Singapore shares were little changed for a second straight day on Friday amid mixed fortunes of their regional peers as investors digested a mixed bag of earnings reports and economic data.
The 30-share Straits Times Index closed 0.11 points higher at 2,981.58. The benchmark started on a positive note before slipping into the red and finally recouping its losses in the closing minutes of trade as investors were likely unsure of the direction the global economy and markets would take and traders were unwilling to build fresh positions. On Friday, 3.34 billion shares changed hands, compared with 3.58 billion on Thursday and losers outnumbered gainers 310 to 121. The benchmark index ended the week with a 0.4% loss. Analysts said that the index is likely to remain confined in a narrow range next week as interest may be damped by a holiday that will cut trading days to four. Banks were among prominent gainers on Friday after DBS Group Holdings, southeast Asia's biggest bank by assets surprised markets with a record quarterly net profit. DBS gained 2.0% to close at S$14.00 after it posted a 16% on-year rise in first-quarter net profit at S$933 million, much higher than the average estimate of S$770 million from five analysts polled by Dow Jones Newswires. United Overseas Bank topped the gainers on the STI to close 2.3% higher at S$19.00 while Oversea-Chinese Banking Corp. was flat at S$8.95. Real estate firms and shares of some companies that are sensitive to the global risk environment were among the losers on Friday. City Developments was the worst performer, closing the day with a 1.6% loss at S$10.28 as the uncertain global economic environment is likely to keep buyers nervous. CapitaMalls Asia shed 1.3% to close at S$1.535 while CapitaMall Trust was down 1.1% at S$1.82. Singapore Telecommunications was down 1.3% to S$3.10 at close after the biggest local company by market capitalization announced that it sold its 3.98% stake in Taiwan's Far EasTone Telecommunications, raising approximately NT$8.03 billion (S$339 million).
Just to share
Saturday, April 28, 2012
Wednesday, April 25, 2012
FSL Trust "weak" against business risk : S&P
I am kinda agree to this article about FSL Trust. We cannot deny FSL Trust is at the worst now;
in fact the whole shipping line is not doing well, but i can see that shipping sector is getting better compare to previous year.
Last year shipping sector almost at the "Freeze" condition. This year those ship owners starting to convert their ships for others purpose. You can conclude that their business is not good so they rather convert their stand by condition ships and you also have to admit that they are preparing themselves for the future market! At least they willing to fork out the money for investment rather then keep their money and just watch at the market. This is a positive sign. Economic recovery always depend on investment.
Slow moving shipping line has largely affected ship builders. Ship builders are still surviving due to old orders. The new coming orders are not much. It is not a good sign but they are surviving better then last year. Ship owners start to trigger their investment toward their assets by conversion. You can notice this from the news released like Keppel Shipyard secures SBM's FPSO conversion order and so on.
The wheel for shipping & marine finally start turning, this seems to inform us that the worst going to end soon. No conclusion can make at the moment but it is worth to keep an eye on this sector already. Anyway shipping & Marine line is kinda slow re-act sector. We can take our sweet time to monitor it.
in fact the whole shipping line is not doing well, but i can see that shipping sector is getting better compare to previous year.
Last year shipping sector almost at the "Freeze" condition. This year those ship owners starting to convert their ships for others purpose. You can conclude that their business is not good so they rather convert their stand by condition ships and you also have to admit that they are preparing themselves for the future market! At least they willing to fork out the money for investment rather then keep their money and just watch at the market. This is a positive sign. Economic recovery always depend on investment.
Slow moving shipping line has largely affected ship builders. Ship builders are still surviving due to old orders. The new coming orders are not much. It is not a good sign but they are surviving better then last year. Ship owners start to trigger their investment toward their assets by conversion. You can notice this from the news released like Keppel Shipyard secures SBM's FPSO conversion order and so on.
The wheel for shipping & marine finally start turning, this seems to inform us that the worst going to end soon. No conclusion can make at the moment but it is worth to keep an eye on this sector already. Anyway shipping & Marine line is kinda slow re-act sector. We can take our sweet time to monitor it.
Sunday, April 22, 2012
Market Summary 22 Apr 2012
Singapore shares closed lower Friday, tracking declines across most of the region after some weak U.S. economic data cast some more doubt over the strength of the recovery in the world's largest economy.
