Monday, December 30, 2013

Happy New Year


Market comes to a close on a positive note, up 10 pts at the moment and gainers were slightly more than losers.
Volume was surprisingly high for half a day at more than 3b shares.
The last couple of days many stocks, blue chips, penny and speculatives were all firmer.
The question is whether this will continue to run and for how long in the new year.

May all of you have a happy 2014.

OCBC Report 31 Dec 13

MARKET SCOOP
ST Marine buys 10% of Nova Star Cruises

SINGAPORE Technologies Engineering Ltd said on Monday that its marine arm, Singapore Technologies Marine Ltd (ST Marine) has agreed to buy a 10 per cent stake in newly set up Nova Star Cruises Limited.
The agreement was entered with Quest Navigation Inc, which will own the remaining stake.
Based in the Canadian province of Nova Scotia, Nova Star will operate a cruise ferry service between Yarmouth (Nova Scotia, Canada) and Portland (Maine, USA).
It will bareboat charter from ST Marine the Roll-on/Roll-off Passenger (Ropax) Vessel for the service.
(Source: The Business Times)
800,000 households to get $135m GST rebates in Jan
ABOUT 800,000 Singaporean HDB households will receive $135 million worth of GST Voucher - Utilities-Save (U-Save) rebates in January 2014.
The GST Voucher- U-Save rebate is the household component of the permanent GST Voucher scheme that was introduced in Budget 2012. It provides a direct offset on utilities expenses for households, and is paid out four times a year.
In January next year, eligible Singaporean households will each receive a GST Voucher- U-Save of up to $195 in total, depending on their flat type.
Those staying in one- to two-room flats will receive $195, three-room households will receive $180, and four-room households will receive $165. Those who stay in five-room flats will receive $150 while those in executive flats will receive $135.
(Source: The Business Times)
Data monetisation: Telcos' holy grail in 2014.  Tougher fight in store for operators on all fronts
[SINGAPORE] DATA monetisation will be the telco sector's great white hope next year as operators face a tougher fight on all fronts.
As tiered data pricing comes into its own for the industry through the 4G data plans, increased data spending will be counted on to shore up falling average revenues per user (ARPU).
Tiered data bundles make up 25-30 per cent of the sector's overall subscriber base in Singapore, according to Fitch Ratings.
At StarHub, where 38 per cent of its mobile post-paid customers are on tiered data plans as at the third quarter of 2013, hopes are high that next year will be even better for data revenue.
(Source: The Business Times)
Telcos' digital push remains a long game. Positive earnings contribution still years away, says Nomura
[SINGAPORE] While the year's most eye-catching headlines for the sector have come out of the three telcos' high-profile digital doings, this area will most likely bear fruit after 2014.
"We are happy to give operators like SingTel the benefit of doubt for now, but don't think one should expect positive earnings contribution from this business for the next two-to-three years at least," said a Nomura Equity Research report from October.
SingTel led the pack last year with the formation of the Group Digital Life division and continued the charge with a WhatsApp partnership for its prepaid customers in 2013.
"For retail customers, we are developing content, apps and services in anticipation of their evolving needs and behaviours," said SingTel group chief executive officer Chua Sock Koong.
This year, StarHub and M1 also gained digital ground. StarHub launched SmartFoundry, an application programming interface platform, while M1 partnered buffet app service All You Can App and music streaming service Deezer.
"When we make it easy for these (over-the-top) players to access our network capabilities, such as through SmartFoundry, we can encourage increased use of our mobile and fixed networks and this may turn into a new revenue stream for us in the future," said StarHub chief commercial officer Kevin Lim.
While many digital ventures tend to be an educated gamble, one thing is certain - this new area is set to be a highly contested space.
"We expect the pace of industry and technological changes to remain unrelenting, as traditional carriers and non-traditional companies continue to vie for customer attention and usage," said Ms Chua.
(Source: The Business Times)

Daily Summary 30 Dec 13


Europe were up but Dow closed flat on Friday.  Dow's trend is up.  Dow's future is now +3.  Europe has opened mixed.

Asian bourses closed mostly higher.  Nikkei +112, ShanghaiC -4, Hangseng +2.  STI +2 at 3151.  Volume was 3.3b shares.  Gainers werer 261 to 194 losers.

Trend of STI is up.

Top gainers were CharismaEner +0.4, Albedo +0.4, WE Hldg +0.4, Vallianz +1.8, Armarda +0.2, Digiland unchanged, Adventus -0.2, NamCheong +2.5, Ipco +0.1, Ntegrator +0.4.

Market opened up and stayed up the whole day though the gain was marginal. Blue chips were mixed but more gainers than losers. Penny and speculatives were firmer with interest increasing.

Dow and Europe are flat at the moment.

Sunday, December 29, 2013

OCBC Report 30 Dec 13

MARKET SCOOP
JTC releases 4 sites in Tuas South for tender
JTC Corporation (JTC) has launched four small plots of land for industrial development along Tuas South Streets 6, 11 and 13 for sale by public tender on Friday.
The tender will close at 11 am on Feb 7, 2014.
All four sites are zoned for Business 2 development and are being offered on a lease of 21 years and five months.
The sites have land areas ranging from 4,551.4 square metres to 7,447.4 sq m and a 1.0 plot ratio (ratio of maximum gross foor area to land area).
(Source: The Business Times)
Changi on track for record year
CHANGI Airport handled 4.46 million passenger movements in November, up 2.3 per cent year-on-year, taking the total number of passengers for the period January to November to more than 48.6 million.
This puts the airport on track to beat the 51.2 million passengers which passed through Changi last year.
Air traffic movements for November rose 6.9 per cent to 29,500 flights, while airfreight movements grew 2.4 per cent year-on-year, with 161,000 tonnes of cargo handled during the month.
Year-to-date, Changi Airport has handled close to 1.7 million tonnes of cargo, a marginal increase of 0.9 per cent compared to the corresponding period last year, while year-to-date aircraft movements totalled 312,800, up 5.8 per cent.
Source: The Business Times)
F&N to return S$607m to shareholders
Conglomerate Fraser and Neave (F&N) is proposing to return S$607 million to shareholders, or 42 Singapore cents a share, via a capital reduction exercise.
The exercise will not result in a cancellation or change in the number of shares, F&N said.
F&N, one of Singapore's oldest conglomerates, is spinning off its property business into Frasers Centrepoint Limited and will be left with a food and beverage, publishing and printing business.
The capital reduction comes after management reviewed the capital structure and leverage position of the company and decided that capital is more than what is needed for an efficient capital structure, F&N said.
Source: The Business Times)
Firms welcome exemption to Do Not Call rules but Consumer Association calls it "back pedalling"
BUSINESSES like telco, StarHub, welcome the latest exemption to a ruling which will bar organisations from sending users telemarketing messages.
The exemption order will allow businesses to continue to send text or fax messages to their existing customers on related products and services, without the need to first check if the customers are listed in the Do-Not-Call Registry.
The Personal Data Protection Commission (PDPC), which aims to safeguard individuals' personal data against misuse, said the new exemption order will kick in next Thursday, when the Do Not Call (DNC) provisions come into force. Anyone who has registered their phone number indicates that they do not want unsolicited calls, messages or faxes from telemarketers. Businesses will have to check the registry to ensure they do not disturb these consumers on the list.
"We welcome this exemption, as it demonstrates that the PDPC takes a practicable approach to balance protection of customers, and practicality,'' Jeannie Ong, Chief Marketing Officer at StarHub said.
Source: The Business Times)

Friday, December 27, 2013

Daily Summary 27 Dec 13

Dow and Europe were up last night.  Dow +122 at 16480, another new high. Dow's trend is up.  Dow's future is now -13.  Europe opened up.

Asian bourses were mostly up. Nikkei +5, ShanghaiC +28, Hangseng +64.  STI closed +15 at 3149.  Volume was 3.4b shares.  Gainers were 248 against 206 losers.

Trend of STI is up.

Top volumes were CharismaEner -0.4, OEL +0.6, Albedo -0.1, SIIC +0.6, GSH +0.3, MDR +0.1, SingHaiyi unchanged, EMS +0.2, OttoMarine =0.3, Vallianz -0.5.

Market opened up and stay positive the whole day. Blue chips were mostly up with banks continued to make gains.  Penny and speculatives were mixed. Second liners were also firmer.

Europe opened up but Dow's future is slightly down at the moment.

