Singapore shares ended higher in tandem with gains in Asia Friday, as investors cheered measures announced by euro-zone leaders to address persistent worries about the region's debt crisis.
The measures, which were unveiled after a late night meeting in Brussels Thursday, include allowing direct recapitalization of the region's banks, and open access to the region's rescue fund to countries not already part of the bailout program.
The 30-share Straits Times Index ended 1.1%, or 31.63 points, higher at 2,878.45 after the news, extending its rally into a third straight day. But the index closed well off its intraday high of 2897.96. The STI closed up 1.8% for the week, but ended the second quarter down 4.4%.
While "the fact that [euro-zone leaders] can actually get their act together" is positive, the question is "how long does the euphoria last?" said Selena Ling, head of treasury research at OCBC. "It's one step to get an agreement; it's more steps to actual implementation." Nonetheless, the latest European Union summit could still prove to be a sea change as the proposals on the table, such as for banking, are more far-reaching than previous summits, Ms. Ling said.
"I haven't seen any final decision or outcome," said Emil Wolter, head of Asian equity strategy at Macquarie. "We've had about 19 summits in the last two years. The net impact is quite modest...I'd be hesitant to take a strong view that this is the one that's going to turn the tide."
Volume was higher at 1.62 billion shares compared to 1.4 billion shares on Thursday, while gainers eclipsed decliners 292 to 80.
Property developers were among the best performers in the broad-based rally, in which all but one STI-component ended higher. City Developments leapt 3.5% to a near two-month high at 11.20 Singapore dollars, while rival CapitaLand pushed 2.3% higher to S$2.70. Shopping mall developer CapitaMalls Asia meanwhile rose 1.6% to S$1.565.
The risk rally also lifted counters sensitive to economic cycles. Commodity trader Noble Group rose 1.8% to S$1.115, while container shipper Neptune Orient Lines gained 1.8% to S$1.105. Palm oil producer Golden Agri-Resources ended up 1.5% at S$0.670.
Banks too made headway, led by United Overseas Bank's 1.4% rise to S$18.66. Oversea-Chinese Banking Corp. gained 1% to S$8.79, while DBS Group ended up 0.2% at S$13.87.
Just to share.
Saturday, June 30, 2012
Saturday, June 23, 2012
Market Summary 23th June 2012
Singapore shares ended weaker Friday, tracking a regional slump as slowing global growth triggered sharp price declines in commodities and industrial materials.
The 30-share Straits Times Index edged down 0.1%, or 2.06 points, to 2,828.09 to extend Thursday's 0.9% slide. After the index plunged by as much as 1.1% in early trading, it recouped most of the losses late in the session as U.S. stock futures ticked higher. But analysts say market sentiment will remain cautious given uncertainty surrounding the global economy. The STI slipped nearly 2% week-on-week.
"We see little chance that a unified voice will be heard out of Europe anytime soon," OCBC said in a note. "Plenty of reasons to stay cautious for now, even if markets have been signaling lesser downside risks in recent sessions." "Defensive yield plays may dominate the local bourse for now, although the recent volatility may prompt [the] bulk of investors to remain on the sidelines before deciding to buy in again," the bank said. OCBC added, a clean break of psychological support at 2,800 would pave the way for further downside, with 2,770 likely the next support.
Volume was at 1.16 billion shares compared with 1.21 billion shares traded Thursday. Decliners shaded gainers 173 to 143.
Rig builders handed back more of their recent gains amid falling oil prices, with Sembcorp Marine--the biggest loser on the STI--ending 2.2% lower at S$4.54, and Keppel Corp. falling 1.1% to S$10.10.
Property developers also featured prominently in the index's decline. CapitaLand dropped 1.5% to S$2.64, while rival City Developments surrendered 0.5% to end at S$10.66.
Banks and commodity counters put up a mixed showing. DBS dropped 0.7% to S$13.66 and Oversea-Chinese Banking Corp. retreated 0.8% to S$8.71, while United Overseas Bank gained 0.8% to close at S$18.25.
