Friday, 28 April 2017

PROFITABLE HOT STOCKS FOR SGX MARKET


Following Stocks may be affected by recent events or announcements:

UOB Group:
UOB Group reported net earnings of S$807 million for the first quarter of 2017, up 5.4 per cent from a year ago. Total income rose 7.8 per cent to S$2.12 billion, led by growth in core income, the bank said on Friday.

The non-performing loans (NPL) ratio was stable at 1.5 per cent compared with the previous quarter, while NPL coverage stayed high at 118 per cent.

Great Eastern Holdings on Friday reported that its net profit for the first quarter of 2017 stood at S$217.9 million, up 125 per cent compared to S$96.9 million a year ago.

The improved performance was attributed to a higher non-operating profit due to narrowing of credit spreads and rally in equity market, as well as a higher profit from shareholders' fund's investments.

Global Premium Hotels:
Shares in Global Premium Hotels will be suspended from trading on Friday after its public float has fallen below 10 per cent. The company is being taken private.

JK Global Capital, an investment holding company that the chairman Koh Wee Meng owns, had offered 36.5 Singapore cents per share for the shares he does not yet own.



Thursday, 27 April 2017

M1 SHARE PRICE CONTINUES TO EXTEND RECENT GAINS


M1 share price continues to extend recent gains on Thursday as more Chinese bidders emerged as potential buyers of the Singapore mobile operator.

After rising almost 5 per cent to S$2.19 a share on Thursday morning, M1 was trading around S$2.16 by 12:11pm, up 7 Singapore cents, or 3.35 per cent. This compares to its S$2.04 close on Friday.

Shanxi Meijin Energy Co and China Broadband are reported to have separately submitted first-round offers for M1, which has a market value of about S$1.9 billion. Bahrain Telecommunications Co and private equity funds have also made non-binding bids, Bloomberg reported.

Axiata Group has a 28.54 per cent stake in M1, while Keppel Corp has a 19.23 per cent holding and SPH owns 13.38 per cent, according to SGX StockFacts. The three have appointed Morgan Stanley to help explore options including a sale of the telecom operator, according to March filings.



Wednesday, 26 April 2017

CAPITALAND SURGES TO S$386.8M



Improved operating performance, including the sale of 45 units of The Nassim, and higher portfolio gains gave a lift to CapitaLand Limited's results in its first quarter.

Net profit rocketed 77.2 per cent to S$386.8 million from the preceding year, the group said in a Singapore Exchange filing on Wednesday morning.

For the three months ended March 31, revenue edged up 0.4 per cent to S$897.5 million from the preceding year. The rise in revenue due to more handovers from its development projects in China and rental contribution from newly acquired properties were offset by lower revenue from development projects in Singapore, it said.



The development projects which contributed to the revenue in China in the first quarter included One iPark in Shenzhen, Riverfront in Hangzhou, Vista Garden in Guangzhou and Summit Era in Ningbo.
Earnings per share on a fully diluted basis came in at 8.5 Singapore cents from 4.9 Singapore cents in the previous year.

Net asset value per share for the group was S$4.16 as at March 31, from S$4.15 three months ago.



Tuesday, 25 April 2017

O&G PROPOSED A SPLIT OF EXISTING SHARES INTO ONE


Singapore O&G is proposing a split of every one existing ordinary share in the capital of the company into two, it said in a Singapore Exchange (SGX) filing on Tuesday.

Upon completion of the proposed share split, the company shall have an issued and paid-up share capital of S$29.6 million, comprising an enlarged 476.8 million shares, it said. The additional shares, however, will not be entitled to any dividends, rights, allotments or other distributions.

Following the proposed share split, the price of each share will be reduced. This makes the shares more affordable, accessible and attractive, thus encouraging greater participation by investors and providing greater trading flexibility and liquidity, the group said.

The share split is subject to the receipt of a listing and quotation notice from SGX, as well as approval from shareholders by way of an ordinary resolution at a general meeting to be convened by the company.