Thursday, December 26, 2013

OCBC Report 27 Dec 13

MARKET SCOOP
F&N to return S$607m to shareholders
Conglomerate Fraser and Neave (F&N) is proposing to return S$607 million to shareholders, or 42 Singapore cents a share, via a capital reduction exercise.
The exercise will not result in a cancellation or change in the number of shares, F&N said.
F&N, one of Singapore's oldest conglomerates, is spinning off its property business into Frasers Centrepoint Limited and will be left with a food and beverage, publishing and printing business.
The capital reduction comes after management reviewed the capital structure and leverage position of the company and decided that capital is more than what is needed for an efficient capital structure, F&N said.
Changi awards S$985m T4 construction deal to Takenaka
CHANGI Airport Group (CAG) announced on Thursday that it has awarded a S$985-million contract to Takenaka Corporation for the construction of Changi Airport's Terminal 4 (T4).
The award follows a tender which saw five companies submitting proposals.
CAG said Takenaka Corporation is a reputable and well-established contractor with a strong track record in the construction of several airports in Japan, the Middle East, Africa and Asia, including Changi Airport's Terminal 1.
The company was also involved in the upgrading of Changi Airport's Terminal 2 (2006) and more recently, the upgrading of Terminal 1 (2012).
Banks urged to manage liquidity better
[BEIJING] Chinese banks must better manage liquidity risks as funding costs climb amid a government drive to liberalise interest rates, Wang Yongli, a vice-president at the Bank of China, one of the country's biggest lenders, said on Wednesday.
China's interbank cash crunch eased further on Wednesday as corporate tax refunds deposited with commercial banks helped ease liquidity conditions, following central bank cash injections. "Chinese banks are in urgent need of improving their ability of liquidity management, which is particularly more complicated than handling other risks. But for a long time, Chinese banks have been weak in this," Mr Wang told a briefing.
Chinese banks lack sound liquidity management as they have been focusing on boosting market share and profits, he said.
The inefficient use of credit in China and a maturity mismatch in banks' assets and liabilities has also exacerbated short-term liquidity pressure in the money market, Mr Wang said.
Singapore's Hao Yuan Investment to lead US$2.4b development in Iskandar Waterfront
KUALA LUMPUR] Singapore-based property developer Hao Yuan Investment Pte Ltd will lead an RM8 billion (US$2.43 billion) development in Malaysia's Iskandar Waterfront after acquiring a 36.8-acre parcel of land there for RM1.6 billion.
Hao Yuan plans to build the tallest tower in peninsular Malaysia, along with "several high-end residential, commercial and retail properties" over eight years, it said on Thursday in a press release. The project will be owned by Hao Yuan and Iskandar Waterfront Holdings on a 60-40 basis. MCC Land Pte Ltd, a Fortune 500 company, was hired as project manager.
"With this joint venture, we plan to build an upscale mixed development project within Dang Bay with property products that will provide long term recurring income for both parties," said Lim Chen Herng, executive director of Iskandar Holdings.
Iskandar Waterfront, part-owned by the Malaysian government in southern Johor state, postponed its US$300 million IPO for the second time on concerns that new measures introduced to cool property prices could dampen sales, Reuters reported this month. – Reuters
SingPost to buy Malaysia's Axis Plaza for 34m ringgit
SINGPOST on Thursday announced that its indirect subsidiary Collective Developers Sdn Bhd would be acquiring Axis Plaza in Selangor, Malaysia for 34 million ringgit (S$13.13 million) to support its regional operations.
Axis Plaza, located within Selangor's Temasya Industrial Park, is owned by Axis Real Estate Investment Trust (Axis-Reit).
It has a total land area of 5,100 sqm and a current occupancy of 89.27 per cent, comprising mainly marketing and distribution companies.
As part of the sale and purchase agreement signed on Thursday, Collective Developers will first pay a deposit of 10 per cent of the 34 million ringgit consideration to Axis-Reit, and the remaining 90 per cent over the next four months.

Daily Summary 26 Dec 13

Dow and Europe closed positive on Christmas Eve. Dow +63 at 16358. Dow's trend is up. Dow's future is now +64.  Europe opened up.

Asian bourses were mostly up. Nikkei +164, ShanghaiC -33, Hangseng +258.  STI closed +7 at 3134.  Volume as 4b shares.  Gainers were 335 to 144 losers.  

Trend of STI is up.

Top volumes were CharismaEner +0.8, Albedo +0.4, Hankore +0.2, Viking +0.5, KLW +0.1, OttoMarine +0.5, SingHaiyi +0.1, Vallianz +0.9, Inopac +0.3, Oceanus +0.1.

STI opened up but traded on a small range. Blue chips were mostly up. Volume for penny and speculatives also increased and many ended up. Chrisma Ener continued on its uptrend since changing of name and is top volume with 650m shares done today.

Looks like the Capricorn effect has started to come in with across the board gains.

Europe and Dow are looking firm for tonight.

Monday, December 23, 2013

Hi everyone, Merry Xmas.

Today market opened for half a day. Though the index was up +13 at 3129, the market was very quiet. Very likely only the computers were trading.

Blue chips were up with the banks continuing to recover. Properties too were better. Penny stocks were also firmer.

Gainers were 241 to 116 losers. Looks more like a window dressing session.

Regional bourses too were up.

Daily Summary 23 Dec 13

Europe and Dow closed positive on Friday.  Dow +42 at 16221.  Dow's trend is up. Dow's future is now +48.  Europe opened up.  

Asian bourses were mostly up.  Nikkei + 11, ShanghaiC +5, Hangseng +109.  STI closed+22 at 3116.  Volume was 2.7b shares.  Gainers were 224 to 218 losers.

Trend of STI is turning up with a golden crossing.

Top volumes were CharismaEner +0.1, CCM -10.6, Albedo -0.4, Viking +0.5, HanKore -0.4, OEL unchanged, SIIC -1, MirachEner -2.6, ChinaGaoxian +0.2, Vallianz -0.4.

Market opened slightly up but gained strength through the day. It closed at day high, +22. Blue chips were mostly up. Penny and speculatives were mixed. CCM Group was hit by sharp selling, falling form 16.3 to 5.6, a lost of 2/3 its value. This affected sentiment on penny stocks.

Dow and Europe are looking firm for tonight.

Sunday, December 22, 2013

OCBC Reports 23 Dec 13

Singapore Idea Snippets:Singapore News

Singapore to release Nov. CPI; Singapore Airlines buys stake in Tiger Airways.



WHAT TO WATCH:

* Singapore Airlines (SIA SP) buys 7.3% stake in Tiger Airways from two units of Temasek Holdings
* Albedo (ALBD SP) plans to list new shares on Dec. 23
* China Yuanbang (CYBP SP) gets in-principle approval to list new shares



MARKETS:
* S&P 500 up 0.5% to 1,818.32
* Stoxx Europe 600 up 0.5% to 321.14
* MSCI Asia Pacific unchanged after rising to 138.37
* Straits Times Index up 0.8% at 3,094.48

(Bloomberg)

Friday, December 20, 2013

Daily Summary 20 Dec 13

Europe and Dow were up last night. Dow +11 at 16179.  Dow's trend is turning up with a golden crossing.  Dow's future is now +20.  Europe opened up.

Asian bourses were mixed.  Nikkei +11, ShanghaiC -43, Hangseng -76.  STI closed +24 at 3094.  Volume was 3.6b shares.  Gainers were 293 to 165 losers.  

Trend of STI is turning up.

Top volumes were CharismaEner +0.5, HanKore +0.6, SIIC +2.3, OttoMarine +0.3, MirachEner +0.4, Vallianz -0.8, Albedo -0.1, MDevt -0.1, JaperInv +0.3, Viking +0.3.

Market opened flat but continued to climb through the day to close at day high. Blue chips were mostly up. Penny and speculatives were also firmer. This is like a pre new year Capricorn Effect. Next week is a shorter week and could see some profit taking.

Dow and Europe are looking firm for tonight.

Thursday, December 19, 2013

Daily Summary 19 Dec 13

Dow and Europe were up. Dow +293 at 16168.  Dow's trend is turning up and about to do a golden crossing.  Dow's future is now flat.  Europe opened up.  

Asian bourses were mixed.  Nikkei +271, ShanghaiC -20, Hangseng -255.  STI closed +8 at 3070.  Volume was 3.3b shares.  Gainers were 230 to 207 losers.

STI's trend is starting to reverse up.

Top volumes were CharismaEner +0.2, OttoMarine +0.5, Vallianz +1, Albedo +0.1, KLW -0.2, Viking -0.3, SIIC +1.4, Ipco +0.1, Hankore -0.1, WEHldg +0.2.

Market opened up but shorting or selling came in quickly to drive market to negative. It only recovered on short covering in the last hour. Blue chips were mostly up. Penny and speculatives were mixed.

Dow had hit a high of 16200 last night. It looks like going on an uptrend. Dow's future is not flat while Europe opened firmly up.

