HALISTER1: Sinopec Shares Drop in Hong Kong; CICC Cuts Target, EPS View

Sinopec Shares Drop in Hong Kong; CICC Cuts Target, EPS View

(Bloomberg) -- China Petroleum & Chemical Corp.’s shares in Hong Kong drop as much as 2.2% as CICC cuts target price, lowers 2017-18 Brent crude forecast.
  • Crude forecast lowered to $52 and $50 per barrel from $54 and $55
  • Target price lowered by 4% to HK$7.40
  • Cuts EPS forecast by 8% to 0.42 yuan for 2017 and by 15% to 0.43 yuan for 2018
  • CICC maintains buy rating
  • Cuts A-share recommendation to hold, keeps PT at 7.09 yuan
  • Sinopec posted results Friday; net income +40% y/y, revenue +33%; in-line with CICC ests.
  • Gas-station price war took toll in 2Q, analysts Bin Guan and Miaozi Wang write in note; govt may eventually adjust policy to help SOE majors tighten domestic supply and recover margins and tax contributions
  • See Also: Sinopec Rides Chemicals to Best Half- Year Profit Since 2014
To contact the reporter on this story: Will Davies in Hong Kong at wdavies13@bloomberg.net To contact the editors responsible for this story: Richard Frost at rfrost4@bloomberg.net Philip Glamann

Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
386 HK (China Petroleum & Chemical Corp)

People
Bin Guan (China International Capital Corp Ltd)

To de-activate this alert, click here
To modify this alert, click here

UUID: 7947283

HALISTER1: JGB Reaction Likely Muted Even if BOJ Cuts Bond Buying: MUFJ MS

JGB Reaction Likely Muted Even if BOJ Cuts Bond Buying: MUFJ MS

(Bloomberg) -- Japanese government bond market is unlikely to react significantly even if the Bank of Japan reduces bond purchases at today’s operations following a cut last Friday, says Katsutoshi Inadome, senior fixed-income strategist at Mitsubishi UFJ Morgan Stanley Securities.
  • Concerns have receded considerably about BOJ market operations causing ripples in JGB market, so any cut would be absorbed without problem
  • Even another round of reduced bond buying today won’t likely spark bond selling
    • BOJ is scheduled to buy bonds in 1-to-3 and 3-to-5 year zones on Monday
  • JGB market has become resilient to cuts in BOJ bond purchases, as yields are not spiking up nor is the yen appreciating like before
  • NOTE: Kuroda said at Jackson Hole event that yield-curve control is allowing the BOJ to buy fewer JGBs
  • NOTE: BOJ May Keep Cutting Bond Purchases as Debt Market Extends Rally
--With assistance from Chikako Mogi. To contact the reporter on this story: Kazumi Miura in Tokyo at kmiura1@bloomberg.net To contact the editors responsible for this story: Tan Hwee Ann at hatan@bloomberg.net Patricia Lui

Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
8301 JP (Bank of Japan)

People
Katsutoshi Inadome (Mitsubishi UFJ Financial Group Inc)

To de-activate this alert, click here
To modify this alert, click here

UUID: 7947283