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Business in Asia Today


Nomura among securities house losers
TOKYO - Seven of Japan's 14 listed securities houses announcing their quarterly earnings Monday sustained pretax losses in October-December, among them Nomura Securities Co. (TSE:8604), the nation's largest brokerage.

Commissions on stock transactions fell amid a lackluster Japanese stock market, and volatility abroad eroded sales of investment trust funds containing overseas equities or bonds.

Japan's two other top brokerages finished the quarter in the black, however. Daiwa Securities Co. (TSE:8601) posted a pretax profit of 11.89 billion yen, and Nikko Securities Co. (TSE:8603) saw a pretax profit of 8.93 billion yen. At Nomura Securities, a 7.65 billion yen pretax loss pushed the brokerage into the red for the first time since October-December 1997.

$848m earmarked to restructure Korea's small businesses
SEOUL - The Korea Small and Medium Business Administration said that one trillion won (U.S.$848 million) raised by issuing small business bonds will be used to improve the structure of small businesses and venture companies and support the creation of small firms.

Out of the projected fund, 530 billion won will go to small companies with promising export potential. The funding is to be broken down as 150 billion won to finance the creation of small-scale venture companies; 100 billion won to finance the creation of small businesses; and 220 billion won to support the stabilization of management.

More Chinese fund-raising units in trouble
BEIJING - A growing number of local Chinese governments' fund-raising units are experiencing cash flow problems. According to local financial sources, European and U.S. banks declared Dalian International Trust and Investment Corp. to be in default after the company delayed payments on loan guarantees extended to private companies unable to pay their debts.

Similarly, Guangdong Overseas Chinese Trust and Investment Corp. has not repaid a $50 million syndicated loan obtained from a bank group led by Barclays Capital. The group appears to be considering declaring the Chinese financial institution to be in default.

Bumper year ahead for Australian auto sales
SYDNEY - Another successful year lies ahead for the Australian automotive industry with new car sales predicted to surpass 800,000, according to a major market research company.A.C. Nielsen forecasts new car sales to reach up to 830,000 units - a figure in excess of reported industry forecasts which estimated sales of between 720,000 and 750,000.

Mitsui O.S.K. teams with Enron to ship LNG to India
TOKYO - Mitsui O.S.K. Lines Ltd. (TSE:9104) announced Monday that it has established a joint venture with an Enron Corp. subsidiary to transport liquefied natural gas (LNG) from the Middle East to India.

The joint venture will transport 2.1 million tons of LNG a year from Oman and Abu Dhabi to Dabhol, which lies on India's western coast. Mitsui O.S.K. will be the first marine transport company to ship LNG to India, with transportation of the fuel scheduled to begin in 2001 and continue for 20 years.

Australian M&As worth U.S.$32bn last year
PERTH - Merger and acquisition activity in Australia is still booming, according to figures from a new report.

The overall value of mergers and acquisitions in 1998 was $A51.2 billion (U.S.$32.28 billion), the largest value ever recorded on an annual basis in Australia despite a number of strongly contested transactions, Corporate Adviser Securities Data said. The report ranked Australia fourth in the world for mergers and acquisitions, behind the United States, United Kingdom and Canada.

Philippines economy expected to grow 3-3.5%
MANILA - The Philippine government expects the economy to recover and grow by 3-3.5 percent in 1999 with an improvement in agricultural and industrial output and the stability of the exchange rate. The National Economic and Development Authority (NEDA) noted that for this year, a P23-billion budget (U.S.$596 million), from P19 billion in 1998, is expected to support agriculture modernisation and agrarian reform.

Socio-economic Planning Secretary and NEDA chief Felipe M. Medalla said the peso had stabilised and would probably move in a small range (between 39 and 40) against the U.S. dollar in 1999. Medalla said an additional fiscal stimulus package of about P21.4 billion was intended to stimulate the economy.

India's Power Corp. to approach U.S. banks for $100m
KAYAMKULAM, South India - India's state-owned National Thermal Power Corporation (NTPC) will raise U.S.$100 million from the international debt market to part finance its current expansion programmes.

The NTPC will approach leading American banks including C.S. First Boston, Bank of American and Citibank-ABN Amro for this purpose, NTPC chairman and managing director Rajendra Singh said.

Shenzhen refunds export value-added tax
GUANGZHOU - The municipal government of Shenzhen beginning this month will return the full amount of the export value-added tax to high-tech firms and other major exporters that set up in the region during or after 1994, government sources said.

The value-added tax applies to the distribution of goods and was introduced in 1994. Tax-exempt status for companies established in 1993 or earlier had been extended to five years through the end of next year, so the government decided to level the playing field for both old and new companies, a senior city official said.

Halla group sells U.K. affilliate
SEOUL - Korea's Halla Group said Tuesday it sold its overseas affiliate in Britain, Halla Euro Enterprise Ltd., to Gemini, a British investment firm for 141.8 billion won (U.S.$120 million), and used the proceeds to pay off debts.

The deal based on an asset and debt sale method allowed the British firm to buy stakes first for 73 million pounds and pay off debts, and then recover its funds by selling company assets.

(Asia Pulse)


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