Market Wrap – 31 Aug 12

**SINGAPORE**

FSSTI: 3,025.5 (+0.5%)              VOL: 1,447.5m                VAL: S$1,626.2m

SGX market partially recouped yesterday’s steep fall as regional markets turn in a mixed performance following Japan’s underwhelming economic data. Ratings agency S&P retain’s SG AAA ratings with stable outlook citing its strong public finances and stable political environment. Turnover reached month-high despite lack of newsflow today on portfolio rebalancing. All sectors gained today led by telcos +1.6%, basic materials +0.9% and REITs +0.6%. ST, OCBC and GENS led the 19/30 gainers among STI constituents, 5 losers were led by UOB, FNN and JCNC.

*OTML +2.3% after announcing a contract win of US$15.1m (US$18.5m if options  exercised) to deploy its landing craft in Western Australia.

*TCT trading was halted at mid-day with 149k traded in mkt; pending announcement *ZAG unch on trading resumption, as major shareholder Poh Beng Sweet makes a  mandatory unconditional cash offer of S$0.15/sh, after recently buying  additional 43.5m shares in the company.

*KGF unch, company announced its decision to dispose of its 14.25m shares in  UML MK for RM35.6m; offer was first received on Aug 24th.

*I2I -3.5% after posting FY12 loss of US$187.7m due to rising direct service  fees and marketing expenses.

*MMT unch despite announcing a small contract win of US$4.8m for provision of  an accomodation barge support services in Indonesia.

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*SAMSUNG DIDN’T INFRINGE APPLE PATENT, TOKYO COURT SAYS

Sammy (005930 KS) surging on news!

The Tokyo District Court ruled this afternoon that Samsung Electronics (SEC) (005930 KS, W1,215,000, Buy [1]) did not infringe on Apple’s (AAPL US, US $663.87, Outperform [2]) key patents. Apple accused SEC of copying its technology for synchronizing music and video files in devices to PC and was seeking ¥100m in damages.

In Tokyo, Apple did not sue SEC for having a phone with a rectangular shape and round corners. However, Apple is also seeking damages for its bounce-back technology while SEC is claiming damage from Apple for violating its mobile data transmission technologies. The decision for these cases is expected at a later time.

SINGAPORE DOLLAR REVERSES EARLIER LOSSES ON S&P MOVE

Singapore Has Robust Public Finances, Solid External Creditor Position

S&P: Forecast Singapore Budget Surplus for FY2012 at 3.9% of GDP

See Singapore Govt Prepared to Introduce Stimulus if Global Conditions Worsen
Expect Singapore Government to Maintain Sizeable External, Fiscal Reserves
S&P Affirms Singapore ‘AAA/A-1+’ Ratings With Stable Outlook

Singapore July Bank Loans $458.29bn Vs $452.57bn in June

The Monetary Authority of Singapore Friday released the following provisional bank lending data for July:

—————————————————————–July         Year Earlier    June———————-

Total                                                              S$458.29B    S$381.79B       S$452.57B

Housing/Bridge                                              S$141.32B    S$122.95B       S$139.69B

Professionals & Private Individuals                    S$6.01B      S$3.90B         S$5.84B

Building/Construction                                       S$72.88B     S$60.55B        S$72.05B

Manufacturing                                                     S$23.40B     S$16.17B        S$23.57B

Stock – Corporate Filing 31 Aug 12

* Jiutian Chemical (JIUC.sp): Anyang Longyu (HK) has raised stake from 28.49% to 28.52% via open   mkt purchases.
* Osim Intl (OSIM.sp): repurchased 450k shares @ $1.2570.
* Macq Int’l Infra Fund (MIIF.sp): repurchased 2770k shares @ $0.5250.
* OCBC Corp (OCBC.sp): repurchased 100k shares @ $9.2100.

Market Commentary from broker – 31 Aug 12

—————————————–Actual      Estimate————————————————

PCE Core YoY                         1.6%         1.7

% Initial Jobless Claims         374k         370k

Continuing Claims                 3316k        3307k

Highlights: – Markets fall in the first hour of trade before trading in a tight range on   renewed European concerns. S&P ends below 1400. Dow hits 4wk low. Reports   Spain may delay decision on whether to seek a sovereign bailout until aid   conditions are clear. Slovakia’s prime minister said he saw a 50% chance the   euro zone will break up. EU economic sentiment indicator hit the lowest level   since late 2009. VIX +4.5% (+16.5% the week). – Crude -0.9% (-1.5% this week) as Issac not as bad as initally expected. – Bonds rallied ahead of J.Hole meeting. Flight to quality on Euro headlines.

EURO-AREA AUGUST ECONOMIC CONFIDENCE FALLS TO 86.1; EST. 87.5

EURO-AREA AUGUST ECONOMIC CONFIDENCE FALLS TO 86.1; EST. 87.5