Nikkei climbs to 52-month high, exporters surge
Japan’s Nikkei average climbed to a 52-month high on Wednesday as exporters were buoyed by the yen’s recent weakness, but analysts expect the upside could be limited in the short run as investors focus on who will become the next Bank of Japan governor. The Nikkei rose 0.8% to 11,468.28, marking its highest closing level since late September 2008. The benchmark index is up 10% since the start of this year, spurred by the yen’s weakness, after rallying 22.9% in 2012. Most of the gains last year came in the final six weeks after prime minister Shinzo Abe focused his election campaign on lobbying the BOJ to adopt bolder monetary policy. Toyota Motor Corp rose 1.7% after the Nikkei newspaper said the carmaker will ramp up production in Japan in April by about 10%% on higher-than-expected domestic sales and increased profitability of exports due to a weaker yen. It was the most traded stock by turnover on the main board. Other exporters were also in demand, with Toshiba Corp adding 1.9% and Canon gaining 1.5%. The dollar last still traded at 93.55 yen, but not far from a 33-month high of 94.465 yen set on February 11. The yen has declined some 15% against the dollar since November, driven by bold expansionary policies pursued by Abe to reignite the economy.
Puravankara rises 22% in two trading sessions
Shares of real estate company Puravankara Projects has seen a significant rise of more than 22% in past two days on the bourses and added R430 crore to its market capitalisation ahead of the company’s plans to dilute its promoter holding. According to market sources, Puravankara Projects has finalised an investment banker for diluting the promoters current stake in the company. The company has got an approval from market regulator Sebi to issue 4.5 crore equity shares either through institutional placement programme or any other permitted methods, subject to the approval of the shareholder in an extra-ordinary general meeting, sources said. Reacting to the development shares of the company have seen a handsome gain in the past two trading sessions and have surged from R89.10 as on February 18 to R109.30 as on the close of trading on Wednesday, registering an increase of 22.67%. Accordingly, the market capitalisation of the company improved significantly by R430 crore to R2,332 crore from R1,902 crore as on February 18. Marketmen attributed the rise in the stock largely due to stake dilution news.
Sebi slaps R2-lakh fine on promoters of VEIL
Capital market regulator Sebi on Wednesday imposed a penalty of R1 lakh each on two promoters of Veer Energy Infrastructure (VEIL) for alleged failure to make requisite disclosure regarding their stake in the company. In two separate orders, Securities and Exchange Board of India (Sebi) slapped Rs one lakh fine each on Dhrenendra Shah, promoter director of VEIL and promoter Jigar Jaswantilal Shah. Sebi in its order against Dhrenendra Shah said that as director of VEIL, Shah was required to make disclosures to the company and the concerned stock exchange if his shareholding exceeded 25,000 shares or 1%. These disclosures had to be made within two working days. “…it is established beyond doubt that the noticee (Dhrenendra) has violated Regulation…of the Prevention Insider Trading Regulations…warranting imposition of monetary penalty,” Sebi said.