Wednesday, December 18, 2013

DBS Vickers Report 19 Dec 13

Industrial REITs - Challenges ahead given significant
supply outlook. Pick MINT for superior growth profile;
Cache for high yields
The Industrial REITs sector performed better than expected in
2013, as demand growth kept up with supply completions.
As a result, rental and capital values inched up, albeit at a
more moderate rate of 5-7%. Looking ahead, we see outlook
turning modest, owing to a significant supply pipeline of
51.8m sq ft (+12% supply expansion) of industrial space
currently under construction/planning, which is projected to
be completed over 4Q2013-2015. However, we expect rental
reversions to remain positive, buffered by low expiring rent
levels while retention rates are expected to remain high. As
such, we believe that earnings risk is minimal and forecast
industrial REITs to deliver FY13F-15F DPU growth of c.3%.
We pick Mapletree Industrial Trust (TP: S$1.44) for superior
growth profile and Cache (TP: S$1.33) for high yields of close
to 8.2%-8.5%.
Yoma Strategic Holdings has entered into a proposed joint
venture with Sumitomo Corporation, a leading general
trading house in Japan, to distribute and service Hino brand
trucks and buses in Myanmar. Yoma’s involvement in this
joint venture will serve to further broaden the company’s
burgeoning automotive interests in Myanmar.
Pacific Radiance will be pressing forward with its growth
strategy, moving ahead with plans to expand and upgrade its
offshore fleet by adding two high-specification platform
supply vessels (PSVs) to its newbuild programme. The latest
pair of vessels are due to be delivered in 4Q 2015. This latest
order brings the Group’s newbuild programme to 19 vessels
in all.
CapitaMall Trust has issued S$100m 3.15% fixed rate notes
due 18 December 2020. The proceeds will be used to
refinance existing borrowings, to finance/refinance the
investments held by CMT, to finance any capital expenditure
and asset enhancement works and for the general corporate
and working capital purposes.
US Indices Last Close Pts Chg % Chg
Dow Jones  16,168.0 292.7 1.8
S&P  1,810.7 29.7 1.7
NASDAQ  4,070.1 46.4 1.2
Regional Indices
ST Index  3,061.8 (5.8) (0.2)
ST Small Cap  527.2 1.8 0.3
Hang Seng  23,143.8 74.6 0.3
HSCEI  10,961.5 67.3 0.6
HSCCI  4,554.7 14.5 0.3
KLCI  1,847.5 (3.4) (0.2)
SET  1,349.9 12.7 0.9
JCI  4,196.3 13.9 0.3
PCOMP  5,961.6 32.6 0.5
KOSPI  1,992.4 17.7 0.9
TWSE  8,349.0 (3.9) (0.0)
Nikkei  15,587.8 309.2 2.0
STI Index Performance
Singapore
1,000
2,000
3,000
4,000
2006 2007 2008 2009 2010 2011 2012 2013
100-Day MA
Index
STI
Total Market cap (US$bn) 564
Total Daily Vol (m shrs) 3,121
12m ST Index High 3,454
12m ST Index Low 3,004
Source: Bloomberg Finance L.P.
Stock Picks – Large Cap
Rec’n Price (S$)
18 Dec
Target Price
(S$)
Hutchison Port Hldgs Trust (US$) Buy 0.640 0.82
Keppel Corp Buy 10.560 12.90
OCBC Buy 9.830 12.40
Yangzijiang Buy 1.175 1.32
Stock Picks – Small /Mid Cap
Rec’n Price (S$)
18 Dec
Target Price
($)
Ezion Holdings Buy 2.280 3.30
China Merchants Buy 0.920 1.20
CSE Global Buy 1.020 1.11
Nam Cheong Buy 0.290 0.42
Source: Bloomberg Finance L.P., DBS Vickers
Singapore
Wired Daily
Page 2
Mermaid Maritime has been awarded a subsea construction
support services contract with a major engineering,
procurement, construction, installation and commissioning
(EPCIC) contractor in Thailand serving a major international
upstream oil and gas operator. This is the ninth consecutive
year Mermaid has been awarded this work. 2014 campaign
has estimated contract value of US$32m and comes with
options for up to two additional campaign years.
Rex International has signed an agreement to acquire the
remaining 25% stake in Jasmin Oil and Gas from
independent third parties. Jasmin holds 100% of the South
Erin Block licence in Trinidad & Tobago.
ST Engineering’s Land Systems arm, ST Kinetics has set up a
specialty vehicles subsidiary in Brazil and acquires
manufacturing assets worth about S$9.2m to launch its
manufacturing presence. This will provide ST Kinetics with
direct access to opportunities driven by Brazil’s economic
growth and the government’s commitment to improve the
country’s infrastructure.
China Print Power Group is proposing to place up to 41.8m
new shares at HK$2.60 per placing share. The estimated net
proceeds from the Placing will be approximately
HK$106.4m, and is intended to be used for potential
acquisition activities as identified by the Group and as for
general working capital purposes.
The Singapore government will cut land sales under the
weight of supply. For H1 2014, MND will launch through
confirmed list eight sites that can generate 4,630 private
homes. The 4,630 private homes that can be generated
from the confirmed list sites slated for launch by the
government in H1 next year is not only down 22.3% from
the current H2 2013 slate but is also the lowest half-yearly
quantum since H1 2010, when the figure was 2,925 units.
Business sentiment among Asia's top companies dropped
sharply in the fourth quarter, extending last quarter's
declines, with global economic uncertainty and rising costs
weighing on the region's firms. The Thomson
Reuters/Insead Asia Business Sentiment Index fell to 62 in
the fourth quarter from 66 in the third quarter of 2013, the
lowest reading since the third quarter of 2012.
The FED will trim its monthly bond purchases by USD10bil
to USD$75bil starting January 2014. The Fed’s purchases
will be divided between USD40bil in Treasuries and
USD35bil in mortgage bonds. Stocks rallied, sending
benchmark indexes to all-time highs because the Fed
coupled its decision to taper with a stronger commitment to
maintaining an accommodative policy. The tapering steps
going forward will be data dependent. The Fed added its
benchmark interest rate is likely to stay low “well past the
time that the unemployment rate declines below 6.5%,
especially if projected inflation continues to run below” the
Fed’s 2% goal

Daily Summary 18 Dec 13

Europe and Dow were slightly down last night. Dow closed -9 at 15875.  Dow's trend is down but leveling. Dow's future is now +35.  Europe opened up.

Asian bourses were mixed.  Nikkei +309, ShanghaiC -3, Hangseng +75.  STI closed -6 at 3062.  Volume was 3.1b shares. Gainers were 212 to 182 losers.

Trend of STI is slight down but flattening.

Top volumes were KLW +0.3, Albedo -0.2, HanKore +0.3, OttoMarine -0.1, Vallianz +1.3, ICP unchanged, EMSEner +0.5, OEL +0.2, Malacca Trust unchanged, CharismaEner +0.1.

Market opened down, turned positive during lunch time but closed down. Blue chips were weaker. Penny stocks were firmer. Volume has also increased. There could be some buying before the new year.

Dow and Europe are looking positive for tonight.

Tuesday, December 17, 2013

DBS Vickers Report 18 Dec 13

Selective on consumer sector – Picks Del Monte, Courts,
Osim and Sheng Siong
􀂃 Technicals - Courts and Del Monte look ripe for bargain
hunting. Rebound potential for Coursts to $0.715, Del
Monte to $0.665 or $0.72
DBSV Research advocates a selective stance on the Singapore
consumer sector for 2014. Amid expectations of slower
private consumption growth in 2014, we look to pick stocks
for company specific factors to outperform within the
Singapore consumer space. Go for stocks with: 1) Stronger
fundamentals and better resilience to softening revenue and
margin compression; 2) Oversold companies at attractive
valuations; and 3) Stable earnings and dividend payout.
We like Osim (BUY, TP: S$2.60) for its growth profile and
exposure to the North Asia market, Courts (BUY, TP: S$0.77)
on expectations of recovery in 2014 and Del Monte (BUY, TP:
S$0.82) for being oversold and the uncertainty of its
proposed acquisition being priced in. We also like Sheng
Siong (BUY, TP: S$0.80) for its defensive traits and yield
profile.
From a technical perspective, shares of Courts & Del Monte
look ripe for bargain hunting following their price decline in
recent month. We see support for Courts at $0.58 and Del
Monte a $0.585, which are at current levels. Beyond the
immediate term, there is rebound potential for Courts to
$0.715 (23.6% upward retracement) and Del Monte to
$0.665 (23.6% upward retracement) or $0.72 (38.2%
upward retracement). The current year-end lull provides a
good opportunity to bargain both Courts & Del Monte while
at their oversold situation.
US Indices
Dow Jones 􀀙 15,875.3 (9.3) (0.1)
S&P 􀀙 1,781.0 (5.5) (0.3)
NASDAQ 􀀙 4,023.7 (5.8) (0.1)
Regional Indices
ST Index 􀀘 3,067.6 13.8 0.5
ST Small Cap 􀀘 525.5 0.6 0.1
Hang Seng 􀀙 23,069.2 (45.4) (0.2)
HSCEI 􀀙 10,894.3 (38.0) (0.3)
HSCCI 􀀘 4,540.2 8.5 0.2
KLCI 􀀘 1,850.9 13.0 0.7
SET 􀀘 1,337.2 8.8 0.7
JCI 􀀘 4,182.3 56.4 1.4
PCOMP 􀀘 5,929.0 116.5 2.0
KOSPI 􀀘 1,965.7 4.6 0.2
TWSE 􀀘 8,352.9 39.1 0.5
Nikkei 􀀘 15,278.6 125.7 0.8
STI Index Performance
Singapore
1,000
2,000
3,000
4,000
2006 2007 2008 2009 2010 2011 2012 2013
100-Day MA
Index
STI
Total Market cap (US$bn) 562
Total Daily Vol (m shrs) 2,923
12m ST Index High 3,454
12m ST Index Low 3,004
Source: Bloomberg Finance L.P.
Stock Picks – Large Cap
Rec’n Price (S$)
17 Dec
Target Price
(S$)
Hutchison Port Hldgs Trust (US$) Buy 0.640 0.82
Keppel Corp Buy 10.810 12.90
OCBC Buy 9.830 12.40
Yangzijiang Buy 1.145 1.32
Stock Picks – Small /Mid Cap
Rec’n Price (S$)
17 Dec
Target Price
($)
Ezion Holdings Buy 2.260 3.30
China Merchants Buy 0.920 1.20
CSE Global Buy 1.025 1.11
Nam Cheong Buy 0.285 0.42
Source: Bloomberg Finance L.P., DBS Vickers
Singapore
Wired Daily
Page 2
KrisEnergy has received approvals from the Government of
the People’s Republic of Bangladesh and from Bangladesh
Oil, Gas and Mineral Corporation (“Petrobangla”) for its
acquisition of Tullow Bangladesh Limited (“TBL”), which
holds a 30% working interest and operatorship of the
onshore Bangora gas producing field in Block 9. Block 9
covers 1,770 sq. km and is located approximately 50 km
east of Dhaka. The Bangora gas field commenced
production in 2006 and lies in a gas province with
substantial gas infrastructure. In the third quarter 2013,
gross production from the Bangora field averaged 92.7
million cubic feet of gas per day and 285 barrels of
condensate per day.
US stocks dipped modestly, awaiting Federal Reserve policy
makers’ plans for their monthly bond-buying program later
tonight. About 34% of economists (source: Bloomberg) on
Dec 6 predicted that the Fed will start to reduce its US$85bil
of monthly bond purchases when it concludes this policy
meeting. This is higher than the 17% in a survey from
November. DBS Research sees the FED starting to taper
around April next year.

Daily Summary 17 Dec 13

Europe and Dow had a good recovery last night. Dow +129 at 15885. Dow's trend is still down but levelling.  Dow's future is now flat.  Europe opened down.  

