Below is an interesting graphic showing Saskatchewan potash with Israeli & other international linkage.
Posted on 04/21/2008 11:12:15 PM PDT by TigerLikesRooster
Shanghai down over 50% from peak
By Andrew Wood in Hong Kong
Published: April 22 2008 03:09 | Last updated: April 22 2008 05:55
Asia-Pacific stock markets on Tuesday retreated from seven-week highs hit the previous session, with Shanghai falling below the level marking a halving in value from its peak in October last year.
The Shanghai Composite Index fell by more than 3 per cent in early trading to as low as 3,007.866 – below the 3,062 level which marks a 50 per cent decline from the peak of 6,124.044 hit during trading on October 16, 2007, and less than half the closing level of 6,092.06 on that day. The index was down 3 per cent at 3,022.49 at the midday break.
Shanghai was the best performer of Asia’s big exchanges in 2007 but shares there are now back to levels of late March last year. The market has been besieged by subprime worries and assessments by analysts that equities were overvalued.
Shanghai shares have plunged over the past six months as fast as they surged in the first part of 2007. The Shanghai Composite jumped 141 per cent between mid-February 2007 and the October peak, at which point it had risen 500 per cent since July 2005.
The fall on Tuesday came despite the authorities’ announcement over the weekend of measures to restore confidence in the market .The composite index initially rallied 6.8 per cent on Monday but closed with a gain of just 0.7 per cent as profit-taking emerged.
Among the big movers in Shanghai on Tuesday, Guangdong Nanyang Cable slid 6.3 per cent to Rmb16.10, Ping An Insurance lost 3.7 per cent to Rmb54.91 and Jinduicheng Molybdenum, which listed last week, shed 9.6 per cent to Rmb18.83.
Losses in Hong Kong were limited as refiner PetroChina jumped 3.8 per cent to HK$10.50 and rival Sinopec rose by 2.8 per cent to HK$7.68. The Hang Seng index was 0.8 per cent lower at the lunchtime break at 24,521.01 and the main sub-index of mainland companies listed in Hong Kong was 0.1 per cent lower at 13,000.05.
However, Lenovo, the PC maker, dropped 5.5 per cent to HK$5.65 after US computer company IBM sold a big block of shares at a 6 per cent discount to the Lenovo’s closing price on Monday. IBM sold its PC business to Lenovo in May 2005.
China Mobile, the mainland’s largest mobile phone operator, fell 2.8 per cent to HK$130.90 despite a 37 per cent rise in first-quarter profit.
Elsewhere, the MSCI Asia Pacific index was 0.8 per cent lower at 147.58 by late morning in Tokyo, led by banks and technology shares. Oil hovered near its record high of $117.60 a barrel, with Nymex light sweet crude trading at $117.50 late morning in Singapore.
The Nikkei 225 average was 1 per cent lower at 13,560.63 in early afternoon trading and the broader Topix index was down 1.4 per cent at 1,312.99. Nissan Motor dropped 3.6 per cent to Y886 after a downgrade by Nikko Citigroup, dragging down the sector. Toyota fell 2.2 per cent to Y5,250 and Honda fell 2.1 per cent to Y3,260.
Nomura, Japan’s largest brokerage, fell nearly 3 percent after saying Japan’s Securities and Exchange Surveillance Commission is investigating allegations of insider trading in the mergers and acquisitions department. By early afternoon the stock was down 0.8 per cent at Y359.
Trading in South Korea was dominated by news that Samsung Group Chairman Lee Kun-hee was stepping down after last week being charged for tax evasion and breach of trust.
The Kospi was off 0.6 per cent early in the afternoon at 1,790.33, but the effect of the news on Samsung group members and affiliates was mixed.
Samsung C&T, the group’s construction and trading arm, slumped 6.6 per cent to Won72,600 and Samsung Engineering fell 4.3 per cent to Won89,800. Samsung Electronics was almost unchanged at Won674,000, and Cheil Commmunications, Samsung’s advertising subsidiary, rose 3.7 per cent to Won266,500.
