Real estate stocks do well December 30, 2008
Posted by dhirendra1972 in Choppy Trades, Interest Rate, Profit, Rate Cuts, Realty Gainer, Realty Stocks, Shareholders, Sharp Rise.Tags: Gain, Real Estate, Shares, Stocks, Trades
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Good morning friends. I’m sure that after reading this article all shareholders will be happy. This is the much awaiting fact that shareholders want to know. There should be always a hope.
Shares of real estate companies were up, but gave back a portion of early gains, as investors booked profits in choppy trades. Analysts said the spurts of strength in realty stocks in recent days can be attributed to hopes of further cuts in interest rates.
“Most of the strength in selective stocks is due to hopes of interest rates going down. Since last few days, we have witnessed a series of rate cuts by banks due to pressure from the government. At this point of time, concern about lending to real estate sector is still weighing on majority of institutional investors,” says a real estate analyst.
At 12:30 PM, BSE Realty was at 2,237.35 points, up 1.4% from the previous close, but off the day’s high of 2,291.21.HDIL, Indiabulls, Unitech and Parsvanath, which were up over 2%, were leading the pack of realty gainers.
Investors are hoping that the cut in interest rates would spur demand for property, but analysts said that is not enough. It is believed that realty players should cut prices significantly to revive demand from prospective clients, which will also ease the burden of these companies.
Expectations of a sustained strength in property prices had led to builders buying lands at exorbitant prices through borrowed money. But, with sales drying up following the sharp rise in interest rates, these highly-leveraged companies are under great deal of pressure.
ref: theeconomictimes
SEBI studying Satyam-Maytas ‘deal’ December 20, 2008
Posted by dhirendra1972 in Currecny futures segment, Huge investors, Large institutional investors, Promoters, Securities Market, Shareholders.Tags: Debts, Gain, Investors, Markets, Segments, Shares
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The Maytas deal that Satyam Computer had recently proposed, and then backtracked on the face of huge investor outcry, has come under the regulatory scrutiny. On Friday, C B Bhave, Sebi chairman, said the regulator was studying the corporate governance issues concerning Satyam, Maytas Infrastructure and Maytas Properties.
‘‘ We do not want to react immediately to the incident (the acquisition bid that triggered investor outrage)… we will study issues involved and then come to a conclusion,” Bhave told reporters on the sidelines of a conference on securities markets hosted by National Institute of Securities Markets.
Bhave refused to comment any further on the issue saying that would be premature. The study would take whatever time it requires, he said.
On Monday evening, Hyberabadheadquartered Satyam had said it would spend about $1.6 billion from its reserves and also take some debts to gain majority control in Maytas Infra, a listed entity, and unlisted Maytas Properties. Both the companies which were proposed to be acquired were under the management control of Satyam’s promoters and their family members. According to one estimate, if Satyam had its way, the promoters would have made at least $1.4 billion at the cost of other non-promoter shareholders of the company.
Following huge investor outcry about dilution of corporate governance standards by Satyam’s board members, that included three promoters of the company, the company back tracked and hastily announced a buy back proposal. However, with several questions being raised about the conduct of the board members, including some by large institutional investors, the regulator has now decided to have a close look at the company’s recent decisions.
Other than the Satyam-Maytas affair, Sebi was looking at easing some of the restrictions in the currency futures segment and the possibility of including more market participants in that market, Bhave said.
Ref: theeconomictimes
