Home' Trinidad and Tobago Guardian : November 30th 2014 Contents NOVEMBER 30 • 2014 www.guardian.co.tt SUNDAY BUSINESS GUARDIAN
STOCKS | 9SBG
Asharp drop in crude
prices tugged down
shares in oil and gas
companies on Friday,
leading the Standard &
Poor s 500 index to a
slight loss in a short trading session.
The index, a benchmark for many
investments, still closed out November
with its third-best month this year.
"Crude is the big story today," said JJ
Kinahan, TD Ameritrade s chief strategist.
"There are very clear winners and losers.
The Chevrons and Exxons of the world
are getting hammered; then on the other
side you have the shipping companies---
UPS and FedEx---along with the airlines.
For them, it s a beautiful story."
The S&P 500 index lost 5.27 points,
or 0.3 per cent, to close at 2,067.56. As
a group, energy companies lost 6 per
cent, the worst drop of the 10 sectors in
the S&P 500 by far.
The Dow Jones industrial average
inched up 0.49 of a point, a sliver of a
per cent, to eke out another record high,
17,828.24. The Nasdaq composite picked
up 4.31 points, less than 0.1 per cent, to
4,791.63. Regular US trading closed at 1
pm. Eastern time on Friday and the mar-
ket was shut Thursday for the Thanks-
Rising corporate profits and a steadily
improving US economy have helped push
the stock market to record highs this
The S&P 500 gained 2.5 per cent in
November. But it was a quiet climb, a
combination of many small steps. There
wasn t a single day in November that the
index rose more than 1.0 per cent.
The main news driving trading was a
decision made Thursday by the OPEC
oil cartel to keep production at 30 million
barrels a day. That announcement hit oil
prices hard as traders expect the global
supply of oil to stay high. Crude oil
slumped US$7.54, or 10 per cent, to settle
The recent slide for oil prices has had
a double-edged effect on the market. It
has given a boost to airlines, shippers,
retailers and cruise lines, which benefit
from both falling costs and customers
having more money in their pockets to
spend. But it has battered drillers, pro-
ducers and other companies that provide
services to the oil and gas industry.
It was the same story Friday. United
Parcel Service gained 3.0 per cent, and
FedEx added 2.0 per cent.
Around the world, the slide in crude
prices pulled oil and gas companies down.
Newfield Exploration lost 16 per cent and
QEP Resources 15 per cent, the two steep-
est drops by any company in the S&P
In Asia, China s state-owned oil giant
CNOOC, the country s biggest crude pro-
ducer, plunged. In Europe, shares in Royal
Dutch Shell, Total and other energy giants
Despite those steep drops, Europe s
major markets ended with slight gains.
France s CAC 40 added 0.2 per cent,
while Germany s DAX inched up 0.1 per
cent. In the UK, the FTSE 100 index of
leading British companies barely moved
from the previous day.
"The template for equity markets today
has been clear from the beginning," said
Alastair McCaig, market analyst at IG.
"Oil and energy manufacturers are down,
while those companies that are oil con-
sumers are up."
In government bond trading, prices for
10-year Treasurys rose. The yield, which
moves in the opposite direction, fell to
2.17 per cent.
In metals trading, the price of gold for
February delivery lost US$22 to
US$1,175.50 an ounce, and silver for
March fell US$1.05 to US$15.56 an ounce.
Copper for March fell 11 cents to US$2.85
In other energy futures trading on the
New York Mercantile Exchange:
• Wholesale gasoline for December
delivery fell 13.12 cents to US$1.90 a gal-
• December heating oil fell 16.57 cents
to US$2.23 a gallon.
• January natural gas fell 27 cents to
US$4.09 per 1,000 cubic feet. AP
Japanese stocks gained ground on Friday as a weaker
yen helped exporter stocks, while falling oil prices
were seen as likely to stimulate global demand, sup-
porting investor sentiment.
The Nikkei benchmark added 1.0 per cent to
17,410.87 and is on course for a monthly gain of
around 6 per cent. The Nikkei has risen over 10 per
cent since the Bank of Japan stunned markets with
fresh easing on Oct 31.
"Japan is amidst a perfect positive storm," said
Stefan Worrall, director of equities cash sales at Credit
"The oil price decline is stimulatory to world
demand for Japanese exports, and offsets the impact
of the weak yen on domestic energy costs."
The weak yen gave a leg up to major export shares.
The Japanese currency traded at 118.21 against the
dollar by 0115 GMT, near weekly highs of 118.57.
Toyota Motor Corp jumped 1.6 per cent and Pana-
sonic Corp gained 0.5 per cent, while Honda Motor
Co added 1.0 per cent.
Oil prices plunged on Thursday after OPEC chose
not to cut production despite huge oversupply and
prices sliding by a third since June.
With airlines set to benefit from cheaper fuel costs,
ANA Holdings Inc was the Nikkei s best performer,
jumping 5.3 per cent to its highest since March 2011.
Japan Airlines Co Ltd also surged 4.0 per cent.
On the negative side of the ledger, OPEC s decision
did hit Japan s oil production-related shares. Inpex
lost 5.0 per cent, while Japan Petroleum Exploration
Co Ltd fell 2.8 per cent.
Japan s core consumer price index, which includes
oil products, slowed for a third consecutive month
in October, highlighting the challenges facing the
economy as it attempts to overcome deflation.
But market participants were unconcerned, empha-
sising that the Bank of Japan s aggressive easing last
month was a pre-emptive move against deflation.
The broader Topix gained 0.9 per cent to 1,403.80.
The JPX-Nikkei Index 400 added 0.8 per cent to
A man carries his belongings on a bicycle past an
electronic stock board of a securities firm in Tokyo,
Friday, November 28. A raft of data releases gave
mixed signs about the state of Asia's second biggest
economy but Japan's benchmark Nikkei 225 index
rose 1.1 per cent. AP
Noemie Colas, left, 8,
and Maurice Colas, 7,
visit with their aunt,
Chiang, on the floor of
the New York Stock
Exchange on Friday,
November 28. US stocks
indexes were mixed in
early trading, as
tumbling oil prices
weighed on shares of
Exxon Mobil, Chevron
and other oil and gas
giants. Airlines, however,
made gains. Children
parents and relatives on
the floor during the
shortened trading day
after Thanksgiving. AP
Nikkei jumps on weak
yen, oil price slump; heads
for big monthly gain
S&P 500 slips as
crude oil sinks
A sharp drop in crude prices tugged down
shares in oil and gas companies on Friday,
leading the Standard & Poor's 500 index to
a slight loss in a short trading session.
The index, a benchmark for many invest-
ments, still closed out November with its
third-best month this year.
The Dow Jones industrial average
inched up 0.49 of a point, a sliver of a per
cent, to close at 17,828.24
The S&P 500 index lost 5.27 points, or
0.3 per cent, to 2,067.56.
The Nasdaq composite picked up 4.31
points, less than 0.1 per cent, to 4,791.63.
For the week:
The Dow rose 18.18 points, or 0.1 per
The S&P 500 index rose 4.06 points, or
0.2 per cent.
The Nasdaq rose 78.66 points, or 1.7 per
For the year:
The Dow is up 1,251.58 points, or 7.6 per
The S&P 500 index is up 219.20 points,
or 11.9 per cent.
The Nasdaq is up 615.04 points, or 14.7
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