More Valuable Singapore Stocks of the Day:
  • AEM
  • ISR CAPITAL
  • NET PACIFIC FIN
  • JADASON
  • CHASEN

Our recent Stock Recommendations:
SGX SIGNAL: BUY AEM AT 1.85 TARGET 1.92, 1.99 SL 1.77
Update:
 AEM AT 2.00, OUR FINAL TARGET DONE



Monday, 24 April 2017

SINGAPORE STOCK INVESTMENT MARKET OPEN 0.4% HIGHER


Singapore stocks rose on Monday morning with the benchmark Straits Times Index up 12.13 points, or 0.39 per cent, to 3,151.96 as at 9.05am.

Some 249.5 million shares worth S$131.9 million changed hands, with gainers beating losers 98 to 42.

Banks like DBS, UOB and OCBC Bank emerged the top three gainers while top losers included Venture and Jardine C&C.

The euro spiked to a five-month high against the US dollar after early voting in the first round of the French presidential election showed centrist Emmanuel Macron and the National Front's Marine Le Pen were poised to reach the second round, said Bloomberg.

More Valuable Singapore Stocks of the Day:

  • JAPFA
  • CITYNEON
  • DECLOUT
  • CHASEN
  • AEM



Saturday, 22 April 2017

NET PROFIT OF SGX SLIPS 6.8% TO $83.1M


Blame it on weak results from the derivatives segment.

It was a disappointing quarter for Singapore Exchange (SGX) after it recorded a 6.8% slump in net profit to $83.1m.

According to OCBC Investment Research, this brings SGX's 9-month profits to $254.5m, down 6.5% from the same period last year.

The group also reported a decline in overall revenues, down 1.5% to $202.7m.

The decline in yields was due to the weak numbers from the derivatives segment, which registered an 8.6% decline to $75.2m. This was mainly attributed to lower volume, especially of the A50 contracts, which fell 30% YoY.

The group’s equities and fixed income revenue rose a modest 1.1% to $103.1m, whilst market data and connectivity revenue rose 13% to S$24.4m (or 12% of group revenue). The equity rally in 1Q 2017 helped to mitigate the decline in revenue from its Derivatives segment



Friday, 21 April 2017

CACHE LOGISTICS TRUST'S DISTRIBUTION PER UNIT FELL 11.7%


CACHE Logistics Trust's distribution per unit fell 11.7 per cent to 1.8 Singapore cents for its first quarter ended March 31.

Its distributable income fell 11 per cent year on year to S$16.24 million, due to lower income from operation and a lower capital distribution.

Revenue also fell 2.9 per cent to S$27.06 million, due to the divestment of Cache Changi Districentre 3 and lower income received under protest for 51 Alps Avenue offset by higher rental contribution from DSC ARC and the Australian properties.

Net property income also fell 5.8 per cent to S$20.78 million, on the back of lower revenue and higher property related expenses as a result of the conversion of certain properties from master leases to multi-tenancies.

Daniel Cerf, chief executive officer of the manager, said: "Our focus in FY2017 is on improving operating performance in the Singapore portfolio wherever possible in view of the acute oversupply in the market and industry headwinds. As we have articulated to investors, we intend to continue with our portfolio rebalancing and growth strategy to grow and diversify our revenue contributions outside of Singapore."

Valuable Singapore Stocks of the Day:
  • SINGMEDICAL
  • MIYOSHI
  • BROADWAY
  • NOBLE



Thursday, 20 April 2017

KEPPEL REIT REPORTED A DPU OF 1.45


KEPPEL Reit reported a distribution per unit (DPU) of 1.45 Singapore cents for the first quarter ended March 31, down from 1.68 Singapore cents a year ago.

Distribution to unitholders was 11.6 per cent lower at S$48.1 million due to the absence of income from the divested 77 King Street in Sydney, lower income contribution from Bugis Junction Towers, as well as an absence of other gains distribution.

The DPU for Q1 translated to an annualised distribution yield of 5.5 per cent, based on the closing price per unit of S$1.05 as at March 31.

