China offers funds to boost Asean

China has unveiled plans to establish a $10bn (£6.8bn) investment fund for south-east Asian countries.

It has also offered credit of $15bn to the Association of South-East Asian Nations, or Asean.

Chinese Prime Minister Wen Jiabao had planned to announce the fund at the cancelled Asean summit this weekend.

Asean was set up in 1967 in part to counter influence from communist China but has since become a vehicle for close ties.

The collapse of the Asean summit, scheduled in Pattaya, Thailand, this weekend, delayed the conclusion of a key investment agreement between China and the economic bloc.

That deal is intended to create the world's largest free trade area, covering nearly two-billion people.

China funds

China's Foreign Minister, Yang Jiechi, announced the new funding plans in Beijing to a gathering of envoys from the 10 members of Asean - Indonesia, Singapore, Malaysia, Thailand, the Philippines, Brunei, Burma, Laos, Cambodia and Vietnam.

The $10bn investment fund was designed for cooperation on infrastructure construction, energy and resources, information and communications, China's state news agency Xinhua quoted Mr Yang as saying.

Over the next three to five years, China planned to offer $15bn in credit, including loans with preferential terms of $1.7bn in aid for cooperation projects.

China also planned to offer 270 million yuan ($39.7m) in special aid to Cambodia, Laos and Myanmar to meet urgent needs, inject $5m into the China-Asean Cooperation Fund, and donate $900,000 to the cooperation fund of Asean Plus-3, the side grouping of Asean plus China, Japan and the South Korea.

Oil prices slide in Asian trade

Oil prices eased in Asian trade on Monday as traders took profits from last week's strong finish before the start of the Easter holiday weekend, analysts said.

New York's main futures contract, light sweet crude for May delivery, shed 46 cents to USD 51.78 a barrel.

Brent North Sea crude for delivery in May fell 11 cents to USD 53.95. The contract for May delivery will expire Wednesday.


Oil and stock markets were closed Friday for the Easter weekend holiday.

"After a strong finish, we now see a bit of profit-taking. After all, it remains uncertain whether we have reached a bottom on the fundamentals of oil," said Victor Shum, senior principal of energy consultants Purvin and Gertz in Singapore.


Crude oil prices were boosted Thursday by a strong Wall Street rally ahead of the Easter holidays due to US banking giant Wells Fargo's projection of a "record" three-billion- dollar profit in the first quarter, which sent shares of major banks soaring.



The rally might carry forward to this week, when earnings reports of other banks are due to be released, added Shum.


"If the (earnings reports) are like Wells Fargo's, that will continue to provide some positive news for the oil market," he said.

UK moves towards car scrap scheme

The government is likely to introduce an incentive scheme for car owners to scrap old vehicles in exchange for new ones

The move would probably involve a payment of £2,000 to trade in cars that are a certain number of years old.

The controversial plans are designed to boost demand for new cars and help struggling carmakers who are suffering during the recession.

A similar scheme in Germany has seen demand for new cars rise dramatically.

France and Italy have also introduced so-called car scrappage schemes to boost their beleaguered car industries.

Details of the UK scheme are likely to be announced in the Chancellor's budget on 22 April
"A scrappage scheme will provide the incentive needed and the evidence is clear that schemes already implemented across Europe do work to increase demand," said Paul Everitt at the Society of Motor Manufacturers and Traders (SMMT).

Sensex tests 11,000 in longest winning streak in 18 months

The BSE benchmark Sensex, in its longest winning streak in over 18 months, on Monday tested the 11,000 level on aggressive buying by funds on the optimism that govt stimulus packages might help revive global economies.

The Sensex, which regained the six-month high level of 11,000 points during the day, ended with a gain of 163.36 points, or 1.51 percent, at 10,967.22. It moved between 11,069.54 and 10,800.84 points.

The index rose over 14 percent in the last seven trading sessions, and is set for its longest run of gains since 3rd October 2007, when a succession of gains for 11 days ended.

The 50-share National Stock Exchange index Nifty rose by 40.55 points, or 1.21 percent, to 3,382.60. It moved between 3,417.80 and 3,334.15 points during the day.

Marketmen said firming trends overseas continued to support trading sentiment in domestic markets. They said Japan doubled stimulus spending and Chinese lending made a record jump.

The MSCI Asia Pacific Index rose 0.4 percent to 88.34, the highest since 12th January.

Trading sentiment turned bullish after Satyam Computer shot up 3.61 percent to Rs 48.85, after touching a high of Rs 54, ahead of the announcement of the highest bidder for a 51 percent stake in the firm on Monday.



Larsen and Toubro and Tech Mahindra, which bid for a controlling stake in Satyam, fell ahead of the announcement. L&T fell 0.59 per cent to Rs 824 while Tech Mahindra gained 13.71 per cent to Rs 359.45.

The metal sector index gained the most, by 5.49 per cent to 7,174.92, as barring one, all the 14 sectoral stocks ended with hefty gains on fund buying backed by reports of a firming trend in base metal prices in overseas markets.

Brokers said an improvement in global economies would boost infrastructure, which includes steel and cement, and spur investor demand for higher yielding commodities.

The banking index was the second-best performer, rising 5.07 per cent to 5,301.15, as 16 stocks in the segment rose on all-round buying while two closed lower.

ICICI Bank climbed 4.49 per cent to Rs 415.55, HDFC Bank by 4.84 per cent to Rs 1,096.70 and State Bank of India by 6.80 per cent to Rs 1,217.90.



The realty sector rose by 4.14 per cent to 2,125.76 after shares of DLF Ltd, Parsvnath, Shobha Developers and Indiabull Realestate recorded handsome gains.

The PSU sector index rose by 3.16 per cent to 5,876.29, auto index by 2.73 per cent to 3,384.74, capital goods index by 1.64 per cent to 7,492.30, power index by 1.63 per cent to 2,059.28, healthcare index by 1.49 per cent to 2,978.05, oil and gas index by 1.32 per cent to 8,083.22 and teck index by 0.01 per cent to 2,031.36.

However, consumer durables, IT and FMCG fell on profit selling by funds.

Tech Mahindra emerges highest bidder to acquire Satyam

Ending the three-month ordeal of about 50,000 employees, Tech Mahindra on Monday emerged as a top bidder with an offer of Rs 58 a share for a 31 per cent stake in beleaguered Satyam Computer, beating a strong rival L&T.

Tech Mahindra would acquire the stake in an all-cash deal, followed by an open offer for a 20 per cent stake to take management control of the company.



No immediate comment could be obtained from either Tech Mahindra or L&T.



After evaluating the bids, the government-appointed board of Satyam Computer on Monday announced that "its Board of Directors has selected Venturbay Consultants Private Limited, a subsidiary controlled by Tech Mahindra Limited as the highest bidder to acquire a controlling stake in the Company, subject to the approval of the Hon'ble Company Law Board."



The Company was administered by a new Board appointed pursuant to the orders of the CLB dated 9th January 2009.



The process to select a strategic investor has reached this significant stage within three months of the new Board s first meeting.



"On behalf of all Satyamites and their families, we congratulate Tech Mahindra on being the highest bidder. The selection of the highest bidder, in a fair, open and transparent process, signals a new stage for the Company in its progress towards stabilization and growth," Satyam said in an announcement.