Asian bourses were mixed.  Nikkei +126, ShanghaiC -10, Hangseng -45.  STI closed +11 at 3064. Volume was 2.9b shares.  Gainers were 234 to 157 losers.

Trend of STI is flattening and turning up.

Market opened up and remained up for the whole day but STI traded in a small range. Most blue chips were up. Penny stocks were firmer.
Though volume has gone up but retail participation was still negligible.

Europe opened down while Dow's future is flat at the moment.

Monday, December 16, 2013

DBS Vickers Report 17 Dec 13

Property sector outlook – 15% price correction over next
3 years for residential, modest uptick for office & retail
rent
􀂃 Singapore November NODX down 8.8% y-o-y, worse
than +4.3% expected
*Latest* Singapore’s November NODX fell 8.8% y-o-y, worse
than the +4.3% expected. Electronics exports fell 8.9% y-o-y,
also worse than the +2.8% expected.
US stocks rose as investors watched data to gauge the
outlook for stimulus before a two-day Federal Reserve
meeting that starts later today. In Europe, manufacturing in
the euro area reached a 31-month high in December, led by
Germany, a survey from London-based Markit Economics
showed.
For Singapore’s STI, the technical support is at 3015-3040,
which presents a buying opportunity. This support range sits
just below the -0.5 SD FY14F level of 3043. We believe the
13.1x (-0.5SD) FY14F PE level is attractive, as we are
expecting 9% earnings growth for FY14F. Expect an oversold
rebound to c.3100.
Private home prices in Singapore are expected to finally
decline in 2014, bowing to the weight of the numerous
policy tightening moves on demand and financing, and rising
incoming supply. These will likely drag on rental yields going
forward. We anticipate a 5% correction with a through-thecycle
retracement of 15% over the next three years. Primary
market sales have fallen 32% to 13,637 units for 10M13 and
we project a lower take-up of 13,000- 15,000 in 2014.
In the office segment, we see flat to modest upticks in office
and retail rents, in tandem with GDP growth. As interest rates
are expected to stay low in the near term, we see capital
values holding up, thus lending support to RNAVs.
US Indices Last Close Pts Chg % Chg
Dow Jones 􀀘 15,884.6 129.2 0.8
S&P 􀀘 1,786.5 11.2 0.6
NASDAQ 􀀘 4,029.5 28.5 0.7
Regional Indices
ST Index 􀀙 3,053.8 (12.3) (0.4)
ST Small Cap 􀀙 524.8 (0.6) (0.1)
Hang Seng 􀀙 23,114.7 (131.3) (0.6)
HSCEI 􀀙 10,932.3 (93.5) (0.8)
HSCCI 􀀙 4,531.7 (37.9) (0.8)
KLCI 􀀙 1,837.9 (2.5) (0.1)
SET 􀀙 1,328.4 (12.7) (0.9)
JCI 􀀙 4,126.0 (48.9) (1.2)
PCOMP 􀀘 5,812.5 45.4 0.8
KOSPI 􀀙 1,961.2 (1.8) (0.1)
TWSE 􀀙 8,313.9 (63.1) (0.8)
Nikkei 􀀙 15,152.9 (250.2) (1.6)
STI Index Performance
Singapore
Total Market cap (US$bn) 564
Total Daily Vol (m shrs) 2,135
12m ST Index High 3,454
12m ST Index Low 3,004
Source: Bloomberg Finance L.P.
Stock Picks – Large Cap
Rec’n Price (S$)
16 Dec
Target Price
(S$)
Hutchison Port Hldgs Trust (US$) Buy 0.645 0.82
Keppel Corp Buy 10.620 12.90
OCBC Buy 9.810 12.40
Yangzijiang Buy 1.135 1.32
Stock Picks – Small /Mid Cap
Rec’n Price (S$)
16 Dec
Target Price
($)
Ezion Holdings Buy 2.210 3.30
China Merchants Buy 0.920 1.20
CSE Global Buy 1.010 1.11
Nam Cheong Buy 0.285 0.42
Source: Bloomberg Finance L.P., DBS Vickers
Singapore
Wired Daily
Page 2
We see developers trading within a trading band of -1SD to
average discount-to-historic mean over the next 12 months.
We anticipate RNAVs to remain relatively flat with dips in
residential prices offset by stable commercial and retail
values. The sector is now trading at a 34% discount to
RNAV, close to the -1SD level and we think downside may
be limited from hereon. Our stock strategy would be
selective, preferring more diversified companies and those
with strong recurrent cash flows. These include UOL, GLP,
Keppel Land and CMA.
Global Logistics Properties has signed a pre-lease agreement
with Qingdao Haier Logistics for 35,000 sqm at GLP Park
Liantang in Shanghai, China. This is the second lease
agreement between the two companies since a strategic
partnership between the two firms was announced in
September last year. In addition to the new facility in
Shanghai, Haier Logistics uses 28,000 sqm at GLP Park
Jiaonan in Qingdao.
Developers sold 1,228 private homes excluding executive
condominium (ECs) in November versus 1,070 units in
October, this according to the Urban Redevelopment
Authority. Including ECs, developers moved 1,714 units in
November, up from October's 1,206.
China’s flash Markit/HSBC PMI for December fell to 50.5
from November's final reading of 50.8. Still, this is the fifth
consecutive month that it remained in expansion territory.
Given the year-end holiday season, the flash PMI covers only
the short period from Dec. 5 to 12. The final PMI will be
released on Jan. 2.
China's policies to encourage improved energy efficiency
and cleaner energy sources will help to slow growth in
global coal demand over the next 5 years, this according to
the International Energy Agency (IEA). The energy agency
said coal demand would grow at an average rate of 2.3% a
year to 2018, compared to last year's forecast of 2.6%
growth to 2017 and actual growth of 3.4% a year between
2007 and 2012.

Daily Summary 16 Dec 13

Europe were mixed while Dow +16 to close at 15755 on Friday.  Dow's trend is down.  Dow's future is now -25.  Europe opened up.

Asian bourses were mostly down.  Nikkei -250, ShanghaiC -35, Hangseng -131.  STI closed -10 at 3056.  Volume was 2.1b shares.  Gainers were 165 to 263 losers.

Trend of STI is down.

Top volumes were Albedo +0.5, Vallianz +0.5, OttoMarine +0.3, Infinio unchanged, SingHaiyi unchanged, MDR unchanged, HanKore -0.2, CharismaEner -0.2, Armarda -0.1, Ipco -0.1.

Market was down the whole day. Regional bourses were also down.  Blue chips were mostly in the red. Penny and speculatives were also weaker.

Europe and Dow are looking mix for tonight.