Net property income for the office landlord was 4.6 per cent lower at S$31.4 million, with the main drag coming from Bugis Junction Towers and absence of income contribution from 77 King Street which was divested on Jan 29, 2016.

Keppel Reit closed 1.4 per cent higher at S$1.07 on Wednesday.



Wednesday, 19 April 2017

SINGAPORE IS GOING TO BE MORE COSTLY FOR BUSINESSES


Businesses in Singapore are bracing for higher costs in a country that's already among the world's most expensive to live in.

From a 30 per cent increase in water prices to higher diesel costs to a looming carbon tax, manufacturers are being forced to adjust their operations to remain competitive in an economy that's only recently recovering from an export slump. It also signals a pick-up in inflation, an outcome the central bank flagged in its monetary policy statement last week.

Of the measures announced by Finance Minister Heng Swee Keat in his February budget, higher water tariffs have generated the most debate and anxiety among Singaporeans.

Having kept the cost steady since 2000, Prime Minister Lee Hsien Loong is clear why the government needs to adjust prices: as an island nation that's water-stressed, the state needs to pay for expensive desalination plants. Higher prices will also make consumers more aware of their usage of the scarce resource.

For Lee Soon Kiat, director of government relations at semiconductor maker Globalfoundries Inc., higher water tariffs - to be implemented in two phases beginning in July - means extra costs of as much as S$5 million a year at plants producing electrical circuits.

"It's clear that it will add to our operating costs," said Mr Lee, who is also a member of the executive committee of Singapore's Semiconductor Industry Association. "It's an issue that our industry will have to adapt to, and continue to pursue water saving or recycling measures in our processes."

COMPETITIVENESS INDEX
Singapore is routinely ranked among the top when it comes to global competitiveness, mainly because of its low company tax rates, good infrastructure and easy procedures to open a business, rather than cost effectiveness.

It was placed fourth out of 61 countries in last year's world competitiveness index - compiled by the Swiss business school IMD - but ranked among the lowest, at 57, on scores for cost of living.
Song Seng Wun, a regional economist at CIMB Private Bank in Singapore, said the government is banking on companies accepting higher costs in exchange for the city state's other advantages: its reliable power and water supply, business-friendly framework, stable legal and political system and competitive tax rates.

"Singapore has never been the cheapest place to do business," he said. "Other factors have to be strong enough to keep Singapore as a very competitive place." Measures to create a green and healthy environment is "also a competitive advantage," he said.

The moves fit into the government's broader goal of forcing businesses to innovate in order to boost productivity, from encouraging companies to adopt digital technologies to re-skilling workers to keep pace with global change.

TIGER BEER
At S$1.21 per cubic meter currently, water for industrial use in Singapore is already more expensive than in many other Asian countries, and several times pricier than in China, according to Simon Powell, head of Asian utilities research at UBS Group AG in Hong Kong.

That's forcing companies that rely on significant amounts of water, such as power plants and the brewery that produces the local Tiger beer, to review their consumption needs.

Tuas Power, one of the largest power generators in Singapore, had been implementing steps to save water before the cost announcement was made, said spokeswoman Michele Sit. The company will install additional meters to track unusually high consumption or wastage of water, she said.
Heineken NV's unit in Singapore, the maker of Tiger beer, had already committed to cut water usage by 20 per cent even before the planned tariff increase, according to its head of corporate affairs, Mitchell Leow. About 95 per cent of the beer is made out of water.

The company is working on a water reclamation project to process waste water for non-potable uses like general cleaning and for its brewery cooling towers, Mr Leow said.

Water consumption has been reduced by 4 per cent since 2010 through initiatives such as harvesting rainwater from rooftops, he said.

From the government's point of view, the pain of higher water prices is something businesses and consumers will have to bear as part of a broader goal of conserving the environment, said Euben Paracuelles, an economist at Nomura Holdings Inc in Singapore.

"The signal from the government is that they want to conserve an important resource, and that for them is a bigger consideration than others," Mr Paracuelles said.