Stocks on Wall Street declined overnight following data showing that the number of Americans filing for unemployment benefits was higher than expected, a sign of lost momentum in the labor market. "In this climate, bad news trumps good news, especially when it is weaker data coming out of the world's biggest economy," said Justin Harper, market strategist at IG Markets Singapore.
Most blue chips in trade-dependent Singapore fell and the benchmark Straits Times Index closed 0.5%, or 13.73 points, lower at 2,994.48. For the week, the index inched up 0.2%. Technical analysts at CIMB noted that the index has been trading sideways in a wide range since February and is currently just above its key moving averages. Analysts at the bank said that the STI's 2,946 support level is worth watching. It said if the level fails to hold, chances of a bearish move rise.
Across the broader market however, gainers outnumbered losers 235 to 160 and traded volume more than doubled to 4.21 billion shares compared with 2.0 billion Thursday. The value of shares remained roughly flat at S$1.0 billion, indicating small-cap stocks were one of the main focuses of trade.
Among small-cap names that saw large volume trade, property developer HLH Group rose 14.3% to S$0.03 with over 389 million shares changing hands. The company Thursday responded to a disclosure request from the Singapore Exchange, saying that it was satisfied with its system of internal audit controls.
Companies in Singapore are currently releasing earnings for the January-March period, and last night blue chip conglomerate Keppel Corp. reported that its first-quarter net profit more than doubled from a year earlier to S$750.8 million. Keppel's stock ended down 1.4% at S$11.39, however, as the lumpy result was mainly due to accounting changes which affect earnings recognition from its property sales, while the company guided that such profits were unlikely to occur in the coming quarters.
Analysts said that the results, when stripping out the property gains, were largely in line with expectations and that Keppel's core offshore and marine business, which recorded a 9% gain in profits to S$235.3 million, continued to face strong prospects.
Just to share.
Stocks on Wall Street declined overnight following data showing that the number of Americans filing for unemployment benefits was higher than expected, a sign of lost momentum in the labor market. "In this climate, bad news trumps good news, especially when it is weaker data coming out of the world's biggest economy," said Justin Harper, market strategist at IG Markets Singapore.
Most blue chips in trade-dependent Singapore fell and the benchmark Straits Times Index closed 0.5%, or 13.73 points, lower at 2,994.48. For the week, the index inched up 0.2%. Technical analysts at CIMB noted that the index has been trading sideways in a wide range since February and is currently just above its key moving averages. Analysts at the bank said that the STI's 2,946 support level is worth watching. It said if the level fails to hold, chances of a bearish move rise.
Across the broader market however, gainers outnumbered losers 235 to 160 and traded volume more than doubled to 4.21 billion shares compared with 2.0 billion Thursday. The value of shares remained roughly flat at S$1.0 billion, indicating small-cap stocks were one of the main focuses of trade.
Among small-cap names that saw large volume trade, property developer HLH Group rose 14.3% to S$0.03 with over 389 million shares changing hands. The company Thursday responded to a disclosure request from the Singapore Exchange, saying that it was satisfied with its system of internal audit controls.
Companies in Singapore are currently releasing earnings for the January-March period, and last night blue chip conglomerate Keppel Corp. reported that its first-quarter net profit more than doubled from a year earlier to S$750.8 million. Keppel's stock ended down 1.4% at S$11.39, however, as the lumpy result was mainly due to accounting changes which affect earnings recognition from its property sales, while the company guided that such profits were unlikely to occur in the coming quarters.
Analysts said that the results, when stripping out the property gains, were largely in line with expectations and that Keppel's core offshore and marine business, which recorded a 9% gain in profits to S$235.3 million, continued to face strong prospects.
Just to share.
Saturday, April 21, 2012
Mapletree Logistics Trust to focus on overseas markets for growth
I am sharing an article from channelnewsasia about the property market at Singapore. Oversea acquisition is good but it will largely increase your management cost and control. Can MLT management handles all this? So far, i have confident toward their management, have a joyful read.:)
SINGAPORE: Mapletree Logistics Trust will continue to cast its sights overseas for acquisitional growth in the coming financial year.