Sunday, December 15, 2013

DSB Vickers Report 16 Dec 13

Dairy Farm – Costs a concern; downgrades to HOLD,
target price cut to US$9.46.
The STI has fallen 130 pts in the past eight days, just
recovered slightly last Friday. Market sentiment continued
to weak, weighed down by concerns over QE3 tapering.
The technical support for the STI is at 3015-3040, which
presents a buying opportunity. This support level, which
was briefly tested in the last two trading days, is just
below the -0.5 SD FY14F level of 3043.
We believe the 13.1x (-0.5SD) FY14F PE level is attractive,
as we are expecting 9% earnings growth for FY14F. The
last time the STI hit the -0.5SD level was in June last year,
when the market was affected by concerns over QE3
tapering, which was subsequently postponed. Weak data
coming out of China back then was also another reason
for the selldown.
Many believe the US is on the verge of taking off but our
economist begs to differ as the key component –
consumption is still on a down trend. Overall, he expects
GDP growth of 1.6% in 2013, followed by 2.0% in 2014.
Despite anemic growth, Fed is expected to taper anyway,
possibly in April. Our economist is not expecting more
volatility in emerging markets and we should look beyond
Fed tapering as bond yield is already re-anchored to 2.5%
to 3.0%, above the 2.0%-2.5% target range. Second,
most Asia countries have reported improved trade
performances and more stable balance of payments.
Our analyst downgrades Dairy Farm to HOLD, target price
cut to US$9.46 (Prev US$11.60). Margins are likely to be
lower going forward due to higher costs. Lower margins
could lead to soft FY13F results. He has trimmed
FY14F/FY15F earnings by 15% each.
Thai tycoon Charoen Sirivadhanabhakdi has trimmed his
stake in Fraser and Neave (F&N), to raise the
conglomerate's public float to meet listing requirements.
TCC Assets, Mr Charoen's private vehicle, sold a 2.1%
stake in F&N, or 30.9m shares, for $173m through
married deals. At $5.596 per share, the sale price
represented a 0.6% discount to F&N's Thursday closing
price of $5.63. Following the sale, Mr Charoen's interests
in F&N, held through TCC Assets and listed beer brewer
Thai Beverage Public Co, fell to 87.93% from 90.07%.
This brings the public float to about 12%, meeting the
minimum public float requirement of 10%.
US Indices Last Close Pts Chg % Chg
Dow Jones  15,755.4 15.9 0.1
S&P  1,775.3 (0.2) (0.0)
NASDAQ  4,001.0 2.6 0.1
Regional Indices
ST Index  3,066.0 7.0 0.2
ST Small Cap  525.4 0.4 0.1
Hang Seng  23,246.0 27.8 0.1
HSCEI  11,025.8 63.6 0.6
HSCCI  4,569.7 (3.3) (0.1)
KLCI  1,840.4 6.5 0.4
SET  1,341.1 (15.1) (1.1)
JCI  4,174.8 (37.4) (0.9)
PCOMP  5,767.1 4.6 0.1
KOSPI  1,962.9 (5.0) (0.3)
TWSE  8,376.9 15.6 0.2
Nikkei  15,403.1 61.3 0.4
STI Index Performance
Singapore
1,000
2,000
3,000
4,000
2006 2007 2008 2009 2010 2011 2012 2013
100-Day MA
Index
STI
Total Market cap (US$bn) 564
Total Daily Vol (m shrs) 1,948
12m ST Index High 3,454
12m ST Index Low 3,004
Source: Bloomberg Finance L.P.
Stock Picks – Large Cap
Rec’n Price ($)
13 Dec
Target Price
($)
Hutchison Port Hldgs Trust (US$) Buy 0.640 0.82
ComfortDelgro Buy 1.935 2.19
OCBC Buy 9.850 12.40
Singapore Airlines Buy 10.050 11.40
Stock Picks – Small /Mid Cap
Rec’n Price ($)
13 Dec
Target Price
($)
Ezion Holdings Buy 2.220 3.30
China Merchants Buy 0.910 1.20
CSE Global Buy 1.005 1.11
Nam Cheong Buy 0.285 0.42
Source: Bloomberg Finance L.P., DBS Vickers
Singapore
Wired Daily
Page 3
Centurion has acquired a 7220 sq m plot of land in Jakarta,
Indonesia for S$0.8m, for the development of worker
accommodation. This will be Centurion’s maiden worker
accommodation investment in Indonesia.
Tigerair has entered into strategic alliances with three airlines
to expand its network and commercial cooperation. These
initiatives form part of its strategy to accelerate business
growth in the key Asian markets of North-east Asia, India,
and Singapore without overstretching its resources.
These latest strategic alliance initiatives comprise:
 a joint-venture agreement with China Airlines to
establish a Taiwan-based budget carrier,
 an interline agreement with SpiceJet to enable
greater connectivity between flights operated by
both carriers, and
 an alliance agreement with interline partner, Scoot,
to expand and deepen their collaboration in
commercial activities and network coordination.
Global Tech is expected to record a net profit for the year
ended 30th September, 2013 as compared to a net loss for
the corresponding year ended 30th September, 2012, which
is mainly attributable to the written back of provision for
taxation previously made by the Group during the year.
Transview Holdings is expected to report a loss for FY Dec 13
mainly due to the lower operating income as a result of the
challenging market conditions.
Shares of Wilton Resources Corporation, formerly Hartawan
Holdings will commence trading today, marking a new
chapter as a SGX Catalist-listed corporation involved in gold
exploration and mining in Indonesia. The commencement of
trading follows the completion of a reverse takeover (RTO) of
Catalist-listed Hartawan by Wilton Resources Holdings, an
investment holding company controlled by experienced
entrepreneurs, Mr. Wijaya Lawrence of Indonesia and, Mr.
Patrick Ngiam of Singapore.
Albedo has agreed to buy an additional six parcels of land
from a company majority owned by Malaysian tycoon, Tan
Sri Dato’ Danny Tan in a move that will increase the size of
the reverse takeover (RTO) deal by more than twofold from
S$774m to S$1.86 bn. Albedo, which will be transformed
into a major property developer in Malaysia on completion
of the RTO, first agreed to buy seven parcels of land from
Tan Sri Dato’ Tan’s Infinite Rewards Inc in September 2013.
The additional six land parcels currently belong to Tan Sri
Dato’ Tan and his family and will bring Albedo’s Iskandar
landbank to 13 parcels of about 1,182.58 acres.
Albedo has also announced the issue of up to 260m nonlisted
and non-transferable warrants for an issue price of
S$0.001 per Warrant, each Warrant carrying the right to
subscribe for one (1) new Share in the capital of the
Company at an exercise price of S$0.04338 per share. The
Exercise Price represents a discount of 10.0% to the last
volume weighted average price. The proceeds will be used
for general working capital purposes, including the
repayment of trade payables and borrowings.
Singapore’s retail sales fell unexpectedly in October after
growing in September as buyers avoided buying motor
vehicles. Retail sales fell 3.2% in October compared to
September when it rose 0.6% from August. Stripping out
motor vehicles, retail sales fell marginally by 0.5% in October
compared to the 2.4% drop in September. Retailers of
motor vehicles suffered a seasonally adjusted double-digit
decline of 17.3% in October compared to September, when
they enjoyed 19.1% growth. Year-on-year, retail sales
declined 9.4% in October, also due to lower motor vehicles
sales. Excluding the latter which fell 39.6% y-o-y, retail sales
went down by 0.9%. The total retail sales value in October
was estimated at $2.9 bn, lower than the $3.2 bn a year
ago.

Friday, December 13, 2013

Daily Summary 13 Dec 13

Dow and Europe down again last night.  Dow closed -104 at 15739.  Dow's trend is down.  Dow's future is now +40.  Europe opened up.

Asian bourses were mixed.  Nikkei +61, ShanghaiC -7, Hangseng +28.  STI closed +7 at 3066.  Volume was 1.9b shares.  Gainers were 22 to 192 losers.

Trend of STI is still down but with a first break.

Top volumes were KLW unchanged, Vallianz +0.4, OttoMarine -0.2, HanKore +0.3, THBev +2.5, Viking +0.4, Infinio unchanged, Noble +1.5, GoldenAgr -1.5, Blumont +0.2.

Market opened down but recovered to close near day high at 3066. After 7 days of falls, this is more like a technical rebound. Blue chips were mostly up.  Penny and speculatives were also firmer.

Dow and Europe are also looking for a technical rebound tonight.

Thursday, December 12, 2013

DBS Vickers 13 Dec 13

STI - Technical support at 3015-3040 presents a buying
opportunity
The positive outlook for 2014 will be tempered by QE
tapering talks, which is likely to be a long-drawn-out event.
Risk appetite will stay modest with no re-rating for Asia
markets in sight. However, below-historical-average
valuations should support markets and stock picking
opportunities should be available throughout the year. We
expect Asia markets to return 16% in 2014. Overall, our
regional strategist thinks that North Asia markets will likely
outperform in 1Q14 while Singapore market maintains at
Neutral.
For the STI, the technical support at 3015-3040 presents a
buying opportunity. This support level, which was briefly
tested yesterday, is just below the -0.5 SD FY14F level of
3043. The -0.5SD level was only breached once last year in
June, also on the uncertainty over QE3 tapering.
Sheng Siong Group acquires the commercial premises
situated at Block 71 Kallang Bahru #01-531 for S$13.5m. The
property has a floor area of approximately 779 sq m and is
located within a two storey shopping complex. The Group
intends to use it for the operation of a supermarket following
the expiry of an existing tenancy.
Yoma has set up a second after-sales service centre for
Mitsubishi vehicles in Myanmar. The announcement came
shortly after the company also announced its involvement in
building telecommunications towers and a new property deal.
This after-sales service centre allows Yoma's joint venture
with Mitsubishi Motors Corp, Mitsubishi Corp and First
Myanmar Investment Co to service almost 80% of Mitsubishi
vehicles in the country.
Frasers Centrepoint Trust (FCT) has issued S$60m 2.535%
Notes due 2017. The Notes have been assigned a rating of
“BBB+” by Standard & Poor’s Rating Services. The Notes will
mature on 12 December 2017 and bear a fixed interest rate
of 2.535% per annum payable semi-annually in arrear. The
proceeds will be used to refinance existing borrowings, to
finance/refinance the investments of FCT and any asset
enhancement works and also for general working capital
purposes.
US Indices Last Close Pts Chg % Chg
Dow Jones 􀀙 15,739.4 (104.1) (0.7)
S&P 􀀙 1,775.5 (6.7) (0.4)
NASDAQ 􀀙 3,998.4 (5.4) (0.1)
Regional Indices
ST Index 􀀙 3,059.0 (1.7) (0.1)
ST Small Cap 􀀘 525.0 0.0 0.0
Hang Seng 􀀙 23,218.1 (120.1) (0.5)
HSCEI 􀀙 10,962.2 (111.8) (1.0)
HSCCI 􀀙 4,573.0 (36.5) (0.8)
KLCI 􀀙 1,833.9 (9.0) (0.5)
SET 􀀙 1,356.2 (13.1) (1.0)
JCI 􀀙 4,212.2 (59.5) (1.4)
PCOMP 􀀙 5,762.5 (126.2) (2.1)
KOSPI 􀀙 1,967.9 (10.0) (0.5)
TWSE 􀀙 8,361.3 (72.4) (0.9)
Nikkei 􀀙 15,341.8 (173.2) (1.1)
STI Index Performance
Singapore
Total Market cap (US$bn) 565
Total Daily Vol (m shrs) 2,248
12m ST Index High 3,454
12m ST Index Low 3,004
Source: Bloomberg Finance L.P.
Stock Picks – Large Cap
Rec’n Price (S$)
12 Dec
Target Price
(S$)
Hutchison Port Hldgs Trust (US$) Buy 0.640 0.82
ComfortDelgro Buy 1.925 2.19
OCBC Buy 9.800 12.40
Singapore Airlines Buy 10.010 11.40
Stock Picks – Small /Mid Cap
Rec’n Price (S$)
12 Dec
Target Price
($)
Ezion Holdings Buy 2.190 3.30
China Merchants Buy 0.905 1.20
CSE Global Buy 1.005 1.11
Nam Cheong Buy 0.285 0.42
Source: Bloomberg Finance L.P., DBS Vickers
Singapore
Wired Daily
Page 2
Keppel Reit has achieved full occupancy at its five Singapore
properties, after Ocean Financial Centre (OFC) became fully
leased. Both the office and the newly completed retail space at
OFC have been completely taken up.
JES International kickstarts its maiden offshore project with the
commencement of the steel cutting for its first two Platform
Support Vessels (PSV) at its shipyard located in Jingjiang City,
China. The two PSVs will be delivered in 4Q2014 and 1Q2015.
KSH Holdings has been awarded a S$42.5m construction
contract by United World College of South East Asia
(UWCSEA). Under the contract, the Group will carry out work
on the proposed addition of 1 block of five-storey building
with other ancillary works to the existing UWCSEA campus at
Dover Road. Construction is expected to commence in
December 2013, with completion expected within 20 months.
Year-to-date, KSH has won construction projects amounting
to S$343.6m in Singapore and RMB157m in Beijing, China.
KSH’s existing construction order book, which stands at more
than S$430m, is expected to contribute to the Group’s
financial results up till FY2016.
ITE Electric expects to record an increase of loss and asset
impairment for FY13 as compared to FY12, primarily
attributable to trading losses and declines in the value of its
financial assets.
In US, stocks eased despite better than expected retail sales.
Initial jobless claims rose to 368,000 last week, higher than
what economists were expecting.