Valuable Singapore Stocks of the Day:

  • SINGTEL
  • SINCAP
  • WILMAR INTL
  • TT INTL



Tuesday, 18 April 2017

SINGAPORE TECHNOLOGIES ENGINEERING'S AEROSPACE ARM SECURED NEW CONTRACTS WORTH ABOUT S$1.11 BILLION


SINGAPORE Technologies Engineering's aerospace arm secured new contracts worth about S$1.11 billion for the first quarter of 2017, the group announced in a Singapore Exchange filing on Monday.

The contract secured by Singapore Technologies Aerospace was for services ranging from line and heavy airframe maintenance to component repair and overhaul.

It includes performance-based logistics operation and support for military aircraft, several components repair and overhaul agreements and contracts for EcoPower® engine wash services. Among these are several multi-year renewal agreements.

ST Aerospace's airframe maintenance, repair and overhaul (MRO) station in Guangzhou, China, also opened its second hangar in the quarter, which can accommodate two wide-body and two narrow-body aircraft simultaneously.

Its German subsidiary Elbe Flugzeugwerke broke ground for a new facility in Kodersdorf, Saxony, adding 200,000 composite panels production capacity per annum to meet rising demand from the growing A320 and A321 Airbus fleet.

Besides that, it also received AS9100 Quality Management System certification for its in-house designed aircraft seats.


More Valuable Singapore Stocks of the Day:




  • Golden Agri-Res
  • BlackGoldNatural
  • Alliance Mineral
  • QT Vascular



Monday, 17 April 2017

SINGAPORE SHARES TO WATCH


THE following companies made announcements before the start of today's trading which may affect their share prices.

Frasers Centrepoint Limited (FCL) has entered into a conditional agreement to acquire an 86.56 per cent stake in Geneba Properties, an Amsterdam-based listed real estate investment company, for 315.9 million euros (S$467.8 million).



Raffles Education Corporation Limited (REC) has been handed a163.2 million rupee (S$3.52 million) victory by an arbitration tribunal in India for breaches by Indian education services company Educomp of a prior share purchase agreement.

SINGAPORE SHARES OPEN DOWN TODAY:
SINGAPORE stocks dipped on Monday morning, as Asian stocks continued to face geopolitical pressures.

The Straits Times Index (STI) was down 14.05 points, or 0.44 per cent, at 3,155.19 as at 9.07am.
Some 97.3 million shares worth S$63.2 million changed hands. Losers beat gainers 122 to 49.

Top losers included Jardine Cycle & Carriage, City Developments, and United Overseas Bank.
Geopolitical tensions in the region remained the focus for investors worldwide, with US Vice-President Mike Pence touching down in South Korea on Monday amid heightened tensions on the Korean peninsula to kick off his four-nation tour of Asia.

Also, China will be releasing its first-quarter gross domestic product figure on Monday. Bloomberg reports that the world's second-largest economy is expected to have grown 6.8 per cent in the first three months of the year for a second straight quarter, according to a Bloomberg survey of economists, driven by higher property and producer prices.



Friday, 14 April 2017

TO BOOST SINGAPORE'S CAPITAL MARKET PROFILE CHINESE BANK IS TAPED BY SGX


It inked the deal at the 3rd Singapore-Shanghai Financial Forum.

Singapore Exchange has entered into a memorandum of understanding (MOU) with Shanghai Pudong Development Bank (SPDB) to strengthen capital market ties between Singapore and Shanghai. The MOU outlines several areas for closer collaboration with a focus on leveraging the international fund raising platform of SGX.

SPDB will recommend Chinese enterprises to raise funds through initial public offers (IPOs), listing of Real Estate Investment Trusts (REITs) and Business Trusts, and issuance of Offshore Renminbi (RMB) Bonds, including depositing their bonds where applicable, in the Central Depository of SGX.
The two entities will work closely to raise Singapore's capital market. SPDB will also explore opportunities in gold futures on SGX. Both parties have also committed to jointly organising forums on SGX listings and commodity derivatives in China and Singapore.

