Monday, November 23rd, 2009
Market Wrap-Up for November 23, 2009
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Origin Agritech Ltd. (SEED), ARCA Biopharma, Inc. (ABIO), and iBasis, Inc. (IBAS) are three featured story stocks as the markets began the week on a positive note.
Featured Story Stocks
- Origin Agritech Ltd. (SEED) – Shares of the Chinese crop seed company nearly doubled after it announced final approval of the world’s first genetically modified phytase corn. Genetically modified seed products in China must undergo five separate stages of approval. Pytase is current used as an additive in animal feed to break down phytic acid in corn, which holds 60% of the phosphorous in corn.
- ARCA Biopharma, Inc. (ABIO) – Shares of the biopharmaceutical company rose sharply higher after the FDA enrolled the investigation of Gencaro in its Fast Track development program. The investigational, pharmacologically unique beta-blocker and mild vasodilator reduces cardiovascular mortality and cardiovascular hospitalizations in a genotype-defined heart failure population.
- iBasis, Inc. (IBAS) – Shares of the wholesale carrier of international long distance telephone calls rose sharply higher after KPN B.V. made its last and final increase of its tender offer for the outstanding shares of iBasis at a price of $3.00 per share. The board of directors has approved the transaction and the price represents a 130% premium over the closing price of its shares prior to the original offer.
Market Summary
U.S. markets began the week on a positive note amid strong housing reports and a weaker dollar. The Dow Jones Industrial Average rose 1.29% or 132.79 points, the Nasdaq rose 1.4% or 29.97 points, and the S&P 500 rose 1.36% or 14.86 points. Meanwhile, the Russell 2000 rose 1.74% or 10.15 points and the NYSE Composite rose 1.44% or 101.81 points.
Sales of existing homes rose 10% in October, beating market and analyst expectations (see article). Meanwhile, the U.S. dollar continued its decline after St. Louis Federal Reserve President James Bullard said that the Fed should extend its mortgage-related asset purchase program, which caused alarm that low interest rates would continue for some time.
Around the world, Britain’s FTSE moved up 1.98% or 104.09 points, Germany’s DAX rose 2.44% or 138.33 points, and France’s CAC moved up 2.25% or 83.81 points. Meanwhile, Canada’s TSX rose 0.25% or 28.53 points during the session.
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-- Written by David Breen
