Market Wrap by Broker – 1 Nov 13

Baltic Dry: 1504 +1.35% Gold: 1324.02 -0.90% Palm Crude: 2593 +1.81%
VIX: 13.75 +0.73% WTI Crude: 96.33 -0.05% USD/SGD: 1.2418 -0.28%
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*(OCBC) 3Q13 #s: NP S$759m -59%YoY due to absence of 1-off divestment gains a yr ago, but was higher than berg est. of S$662m. NIM fell QoQ to 1.63% vs 1.62% (1.75% a yr ago) on re-pricing on S’pore home loans. However, core NP (excl. divestment gains) +5%YoY as strong asset growth & improved fee income offset lower NIM & trading revenues. NII +4% while non-interest income +3%.

*(DBS) 3Q13 #s: NP S$862m +1%YoY, higher than berg est. of S$839m as they improved their income (NII +6%YoY: trade loans, corporate borrowing & secured consumer loans increased.) But NIM fell to 1.6% from 1.67% a yr ago from lower loan spreads & yields on investment securities.

*Mapletree GCCT(MAGIC) 1H FY 2013/2014#: announces maiden DPU of 3.193c, an increase of 10.4% over their fcst DPU of 2.882c payable on Nov 29. NPI +11.3%, Gross REV +10.6% on strong rental reversions in Festival Walk(HK) & Gateway Plaza(China).

*SMRT Corp(MRT) 2Q14 #s: NP S$14.3m -57%YoY came below berg est. of S$21.5m, despite REV +5.3%YoY as higher staff & depreciation expenses, as well as repair & maintenance costs dragged the #s. Interim div of 1cps declared.

*(OSIM) 3Q13 #s: NP S$23m +16%YoY on REV +7%YoY driven by higher consumer demand for massagers & nutritional supplements; Operations in North Asia contributed the lion’s shr to rev. Interim div of 1cps, unchanged vs a yr ago.
OSIM was 89% shorted out of total shs traded yday.

*Soilbuild Cnstr(SOIL) 3Q13 #s: NP S$6.32m +13%YoY on the back of healthy progress in its construction projects, while REV +44%YoY.

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Morning Wrap by Decoder – 1 Nov 13

• Thai – Bill to provide amnesty to people convicted of crimes linked to political clashes since a 2006 coup was passed 310-0 in a parliamentary session that closed @ 4.25am, House speaker told the reporters. Opposition are hitting the streets as they claim that the law would annul legal cases against former premier Thaksin Shinawatra. The bill will now be debated in the Senate and the Democrat party has said it will petition the Constitutional Court to assess the legality of the legislation if it is to passed by the Senate.

• Msia – UMWOG MK making its debut today. Stock opened @ 3 RM a piece, a 7% up Vs the 2.80 IPO. Price seems to be supported since only ~1/3 of the shares offered are eligible for trading today. The rest were taken up by the cornerstone investors which have a locked up period of 6 months.

• HK/CN – Reform of old, powerful state behemoths set. The State-owned Assets Supervision and Administration Commission (SASAC) will propose a much awaited reform of state-owned enterprises (SOEs) after the 3rd plenary session of the Communist Party of China. The proposal will redefine roles and functions in the wider operations of SOEs and strengthen oversight of their local offices. In addition, the government wants SOEs to be more competitive in a freer market. The planned reform comes as China’s steel/coal/construction materials/chemical/shipbuilding and heavy machinery industries suffer from overcapacity and low profits. – http://www.ejinsight.com

• US stocks pulled back a 2nd day on increased volatility and a higher T/O due to the month end. Upbeat Chicago PMI of 65.9 Vs 55 cons was looked upon with skepticism as observers are expecting the number to revert back to the 50s level if history repeats itself. Weekly unemployment claims was a non-event, coming in @ 340K, inline with expectations. T/O was heavy, +16% Vs 2 weeks average on month end. The Euro dipped 1.1% after disappointing unemployment #s (+12.2% Vs +12%) and a 4 yrs low CPI would favor a rate cut in the near future? Commodities were basically lower, with gold falling 1.6% and extended losses this week after the recent rally. As we approach the end of 2013, we are likely to see a drop in the fund activities going forward as many would have already settled on the last day of trading.