Sunday, October 09, 2005

Recovery expected

The market may make a comeback today following the recovery in global
markets. The markets across the globe witnessed a major correction last week
amid fears of increase in US interest rates. From a lifetime closing high of
8,799.96 on 4 October 2005, the Sensex lost 308.40 points or 3.5% in just
three trading sessions to 8,491.56 on 7 October 2005.

Asian stocks rebounded on Monday after last week's big fall as
better-than-expected US jobs data released last Friday (7 October 2005)
offset worries that two successive hurricanes, which hit the Gulf Coast in
the last two months, would damage the world's largest economy.

On Friday, US blue chips edged 0.05 percent higher while the tech-laden
Nasdaq Composite Index gained 0.30 percent after the influential non-farm
payrolls data showed smaller-than-expected job losses in September.

Data released after trading hours on Friday (7 October 2005) showed that
FIIs sold shares worth a huge Rs 568.50 crore on Thursday (6 October 2005) –
the day when the Sensex tanked 196 points. Local mutual funds bought shares
worth a net Rs 72.77 crore on Thursday.

Oil prices ended a slide on Friday as the market sought to balance weakening
fuel demand in the world's top consumer, the United States, against lost
supplies of gasoline and heating oil from US and French refiners. US crude
settled up 48 cents at $61.84 a barrel after a five-day losing streak.
Prices are now nearly 13 percent below their all-time high of $70.85 struck
late August.

SBI's Kenya acquisition stride spells gains for stock

State Bank of India rose 1% to Rs 925.50 after it acquired 76% stake in
Kenyan bank Giro Commercial Bank for $ 7 million.

37,262 shares changed hands in the counter on BSE by the first few minutes
of trade.

From a lifetime closing high of Rs 957.40 on 4 October 2005, SBI lost 4.3%
in three trading sessions to Rs 916.10 on 7 October 2005, when a correction
gripped the bourses.

Over the past few months, the stock witnessed a solid surge.

SBI’s acquisition of the Kenyan bank will increase its footage in Africa.
Giro Commercial Bank is a closely held entity, with promoters of Indian
origin. It has its registered offices in Nairobi, Mombassa and Kisumu.

SBI is setting about expanding its presence in the international markets.
This is SBI’s second overseas acquisition after it picked up 51% stake in
the Mauritius based Indian Ocean International Bank in February this year
for $ 8 million.

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