Head of equities and fixed income at SGX Chew Sutat said, "Our partnership with SPDB which is well-regarded within China’s capital market for its outstanding performance and business innovation will not only raise Singapore’s profile as an offshore centre and international exchange, but also support Chinese companies’ capital-raising needs as they seek international opportunities and profiling.”



Thursday, 13 April 2017

SGX STOCK INVESTMENT PICKS FOR THURSDAY TRADING


THE following SGX stock investment picks may affect trading today:

Singapore Press Holdings' (SPH) second-quarter net profit slipped 1.2 percent to S$53.5 million, dragged down by its media business but cushioned by gains from disposing of investments. It has declared an interim dividend of six Singapore cents per share, one cent lower than the year-ago payout.

Soilbuild Business Space Reit reported a 4.4 per cent drop in distribution per unit to 1.489 Singapore cents in the first quarter to March, from 1.557 Singapore cents a year ago.



Ascendas India Trust (a-iTrust) has signed a term sheet with Arshiya for the proposed acquisition of operating warehouses totalling 832,000 square feet near Mumbai for up to a total of S$116 million.
Oxley Holdings' wholly owned subsidiary Oxley MTN has priced its US$200 million notes due 2021 at 6.375 per cent.

More Valuable Singapore Stocks of the Day:
  • CapitaLand
  • Addvalue Tech
  • ISR Capital
  • Ascendas Reit




Wednesday, 12 April 2017

CHINA BANK TO BOOST SINGAPORE CAPITAL MARKET'S PROFILE


SINGAPORE Exchange (SGX) has entered into a memorandum of understanding (MOU) with Shanghai Pudong Development Bank (SPDB) to raise the profile of Signapore's capital market.
In the agreement signed at the third Singapore-Shanghai Financial Forum, both entities will collaborate on leveraging SGX for international fund-raising. SPDB will recommend Chinese companies to raise funds through initial public offerings, listing of Reits and business trusts, and the issuance of offshore renminbi bonds.

Both will also work together on financial and commodity markets, with SPDB exploring opportunities in SGX's gold futures.

Some activities planned include internal trainings and an exchange programme between SGX and SPDB staff, which will provide opportunities for both parties to share knowledge on the business environments of both countries as well as SGX's listing requirements.

Chew Sutat, SGX head of equities and fixed income, said SGX's partnership with SPDB will deepen ties through exchange of knowledge and joint discovery of business opportunities.



"Our partnership with SPDB which is well-regarded in China's capital market for its outstanding performance and business innovation will not only raise Singapore's profile as an offshore centre and international exchange, but also support Chinese companies capital-raising needs as they seek international opportunities and profiling," he added.

Cui Bingwen, SPDB executive vice-president, said that by working with SGX, the bank hopes to better serve Chinese corporates going global and help them tap international capital markets.

Valuable Singapore Stocks of the Day:
  • SBI OFFSHORE
  • UPP
  • KSH
  • ASIAPHOS



Tuesday, 11 April 2017

DUTCH SHIPYARD TO BE SOLD BY KEPPEL O&M


KEPPEL Offshore & Marine (Keppel O&M) has inked a term sheet agreement for the proposed sale of its Rotterdam-based shipyard, Keppel Verolme, to Dutch firm Damen Shipyards Group following a strategic review.

The proposed sale is in line with the company's efforts to optimise its operations and rationalise its global network of yards, said Keppel Corp in an announcement to the Singapore Exchange.

Damen intends to continue activities in the shipyard with the yard's current employees of about 250.

Keppel O&M continues to see opportunities in the offshore oil and gas market in Europe and the North Sea, and will service these markets through its network of yards in Singapore and globally, said the group in the statement.

A notification of the proposed transaction has been filed with the Dutch Authority for Consumers & Markets on April 10.

Valuable Singapore Stocks of the Day:
  • JUBILEE IND
  • CHINA AVIATION
  • CHASEN
  • KIMLY
  • SPACKMAN




Monday, 10 April 2017

CWT SHARES RISES WITH HNA OFFER


SHARES of logistics group CWT surged on Monday morning following an offer by Hong Kong-listed HNA Holding Group to buy the firm for just under S$1.4 billion.

