or 4.5 percent, to 5,777, its biggest slide since April 2. Nifty futures for December delivery dropped 4.8 percent to 5,781.25. |
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rffrydr
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| Posted: Mon Dec 17, 2007 10:56 am Post subject: |
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That hard-won income coming back--in price of bread:
http://in.reuters.com/article/businessNews/idINIndia-31020920071217
July-March spread blowing out: doubles in week and leading to monster short covering. Look to this for signs of food inflation backing off.
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HenryTo
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nodoodahs
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| Posted: Mon Dec 17, 2007 3:18 pm Post subject: |
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Coulda sworn rffrydr pointed that article out on another thread. I always try to link to the original when Seeking Alpha does a piece, just to give the original author some credit (and maybe ad clickthru), and possibly draw them over here to post if they see the link. Although I don't think the Naked Shorts guy is interested in joining a trading forum so I guess it's OK to let this one slip ...
In essence, it's not any different than a closed-end fund trading at discount or premium to NAV. From what I understand, there's a lack of ability to arbitrage the INP recently, and as an ETN, it has some difficulties that ETFs don't have.
Disclosure, long INP at present (it's a system pick that I've been in for a little while now) and unhappy with the drop - but not taking any action about it for now.
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rffrydr
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rffrydr
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| Posted: Sun Dec 30, 2007 2:48 pm Post subject: |
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Pakistani debt starting the year at under 100bp over treas shot to 500 at first strike; back to 300 on the "all clear" and are now over 500. This has budged the EEM bond index. Now with 3/4 of Russian bank debt financed offshore in the context of a western credit crunch, one more spark might just put out the fire:
http://www.ft.com/cms/s/1/dd44647c-b537-11dc-896e-0000779fd2ac.html
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rffrydr
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| Posted: Tue Jan 01, 2008 7:37 pm Post subject: |
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Watch if rioting extends to Punjab area:
http://www.ft.com/cms/s/0/aadc970a-b741-11dc-aa38-0000779fd2ac.html
| Quote: | | "The city of Karachi alone loses at least Rs5bn [$82m, €55m, £41m] a day when the city shuts down," said Farooq Hasan, the head of Management Association of Pakistan, a private business lobby. That figure does not include the cost of replacing damaged property. |
But here's the kicker: crude.
| Quote: | | Pakistan's central bank recently reported that higher oil prices had helped push the current account deficit in the first five months of the financial year up to about $4.8bn, from approximately $4.1bn during the same period a year ago. |
Pakistan up 47% for year.
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rffrydr
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HenryTo
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rffrydr
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rffrydr
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