The trust indicated its plans to grow its portfolio in existing markets such as South Korea and Malaysia, and is exploring opportunities in new markets like Indonesia, Thailand and Australia.
With about 25 per cent market share of the logistics assets in Singapore, Mapletree Logistics Trust believes the domestic market is fairly mature with limited opportunities for a player of its size.
Instead, it is actively pursuing acquisition opportunities in emerging markets like Malaysia, Indonesia and Thailand.
In Northeast Asia, the trust plans to shift its focus from Japan - where it has made several acquisitions over the past year - to South Korea.
The trust has also confirmed that it is looking for the right deal in Australia to come by.
Richard Lai, CEO, Mapletree Logistics Trust, said: "Australia is like Japan. A lot of the ownership tends to be institutionalised, and the ability to have scale makes a lot of sense. In the long run, we still think that a lot of the growth opportunities will come from the emerging markets, but it takes time to build scale in the emerging markets."
Most analysts are positive on the prospects of the logistics sector, with many giving Mapletree Logistics Trust a "buy" or "outperform" rating.
Tan Siew Ling, analyst, CIMB Research, said: "Within the industrials space, we are quite positive on logistics demand, especially in Asia. MLT is actually our top pick within the sector as well.
"We think that there is still growth potential - we think that yields in excess of seven per cent is still quite attractive. Stability is there, because their weighted average lease expiry is about six years."
Mapletree Logistics Trust's latest full year results saw its net property income grow by 12 per cent from last year to S$61.4 million.
SINGAPORE: Mapletree Logistics Trust will continue to cast its sights overseas for acquisitional growth in the coming financial year.
The trust indicated its plans to grow its portfolio in existing markets such as South Korea and Malaysia, and is exploring opportunities in new markets like Indonesia, Thailand and Australia.
With about 25 per cent market share of the logistics assets in Singapore, Mapletree Logistics Trust believes the domestic market is fairly mature with limited opportunities for a player of its size.
Instead, it is actively pursuing acquisition opportunities in emerging markets like Malaysia, Indonesia and Thailand.
In Northeast Asia, the trust plans to shift its focus from Japan - where it has made several acquisitions over the past year - to South Korea.
The trust has also confirmed that it is looking for the right deal in Australia to come by.
Richard Lai, CEO, Mapletree Logistics Trust, said: "Australia is like Japan. A lot of the ownership tends to be institutionalised, and the ability to have scale makes a lot of sense. In the long run, we still think that a lot of the growth opportunities will come from the emerging markets, but it takes time to build scale in the emerging markets."
Most analysts are positive on the prospects of the logistics sector, with many giving Mapletree Logistics Trust a "buy" or "outperform" rating.
Tan Siew Ling, analyst, CIMB Research, said: "Within the industrials space, we are quite positive on logistics demand, especially in Asia. MLT is actually our top pick within the sector as well.
"We think that there is still growth potential - we think that yields in excess of seven per cent is still quite attractive. Stability is there, because their weighted average lease expiry is about six years."
Mapletree Logistics Trust's latest full year results saw its net property income grow by 12 per cent from last year to S$61.4 million.
Tuesday, April 17, 2012
Industrial REITs averaged a 12.8% return!
I found a very good source from SGX website about Industrial REITs. It gives a detailed explaination and discussion toward industrial REITs. For those interested on REITs should read it. If you looking for the full article may go to this link to retrieve. http://sias.org.sg/files/SGXMarketUpdates/03042012-Industrial-REITs-averaged12.8return-in-March-Qtr.html
It gives an idea to reader how the REITs work. Some of the worth to read information is, its explaining the REITs raise capital to purchase real estate assets and generate income as return to those invested them. Then the REITs have to distribute at least 90% of their cash flow income to unit holders in return for tax concessions from the Singapore Government. Actually most of the REITs will do this, some even distribute 100% of their income to shareholder e.g. Cache Logistics Trust for the first few years.
Besides it also educating the reader what is gearing ratios and how it relates to the REITs. Please remember that higher gearing ratio, the REITs will more sensitive to interest rate changes. Base on the table provided by SGX, we can see that Mapletree Logistics Trust has highest gearing ratio therefore you need to watch out this stock when high interest rate comes.
