Local News by Broker – 26 Nov 13

{SI} MSCI rebaln effective after close today. Emerging mkts most interesting this qtr, with 32 adds & 24 deletes. INDO only major ASEAN bleeds, ISAT.ij the standout. SPORE MSCI COUNTRY SMALL CAP

INDEX Changes:-

Adds: APTT KRIS SBREIT MAGIC GSH IHC OUEHT REXI ROWS SINX SPHREIT UENV CHEN
Deletes: RHP

MSCI GLOBAL STANDARD INDEX: Add SPH 0.19x ADV, NOBL 0.1x ADV

*CITY DEV has been approached by parties for sale of HK unit City e-Solutions (557 HK halted). CIT holds 52.52% of the company.

*ST ENG: US$350m contract win from Crowley to build 2 vessles, delivery 2H17

*COSCO secured deals worth >US$400m to build two semi-sub accommodation vessels for Oslo listed Prosafe SE. +VE

*AIMS AMP AAREIT.sp buys stake in Sydney building, Optus Centre, for A$184.4m (S$211.4m).Deal is the Reit’s first Aust investment.DPU accretive by 5.7% Acqn subject to s/holders & Aust regulatory approval

*YONGNAM clinched record S$168m subcontract. Orderbook swells to S$397m.

*REX Intl REXI.sp starts drilling first well in Oman

*SPORE EXCHANGE forms direct-listing framework with China Securities Regulatory Commission where Chinese cos. planning to list in SG will file applications to island’s exchange and Chinese regulator

*SHORTs: Highest shorts as a % of turnover yday:CIT (78%), ART (57%), SGL (47%)

*CHINA ENV (CENV SP): Responds to SGX queries on financial statements

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Morning Wrap by Decoder – 26 Dec 13

• MSCI rebalancing @ close today.

• HK/CN – Financial reforms signal rise of private banks. Private investors will be allowed to increase their stakes in certain rural banks and agricultural cooperatives, Yan Qingmin, vice chairman of the China Banking Regulatory Commission, said Monday. In addition, they are being encouraged to establish privately owned banks. As present, private capital owns about 42% of Chinese shareholding banks and 54% of urban commercial banks compared with 11% and 19% in 2002 respectively. The banking regulator will continue to encourage private capital to take part in financial reform while allowing private banks, he said. The move is in line with reforms announced by the Communist Party central committee at the end of its recent plenum. The banking regulator is likely to announce a deposit protection scheme in the first quarter of next year before launching the concrete regulatory rules for private investors to set up their own banks, observers said. – http://www.ejinsight.com

• Markets were treading above the unchanged level for most of the session till the final hour’s sell down. Macros were disappointing as pending home sales (MoM/YoY) fell 0.6%/2.2% Vs cons of +1.0%/-1.0% respectively. Dallas Fed Mfg activities also came in lower @ 1.9% Vs 5% estimated. On the flip side, Iran has agreed to curb some of its nuclear activities in return for about $7bil in sanction relief, after days of intense talks in Geneva. The deal was said to last for 6 months till the next agreement. Sweet crude dipped 1.8% on the news before recovering to close just 0.8% lower. As a result, airlines stocks were mostly higher as investors participate in the weakness of crude oil. The Dollar however, continue to buck its uptrend, hitting a 6 months high Vs the Jap Yen while US treasuries posted modest gains.