Rex invests US$20mil in Rexonic, Maintain Buy TP $1.15
Rex will be investing US$20m for a 67% stake in Rexonic,
which will own a proprietary environmentally-friendly, highpower
ultrasound technology for commercial oil well
stimulation developed by Swiss partner Ogsonic AG. This
technology is intended to replace traditional chemical
methods and has been shown to increase oil production from
30% to 380%, both onshore and offshore, according to
management. Rexonic has already signed contracts with three
major NOCs and could contribute a recurrent earnings stream
within the next few years. Drill results from the first well in
Oman can be expected around end-December 2013, and the
second well around 40 days later. Maintain Buy, our TP for
Rex is adjusted down to S$1.15, as we factor in a bigger
share base arising from the recent share placement, as well as
consideration shares issued to fund the acquisition of the
Rexonic stake and an additional stake in Rex Caribbean.
LionGold Corp's partially owned Ghana gold mining unit,
Owere Mines, has entered into an agreement with Australia's
B&C Gold to purchase and process gold-bearing waste
tailings. Owere Mines will purchase from B&C a minimum of
1mil dry tonnes of gold-bearing waste tailings, which are
potentially hazardous material left behind from old gold
mining operations. LionGold estimates that 90,000 ounces of
gold can be produced from the tailings, assuming an average
grade of three grams per tonne of gold and a 90% recovery
rate. An existing processing plant will be utilized, which has
an annual processing capacity of 320,000 tonnes of ore, for
the production
KLW Holdings has secured 3 contracts worth a total of
$6.4mil for residential project developments in Singapore.
Under these contracts, it will supply and install doors for
Hillsta, Waterbay EC and The Topiary Executive
Condominium. In total, there are 1,499 apartments in these 3
developments. These contracts are not expected to have a
material impact on the company's financial year ending
March 31, 2014.
US Indices Last Close Pts Chg % Chg
Dow Jones 16,010.0 109.2 0.7
S&P 1,795.9 14.5 0.8
NASDAQ 3,969.2 47.9 1.2
Regional Indices
ST Index 3,172.4 (11.8) (0.4)
ST Small Cap 533.2 (0.8) (0.1)
Hang Seng 23,580.3 (120.6) (0.5)
HSCEI 11,333.1 (104.3) (0.9)
HSCCI 4,602.6 (18.0) (0.4)
KLCI 1,794.7 (4.0) (0.2)
SET 1,375.9 (29.0) (2.1)
JCI 4,326.2 (24.6) (0.6)
PCOMP 6,122.9 (32.4) (0.5)
KOSPI 1,993.8 (23.5) (1.2)
TWSE 8,099.5 (105.0) (1.3)
Nikkei 15,365.6 289.5 1.9
STI Index Performance
Singapore
1,000
2,000
3,000
4,000
2006 2007 2008 2009 2010 2011 2012 2013
100-Day MA
Index
STI
Total Market cap (US$bn) 587
Total Daily Vol (m shrs) 1,665
12m ST Index High 3,454
12m ST Index Low 2,960
Source: Bloomberg Finance L.P.
Stock Picks – Large Cap
Rec’n Price ($)
21 Nov
Target Price
($)
Hutchison Port Holdings Trust Buy 0.680 0.82
ComfortDelgro Buy 1.910 2.19
OCBC Buy 10.410 12.40
Singapore Airlines Buy 10.170 11.40
Stock Picks – Small /Mid Cap
Rec’n Price ($)
21 Nov
Target Price
($)
Ezion Holdings Buy 2.010 2.65
CSE Global Buy 1.025 1.11
Frasers Centrepoint Trust Buy 1.785 2.14
Yoma Strategic Holdings Buy 0.745 1.02
Source: Bloomberg Finance L.P., DBS Vickers
Singapore
Wired Daily
Page 2
Changi Airport's passenger traffic rose 3.2% y-o-y last
month, which was a slower pace of growth compared to
recent months. Air freight volumes edged up 1.8% after
two consecutive months of contraction. 4.41 mil passengers
passed through the airport last month. The airport saw
6.9% more passengers y-o-y in September and passenger
movement growth of 9.4% in August. Meanwhile, aircraft
landings and takeoffs rose 6.7% to 29,500 in October.
US markets rose after jobless claims slid more than forecast
(actual 323k, consensus 335k) and the Markit US
preliminary PMI for the month of November rose more
expected (actual 54,3, consensus 52.3).
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