Honestly i like MLT pretty much as it has higher growth potential then others because its not just investing Singapore but oversea as well. Somemore it is under mapletree group who has better bargain power toward the bank regarding the interest rate. Hence i not so worry about him.
If you say Cambridge and Sabana REITS, then they are my concerns. Why? It is because they are new to the market and have lower market capitalisation hence they are harder to get a better interest rate. They are among the REITs need to control their gearing ratio very well otherwise it is not a wise choice to go for them although they are providing better dividend yield now. At the moment i am comfortable with their gearing ratio therefore i am investing Cambridge and evaluating Sabana for my friend. They are my watch list but if their gearing ratio runs higher, i will cut them off from my watch list.
It gives an idea to reader how the REITs work. Some of the worth to read information is, its explaining the REITs raise capital to purchase real estate assets and generate income as return to those invested them. Then the REITs have to distribute at least 90% of their cash flow income to unit holders in return for tax concessions from the Singapore Government. Actually most of the REITs will do this, some even distribute 100% of their income to shareholder e.g. Cache Logistics Trust for the first few years.
Besides it also educating the reader what is gearing ratios and how it relates to the REITs. Please remember that higher gearing ratio, the REITs will more sensitive to interest rate changes. Base on the table provided by SGX, we can see that Mapletree Logistics Trust has highest gearing ratio therefore you need to watch out this stock when high interest rate comes.
Honestly i like MLT pretty much as it has higher growth potential then others because its not just investing Singapore but oversea as well. Somemore it is under mapletree group who has better bargain power toward the bank regarding the interest rate. Hence i not so worry about him.
If you say Cambridge and Sabana REITS, then they are my concerns. Why? It is because they are new to the market and have lower market capitalisation hence they are harder to get a better interest rate. They are among the REITs need to control their gearing ratio very well otherwise it is not a wise choice to go for them although they are providing better dividend yield now. At the moment i am comfortable with their gearing ratio therefore i am investing Cambridge and evaluating Sabana for my friend. They are my watch list but if their gearing ratio runs higher, i will cut them off from my watch list.
| Industrial REITs | Assets | Gearing Ratio |
| AIMS AMP CAPITAL INDUSTRIAL | Singapore |
31.2%
|
| ASCENDAS REAL ESTATE INV TRT | Singapore |
34.2%
|
| CACHE LOGISTICS TRUST | Singapore & Overseas |
29.1%
|
| CAMBRIDGE INDUSTRIAL TRUST | Singapore |
32.2%
|
| MAPLETREE INDUSTRIAL TRUST | Singapore |
36.1%
|
| MAPLETREE LOGISTICS TRUST | Singapore & Overseas |
41.3%
|
| SABANA SHARIAH COMP IND REIT | Singapore |
33.3%
|
Friday, April 13, 2012
Market Summary - 13th April 2012
Singapore shares ended higher Friday, tracking gains in regional peers, after the city-state reported stronger-than-expected economic growth for the first quarter.
Investors initially cheered stronger U.S. stocks and the domestic gross domestic product reading, though the optimism faded later in the session amid weak opens on European bourses, weighed by China's reporting of slower-than-expected growth in the first quarter.
The 30-share Straits Times Index closed up 0.3%, or 9.68 points, at 2,987.82, having risen as much as 0.9% earlier in the day. The index was little changed for the full week, adding just 1.62 points.
"The market is waiting on earnings," said Lee Kok Joo, head of research at Phillip Securities, adding U.S. companies have just started reporting results. "On the Asian side, we're taking our cue from U.S. earnings." CIMB said "if the bulls can muster one last push, then a breakout above (the 3,035 resistance level) could send (the index) higher towards 3,060-3,095 next." The house tipped initial support for the STI at 2,974. In the broader market, volume rose to 4.53 billion shares from 3.3 billion on Thursday, while gainers outnumbered decliners 230 to 169.
Rigbuilders led gains on the benchmark index, with Sembcorp Marine adding 2.7% to S$5.30. Peer Keppel Corp. advanced 2% to S$11.46 after announcing after the market closed Thursday that its unit secured a preliminary rig-building order worth about US$4.12 billion from Sete Brasil Participacoes SA, a drilling-rig holding company partly owned by Brazilian oil giant Petroleo Brasileiro SA, or Petrobras.
