Morning (AM) Market Report

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Published on Tuesday, 20 September 2016 00:00

U.S stocks boomed out the opening gates overnight following gains in crude-oil futures. However it wasn't enough to continue throughout the day and the market ended lower.

Tuesday, 20th September, 2016

At the close, the Nasdaq was 0.2% lower while the Dow Jones and S&P 500 fell flat.

Sina (SINA) On Aug 31st announced it would distribute one Weibo Class A ordinary share to the holder of each 10 Sina ordinary shares, and the distribution will be payable on Oct 21, 2016. After the Weibo shares distribution, Sina's stake in Weibo will decrease to 51% and 75% voting power. We believe it is positive for Sina shareholders that they can benefit directly from Weibo's explosive growth. The share distribution equals a 6.3% special dividend payout. The Weibo shares distribution may also help Mr. Charles Chao, the CEO and chairman of Sina, to pay back the interest or principal related to his management buyout of Sina in 2015. Chao became the largest shareholder of Sina with 17.8% stake after completing his management buyout of Sina in Nov 2015 with the purchase of 11 million new issued ordinary shares for USD 456 million, or USD 41.49 per share.

For Australian ADRs listed on the NYSE, BHP Billiton gained 52 cents (1.74%) to $30.49, ResMed lost 73 cents (-1.13%) to $63.73, Telstra Corporation added 3 cents (0.18%) to $19.14 and Westpac gained 11 cents (0.50%) to $22.18. At 7:45 AM (AEST), the 10-year Treasury note yield was 1.71% and the 5-year yield was 1.22%.

European stocks rebound, lifted by banks and energy companies. When the final bell rang on Monday the FTSE 100, CAC 40 and DAX were 1.5%, 1.4% and 1.0% higher respectively.

Asian markets closed higher. At the close, the Nikkei 225, Hang Seng Index and Shanghai Composite were up 0.7%, 0.9% and 0.8% respectively. India's Sensex gained 0.1%.

Ahead of the local open SPI futures were 5 points lower at 5,264