The stock opened at S$2.26 and reached as high as S$2.28 in the early-morning trade.

At 9.37am, it was trading at S$2.27, up 9.7 per cent from its previous close; with almost 16 million shares having changed hands, it was one of the most active counters on Singapore Exchange (SGX).

The counter last traded at S$2.07 on April 6 before a trading halt was put in place.

HNA on Sunday evening announced a pre-conditional voluntary general cash offer at S$2.33 a share for all issued and paid-up ordinary shares in CWT.

CWT shareholders representing 65.13 per cent of the total number of issued shares in the Singapore-listed entity have extended irrevocable written undertakings to HNA.

These include shares held by C&P Holdings and members of the founding families of Loi, Lim and Liao, behind CWT.

HNA said it wants to reserve the right to delist CWT from SGX once it receives acceptances from shareholders representing over 90 per cent of the issued shares in the company.



Saturday, 8 April 2017

IMPLICATIONS OF OCBC'S ACQUISITION OF BARCLAYS' WEALTH BUSINESS IN ASIA


Some analysts remain negative.

OCBC, through its private banking arm Bank of Singapore, has clinched the bid to acquire Barclays’ wealth management business in Singapore and Hong Kong for USD320m (S$430m) cash.

The purchase price is set at 1.75% of Barclays WIM SG and HK’s assets under management (AUM) that are transferred to Bank of Singapore upon completion of the transaction.

Here's what analysts had to say regarding the recent acquisition:

RHB
The proposed acquisition would increase Bank of Singapore’s AUM by 33.3% from USD55.0bn (31 Dec 2015) to USD73.3bn. Management sees the acquisition as a strategic move to deepen Bank of Singapore’s franchise in Singapore and Hong Kong, the two leading wealth management (WM) and private banking centres. As of the end-2015, DBS had AUM of SGD146bn (USD102.92bn).

With little overlap in clientrelationships between Bank of Singapore and Barclays WIM SG and HK, management expects the acquisition to be earnings accretive after the first year

and expects to complete the deal by end-2016. OCBC's consolidated WM income, including life insurance by Great Eastern Holdings (GE SP, Non-rated), asset management by Lion Global Investors and brokerage services by OCBC Securities, amounted to SGD2.35bn (up 6% YoY) in 2015 or 27% of group total income.

The proposed acquisition will be financed via internally generated funds and would have minimal impact on OCBC Bank’s capital position. OCBC’s fully loaded common equity tier-1 improved to 11.8% in Dec 2015 from 10.6% in Dec 2014.

Overall, we believe this acquisition would be positive for fee income growth over the longer term.

Ng Li Hiang, MayBank Kim Eng
We have previously estimated that if one of the Singapore banks succeeds in bidding for this acquisition (based on price/AUM of 1.5%), there will be a 1-1.4% accretion in profits and fully-loaded CET1 ratio will reduce by 33-45bps . Based on price/AUM of 1.75%, the acquisition will contribute ~1.1% to OCBC’s 2017 net profits. Fully-loaded CET1 ratio will reduce by ~44bps from 11.8% to 11.4%. Management has previously indicated that 11.4% is the level that they are comfortable at.

While this provides an opportunity for OCBC to broaden and complement its WM franchise especially in Singapore and Greater China, we do not change our view on the back of this acquisition. 
We continue to believe that topline growth will slow and NPLs could arise from the O&G support services segment.

Lim Sue Lin, analyst, DBS
We view this transaction as positive for OCBC as it will continue to raise the bank's wealth management income momentum. Since the acquisition of ING Private Bank Asia (renamed BoS), OCBC has successfully seen its wealth management income rise sequentially. This acquisition will further seal its wealth management business franchise. The acquisition is expected to be
accretive to OCBC Bank’s earnings per share and return on equity after the first year.