Keppel has capacity to undertake more projects without overextending its resources as some rigs will be delivered this year, DMG & Partners said in a note, adding "we believe Keppel is well-positioned to win more jobs from Petrobras." The house added it expects Keppel to win another S$5 billion of orders in 2012 amid strong shipyard tendering activities.
Banks also did well, with United Overseas Bank rising 1% to S$18.50, and DBS Group Holdings advancing 0.5% to S$13.48. But Oversea-Chinese Banking Corp. ended unchanged at S$8.83.
Several commodity counters ended lower, including palm oil producer Golden Agri-Resources, which fell 2% to S$0.755. Noble Group closed 1.5% lower at S$1.31, while Wilmar International retreated 0.6% to S$4.82.
Just to share the summary sent by my broker to me. I doubt that the palm oil related shares ended lower are due to the newly listed IPO - Bumitama? Anyway i will conclude this week as no break through but the STI index remains sideway.
Investors initially cheered stronger U.S. stocks and the domestic gross domestic product reading, though the optimism faded later in the session amid weak opens on European bourses, weighed by China's reporting of slower-than-expected growth in the first quarter.
The 30-share Straits Times Index closed up 0.3%, or 9.68 points, at 2,987.82, having risen as much as 0.9% earlier in the day. The index was little changed for the full week, adding just 1.62 points.
"The market is waiting on earnings," said Lee Kok Joo, head of research at Phillip Securities, adding U.S. companies have just started reporting results. "On the Asian side, we're taking our cue from U.S. earnings." CIMB said "if the bulls can muster one last push, then a breakout above (the 3,035 resistance level) could send (the index) higher towards 3,060-3,095 next." The house tipped initial support for the STI at 2,974. In the broader market, volume rose to 4.53 billion shares from 3.3 billion on Thursday, while gainers outnumbered decliners 230 to 169.
Rigbuilders led gains on the benchmark index, with Sembcorp Marine adding 2.7% to S$5.30. Peer Keppel Corp. advanced 2% to S$11.46 after announcing after the market closed Thursday that its unit secured a preliminary rig-building order worth about US$4.12 billion from Sete Brasil Participacoes SA, a drilling-rig holding company partly owned by Brazilian oil giant Petroleo Brasileiro SA, or Petrobras.
Keppel has capacity to undertake more projects without overextending its resources as some rigs will be delivered this year, DMG & Partners said in a note, adding "we believe Keppel is well-positioned to win more jobs from Petrobras." The house added it expects Keppel to win another S$5 billion of orders in 2012 amid strong shipyard tendering activities.
Banks also did well, with United Overseas Bank rising 1% to S$18.50, and DBS Group Holdings advancing 0.5% to S$13.48. But Oversea-Chinese Banking Corp. ended unchanged at S$8.83.
Several commodity counters ended lower, including palm oil producer Golden Agri-Resources, which fell 2% to S$0.755. Noble Group closed 1.5% lower at S$1.31, while Wilmar International retreated 0.6% to S$4.82.
Just to share the summary sent by my broker to me. I doubt that the palm oil related shares ended lower are due to the newly listed IPO - Bumitama? Anyway i will conclude this week as no break through but the STI index remains sideway.
Thursday, April 12, 2012
REITS, shall we buy?
If you are a long term investor, i will encourage you to hunt for a good REITs despite the fact that property market at Singapore is "cold" now. Don't forget, REITs earn their income by leasing. Normally a leasing contract will last for few years, so a temporary "freezing" condition will not cause an impact to their income but only to their shares price. A lower stock price will make their dividend yield higher, so this is not a good chance for a buy call? I am not asking you to enter the market now but at least you can start looking around and do your research now to target your prefer REITs.
In the previous post ==>http://sharesdiscussion.blogspot.com/2012/04/real-estate-investment-activity-down-50.html you can find those factors concluded by channelnewasia as affecting factors to the property market at Singapore. Now i would like to say that those factors bothering Singapore property market are at a short term basic only. If you are a long term investor, it would not cause a concern to you toward the REITs. Please always remember that, REITs is the source for stable income and low volatile price. As we are well aware, stock market is highly volatile in terms of price and risk. It is difficult to find a low volatile stocks, so REITs should be in your portfolio to lower your risks expose to the market. Please looks at the REITs now and i am sure you won't regret on your selection choose.
