Off for a week!

Won’t be updating the blog for this week. See ya all again next week. πŸ™‚

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Market Wrap by Decoder – 22 Apr 13

β€’ CN – China stocks might come under pressure today as Sat’s earthquake in SiChuan took 186 lives and inflicted agony/misery in thousands of the people affected. DongFang Electric Corp, based in SiChuan might take a hit on economic losses while insurer are vulnerable to a spike in claims. Tourism and hotel stocks should also suffer. On the flip side, reconstruction will support demand for building materials.

β€’ Yen cont to fall as G20 ministers agreed that Japan needs to support their sluggish economy.
β€’ GBP fell after Fitch stripped the UK off its triple A credit ratings, citing increased govt’s debt and bleak outlook.
β€’ US markets rallied last Friday to close on high. However, the 3 indices still logged the worst weekly performance in 2013. Rally was broad based (lack of macro data), with Telco adding 1.7% and Healthcare 1.5%. To date, 104 S&P companies have reported, with 67% beating estimates but only 43% beat at the revenue line. This week, 180 companies will report their Q1 earnings which will be closely monitored to determine the health of the US economy. With the fall in Yen, we are likely to have the Japanese market leading the Asian markets for today’s trading but don’t expect them to keep up with the pace though.

Market Wrap by Broker – 19 Apr 13

Baltic Dry: 885 +0.00% Gold: 1392.18 -0.13% Palm Crude: 2307 +1.41%
VIX: 17.56 +6.36% WTI Crude: 88.26 +0.60% USD/SGD: 1.2358 -0.04%
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Macro: Govt sees NO MORE PROPERTY COOLING MEASURES for now amid home prices now moving in “right direction”. Govt determined to lower home prices relative to incomes & DO NOT WANT to cause short-term crash.
News Link > http://tinyurl.com/cnor2qt

*Keppel Corp(KEP) 1Q13 #s: NP of S$331m -56%YoY on REV S$2.76b missed Daiwa & Berg est. by 14% & 16% respectively. Zooming into the details: O&M NP -12%YoY but still a good performance vs Property (-79%YoY) & Investments (-84%YoY) where Property segment was affected by lumpy rev recognition from the delivery of units at Reflections @ Keppel Bay in 1Q12. OP Margin came inline & at top end of co.’s wide guidance of 10-15% for 2013 & they were “happy” with the margins achieved in this qtr. More positively, KEP’s O&M OP margin of 14.1% for 1Q13 continues an uptrend for the 3rd consecutive qtr after troughing in 3Q12.

*CapitalComm Trust(CCT) 1Q13 #s KEY TAKEAWAYS:
-DPU of 1.96Β’ was 3% below our fcst of 2.02Β’.
-Negative variance came at the top-line (REV & NPI) from Capital Tower (13%
below fcst).
-Capital Tower’s occupancy declined QoQ to 90% from 100% following Cisco’s
departure.
-Overall occupancy declined QoQ to 95.3% from 97.2%.
-Average portfolio rent increased QoQ to SGD7.83/sq ft from SGD7.64/sq ft.
-More than half of the leases expiring in 2013 have been renewed.
-Gearing remained low at 30.4%.
-Book value was SGD1.64 at the end of March 2013.

*Sabana Shari’ah Compliant REIT (SSREIT): 1QFY NPI S$20.3m w/ gross rev S$21.5m, distributable income +7.1% to S$15.5m, DPU of 2.41cpu, annualizing yield of 7%.

*Far East Orchard (FEOR): Enters hospitality management JV with Australia’s Toga Group for a consideration of A$225m.

*Keppel Land (KPLD): Won the bid for 99-yr leasehold Kim Tian residential site in Tiong Bahru w/ a bid of S$550.28m or S$1162psf ppr. This was 7.2% higher than the next highest bid of S$1,084psf ppr by a partnership involving Far East SOHO Pte Ltd, Far East Orchard Limited and Sekisui House. For the Kim Tian plot, property consultants had predicted bids of about S$850-950psf ppr when it was launched in late-Feb. Market watchers’ estimates of KPLD’s breakeven cost range from S$1,660-$1,800psf, with average selling price of around S$2,000psf.

*SingTel(ST): Optus wins 5-yr Suretek Contract & looks to future partnership.

*Wilmar(WIL): Snr trading manager ‘Ang Kok Min’ tendered resignation after the insider trading fine.

*(SGX) names Jenny Chiam as new securities head & will join on July 1.

Market Wrap by Decoder – 19 Apr 13

β€’ SG – Govt announced that they are not planning for any more prop cooling measures for now since β€œprices are moving in the right direction.”
β€’ CN – Speculation is rife that China will soon widen the RMB trading band after the Centre Bank deputy governor signaled that such a move will come in the near future. This could also help in RMB appreciation and to fight inflation should that happen.

