AsiaPulse News

SRI LANKA'S JOHN KEELLS DECEMBER NET DOWN 27 PCT COLOMBO - Sri Lanka's John Keells, a commodity and share broker, said December 2011 quarter net profit fell 27 per cent to 61 million rupees (US$535,885) from a year ago, reflecting a downturn in tea and share prices.
Sales of the firm, part of the John Keells Holdings group, fell 22 per cent to 192 million rupees, a stock exchange filing said.
INDONESIA TOTAL INVESTMENT IN LPS US$2.1BLN IN 2011
JAKARTA - Saving Underwriter (LPS) said that the total investment fund placement in State Securities (SBN) in 2011 reached Rp18.697 trillion (US$2.1 billion).
"In 2011 the investment fund placements accounted for 93 per cent of the total LPS of Rp20.06 trillion," head of LPS Firdaus Djaelani said at the House of Representatives building in Jakarta Wednesday.
INDIABULLS Q3 NET PROFIT DIPS 45%
MUMBAI - Indiabulls Real Estate on Tuesday reported 45.46 per cent decline in consolidated net profit for the quarter ended December 31, at Rs 41.78 crore (US$8.3 million).
The company had posted a consolidated net profit of Rs 76.61 crore in the corresponding period last financial year, Indiabulls Real Estate said in a filing to the BSE.
NO CHANGE IN EMIS; INDIAN BANKS TO HAVE MORE FUNDS
MUMBAI - There is no immediate respite to India's home, auto and corporate loan borrowers in terms of their monthly equated instalments (EMIs) but with the Reserve Bank of India (RBI) reducing the cash reserve ratio (CRR), banks will have more money to lend.
After the Reserve Bank unveiled the third quarterly review of the monetary policy, several bankers said that they may not go in for rate cut immediately.
OPEN MARKET OPS TO BE CONDUCTED SUBJECT TO LIQUIDITY:INDIA'S RBI
MUMBAI - Deputy Governor of the Reserve Bank of India Subir Gokarn on Tuesday said he would not rule out conducting open market operations (OMO) subsequent to the central bank's slashing the cash reserve ratio by 0.5 percentage point to 5.5 per cent.
"We don't rule out conducting OMOs in future and it will depend upon the liquidity situation in the system," Gokarn told reporters here after the monetary policy review.
INDON PRESIDENT DISCUSSES ESTABLISHMENT OF INFRASTRUCTURE BANK
JAKARTA - Indonesian President Susilo Bambang Yudhoyono chaired a limited cabinet meeting at his office on Wednesday to discuss the establishment of a special bank that could provide funds for infrastructure development.
Attended by Vice President Boediono, the limited cabinet meeting was held for Coordinating Minister for Economy Hatta Rajasa and Bank Indonesia, the central bank Governor Darmin Nasution to explain the readiness to establish an infrastructure bank.
INDONESIAN GOVT MULLS INFRASTRUCTURE DEVT FINANCING
JAKARTA - The Indonesian government held a meeting on financing options for infrastructure development during a limited cabinet session here on Wednesday.
Setting up a new financing institution and strengthening an existing body, PT Sarana Multi Infrastructure (SMI), were among the options discussed, Bank Indonesia (BI) Governor Darmin Nasution said after the meeting.
CITIGROUP TO LAY OFF 100 EMPLOYEES IN INDIA
MUMBAI - International banking major Citigroup on Tuesday said it will lay off 100 employees in India as part of its global restructuring exercise.
"Citigroup continuously reviews its internal processes and organisational structure to right size the organisation for efficient growth. As a result of this exercise, Citi India has identified approximately 100 positions that will be impacted within the bank," it said in a statement.
CHINA LIKELY TO LOWER BANKS' RESERVE REQUIREMENT WITHIN WEEKS
HONG KONG - China is likely in the next few weeks to lower the amount of money local banks must keep in reserve to increase liquidity in the market, a report said Wednesday.
The report by HSBC said that the central People's Bank of China (PBOC) will keep moving toward easing its monetary policies by cutting reserve ratios in the coming weeks in order to kick up the Chinese economy's growth momentum starting in the second quarter.