If you need some data for the REITs, you can leave your comments to me, i will try to help.
In the previous post ==>http://sharesdiscussion.blogspot.com/2012/04/real-estate-investment-activity-down-50.html you can find those factors concluded by channelnewasia as affecting factors to the property market at Singapore. Now i would like to say that those factors bothering Singapore property market are at a short term basic only. If you are a long term investor, it would not cause a concern to you toward the REITs. Please always remember that, REITs is the source for stable income and low volatile price. As we are well aware, stock market is highly volatile in terms of price and risk. It is difficult to find a low volatile stocks, so REITs should be in your portfolio to lower your risks expose to the market. Please looks at the REITs now and i am sure you won't regret on your selection choose.
If you need some data for the REITs, you can leave your comments to me, i will try to help.
Friday, April 6, 2012
Market Summary at 6th April 2012
Singapore shares ended flat Thursday as unsettled investors swung between cheers and jeers on mixed leads from stronger Chinese equities and disappointing results at Spain's bond auctions.
The 30-share Straits Times Index added just 1.16 points to close at 2,986.20 ahead of the Good Friday holiday. The index endured a choppy session, rising by as much as 0.6% after falling some 0.7% earlier. It closed the truncated week 0.8% lower.
Initial setbacks for the STI came after a dismal outcome for Spanish bond auctions Wednesday, which re-ignited concerns about the ability of peripheral European nations to fund debt. But optimism later rubbed off from Chinese investors who welcomed Beijing's move to increase the amount of capital foreign investors can bring into China.
After Wednesday's sell-off, in which the STI dropped 1%, Westpac noted the Federal Open Market Committee minutes have rarely affected the market so strongly, with the Fed normally offering plenty of commentary in the three-week delay between the meeting and the minutes' release.
"This raises the question of whether the market reaction was excessive," Westpac said in a note, adding "it is clear that there is no push for QE3 on current information on projections. But the Fed's forecasts have been wrong before." If U.S. non-farm payrolls data due Friday disappoint high-consensus expectations, as Westpac's model warned, QE3 chatter will likely pick up again, it said.
In the broader market, volume eased slightly to 1.62 billion shares from 1.69 billion shares Wednesday. Gainers shaded decliners 179 to 174.
But the opposite was true on the benchmark index, with 16 decliners to 12 gainers. Heavyweights provided support with Jardine Strategic Holdings rising 3% to US$32.33 and Jardine Cycle & Carriage adding 1.3% to S$48.94.
Container shipper Neptune Orient Lines advanced 1.4% to S$1.43. Credit Suisse said Asian shipping-liners are undervalued after recent general rate increases across all significant trade lanes, tipping NOL as a preferred pick, rating it Outperform with a S$1.85 target.
Rig builders also did well after announcing fresh contracts. Keppel Corp. rose 0.9% to S$11.03, while Sembcorp Marine added 0.4% to S$5.25.
Most property stocks underperformed with Global Logistic Properties down 1.8% at S$2.15 and CapitaLand dropping 1% to S$3.06. City Developments also fell, ending 0.2% lower at S$10.90 while CapitaMalls Asia gave up 0.9% to close at S$1.595. In a note, Citigroup said it raised price targets for Singapore's property developers, but also expects the overhang from policy risks to persist, given macroeconomic factors that have been supportive of buying demand.
Banks also declined, led lower by DBS Group Holdings' 1% fall to S$13.34 as it continued to slide following the announcement of its S$9.1 billion bid to take over Indonesia's Bank Danamon. The lender's shares are now 8% off its 2012 peak, reached in March. Meanwhile, Oversea-Chinese Banking Corp. dropped 0.7% to S$8.82, and United Overseas Bank eased 0.2% to S$18.36.
The 30-share Straits Times Index added just 1.16 points to close at 2,986.20 ahead of the Good Friday holiday. The index endured a choppy session, rising by as much as 0.6% after falling some 0.7% earlier. It closed the truncated week 0.8% lower.
