Stocks: Weekly review
Japan’s Nikkei 225 Average was helped by bargain-hunting demand for exporters after it touched an 11-week low on Monday, when markets across much of the rest of the region were closed.
After reaching the 9,359.78, it rebounded to end Friday’s session at 9,514.44, a gain of 0.2 per cent over the five sessions.
Nissan Motor gained 1.9 per cent on Friday to Y793, while Olympus rose 2.8 per cent to Y2,614. But Kansai Electric fell 1.4 per cent to Y1,180 on reports that its planned bond issue would be delayed because of market volatility.
The Shanghai Composite index edged up 0.1 per cent on Friday to 2,705.14, taking its loss over the holiday-shortened week to 0.8 per cent.
Hong Kong’s Hang Seng index was 0.8 per cent weaker on Friday, taking its retreat since the start of the trading week on Tuesday to 2.3 per cent.Notching up another weekly loss, its sixth in a row, the FTSE Eurofirst 300 fell 2 per cent to 1,089.55 over the five sessions.
Banks took a beating, particularly those with significant exposure to the possibility of Greek restructuring.
National Bank of Greece lost 9.5 per cent over the week to €4.75. French banks, which have a larger exposure to Greece than any other country, were all lower over the week. Crédit Agricole lost 4.8 per cent to €10.07, while Société Générale shed 4.7 per cent to €39.05.
UBI shares fell 10.4 per cent to €4.29.
Mediobanca, meanwhile, was sold on concerns that as underwriter to several rights issues, it may be left with any overhanging stock. It fell 7 per cent during the week to €7.02.
Germany’s Commerzbank, which has just raised €5.3bn in a capital hike to help repay state aid, fell 5 per cent to €3.07.
Steelmaker ThyssenKrupp was the leading stock on the Eurofirst 300 by a wide margin, up 7.7 per cent over the week to €35.29. Carmakers BMW and Volkswagen climbed 3.4 per cent to €62.34 and 1.8 per cent to €117.95 respectively, while their Eurofirst peers registered losses.Wall Street tumbled into its sixth consecutive week of losses, helped lower by financial stocks as investors continued to turn from risk assets on worries about the strength of the US economy.
The S&P 500 index was down 2.2 per cent over the five-day period, the sixth consecutive week of losses on the index. The last time there were six straight weeks of losses was in June and July 2008. The last time there were more than six in a row was in February and March 2001.
In corporate news, Goodyear Tire & Rubber, the largest tyre company in the world, agreed to sell its global wire business to Hyosung Corporation for $50m.
The news sent shares in the company down 6.7 per cent to $14.99, making it the worst-performing stock on the S&P 500 index.
This helped dip the Dow Jones Industrial Average below 12,000 for the first time in three months.
The index lost 1.4 per cent to 11,952.06, down 1.6 per cent over the week. The Nasdaq Composite fell 1.5 per cent to 2,643.73, retreating further into negative territory for the year. The index was down 3.3 per cent over the week and is 0.3 per cent lower for the year.
The S&P financial index was down 2.2 per cent over the week.
Bank of America fell 4.3 per cent over the week to $10.80 while Citigroup was down 4.8 per cent to $37.92.
Energy also had a roller-coaster ride over the week, rallying on Wednesday due to firmer oil prices as Opec failed to reach an agreement to raise output.
But overall, the sense that the global economy was slowing left the S&P energy index down 2 per cent despite higher energy prices.
Peabody Energy, the US coal group, was down 5.8 per cent to $55.33 while Hess fell 5.3 per cent to $72.85.
The energy sector has been the second-worst performing sector after financials over the last six weeks, falling 9.2 per cent.