Market Wrap by Decoder – 27 Nov 13

• KR –

o Korea manufacturer’s confidence for Dec fell to 78 from 83 in Nov.
o The government may ask the BOK to lower interest rate as part of the measures to boost the local economy. This is due to the low inflation rate, @ 1.5% Vs the government’s target of 2.5%. A broker blamed the high property prices/unique housing rental system that sucked up all the excess cash, leaving Koreans having little left to spur the economy.

• HK/CN – Foreign banks play waiting game amid opening moves. China will lower the barrier of entry for foreign financial services providers, said Zhou XiaoChun on Tuesday. He mentioned that he will allow more foreigners to enter the financial services market and ensure a level playing field for them. The move is aimed at fostering market competition to improve the quality of domestic players. A trial program will also be implemented in the SH FTZ, he said. Although Zhou wants to step up efforts to open the financial services sector, most foreign banks and insurers don’t really believe that they will be able to enjoy the same benefits as the local players, at least in the short term, said observers. –

• Stocks climbed steadily throughout the day only to be sold down in the final mins of trading due to the semi annual rebalancing. T/O was just 5% above 2 weeks average amid the rebalancing ahead of the thanks giving holidays in the US. On the macro side, consumer confidence missed estimates (71.2) and fell to just 70.4 in Nov while the new building permits surged 6.2% MoM in Oct (highest lvl in 5 yrs). In addition, US home prices logged a small gain of 0.7% in Sept, smallest monthly gain since Feb. On the commodities side, oil fell for the 3rd day, ahead of projections that a government report tomorrow might show that US crude inventories rose for a 10th week while gold got sold off slightly after previous day’s gain. Some interesting flows might continue this morning after yesterday’s MSCI rebalancing but other than that, T/O are expected to be subdued today.


Morning Wrap by broker – 27 Nov 13

Baltic Dry: 1512 +1.34% Gold: 1242.75 -0.73% Palm Crude: 2622 -0.30%
VIX: 12.81 +0.16% WTI Crude: 93.53 -0.16% USD/SGD: 1.2513 +0.06%
*Wilmar(WIL) buys Vopak Terminals Pasir Gudang [VTPG] for RM45m (US$14m); Main activity of VTPG is the provision of tank facilities for storage, unloading, loading & drumming of bulk liquid chemicals.

*(GLP) leases out 140K sq ft @ GLP Park Suzhou to Geodis Group; Incl. this, Geodis leases total of 495k sq ft with GLP across 3 cities in China & Brazil.

*(DBS) prices 1st Basel 3 issue @ 4.7% @ lower end of the tender range of bet 4.7% to 4.9% & met S$800m target. Perpetuals were offered in exchange via a tender for an outstanding S$1.7b pref shr issue, helping DBS transit to the new Basel III regulatory capital rules, under which the existing pref shs no longer fully qualify as Tier 1 capital of DBS Bank. Separately, Credit Suisse
now among final bidders for SocGen PB, according to Reuters, joining DBS & ABN in the bidding war.

*(CAPL) reported interest in Australand(ALZ.AU) now reduced to 39.1% & sees booking loss of S$149.4m.

*IHH Healthcare(IHH) 3Q13 #s: NP RM117m +61%YoY (below Berg est. of RM163.5m) on REV RM1.67b +12.8%YoY (below Berg est. of RM1.798b); No div declared.

*Vallianz(VALZ) awarded $150m chartering contacts in Mideast, boosting order book 45% to record.

*United Envirotech(UENV) syas Shangzhi Tot project was terminated.