Initial setbacks for the STI came after a dismal outcome for Spanish bond auctions Wednesday, which re-ignited concerns about the ability of peripheral European nations to fund debt. But optimism later rubbed off from Chinese investors who welcomed Beijing's move to increase the amount of capital foreign investors can bring into China.
After Wednesday's sell-off, in which the STI dropped 1%, Westpac noted the Federal Open Market Committee minutes have rarely affected the market so strongly, with the Fed normally offering plenty of commentary in the three-week delay between the meeting and the minutes' release.
"This raises the question of whether the market reaction was excessive," Westpac said in a note, adding "it is clear that there is no push for QE3 on current information on projections. But the Fed's forecasts have been wrong before." If U.S. non-farm payrolls data due Friday disappoint high-consensus expectations, as Westpac's model warned, QE3 chatter will likely pick up again, it said.
In the broader market, volume eased slightly to 1.62 billion shares from 1.69 billion shares Wednesday. Gainers shaded decliners 179 to 174.
But the opposite was true on the benchmark index, with 16 decliners to 12 gainers. Heavyweights provided support with Jardine Strategic Holdings rising 3% to US$32.33 and Jardine Cycle & Carriage adding 1.3% to S$48.94.
Container shipper Neptune Orient Lines advanced 1.4% to S$1.43. Credit Suisse said Asian shipping-liners are undervalued after recent general rate increases across all significant trade lanes, tipping NOL as a preferred pick, rating it Outperform with a S$1.85 target.
Rig builders also did well after announcing fresh contracts. Keppel Corp. rose 0.9% to S$11.03, while Sembcorp Marine added 0.4% to S$5.25.
Most property stocks underperformed with Global Logistic Properties down 1.8% at S$2.15 and CapitaLand dropping 1% to S$3.06. City Developments also fell, ending 0.2% lower at S$10.90 while CapitaMalls Asia gave up 0.9% to close at S$1.595. In a note, Citigroup said it raised price targets for Singapore's property developers, but also expects the overhang from policy risks to persist, given macroeconomic factors that have been supportive of buying demand.
Banks also declined, led lower by DBS Group Holdings' 1% fall to S$13.34 as it continued to slide following the announcement of its S$9.1 billion bid to take over Indonesia's Bank Danamon. The lender's shares are now 8% off its 2012 peak, reached in March. Meanwhile, Oversea-Chinese Banking Corp. dropped 0.7% to S$8.82, and United Overseas Bank eased 0.2% to S$18.36.
Wednesday, April 4, 2012
Real estate investment activity down 50% on-quarter in Q1
Despite the fact that first quarter real estate investment activities damaged heavily by Singapore government control measure, the REIT stocks still outshine others sectors as per my previous sharing. For those haven't view the previous post you can click on this links http://sharesdiscussion.blogspot.com/2012/04/1st-quarter-2012-property-offshore.html
Below article from channelnewsasia describe current property situation well enough. For those interested on REIT Stocks should take a look and digest. I will share my points on next post, stay tune.
Article transferred from channelnewsasia
SINGAPORE: Real estate investment activity in Singapore declined by 50 per cent in the first quarter of this year to S$3.7 billion.
This compared to the previous quarter where investment sales hit S$7.4 billion.
Among the reasons are investors remain mindful of rising business costs, global economic uncertainties and a weaker property market.
This is according to the latest DTZ Research report which highlights real estate investment activity in the first three months of this year.
The report added that the decline was due to a fall in both public and private sector investment sales.
In the public sector, DTZ said the lack of industrial sites launched for sale contributed to a fall in government sales from S$3.0 billion in fourth quarter 2011 to S$2.2 billion in first quarter 2012.
Meanwhile, sales of government land sites for residential development in first quarter 2012 was similar to that in fourth quarter 2011.
Within the private sector, investment deals in all major real estate segments fell, reflecting an anticipated softening of the market, said the report.
DTZ said despite the Additional Buyer's Stamp Duty (ABSD) cooling measures, collective sale sites continue to hit the market.
Six collective sales were concluded in the quarter at below S$200 million each.