S. KOREA'S BANK LOAN DELINQUENCY RATIO HITS TWO-YEAR LOW IN DEC.
SEOUL - South Korean banks' loan delinquency rate fell to its lowest level in two years in December, thanks to a massive settlement of sour loans last month, the country's financial watchdog said Thursday.
The overall delinquency rate of bank loans to companies and households reached 0.89 per cent as of the end of December, down 0.54 percentage point from the previous month, according to the Financial Supervisory Service (FSS). The rate is measured based on loans that are overdue for more than one day.
AUST'S AFIC FLAGS EU WOES TO HURT BOTTOM LINE
SYDNEY - Listed investment firm Australian Foundation Investment Company (AFIC) expects uncertainty in Europe to continue to cause market volatility in the coming months.
AFIC, which has an investment portfolio worth A$4.3 billion (US$4.49 billion), on Wednesday reported its net profit fell seven per cent to $113.6 million in the six months to December 31 compared to the same period in 2010.
CREDIT DEFAULT SWAP PREMIUMS IMPROVE FOR JAPAN BANKS
TOKYO - The cost of insuring against default by Japanese financial institutions is declining as concern about financial conditions in Europe abates.
The CDS premium for Bank of Tokyo-Mitsubishi UFJ was recently at 1.45 per cent, down 11 basis points from year-end, according to financial data provider Markit Group Ltd. The bank is a unit of Mitsubishi UFJ Financial Group Inc. (8306).
BANKS TO HAVE MORE FUNDS FOLLOWING INDIAN CENTRAL BANK MOVE
MUMBAI - There is no immediate respite to Indian home, auto and corporate loan borrowers in terms of their monthly equated instalments (EMIs) but with the RBI reducing the cash reserve ratio (CRR), banks will have more money to lend.
After the Reserve Bank of India unveiled the third quarterly review of the monetary policy, several bankers said that they may not go in for rate cut immediately.
S. KOREAN REPO LOANS REACH US$1.8 TRLN IN 2011
SEOUL - South Korea's repurchase agreement (RP) loans increased more than twofold in 2011 from a year earlier as brokerage firms shifted to short-term borrowing after the country's financial watchdog restricted raising funds through call money, data showed Wednesday.
The combined value of RP loans sold by local institutions and brokerages came in at 2,076 trillion won (US$1.84 trillion) as of the end of 2011, up 115.1 per cent from 965 trillion won tallied in a year earlier, according to the Korea Securities Depository (KSD).
SLOWING INFLATION BOOSTS RATE CUT CASE IN AUSTRALIA
SYDNEY - Economists say another interest rate cut is almost guaranteed after official data showed inflation has continued to slow.
The consumer price index (CPI), the key measure of inflation targeted by the Reserve Bank of Australia (RBA), was unchanged in the December quarter, data released by the Australian Bureau of Statistics (ABS) on Wednesday showed.
PERPETUAL'S DECEMBER QTR FUM FALLS US$600MLN
MELBOURNE - Investors in Perpetual Ltd's (ASX:PPT) funds lost faith in equities during the December quarter, leaving the wealth manager's total funds under management (FUM) A$600 million (US$626.61 million) lower than at September 30.
Perpetual on Wednesday said total FUM had fallen to $22.9 billion by December 31, from $23.5 billion three months earlier.
HIGH FISCAL DEFICIT RESTRAINING POLICY RATE CUT: RBI
NEW DELHI - The Reserve Bank of India on Tuesday suggested that the government endeavour to contain high fiscal deficit, which has been restraining the central bank from lowering interest rates.
"In the absence of credible fiscal consolidation, the Reserve Bank will be constrained from lowering the policy rate in response to decelerating private consumption and investment spending," Reserve Bank Governor D Subbarao said after announcing RBI's third quarter policy review here.
FUND MANAGERS MULL CUTTING HOLDINGS OF INDONESIAN BONDS
JAKARTA - Fund managers say they are likely to reduce their holdings in Indonesian bonds after last year's strong gains and plan to raise their stakes in equities on expectations that corporate profits will increase further this year.
Yields in fixed-income assets will be narrow. Fund managers might move some of their funds to the equity market to look for more profitability, said Ruben Sukatendel, an investment manager at BNI Asset Management, which oversees Rp 5 trillion (US$556 million) in funds.