| Williams Pipeline Partners stay flat in first-day public trading
Williams Pipeline units, each priced at $20, ended their first day of trading at $20 apiece. In after-hours trading, the units shed 4 cents. That's relatively good news on a day when stocks dipped at the end of one of Wall Street's weakest weeks. "On a down day, they ended up not down," Tulsa portfolio manager Jake Dollarhide said. "I think it further reinforces Williams' reputation." Williams Pipeline is the first major initial public offering of the year. Bad economic news has pushed share prices down and sent other fledgling issues to the sidelines. In fact, Williams was the only one of three initial public offerings planned for this week that made it to market. "It's a very skittish market, and there are no do-overs," Dollarhide said. "When you do an IPO, you have one chance to raise money." Williams initially said it expected to price its new units between $19 and $21.
Asian stocks rebound after Fed rate cut
Asian stocks rebounded on Wednesday after the US Federal Reserve slashed interest rates by 75 basis points – and hinted clearly at more cuts to come – in a bid to arrest the deterioration in the US economy and stem a wave of selling in world stock markets. In Asia on Wednesday, the MSCI Asia Pacific Index added 2.7 per cent to 135.64 in morning trading in Tokyo, headed for its biggest gain since September 19. Hong Kong shares raced up 7 per cent at the open, and Shanghai was up almost 2 per cent in the opening minutes of trade. Japan's Nikkei 225 Stock Average surged 3.4 per cent by midsession. Australia's S&P/ASX 200 Index was up 5.3 per cent by early afternoon, halting a 12-session losing run. The move down to 3.5 per cent was the first unscheduled Fed rate cut since September 17 2001, and its largest single cut since August 1982.
Nylex falls after takeover bid withdrawn
SHARES in Nylex fell 17.5 per cent today after a private equity firm withdrew its takeover proposal for the building, automotive and plastic products maker. The stock ended down 35 cents to $1.65, after trading as low as $1.55 during the day. On Friday, after the market had closed, Nylex revealed that CHAMP Private Equity would not be making a firm offer for the company after its indicative offer of $2.65 a share in November. Nylex said talks with CHAMP had now ceased. Executive chairman Peter George said the Nylex board was not surprised the proposal had been withdrawn, given the recent turbulence in global financial markets. He said Nylex was still positioned to grow its businesses and build on the benefits of a restructuring program.
Bonds rise; Hedge fund rumor circulates
Treasury prices threw off early weakness and advanced Friday after a rumor that another hedge fund is in financial trouble circulated through trading rooms. "There are a number of names of hedge funds being bandied about as possibly being in trouble," said Tom di Galoma, head of Treasurys trading at Jefferies & Co. It is impossible to discern whether the stories have any basis in fact, he said. Problems at hedge funds in recent months have contributed to the massive declines on Wall Street, and in turn benefited the government bond market. Problems at two funds operated by Bear, Stearns & Co. last fall brought home to the markets the reality that the housing and mortgage crisis was spreading throughout the financial sector. Although the rumor was not verified, it affected the markets, sending the major stock indexes well below their best levels and pushing Treasurys higher.
|