Daily Summary 12 Dec 13

Dow and Europe down again last night. Dow -130 closing at 15844.  Trend of Dow is down. Dow's future is now - 8.  Europe opened down.

Asian bourses were mostly down.  Nikkei -173, ShanghaiC -1, Hangseng -120.  STI closed +2 at 3062.  Volume was 2.2b shares.  Gainers were 170 to 207 losers.

Trend of STI is down.

Top volumes were Charismaener unchanged, OttoMarine +0.3, Vallianz +1.1, KLW +0.3, Blumont +0.3, Asiasons +2, GoldenAgr +2.5, HPHTrust  +2.5, SingHaiyi -0.1, Infinio unchanged.

Market opened down following Dow's fall last night. It recovered quickly to reduce the loss and closed near day high down only 2 pts. Blue chips were mostly weaker from closed from the lows on opening. Penny stocks were much firmer. It looks like the market is tapering off after six days of falls.

Europe and Dow are looking a bit weak at the moment. Could see another day of weakness and hopefull some technical rebound could be around the corner. The Dodd Frank Act may still cause some jitters tonight.

Wednesday, December 11, 2013

DBS Vickers Report 12 Dec 13

Possible exit offer for China XLX
China XLX Fertiliser has been approached by controlling
shareholder Pioneer Top Holdings over a possible exit offer
for the shares that it does not yet own. The offer, if made, is
not intended to take the company private as China XLX
shares will continue to be listed in Hong Kong. China XLX
said the possible exit offer would be at a cash consideration
of 40 cents per share, and is in connection with a possible
voluntary delisting from Singapore Exchange. The
consideration price is at a 23% premium to China XLX's last
traded price of 32.5 cents. Pioneer Top Holdings and its
concert parties now hold a 64.9% interest in the company.
China XLX also has yuan-denominated convertible bonds
worth about RMB324m (S$67m), which can be converted to
176m shares at a price of RMB1.84 per share.
Swiber Holdings is disposing its 33.3% stake in PJW 3000, a
vessel owning company that owns a construction barge, for
approximately US$52m. This transaction is part of the Group
strategy to restructure certain existing vessels under various
leasing arrangement. The unaudited gain on disposal was
approximately US$16.6m.
Vallianz Holdings has received shareholders’ approval for the
grant of options to Swiber and the issuance of capital
securities to Rawabi. Shareholders have also endorsed its
diversification into the area of sourcing and supplying of
vessels and equipment and additional shipping-related
services to the offshore oil and gas industry. The total
proceeds of US$57.2m which could be raised from the issue
of the option shares, as and when the options are exercised
by Swiber, and the proceeds from the issue of capital
securities to Rawabi, is intended to be used for capital
expenditure relating to future fleet expansion and general
working capital purposes.
SPH announced that its wholly owned subsidiary is the leadinvestor
in a Series B US$10m round of funding in Magzter
Inc (Magzter), a global digital magazine store and newsstand.
The other co-investor is Kalaari Capital (Kalaari), a venture
capital fund investing in global technology-oriented
companies.
US Indices Last Close Pts Chg % Chg
Dow Jones 􀀙 15,843.5 (129.6) (0.8)
S&P 􀀙 1,782.2 (20.4) (1.1)
NASDAQ 􀀙 4,003.8 (56.7) (1.4)
Regional Indices
ST Index 􀀙 3,060.7 (21.0) (0.7)
ST Small Cap 􀀙 525.0 (4.4) (0.8)
Hang Seng 􀀙 23,338.2 (405.9) (1.7)
HSCEI 􀀙 11,073.9 (308.2) (2.7)
HSCCI 􀀙 4,609.5 (51.5) (1.1)
KLCI 􀀙 1,842.8 (1.0) (0.1)
SET 􀀘 1,369.4 1.9 0.1
JCI 􀀙 4,271.7 (3.9) (0.1)
PCOMP 􀀘 5,888.7 2.3 0.0
KOSPI 􀀙 1,978.0 (15.5) (0.8)
TWSE 􀀙 8,433.8 (9.6) (0.1)
Nikkei 􀀙 15,515.1 (96.3) (0.6)
STI Index Performance
Singapore
Total Market cap (US$bn) 570
Total Daily Vol (m shrs) 1,802
12m ST Index High 3,454
12m ST Index Low 3,004
Source: Bloomberg Finance L.P.
Stock Picks – Large Cap
Rec’n Price (S$)
11 Dec
Target Price
(S$)
Hutchison Port Hldgs Trust (US$) Buy 0.615 0.82
ComfortDelgro Buy 1.930 2.19
OCBC Buy 9.830 12.40
Singapore Airlines Buy 10.050 11.40
Stock Picks – Small /Mid Cap
Rec’n Price (S$)
11 Dec
Target Price
($)
Ezion Holdings Buy 2.200 3.30
China Merchants Buy 0.905 1.20
CSE Global Buy 1.005 1.11
Nam Cheong Buy 0.285 0.42
Source: Bloomberg Finance L.P., DBS Vickers
Singapore
Wired Daily
Page 2
Following positive feedback and strong enquiries from the
market, Keppel Corp is proceeding with the building of its
new CAN DO drillship. When completed in 2016, the drillship
is expected to be a state-of-the-art deepwater exploration,
development and completion drilling vessel.
The International Air Transport Association (Iata) said that next
year could be one of the strongest yet for aviation this
century. A bottom line of US$16.4 billion - second only to the
2010 record of US$19.2 billion - is expected as a result of
improving business conditions and easing oil prices. Regional
airlines is expected to chalk up a profit of US$3.6 billion next
year, 16% higher year on year, fuelled by a recovering cargo
market and growth in the Chinese domestic market. Brent oil
prices are expected to slide to US$105 per barrel from an
anticipated US$109 per barrel this year, but yields for the
passenger market will shrink 0.5% y-o-y, and the cargo
market, by 2.1% - even as both post traffic growth. This year,
Iata expects the industry's net profit to hit US$11.7 billion. This
is less than an earlier estimate of US$12.7 billion, but is still
nearly 60% more than the US$7.4 billion made last year.
The outlook for the Asian consumer electronics industry is
negative in 2014, said Moody's. Operating profit margin will
remain below 3% for most rated companies due to a lack of
product differentiation and high penetration rates in key
products like LCD televisions, as well as the convergence of
smartphones and mobile devices, driving intense competition.
It also revealed stronger demand in emerging countries for
mid to low-tier products, which carry lower average selling
prices; and significant cash outlays required to defend market
positions and remain competitive.
According to a MAS survey, optimism is on the rise here.
Professional forecasters now expect the Republic's economy to
expand by 3.8% in 2013 - up from the 2.9% median forecast
seen in September's survey. This puts growth just above the
mid-point of the government's projection of 3.5-4%, which
was raised last month from an earlier forecast of 2.5-3.5%.
Singapore deal-making is expected to pick up in 2014. The
past year was mixed for deal-making in Singapore, with equity
fund-raising picking up while mergers and acquisitions (M&A)
slowed down. But industry professionals see a tailwind
blowing into 2014 as global economies head towards modest
growth, although macro uncertainties like US Federal Reserve
"tapering" cast shadows over the horizon.
US stocks tumbled as investors bet that a new U.S. budget
deal raises chances the Federal Reserve might start to scale
back its support for the economy soon. Congressional
negotiators reached a deal that would prevent another
government shutdown, if approved by the House and Senate.
The deal would set spending levels, reduce the deficit and
relieve some of the arbitrary, forced spending cuts. Bank
stocks were under pressure after federal regulators officially
approved new restrictions to curb high-risk trades by banks

OCBC Report 12 Dec 13

KEY IDEA
Hospitality Sector: Opening weakly in 2014


Summary:

The dreariness that characterized the Singapore hospitality industry over 2013 looks set to continue into 1Q14 with the subdued global business sentiment, a strong Singapore dollar and increasing competition with an expanding supply of hotels. Our channel checks indicate that hotel bookings up to Feb 2014 are still weak, despite an expected pickup to the number of MICE events for 2014. We project that for end-2012 to end-2015, hotel room demand will grow at a CAGR of 5.4%, while hotel room supply will expand at a CAGR of 6.5%. Given this, the industry is facing a mild oversupply situation. We project that 2014 RevPAR growth for the industry will be in the low single-digit percentages at best, and do not rule out another year of contraction. We are maintaining our NEUTRAL rating on the Singapore hospitality sector and do not see any significant growth catalysts in the short-term. Our top pick is Global Premium Hotels [FV: S$0.33]. The 1H14 opening of its second mid-tier hotel, Parc Sovereign Tyrwhitt, could boost GPH’s net income by ~17% in 2014. (Sarah Ong)
For more information on the above, visit www.ocbcresearch.comfor the detailed report.

NEWS HEADLINES


- US stocks dropped on Wed, as investors digested the Washington budget deal that could give the Fed another reason to scale back its bond-buying program soon.


- Economists, polled by the MAS from late-Nov, now expect Singapore's economy to expand by 3.8% in 2013 - up from the 2.9% median forecast seen in Sep survey.


- The total number of IPOs on Asian exchanges fell this year, but the increased activity seen in the rest of the region will continue into 2014, said EY.