The 30-share Straits Times Index edged down 0.1%, or 2.06 points, to 2,828.09 to extend Thursday's 0.9% slide. After the index plunged by as much as 1.1% in early trading, it recouped most of the losses late in the session as U.S. stock futures ticked higher. But analysts say market sentiment will remain cautious given uncertainty surrounding the global economy. The STI slipped nearly 2% week-on-week.
"We see little chance that a unified voice will be heard out of Europe anytime soon," OCBC said in a note. "Plenty of reasons to stay cautious for now, even if markets have been signaling lesser downside risks in recent sessions." "Defensive yield plays may dominate the local bourse for now, although the recent volatility may prompt [the] bulk of investors to remain on the sidelines before deciding to buy in again," the bank said. OCBC added, a clean break of psychological support at 2,800 would pave the way for further downside, with 2,770 likely the next support.
Volume was at 1.16 billion shares compared with 1.21 billion shares traded Thursday. Decliners shaded gainers 173 to 143.
Rig builders handed back more of their recent gains amid falling oil prices, with Sembcorp Marine--the biggest loser on the STI--ending 2.2% lower at S$4.54, and Keppel Corp. falling 1.1% to S$10.10.
Property developers also featured prominently in the index's decline. CapitaLand dropped 1.5% to S$2.64, while rival City Developments surrendered 0.5% to end at S$10.66.
Banks and commodity counters put up a mixed showing. DBS dropped 0.7% to S$13.66 and Oversea-Chinese Banking Corp. retreated 0.8% to S$8.71, while United Overseas Bank gained 0.8% to close at S$18.25.
Wilmar International slipped 0.6% to S$3.62, but peer Olam International rose 1.6% to S$1.885, while Noble Group ended flat at S$1.12.
Just to share.
Greece election excited shares market in early past week. The excitement being digested and now everybody eyes on slowing global growth. The market sentiment is moving too fast for investor to catch with, stand aside and watch is ideal for investor; such highly volatile condition suitable for speculator only. Investor, stay calm and watch.
Tuesday, June 19, 2012
First Ship Lease Trust
UOBKayhian on 14 June 2012
Investment Highlights
· Vessels redeployed. First Ship Lease Trust (FSL) has secured three-year time charters withPetrobras for the FSL Hamburg and Singapore, while the FSL New York, London and Tokyo will be redeployed in the Nordic Siva pool by 1H12. These vessels were redeployed after the previous lessees Groda Shipping & Transportation and PT Berlian Laju Tanker defaulted on charterpayments.
· Renegotiated contract. FSL also renegotiated the charter rates for two product tankers leased to a wholly-owned subsidiary of TORM A/S (TORM). The adjusted charter rates will be based on variable rates that TORM achieves in the market, which are significantly lower than the original bareboat charter rates. FSL will also be allocated equity in TORM in exchange for the rate concessions.
· No near-term plans to expand or dispose fleet. In light of the tough financing environment and depressed vessel prices, FSL does not have any plans to expand or dispose off its vessel fleet in the near term.
Our View
· Risk of further defaults. Although FSL has entered into fixed, long-term bare-boat charters with its customers, the group faces the risks of further defaults or contract renegotiations in a prolonged shipping downturn as most of the previously contracted charter rates are significantly above marketrates.
· Risk of declining asset prices. FSL’s debt covenants require the group to maintain a security-to-loan ratio of more than 125%. Currently, the security-to-loan ratio stands at 130%. As the value of the loan security is based on vessel prices, FSL may breach its loan covenants if vessel prices fall further.
· Cut distributions. Given the challenging operating environment, FSL aims to shore up its balance sheet and preserve capital. As a result, the group has cut 1QFY12 distribution by about 90% yoy to 0.1 US cents. In our view, distributions are likely to remain at this level until the balance sheetimproves.
Valuation
· Trading at significantly lower yield. FSL is trading at a gross yield of 2.9%, significantly lower than Rickmers Maritime’s 9.6%. Based on P/B metric, FSL’s P/B of 0.3x is comparable to Rickmers Maritime’s.
Investment Highlights
· Vessels redeployed. First Ship Lease Trust (FSL) has secured three-year time charters withPetrobras for the FSL Hamburg and Singapore, while the FSL New York, London and Tokyo will be redeployed in the Nordic Siva pool by 1H12. These vessels were redeployed after the previous lessees Groda Shipping & Transportation and PT Berlian Laju Tanker defaulted on charterpayments.