Yuxuan HE, analyst, KGI Fraser Securities
The acquisition of Barclays WIM business (with AUM of USD18.3bn) will increase Bank of Singapore’s total AUM by 33.3% to USD73.3bn, up from its previously reported AUM figure of USD55.0bn as at 31 December 2015. The acquisition will also see Bank of Singapore climb four positions higher to 7th spot in the 2015 AUM league table for private banks (Figure 5), ahead of the likes of Morgan Stanley Private Wealth Management (AUM of USD72.0bn), JP Morgan Private Bank (AUM of USD65.0bn) and BNP Paribas WM (AUM of USD64.5bn).

Barclays WIM’s strong coverage of ultra high net worth clients should improve the branding and prestige of Bank of Singapore, strengthening the bank’s ability to attract new clients in the region. With the banking sector’s loan growth expected to stay low and NIMs to remain flattish in the near term, we believe growing the wealth management business will be increasingly important for Singapore banks as they tap on the rapidly growing wealth management space in the region.

While we are positive on the bank’s strong banking franchise and its recent acquisition, we continue to remain cautious on the near-term challenges that the bank might face in its oil & gas loan portfolio if the current oversupply in oil persist well into the year.

Potential upside risks include more frequent interest rate hikes by the U.S. Federal Reserve, which could drive domestic interest rates higher and also better than expected economic data. Potential downside risks include no further rate hikes by the U.S. Federal Reserve and also worse than expected economic data.




Friday, 7 April 2017

SINGAPORE STOCK MARKET NEWS UPDATES



Singapore stock market prices opened lower on Friday with the Straits Times Index down 2.3 points to 3,173.29 at 9.01am.

Volume was 38.6 million shares worth S$ 43.1 million.

Gainers outnumbered losers 87 to 36.

THESE stock picks may be in focus on Friday:

Triyard Holdings on Friday morning announced a net loss of US$6.25 million for the second quarter ended Feb 28, 2017, against a net profit of US$5.28 million a year ago.

Healthway Medical Corporation on Thursday said it would conduct a shareholders' meeting with Gateway Partners with regard to the proposed issuance of S$60 million in convertible notes.


Valuable Singapore Stocks of the Day:



  • LEY CHOON
  • KOP
  • SPACKMAN
  • KOH ECO


Thursday, 6 April 2017

FIRST GREEN BOND IN SINGAPORE IS GOING TO BE MARKETED BY CITY DEVELOPMENTS


City Developments is today marketing the first Green bond offering in Singapore.

The property company is offering a Singapore dollar two-year Green bond indicated at a 1.98 per cent coupon, with pricing expected later today.

The unrated bond is secured against Republic Plaza, which has scored a green mark platinum from Singapore's state agency Building and Construction Authority. The office complex is located in the heart of financial and commercial district Raffles Place.

This is the first time that a Green bond is being offered in the Singapore dollar bond market, offering a test of local investor appetite for this type of asset.

Under one of the financial covenants, CDL is required to maintain a net worth of not less than S$240 million.



Proceeds are for the repayment of a loan extended by City Developments to issuer CDL Properties. The loan was used to retrofit and upgrade the office building to maintain the green mark platinum level.

DBS is sole bookrunner and structuring adviser, with Sustainalytics providing second party opinion. KPMG was the independent limited assurance provider.

Valuable Singapore Stocks of the Day:
  • BLACKGOLDNATURAL
  • NET PACIFIC FIN
  • KSH

Our recent Stock Recommendations:
1.
 SGX INTRADAY SIGNAL: BUY BLACKGOLDNATURAL AT 0.184 TARGET 0.190, 0.195 SL 0.177
Update: BLACKGOLDNATURAL AT 0.195, OUR FINAL TARGET DONE.



Tuesday, 4 April 2017

PROFITABLE SINGAPORE STOCKS FOR TODAY




THE following stocks may be in focus on Tuesday:

The Ascott Limited: CapitaLand's wholly owned serviced residence business unit has set its sights to expand in South America with franchise agreements for its first two serviced residences in Sao Paulo, Brazil.