- Singapore is committed to maintaining a pro-business climate that welcomes local investments as well as those from overseas, says Prime Minister Lee Hsien Loong.


- Linc Energy, which is moving its listing from the ASX to SGX, plans to raise about S$47.9m in net proceeds through a mainboard IPO of 47.85m shares.

- Heng Fai Enterprises, backed by the former controlling shareholder of SingHaiyi, Chan Heng Fai, could do a secondary listing in Singapore as it shifts focus to REITs.

Daily Summary 11 Dec 13

Dow and Europe were slightly lower last night.  Dow -52 at 15973.  Dow's trend slips down again. Dow's future is now -16.  Europe opened mixed.

Asian bourses were mostly down. Nikkei -96, ShanghaiC -33, Hangseng -406.  STI closed -16 at 3065.  Volume was 1.7b shares.  Gainers were 112 to 302 losers.

Trend of STI is down.

Top volumes were Albedo +0.9, OttoMarine +0.6, CharismaEner +0.1, Blumont +0.3, ThBev +1, HPHTrust -1.5, Vallianz -0.2, GoldenAgr -1.5, SingTel -1, CCFH +0.7.

Market opened flat but slipped down along the day to close near day low. Blue chips continued to be sold down.  Penny and speculatives wer also weaker. There was little interest in buying after 6 days of falls.

Europe and Dow are looking flat at the moment.

Tuesday, December 10, 2013

OCBC Report 11 Dec 13

Industrial REITs: Downside risks lurking

Summary:
Industrial REITs continued to turn in firm results in 3Q13. However, subsector portfolio occupancy encountered a marked sequential decline of 2.9ppt to 94.8%. For 2014, we are keeping our cautious view on the industrial REIT subsector, as we believe industrial rents may stay relatively flat amid the influx of industrial supply and scale back in leasing enquiries for factory space. We also highlight again the possibility that industrial REITs may continue to face difficulties in acquiring industrial properties that are yield-accretive. Nevertheless, more industrial REITs are turning to asset enhancement initiatives/(re)developments to grow their income, and this should help to cushion the moderating growth trend. We are maintaining our NEUTRAL view on the industrial REIT subsector. We choose Ascendas REIT [BUY, S$2.45 FV] and Cache Logistics Trust [BUY, S$1.30 FV] as our preferred picks due to their strong earnings visibility, robust financial position and compelling yields. (Kevin Tan)

For more information on the above, visit
www.ocbcresearch.comfor the detailed report.


NEWS HEADLINES


- US stocks ended lower on Tue, with the S&P 500 retreating from the previous session’s record close and halting a two-session winning streak.

- Profitability for the telco sector in Singapore is set to remain stable, with data revenue cushioning the bumps on the road ahead, according to the Fitch Ratings 2014 outlook report.


- The competition for Singapore bond benchmarks is heating up with a new set of indices created through a collaboration between SGX and Thomson Reuters.


- Lum Chang Holdings is buying a London property, now being operated as a hotel by the sole tenant, for about S$52m.


- Top Global Limited is entering the Indonesian property market through a proposed acquisition of a 71.5% stake in PT Suryamas Dutamakmur Tbk for a deemed value of ~S$153m.


- Losses at entertainment company Scorpio East Holdings widened in the first half ended 31 Oct 2013 to S$2.3m, from S$257,000 a year earlier.

DBS Vickers Report 11 Dec 13

Plantation Companies - Expect near-term correction in
palm oil prices, recommend take profit. Cut Indofood
Agri Resources to HOLD
􀂃 Del Monte Pacific – Upgrade to BUY; recent weakness
looks overdone
Malaysia’s Nov13 palm oil stockpile of 1.978m MT (+7% mo-
m) was higher than expected on slowing exports. Dec13-
Jan14 stockpiles are projected to decline further on low crop
season and lower imports. Palm oil price discount to soybean
oil is expected to narrow further, but weaker soybean oil
prices may drag down CPO prices in 1QCY14. We expect
near-term correction in palm oil prices, and recommend
investors to take profit, following the strong-run since end of
Sep13. For SGX-listed CPO stocks, cut Indofood Agri
Resources to HOLD (TP: S$ 1.00) as it has priced in significant
earnings recovery next year. Lacking dividend policy, we
believe there remains limited return left at current level.
We upgrade Del Monte Pacific to BUY, TP revised down to
S$0.82 (Prev S$0.96), factoring in higher risk profile. The
recent sell down looks overdone, and may have more than
priced in uncertainty of its proposed US$1.675bn acquisition
of Del Monte Food’s Consumer Food Business (DMF-CFB). We
lowered our FY14F forecasts by 26%, taking into account an
estimated one-off transaction cost relating to the acquisition,
but have not factored in potential contribution from CFB.
Risks would include higher interest rates, integration and
performance of combined entity, and potential dilution from
equity issuance.
Yoma Strategic Holdings has entered into a conditional
agreement with Pun Hlaing Lodge (PHL) to acquire 80%
effective interests in a plot of land located in the Pun Hlaing
Golf Estate (PHGE). The land, with land area of 8,887 square
metres and valued at US$3.0m, is designated for the
construction of a hotel.
Yoma also updated that the deadline for acceptance of the
offer to acquire the land development rights of and to
participate in the development of the Riverside Development
Project has further extended as the company intends to focus
on its existing projects.
US Indices Last Close Pts Chg % Chg
Dow Jones 􀀙 15,973.1 (52.4) (0.3)
S&P 􀀙 1,802.6 (5.8) (0.3)
NASDAQ 􀀙 4,060.5 (8.3) (0.2)
Regional Indices
ST Index 􀀙 3,081.7 (31.9) (1.0)
ST Small Cap 􀀙 529.4 (1.7) (0.3)
Hang Seng 􀀙 23,744.2 (67.0) (0.3)
HSCEI 􀀙 11,382.2 (50.8) (0.4)
HSCCI 􀀙 4,661.0 (3.2) (0.1)
KLCI 􀀘 1,843.9 2.0 0.1
SET 􀀘 1,367.4 5.9 0.4
JCI 􀀘 4,275.7 61.3 1.5
PCOMP 􀀙 5,886.4 (122.5) (2.0)
KOSPI 􀀙 1,993.5 (6.9) (0.3)
TWSE 􀀙 8,443.4 (1.2) (0.0)
Nikkei 􀀙 15,611.3 (38.9) (0.2)
STI Index Performance
Singapore
1,000
2,000
3,000
4,000
2006 2007 2008 2009 2010 2011 2012 2013
100-Day MA
Index
STI
Total Market cap (US$bn) 575
Total Daily Vol (m shrs) 2,092
12m ST Index High 3,454
12m ST Index Low 3,004
Source: Bloomberg Finance L.P.
Stock Picks – Large Cap
Rec’n Price (S$)
10 Dec
Target Price
(S$)
Hutchison Port Hldgs Trust (US$) Buy 0.630 0.82
ComfortDelgro Buy 1.930 2.19
OCBC Buy 9.920 12.40
Singapore Airlines Buy 10.080 11.40
Stock Picks – Small /Mid Cap
Rec’n Price (S$)
10 Dec
Target Price
($)
Ezion Holdings Buy 2.220 3.30
China Merchants Buy 0.920 1.20
CSE Global Buy 1.020 1.11
Nam Cheong Buy 0.285 0.42
Source: Bloomberg Finance L.P., DBS Vickers
Singapore
Wired Daily
Page 2
China Yuanbang Property is placing out 39m new shares to
raise S$9.6m. The placement price of S$0.245 each represents
a discount of approximately 4.5% to the last volume weighted
average. The funds will be mainly used for the development of
commercial and residential properties in China.
Civmec announced its first major award for its Darwin
operations following its expansion into the Northern Territory
of Australia earlier this year. As a result of this award,
combined with recent awards from Western Australian
operations, order book now stands at SG$$386m.
AusGroup announced the repayment of its senior debt
facilities. As at 30 November 2013, the Group has work-inhand
value at A$219m. This is up from A$179m advised in
their Q1 update following recognition of a number of
variations, extensions and new awards.
China’s industrial output growth fell slightly but retail sales
and exports grew more than expected in November. Though
growth shows signs of easing, this is in no way bad news for
China, which needs to redefine its model and focus on
achieving slower, more sustainable growth. Industrial output
increased 10% y-o-y in November, down from the 10.3%
growth recorded for October. The biggest drag came from
non-metal and ferrous metal manufacturing and the private
sector. The automobile sector performed the best; its growth
accelerated to a 19-month high of 20.3%, up from October's
18.2%.
Retail sales expanded 13.7% y-o-y in November, picking up
from 13.3% the month before. This was probably the result of
the marketing campaign around Singles' Day on Nov 11,
when e-retailers notched up unexpected takings.
Airlines are expected to carry 930m more passengers by 2017,
taking the total number of passengers to 3.91 bn, with Asia-
Pacific accounting for nearly a third of new passengers. Last
year, airlines carried 2.98 bn travellers. Of the 930m new
passengers, the bulk - or 638m - will be carried on domestic
routes and the rest on international routes, according to the
latest airline industry forecast by the International Air
Transport Association (Iata).
US stocks fall as market awaits retail sales data tomorrow and
Fed’s policy meeting next week, when it will decide whether
to continue pumping money into the economy at its current
rate of $85 bn a month. Headline growth for November retail
sales will look strong at 0.6% (MoM,sa) thanks to unit auto
sales, which recouped all of their Sep/Oct losses in the single
month of November. However, ex-autos, markets look for a
smaller 0.2% gain in sales. That would put on-year growth at
2.5% YoY, the lowest in nearly 4 years.

Daily Summary 10 Dec 13

Dow and Europe were slightly up last night.  Dow's trend is starting to turn up. Dow's future is now +18.  Europe opened positive.