· Renegotiated contract. FSL also renegotiated the charter rates for two product tankers leased to a wholly-owned subsidiary of TORM A/S (TORM). The adjusted charter rates will be based on variable rates that TORM achieves in the market, which are significantly lower than the original bareboat charter rates. FSL will also be allocated equity in TORM in exchange for the rate concessions.
· No near-term plans to expand or dispose fleet. In light of the tough financing environment and depressed vessel prices, FSL does not have any plans to expand or dispose off its vessel fleet in the near term.
Our View
· Risk of further defaults. Although FSL has entered into fixed, long-term bare-boat charters with its customers, the group faces the risks of further defaults or contract renegotiations in a prolonged shipping downturn as most of the previously contracted charter rates are significantly above marketrates.
· Risk of declining asset prices. FSL’s debt covenants require the group to maintain a security-to-loan ratio of more than 125%. Currently, the security-to-loan ratio stands at 130%. As the value of the loan security is based on vessel prices, FSL may breach its loan covenants if vessel prices fall further.
· Cut distributions. Given the challenging operating environment, FSL aims to shore up its balance sheet and preserve capital. As a result, the group has cut 1QFY12 distribution by about 90% yoy to 0.1 US cents. In our view, distributions are likely to remain at this level until the balance sheetimproves.
Valuation
· Trading at significantly lower yield. FSL is trading at a gross yield of 2.9%, significantly lower than Rickmers Maritime’s 9.6%. Based on P/B metric, FSL’s P/B of 0.3x is comparable to Rickmers Maritime’s.
Just to share.
This is a good report explaining current FSL Trust condition. Shipping trust is not favorable at current market condition. It is advisable to transfer your money to REIT if can.
Saturday, June 16, 2012
Market Summary 16th June 2012
Singapore shares ended higher Friday as investors warmed to signs that major central banks may be planning steps to shore up global liquidity, despite cautiousness over key Greek elections this weekend.
The 30-share Straits Times Index rose 1.3%, or 37.19 points, to 2,811.00, making most of its gains in the afternoon, as European stock markets opened higher, giving a fillip to local stocks. For the week, the index finished 2.7% up.
Investors are hoping that the U.S. Federal Reserve will lower interest rates following signs of weakness in the labor market there. Meanwhile, expectations for coordinated central-bank action to address the European banking crisis were also stoked by a Reuters report Thursday that said monetary authorities are preparing to provide liquidity if the weekend Greek election leads to market chaos.
"People are expecting the central banks to do something," in the event of market turmoil, said Ng Kian Teck, an analyst at SIAS Research. "With European markets opening higher, it helps to bring local markets to a higher level." However, Avis Wang, premium client manager at IG Markets Singapore, said that "today's gains were fuelled by talk of G20 central banks drawing up an action plan for a Greek fallout rather than a genuine shift in sentiment."
CIMB technical analysis tipped near-term resistance for the STI at the 2,800-2,811 levels, with 2,832 as another potential hurdle. "The positive crossover of its (moving average convergence/divergence indicator) could signal that the rebound could continue for a while longer," the house said.
Volume was relatively light, but slightly higher at 1.2 billion shares from 1.02 billion shares Thursday. Gainers outpaced decliners 254 to 119.
Banks advanced amid the upbeat mood, led by Oversea-Chinese Banking Corp.'s 3% climb to S$8.70. DBS Group Holdings moved 1.8% higher to S$13.52, while United Overseas Bank gained 1.6% to close at S$18.00.
Property developers also performed well as investors expect them to benefit from any liquidity boost by central banks. CapitaLand rose 1.9% to S$2.67, its shopping mall unit CapitaMalls Asia was up 2.5% at S$1.46, while peer City Developments added 1.9% to S$10.41.
Other cyclical stocks also gained ground, including commodity counters. Wilmar International rose 2.4% to S$3.49, while Noble Group ended 1.8% higher at S$1.14. Olam International added 1.4% to S$1.825.
Just to share.