S i2i: The company has announced that its wholly owned subsidiary Affinity Capital has entered into an asset transfer agreement with SB ISAT Fund, a limited liability partnership incorporated in the Cayman Islands, for the proposed acquisition of an e-commerce platform.


mm2 Asia: The film and TV production company has announced the launch of the initial public offering of shares for UnUsUaL on Singapore Exchange's Catalist board at a placement price of S$0.20 per share.

More Valuable Singapore Stocks of the Day:
  • KSH
  • CHASEN
  • JADASON
  • SKE

Our recent Stock Recommendations:
1.SGX INTRADAY SIGNAL
: BUY JACKSPEED AT 0.171 TARGET 0.177, 0.183 SL 0.164
Update: JACKSPEED AT 0.184, OUR FINAL TARGET DONE. GIVEN YESTERDAY FROM 0.171.


Monday, 3 April 2017

SUPPLY OF CRUDE OIL PRICES FALL WITH RISING US RIG COUNT


Oil futures dipped in early Asian trade on Monday on worries about global oversupply after a higher US rig count pointed to rising US shale production, while a stronger US dollar also put pressure on crude.

US West Texas Intermediate crude futures fell 5 cents to US$50.55 a barrel by 0012 GMT after settling 25 cents higher in the previous session.

International benchmark Brent futures slipped 11 cents to US$53.42 a barrel. The March contract closed the previous session down 13 cents at US$52.83 a barrel.

Both contracts posted their worst quarterly loss since late 2015 in the March quarter. US futures fell nearly 6 per cent from the previous quarter, while Brent lost 7 per cent as rising inventory levels outpaced output cuts by Opec and non-Opec members.

Crude oil prices staged a three-day rally last week amid expectations members of the Organisation of the Petroleum Exporting Countries (Opec) and non-members such as Russia would extend production cuts beyond June.



But prices fell on Friday after energy services firm Baker Hughes said the US rig count increased by 10 to 662 last week, making the first quarter the strongest for oil rig additions since mid-2011.

The US dollar index rose against a basket of currencies on Monday. A strong US dollar makes greenback-denominated commodities including oil more expensive for holders of other currencies.

Iraq plans to increase its oil output capacity to 5 million barrels per day before the end of the year, but Baghdad has assured Opec it will fully comply with the pact to cut oil supply, oil minister Jabar al-Luaibi and Opec secretary general Mohammed Barkindo said on Sunday.

Russian oil shipped by state pipeline monopoly Transneft to ports for export rose to 2.944 million barrels per day (bpd) in March, or 12.452 million tonnes, from 2.819 million bpd in February.



Saturday, 1 April 2017

STARHUB HAS NO INTENTION TO ACQUIRING M1


But StarHub's key shareholder has the final say.

A lot was thinking whether StarHub has any intention to acquire M1, as the smallest telco's three biggest shareholders are reviewing their stakes. But according to Maybank KimEng, StarHub's management was steadfast in its position not to acquire or merge with the other telco.

However, Starhub said its key shareholder, ST Telemedia, which owns 56% of its shares, will ultimately decide, given Temasek’s influence over both StarHub and M1.

"ST Telemedia is wholly-owned by Temasek, which is also a major shareholder of M1’s shareholders Keppel T&T and SPH. These two companies hold a combined 32.4% of M1 while Axiata owns 28.3%," Maybank KimEng said.

For its part, StarHub’s management prefers to collaborate with M1. It has already started to explore capex reduction through network sharing with M1, which could start to see cost savings within the next two years.

"Telcos invest in infrastructure to create barriers of entry, but if there is no need to duplicate certain parts of it, then there is scope for cost savings. M1 and StarHub use the same network equipment suppliers, Huawei and Nokia," Maybank KimEng noted.

Meanwhile, StarHub stated that should another telco acquire M1, they may have to give up certain spectrum as the regulator will not permit hoarding of unused spectrum. This could mean that if TPG was to acquire M1, it will likely have to give up the 60MHz of spectrum that it recently paid $105m for.