The largest en bloc deal was the S$161.1 million sale of Tai Keng Court, transacted at 24 per cent higher than its asking price of S$130 million.
Meanwhile, local investors continue to dominate the investment market, accounting for about 80 per cent of investment deals in first quarter 2012.
The research added that foreign investors, mostly those within Asia, were drawn mainly to the residential sector.
While foreign investors are expected to wait for the right timing and opportunity to enter the market, the low interest-rate environment in Singapore will continue to encourage investment from local investors.
Real estate investment trusts (REITs) continued to be active in the quarter, especially the industrial REITs.
Ascendas REIT acquired four industrial buildings (CINTECH I, II, III, IV) at Science Park which are expected to generate a net property income yield of about 7.3 per cent.
Meanwhile, Cambridge Industrial Trust and Cache Logistics Trust made an acquisition each in first quarter 2012.
Below article from channelnewsasia describe current property situation well enough. For those interested on REIT Stocks should take a look and digest. I will share my points on next post, stay tune.
Article transferred from channelnewsasia
SINGAPORE: Real estate investment activity in Singapore declined by 50 per cent in the first quarter of this year to S$3.7 billion.
This compared to the previous quarter where investment sales hit S$7.4 billion.
Among the reasons are investors remain mindful of rising business costs, global economic uncertainties and a weaker property market.
This is according to the latest DTZ Research report which highlights real estate investment activity in the first three months of this year.
The report added that the decline was due to a fall in both public and private sector investment sales.
In the public sector, DTZ said the lack of industrial sites launched for sale contributed to a fall in government sales from S$3.0 billion in fourth quarter 2011 to S$2.2 billion in first quarter 2012.
Meanwhile, sales of government land sites for residential development in first quarter 2012 was similar to that in fourth quarter 2011.
Within the private sector, investment deals in all major real estate segments fell, reflecting an anticipated softening of the market, said the report.
DTZ said despite the Additional Buyer's Stamp Duty (ABSD) cooling measures, collective sale sites continue to hit the market.
Six collective sales were concluded in the quarter at below S$200 million each.
The largest en bloc deal was the S$161.1 million sale of Tai Keng Court, transacted at 24 per cent higher than its asking price of S$130 million.
Meanwhile, local investors continue to dominate the investment market, accounting for about 80 per cent of investment deals in first quarter 2012.
The research added that foreign investors, mostly those within Asia, were drawn mainly to the residential sector.
While foreign investors are expected to wait for the right timing and opportunity to enter the market, the low interest-rate environment in Singapore will continue to encourage investment from local investors.
Real estate investment trusts (REITs) continued to be active in the quarter, especially the industrial REITs.
Ascendas REIT acquired four industrial buildings (CINTECH I, II, III, IV) at Science Park which are expected to generate a net property income yield of about 7.3 per cent.
Meanwhile, Cambridge Industrial Trust and Cache Logistics Trust made an acquisition each in first quarter 2012.
Sunday, April 1, 2012
1st quarter 2012, Property & Offshore Marine Stocks Outperforming the Broader Market!
I was reading an article from reuters, it mentions that past week (30th March 2012) Singapore shares ended higher on Friday, with the main index clocking gains of around 14 percent for the first quarter, with property and offshore marine stocks outperforming the broader market.
This article delighted me as 90% of my portfolio come from these two sectors. I agree to the statement from the article "Kenneth Ng, CIMB's Singapore head of research, highlighted offshore marine as his top sector pick, due to persistently high oil prices, and also real estate investment trusts because of attractive dividend yields." Offshore marine is recovering, we can detect this from recent annoucement like offshore marine stocks rewarded with contract and so on. All these good sign encourages me to keep my eye on offshore marine stocks because they are relatively low price now. If nothing wrong, they can be a rising stars in near future! If base on risk reward ratio, they are at the condition of lower risk but higher potential for good return!
Singapore Property stocks always my fauvorite especially S-REITs. The stable price and attractive dividend yields make me unable to resist. REITs is a good balance for your investment porfolio because it can reduce the risks you are undertaking due to its defensive nature to stocks market.
If you look for the full article, please go to this links http://www.reuters.com/article/2012/03/30/stocksnews-singapore-close-idUSL3E8EU5D920120330
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