Elsewhere on the Seoul market, First Fire & Marine Insurance surged 14.7 per cent to Won17,950 – an 11-year high – after Hanwha said it would buy a stake in the company. Hanwha shares fell 4.5 per cent to Won55,000.
Australia’s S&P/ASX 200 index was 1 per cent lower by mid-afternoon in Sydney at 5,544.50, with the finance sector accounting for nearly half of the decline. The three biggest decliners were all banks: National Australia Bank, the biggest bank by assets in the country, slid 2.0 per cent to A$28.87; Commonwealth Bank of Australia fell 1.9 per cent to A$43.05; and Australia & New Zealand Banking lost 2.3 per cent to A$21.01.
Macarthur Coal, which on Monday revealed a takeover approach from an unnamed bidder, rose 6.2 per cent to A$16.14.
In India, the Sensex was 0.3 per cent lower at 16,683.98 as trading got under way in Mumbai.
Ping!
OH OH NOT GOOD
Apologies.
This indicates more major economic trouble down the road, and not too far down the road factoring in global energy supplies, a glimpse of possible future food rationing , the sinking U$SD, general mounting inflation, and Islamic ‘nuclear’ wild cards such as Iran.
Some of this is probably actually good for us. The slowdown in the Chinese economy may temper their demand for fuel. The cost of fuel and the falling dollar are good for “insourcing” work back here. Their unemployment remains at about 20%, and their export factories are relocating to other countries because of high labor rates in China.
Some of this is probably actually good for us. The slowdown in the Chinese economy may temper their demand for fuel. The cost of fuel and the falling dollar are good for “insourcing” work back here. Their unemployment remains at about 20%, and their export factories are relocating to other countries because of high labor rates in China.
It will encourage insourcing no doubt.
About China, the question is how badly the downturn in their stock market will affect China's financial system. How many land-mines in their market waiting to go off as we we have seen in our market? Of course, the nature of land-mines could be slightly different.
My brother in law got all excited over CHA but didn’t buy any
It’s down from 95 to 65
We should also recall within the last ten years the 'Asian Economic Flu' took place, and could happen again, under an entirely new set of financial circumstances.
Some of this is probably actually good for us. The slowdown in the Chinese economy may temper their demand for fuel.............
Far as I know China economy is still the same. No slowdown despite stock market crash and going down 50% in 6 months is a crash
I’ll bet real estate prices in big cities is the same
You like coal and gas these days. Up up up yesterday
*Whew*
LOL!
Nippon Oil says finds natural gas in Gulf of Mexico>
Asian markets hunker down, fear more bank pain
Farmers eagerly wait for warmth: Cold spring could mean later planting, lower crop yields
But how much of the commodity boom could be unwound by speculators such as hedge funds unwinding and being forced to unwind positions due to margin calls? This was in the air when Bear Stearns was rescued.
This is what scares me.
Don’t get me wrong I like commodity companies and (currently) have some money in FDG and MOO. Thinking of buying UNG
Do you know good discussion boards for commodities?
CHA-— very cute name. It means tea in Japanese
Chinese sure had a stock market bubble
Have an amzing soy trade with Brazil
It's the same game being played as with oil futures.
The sub-prime orgy had international players with deep pockets.
Now, they've decided to manipulate commodities and make the world's poor-middle class bend over to recover a good portion of their losses as they too know the oil bubble will burst also in the near future.
Potash is so insane these days it has me laughing. A potash IPO this week. For get hi-tech IPOs! Fertilizer is hot hot hot
Saskatchewan potash -— (POT)
Mine potash in Saskatchewan. Send it by rail to BC. Put on a boat to China and Asia. And demand is through the roof for this stuff which is basically potassium chloride and carbonate
Below is an interesting graphic showing Saskatchewan potash with Israeli & other international linkage.
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