β€’ Estimated that 15% of the gold miners are making losses with gold trading @ current px.
β€’ IMF/World Bank (today) and G20 Finance Ministers (from yesterday) meeting are expected to create some volatility in the markets.
β€’ Apple continue to show weakness (-2.7%) on demand concerns on its product.
β€’ US stocks stayed above water briefly before heading south for the rest of the session. Jobless claims numbers missed by a slight margin while corporate earnings were mixed. Microsoft provided some support while IBM/MS/Ebay/Google dragged the markets lower. No significant macros from the US tonight so would expect trading to be subdued. Would expect markets to trade with a downside bias today given the spike in VIX and weak sentiment.

Morning Wrap by Broker – 18 Apr 13

Baltic Dry: 885 +0.57% Gold: 1377.55 -0.20% Palm Crude: 2275 -1.13%
VIX: 16.51 +18.27% WTI Crude: 86.15 -0.61% USD/SGD: 1.2358 -0.09%
────────────────────────────────────────
Trading Halt: Ezion(EZI.SP)

*KepLand(KPLD) 1Q13 #s: NP of S$96.6m came above Berg est. of S$82.6m although -31.9%YoY due to a 57% fall in profit from property trading to S$56.9m on account of lower contribution from Reflections @ Keppel Bay. REV +21.6%YoY to S$207m. KPLD to maintain focus on the 2 core mkts of Singapore & China, & strengthen its mkt position in Indonesia & Vietnam.

*Mapletree Logistics (MLT SP): 4QFY13 DPU was 1.73cpu, 12% lower than Daiwa’s forecast as rev & NPI were broadly in line (within 1% of our forecasts).

*AIMS AMP (AAREIT SP): Trading halt lifted. Private placement of new units @ S$1.6/share, near upper end of range S$1.575-1.625, & raised about S$110m.
Placement was 3.5x subscribed. StandChart, Macquarie & Religare joint book runners.

*Cambridge REIT (CREIT): 1QFY13 DPU 1.234cpu as rev +1%YoY to S$24.8m. Mgt said it may may divest 3 properties which are non-core, limited potential for asset enhancement

*Mapletree GC (MAGIC): CBRE becamed a substantial shareholder with 5.06% stake after they bought 5.6m shares in open mkt.
*SembIndus(SCI) signed 25-yr power purchase agreement for its 1,320 MW power plant in India.

*Keppel T&T(KPTT) 1Q13 #s: NP S$15m +4.2%YoY mainly due to higher revenue generated from their 2 core businesses: Logistics & Data centres.

*Courts Asia(COURTS) proposed establishment of S$500m multi-curncy debt issuance program: DBS, HSBC as joint arrangers.

Market Wrap by Decoder – 18 Apr 13

β€’ CN – China’s railway and telecommunication sectors may cheer the government’s clear timetable to include the industries in a value added tax (VAT) trial which will likely to take place at year end or early next year. Firms will switch from paying tax on revenue to paying VAT, and likely to boost domestic consumption.
β€’ Wanda Grp in negotiation to acquire Intime’s Equity (1833HK) interest from Chairman on the headlines = UNTRUE. 1833 HK’s CFO just said that they have no plans to sell their 31 outlets to Wanda. Stock on trading halt now.

β€’ Apple stocks fell > 5% with 3x avg vol (below $400) as the shipment of iPad mini is expected to drop 20-30% QoQ.
β€’ US stocks fell across the board and gave up all the gains from yesterday on the back of global slowdown concerns, renewed weakness in commodities and weaker Q1 corporate earnings. (PIMCO) Bill Gross’s comment on twitter also added on to the selling pressure, he said β€œMonday is not a one-off” and neither is β€œWed a two-off” and believes that the long due correct is underway. DAX free fall over 2 % under 10 mins yesterday as a 4B futures seller hit the market. Credit rating downgrades of Germany/France and a missile hitting Israel mostly to blame for the weakness. Asia markets are set to track weakness in overnight/euro zone markets to trade lower for today and any attempts to recover lost grounds might be futile.

Morning Wrap by Broker – 17 Apr 13

DOW+1.43%, SPX+1.08%, NDX+1.5%, OIL+0.5%, GOLD+1.36%

The FSSTI opened weaker yesterday, but managed to recover to close mildly +ve. US overnite saw a bounce with commodities and Gold rebounding slightly. Economic data solid with Industrial Production at +0.4% in March vs +0.2% exp. Today we can expect some support out here with index to trade back to 3300 levels.

* SGX: 3Q NPAT +26%yoy to $97.7m, it’s strongest quarter since the March quarter of 2008. Operating rev however came in slightly lower than exp with revenues from derivatives missing the most.

* M1: 1Q NPAT +1.8% to $41m due to lower operating expenses. Handset sales fell, but mobile service revenue held up.

* KPLD: Sells 30% stake in Sherwood Dev to China Vanke for $135.5m. KPLD and Vanke will undertake a condominium development in Tanah Merah as part of a strategic partnership that will see both companies jointly develop properties in Singapore and China.

* GLP: JREIT reported its 2Q earnings that was slightly better than consensus. Margins looking firm and a good read thru for GLP’s Japan portfolio which currently accounts for ~50% of NAV.

* FCT: 2Q distributable income of $23.5m was inline with exp. Occupancy firmer at 98.2%. Rental reversions strong at 10.2% YoY which is a +ve read through for CT results this Friday.