The stocks in the Asian market continued to fall yesterday. The most affected stocks were of the industrial and health care companies, where Nitto Denko Corp, plummeted around 11% as BNP Paribas SA suggested going short on shares of materials and manufacturing companies because the previous advancements in their stock prices was overdone when they announced to list them on the Nikkei index.
Advantest Corp – a semi-conductor testers manufacturer – also lost 4.2% of its share price value as the company forecasted a loss for its future period; whereas the retail supplier Li & Fung Ltd witnessed the bears taking its share price down by 3.9% as Wal-Mart cut orders to minimize their cost of inventory.
S&P 500 under Pressure
The S&P500 Index remained under pressure on Wednesday where it failed to move above the resistance area of 1693 amid the speculation by the investors that the Federal Reserve may go ahead with the tapering anytime soon. The investors are eyeing to short the market as this is the ideal selling price for them that could easily maximize their profit with tight stop losses.
On the other hand, gold also lost its past week’s gains and is being short-sold by many investors where reducing stimulus plan may further take the metal down the channel.
Citigroup Raises Facebook’s Rating
The Citigroup has upgraded the Facebook’s stocks from neutral to buy, where the social-networking website has been gaining for the past couple of months as only a partial of the investors seem to have cashed their trades. Another aspect due to which investors are bullish on this stock is that there are rumors that the networking website would now be accessible in a free-trade zone in China. However, confirmation of this rumor is yet to come so investors should also consider the technical levels as well.
To contact the reporter of this story: Jonathan Millet at firstname.lastname@example.org