Asian bourses were mostly weaker.  Nikkei -39, ShanghaiC -1, Hangseng -67.  STI closed -32 at 3082.  Volume was 2b shares.  Gainers were 137 to 286 losers.

Trend of STI is down

Top volumes were Albedo -1.1, CharismaEner unchanged, Blumont -0.9, HanKore -0.2, Innopa -0.2, F&N unchanged, Dragon -1.8, Magnus +0.1, OttoMarine unchanged, HPHTrust -1.5.

Market opened flat but drifted down through the day with more selling in late afternoon. Blue chips were mostly red, probably due to some negative rumours.  Penny stocks were also weaker.

Europe and Dow are looking ok for tonight.

Monday, December 9, 2013

OCBC Report 10 Dec 13

Commodities Sector: Upgrade to NEUTRAL

Summary:
As expected, the commodities sector performed relatively poorly against the broader market for most part of 2013, after we maintained our Underweight rating from 2012. While some of the commodity plays have staged a recovery in 2H13, we note that valuations are still looking pretty inexpensive. From this perspective, we upgrade our rating from Underweight to NEUTRAL. Although we do not see any stock that stands out at the moment, there may be some potential upgrades should there be an over-correction in the market on the back of the Fed tapering. (Carey Wong)
For more information on the above, visit www.ocbcresearch.comfor the detailed report.

NEWS HEADLINES


- US stocks nudged higher overnight, sending the S&P 500 to a record close, as investors were unfazed by a trio of Fed officials suggesting a stimulus reduction could come next week.


- Singapore's reliance on foreign labour will inevitably come under more scrutiny after Sunday’s riot, but observers say that it is unlikely for government to further tighten the inflow of foreign workers.

- The employment outlook in Singapore is tipped to stay favourable in 1Q14, says the Manpower employment group.


- The executive condominium (EC) scheme has been tweaked to bring the terms for ECs closer to that for public housing and to support a stable and sustainable EC market.


- Standard & Poor's Ratings Services has cut Thai Beverage Public Co's credit rating to below investment grade to reflect the weaker combined profile of its corporate group.


- The outlook is stable for S-REITs next year, with Moody's 13 rated S-REITs expected to grow by 4%, fuelled by a larger asset base and rent increases on existing properties.


- Popular Holdings sank to a net loss of S$52,000 in 2QFY14, from a S$1.73m net profit a year ago.


- Cordlife Group has acquired a further 11.89% interest in StemLife Berhad, an associated company of Cordlife, for RM17.66m (S$6.9m).

DBS Vickers Report 10 Dec 13

Midas - Earnings poised for a strong rebound into FY14F
and FY15F; maintain BUY, TP raised to S$0.64.
We expect firm earnings rebound for Midas in FY14F as highspeed
railway (HSR) contracts roll in. Midas won its first HSR
contract (Rmb168m) in over two years in October, as China
resumed its HSR development programme, with more likely
to come. We believe the Group could win a substantial order
arising from the recent second rolling stock tender for 314
train sets, or about 2,500 train carriages. Over the next two
years, we believe a further 700 over train sets could be
tendered for, resulting in further wins for Midas in the HSR
segment. At the same time, we expect (PRC) metro orders to
continue flowing in, and overseas orders, which have grown
substantially in 2013, to continue to be robust as Midas looks
to maintain a more diversified earnings base. Maintain BUY,
with our 12-month TP raised to S$0.64 (Prev S$0.60), based
on 1.2x FY14F P/BV. We believe current valuations are
attractive for a stock whose earnings are poised for a strong
rebound into FY14F and FY15F.
Standard & Poor's Ratings Services (S&P) has cut Thai
Beverage’s credit rating to below investment grade to reflect
the weaker combined profile of its corporate group. S&P
downgraded ThaiBev's long-term corporate rating by a notch
to BB+ from BBB-, two weeks after placing the company on
CreditWatch negative. In response to the negative watch,
ThaiBev has said it will no longer pay to be rated by S&P.
Moody's expects stable outlook for S-Reits in 2014, with
Moody's 13 rated S-Reits expected to grow by 4%, fuelled by
a larger asset base and rent increases on existing properties.
Overall occupancy and rental rates are expected to remain
stable, but the warehousing segment - where Mapletree
Logistics Trust and Cache Logistics have the largest exposure -
will have potential weakness from a spike in the supply of
new warehouse space, said the rating agency. That being
said, however, it is estimated that about 40% of this space
has been pre-committed by end-users, so this may mitigate
the impact of the enlarged supply.
US Indices Last Close Pts Chg % Chg
Dow Jones 􀀘 16,025.5 5.3 0.0
S&P 􀀘 1,808.4 3.3 0.2
NASDAQ 􀀘 4,068.8 6.2 0.2
Regional Indices
ST Index 􀀙 3,113.6 (0.5) (0.0)
ST Small Cap 􀀘 531.1 1.5 0.3
Hang Seng 􀀘 23,811.2 68.1 0.3
HSCEI 􀀘 11,432.9 56.8 0.5
HSCCI 􀀘 4,664.2 18.0 0.4
KLCI 􀀘 1,841.9 14.9 0.8
SET 􀀘 1,367.4 5.9 0.4
JCI 􀀘 4,214.3 33.6 0.8
PCOMP 􀀙 6,008.9 (6.0) (0.1)
KOSPI 􀀘 2,000.4 20.0 1.0
TWSE 􀀘 8,444.6 76.9 0.9
Nikkei 􀀘 15,650.2 350.3 2.3
STI Index Performance
Singapore
1,000
2,000
3,000
4,000
2006 2007 2008 2009 2010 2011 2012 2013
100-Day MA
Index
STI
Total Market cap (US$bn) 574
Total Daily Vol (m shrs) 2,761
12m ST Index High 3,454
12m ST Index Low 3,004
Source: Bloomberg Finance L.P.
Stock Picks – Large Cap
Rec’n Price (S$)
9 Dec
Target Price
(S$)
Hutchison Port Hldgs Trust (US$) Buy 0.645 0.82
ComfortDelgro Buy 1.925 2.19
OCBC Buy 10.040 12.40
Singapore Airlines Buy 10.230 11.40
Stock Picks – Small /Mid Cap
Rec’n Price (S$)
9 Dec
Target Price
($)
Ezion Holdings Buy 2.250 3.30
China Merchants Buy 0.915 1.20
CSE Global Buy 1.020 1.11
Nam Cheong Buy 0.290 0.42
Source: Bloomberg Finance L.P., DBS Vickers
Singapore
Wired Daily
Page 2
Office landlords are expected to have greater pricing power
next year, on the back of a limited supply of new office space
in the core central business district (CBD) - where
CapitaCommercial Trust and Keppel Reit derive the bulk of
their income - and nothing in the pipeline for 2015. On the
retail front - where CapitaMall Trust and Frasers Centrepoint
Trust have the greatest exposure - there is a glut of space in
the suburban areas. But occupancy and rental rates are
expected to remain stable because the supply is spread across
the island, and because suburban malls are resilient through
economic cycles as providers of non-discretionary items to
homes in nearby estates. In the business and science park
space, where Ascendas Reit has the largest exposure, the
strong take-up of upcoming space will keep occupancy and
rental rates broadly stable next year, said Moody's.
Raffles Education is in a deal to sell the land use rights and
property in China's Hebei province to through a 70:30 jointventure
firm and a put option agreement. Raffles Education
has an irrevocable put option to sell its 70% share in the JV to
its partner at an exercise price of RMB700m. Based on this
price, the excess of the net proceeds of the put option over
the land and property's book value is about $27.4m. The
company intends to utilise the proceeds for reinvestment in
the core education businesses of the group.
Lum Chang has entered into an agreement to acquire the
freehold property located at 52 to 57 Price’s Square, London
for £26m plus tax of about £5.2m. The property extends to
about 30,099 sq ft within six inter-communicating buildings
and is currently operating as a hotel.
The executive condominium (EC) scheme has been tweaked to
bring the terms for ECs closer to that for public housing and to
support a stable and sustainable EC market. The Ministry of
National Development said that there will be three changes.
The first change involves the Mortgage Servicing Ratio (MSR)
for EC housing loans from financial institutions for units
bought directly from developers. The MSR, imposed by the
Monetary Authority of Singapore (MAS), will be capped at
30% of gross monthly income and will apply to purchases
where the option-to-purchase is granted today and hereafter.
Previously, the MSR did not apply to ECs. The second change
is that second-timer applicants who buy EC units directly from
developers must now pay a resale levy, just like second-timer
applicants who buy Build-To-Order (BTO) flats. The third and
final change is the reduction in the cancellation fee for EC
buyers from 20% of the purchase price to 5%, in line with the
practice for BTO flats.
The employment outlook in Singapore is tipped to stay
favourable in the first three months of next year, says the
Manpower employment group. 19% said they expect to
recruit staff; 3% said they would trim staff. This yields a net
employment outlook of 16%. Another 67% said they will be
in a holding pattern in staffing levels.
China's annual consumer inflation unexpectedly slowed in
November, easing market fears of any imminent policy
tightening as authorities meet this week to outline their policy
and reform priorities for 2014. Annual consumer inflation
unexpectedly slowed to 3% in November from an eightmonth
high of 3.2%. The market had expected the inflation
rate to hold steady at October's level. From a month earlier,
consumer prices fell 0.1%, the first fall in six months and a
touch weaker than market expectations that they would be
flat.
China’s producer prices fell 1.4% y-o-y in November - the 21st
consecutive month of decline - against a fall of 1.5% in the
previous month. On a monthly basis, producer prices were
unchanged. A strong jump in exports and a run of surveys of
factory and service sector activity indicate that the world's
second-largest economy has regained some momentum since
arresting a protracted slowdown in the middle of the year.