Mumbai: State-run Power Finance Corporation Ltd (PFC) has raised nearly Rs4,000 crore through three, five and seven-year bonds within minutes of opening the issue on back of bullish market sentiments after the new foreign investor limits were lapped up at an auction.

The firm, which decided to cancel the 10-year bond, has closed the issue, a company source said.

Late Wednesday, Power Finance had said it plans to raise at least 1.5 billion by selling 3-year bonds at 9.63%, 5-year bonds at 9.64%, 7-year bonds at 9.7% and 10 year bonds at 9.69%.

“There have not been any issues for some time and government bonds have been rallying for the last few days boosting demand," a senior trader at a primary dealership said.

The bonds are rated AAA by CRISIL and ICRA. (Reuters)


FIIs pull out 3,200 cr from Indian securities market

Mumbai: Foreign funds withdrew over 3,200 crore from the Indian securities market in the month of November amid concerns over the worsening debt crisis in the euro zone.

According to the data available with market regulator SEBI, overseas investors purchased stocks and debt securities worth 62,296.10 crore and sold securities valued at 65,559.20 crore during the month. This translated into a net outflow of 3,263.20 crore.

Market analysts believe the heavy selling by foreign institutional investors (FIIs) was triggered by the debt crisis in the euro-zone. Weakening of the rupee also contributed to the sell-off. (PTI)


NATO: Pakistan resumes some cooperation

Supporters of Pakistan’s Movement for Justice hold a placard while taking part in an anti-American demonstration in Karachi. Photo: Reuters

The weekend airstrikes have severely strained the already troubled relationship between Pakistan and the US, jeopardising Washington’s hopes of enlisting Islamabad’s support in winding down the Afghan war.

Pakistan is still outraged by the soldiers’ deaths and has retaliated by closing its Afghan border crossings to NATO supplies, demanding the US vacate an air base used by American drones and boycotting an international conference aimed at stabilising Afghanistan.

But NATO said Islamabad communicated with the alliance to prevent an exchange of fire over the border late Tuesday from turning into another international incident. (PTI)


UK to call for tougher Iran economic sanctions

London: Britain will call for stronger economic sanctions on Iran at a meeting of European Union foreign ministers in Brussels on Thursday after the storming of its embassy in Tehran, UK foreign secretary William Hague said on Thursday.

“I will be advocating an intensification of economic sanctions on Iran, particularly to increase the isolation of the Iranian financial sector," he told BBC radio from Brussels.

Britain shut Iran’s embassy in London and expelled all its staff on Wednesday, saying the storming of the British mission in Tehran could not have taken place without consent from Iranian authorities. (Reuters)


China home prices ease for 3rd consecutive month

Beijing: Average home prices in 100 Chinese cities slipped 0.3% in November, the third month of a modest pullback in the face of government measures to curb an exuberant housing market, a private survey showed on Thursday.

The China Real Estate Index System (CREIS), affiliated with China’s largest online real estate company Soufun Holdings Ltd , said average home prices slipped to 8,832 yuan per square meter in November from October’s 8,856 yuan per square meter.

But softer home prices and a rapidly-cooling world economy have led some investors to worry that property prices may fall too far, too fast and drag China’s economy into a hard landing.

The CREIS data is closely watched by investors who believe it is better at foretelling property price trends than figures released by the government. (Reuters)


Swiss Q3 growth sputters due to franc strength

Zurich: Switzerland’s economy posted its weakest growth since mid 2009 in the third quarter as the strong Swiss franc hit exports and capital investment fell, particularly in the metal working and mechanical engineering sectors.

Swiss gross domestic product rose only 0.2% in the third quarter from the second and increased 1.3% from a year earlier, data from the State Secretariat for Economics (SECO) showed on Thursday.

Analysts polled by the news agency had forecast a quarter-on-quarter growth rate of 0.1% and a year-on-year growth rate of 1.7%.

Citing a heightened risk of deflation and recession, the Swiss National Bank on 6 September set a cap of 1.20 per euro on the franc, which had nearly touched parity with the common currency as a result of the euro zone debt crisis.

The Swiss National Bank has warned the strong franc will hamper growth and forward-looking indicators such as the KOF economic barometer are pointing to a severe slowdown. (Reuters)


Japan car sales continue rise, South Korea gains overseas

Mumbai: Japanese car sales in November rose by more than 20% for the second consecutive month thanks to a low comparison base from last year while South Korean carmakers saw strong growth in overseas sales more than make up for falling sales at home.

Carmakers in Japan continue to recover production after the country’s March earthquake, but minimal sales growth for Honda Motor Corp illustrated the impact of recent flooding in Thailand, a major production base.

Automobile sales in Japan, excluding 660cc minivehicles, rose 24.1% in November from a year earlier, data from a trade association showed. October last year was the first full month after the expiration of government subsidies to replace cars older than 13 years. (Reuters)