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Market roundup | More misses than beats in first-quarter earnings

LiveMint logoLiveMint 21-08-2017 Livemint

The June quarter saw more companies missing earnings expectations than those beating them.

Unlike Q3FY17, which pleasantly surprised with a beats-to-misses (BTM) ratio of 165% after muted expectations following demonetisation, Q1FY18 has been worse than expected, wrote analysts from JM Financial Institutional Securities Ltd in a report last week.

In fact, the ratio has deteriorated from 88% during the brokerage firm’s mid-quarter review to 69% now.

Consumer and pharma were the major contributors with a sub-30% BTM, according to JM Financial.

The companies in the study account for 90%-plus market cap of the coverage universe of about 180 firms.

China iron ore futures rise ahead of buying curbs

China’s iron ore futures rose for a third day on Monday, soaring more than 6%, fuelled by concerns of shortages of high-grade iron ore and before curbs on futures purchases come into force.

The Dalian Commodities Exchange on Friday said it will limit the daily purchases and sales of contracts for delivery in January and February to 6,000 lots since Tuesday.

Naveen Kumar Saini/Mint

Each lot is 100 tonnes of ore. Iron ore futures have climbed 13.7% over the past three sessions, the biggest three-day percentage gain since the three days ended 25 November 2016.

Mills are churning out steel products with high-grade iron ore ahead of production curbs that are set to start before the beginning of the northern hemisphere winter. Reuters

Gulf crunch hits foreign workers’ remittances

Pakistani and Filipino workers in the six nations of the Gulf Cooperation Council (GCC) are sending less money home as governments cut spending to cope with the fallout from lower oil prices.

Naveen Kumar Saini/Mint

Policymakers are focusing on creating jobs for nationals, leaving fewer and generally lower paid opportunities for foreigners, said Monica Malik, chief economist at Abu Dhabi Commercial Bank.

The International Monetary Fund expects 0.9% growth in GCC this year and 2.5% in 2018—compared with an average 5% a year for the period 2000-2013. Bloomberg

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