Reviews of stock markets

Weekly review of the stock market

On Friday Asian stock indices managed to reduce the losses suffered during the week. The producers of the basic materials consolidated their positions in the course of the revival of prices on oil and metals – the investors used the opportunity to buy cheap stocks to the fullest extent.
One of the growth leaders became BHP Billiton Ltd. due to the revival of prices on oil, nickel and zinc.  
Inpex Corp. gained 9.2% in price after the Company has won the contest to exploit Indonesian oil field. United Microelectronics Corp., one of the world’s largest microchips producers, grew 6.9% after the announcement of a possible purchase of the Chartered Semiconductor Manufacturing Ltd. On Friday MSCI Asia Pacific Index grew 0.7% to 82.89, thus finishing the three-day’ fall by 8.8%. The growth leader became the power-generating sector. In the middle of the week stock indices revived the two-week minimums after the forecasts released of the largest representatives of the retail trading sector in the USA strengthened the investors’ confidence that the world’s largest economy has been suffering recession.

By the end of the week European stock indices have somehow consolidated their positions. Nevertheless, according to the weekly results, they reduced.
On Friday Stoxx 600 index grew by 0.8% to 205.75, thus finishing the week by 6.3% losses. The representatives of the oil, mining and insurance sectors became the leaders of the market revival.
The reduction of oil prices negatively influenced the power-generating sector, while the technological segment suffered losses after Nokia’s warning in reference to the reduction of mobile phones sales. The sales leaders, according to the weekly results, became the representatives of the banking sector and the sector of the basic materials after it has become known that German economy suffers the most significant recession for the last 12 years and the OECD released the forecast in accordance with which global economic recession is expected.

USA’s stock indices have been suffering losses the second week running after the record fall of the retail sales and a low demand for the mobile phones have caused the apprehensions as for the deepening of recession.
The stocks of the Sears Holdings Corp. and Office Depot Inc. collapsed more than 11% after the announcement about the fall of the retail sales by 2.8% last month. Only Friday the stocks of the Qualcomm Inc., the largest producer of the mobile phones chips and Motorola Inc. lost more than 3% after the warning by Nokia in reference to the mobile phones sales.
Standard & Poor's 500m leveled the results of yesterday’s 7% rally and finishes the week with 4% losses. Since the beginning of the year S&P 500 has already lost about 40%. Certain support to the market was provided by the announcement of the Secretary of the US Treasury Henry Paulson that the government would be able to get the profit buying the portfolios of the banks as well as $700 bln would be enough to overcome the financial crisis.