Singapore shares market was boosted due to the news major central bank may release more money to rescue global liquidity. This good news can continue its effect if Greece election delivers good result. Greece election acts as a resistant point to global market now. In others words, their election result can slowing down or boosting the global market. I hope they can settle down to create another wave of bulliness to shares market. Lets us pray for them for coming Sunday!
The 30-share Straits Times Index rose 1.3%, or 37.19 points, to 2,811.00, making most of its gains in the afternoon, as European stock markets opened higher, giving a fillip to local stocks. For the week, the index finished 2.7% up.
Investors are hoping that the U.S. Federal Reserve will lower interest rates following signs of weakness in the labor market there. Meanwhile, expectations for coordinated central-bank action to address the European banking crisis were also stoked by a Reuters report Thursday that said monetary authorities are preparing to provide liquidity if the weekend Greek election leads to market chaos.
"People are expecting the central banks to do something," in the event of market turmoil, said Ng Kian Teck, an analyst at SIAS Research. "With European markets opening higher, it helps to bring local markets to a higher level." However, Avis Wang, premium client manager at IG Markets Singapore, said that "today's gains were fuelled by talk of G20 central banks drawing up an action plan for a Greek fallout rather than a genuine shift in sentiment."
CIMB technical analysis tipped near-term resistance for the STI at the 2,800-2,811 levels, with 2,832 as another potential hurdle. "The positive crossover of its (moving average convergence/divergence indicator) could signal that the rebound could continue for a while longer," the house said.
Volume was relatively light, but slightly higher at 1.2 billion shares from 1.02 billion shares Thursday. Gainers outpaced decliners 254 to 119.
Banks advanced amid the upbeat mood, led by Oversea-Chinese Banking Corp.'s 3% climb to S$8.70. DBS Group Holdings moved 1.8% higher to S$13.52, while United Overseas Bank gained 1.6% to close at S$18.00.
Property developers also performed well as investors expect them to benefit from any liquidity boost by central banks. CapitaLand rose 1.9% to S$2.67, its shopping mall unit CapitaMalls Asia was up 2.5% at S$1.46, while peer City Developments added 1.9% to S$10.41.
Other cyclical stocks also gained ground, including commodity counters. Wilmar International rose 2.4% to S$3.49, while Noble Group ended 1.8% higher at S$1.14. Olam International added 1.4% to S$1.825.
Just to share.
Singapore shares market was boosted due to the news major central bank may release more money to rescue global liquidity. This good news can continue its effect if Greece election delivers good result. Greece election acts as a resistant point to global market now. In others words, their election result can slowing down or boosting the global market. I hope they can settle down to create another wave of bulliness to shares market. Lets us pray for them for coming Sunday!
Saturday, June 9, 2012
Market Summary 9th June 2012
Singapore shares ended lower Friday, tracking declines in most regional markets after the U.S. Federal Reserve failed to commit to further monetary easing, while China's interest-rate cut heightened concerns that Asia's biggest economy is heading for a hard landing.
Singapore's benchmark Straits Times Index closed 0.8%, or 21.37 points, lower at 2,737.89. For the week, the index was down 0.3%. "The STI ends the week as it started it, in the red and with plenty of downside risk ahead of a crucial Greek election," said Avis Wang at IG Markets Singapore. Apart from disappointment over Bernanke's comments, he said that "there also seems to be a degree of caution ahead of a swathe of economic data due out of China this weekend," he added.
Losers across the market outnumbered gainers 235 to 87 and volumes were lower at 918 million shares compared with 993 million Thursday. Among blue chips, losses were widespread with only four members of the STI closing in positive territory.
Banks were lower across the board, with United Overseas Bank losing 0.7% to 17.32 Singapore dollars, DBS Group slipping 1.3% to S$13.05 and Oversea-Chinese Banking Corp. losing 0.2% to S$8.25.
Supply-chain manager Olam International was a notable decliner, shedding 2.7% to close at S$1.625, after announcing late Thursday that it has acquired Nigerian dairy-goods company Kayass Enterprises SA for about US$66.5 million. Analysts, however, said the acquisition, which is part of Olam's ongoing M&A strategy, was small and therefore not a major factor for the share price. The losses were instead likely a result of profit taking after the stock had risen 9.2% over the previous three sessions, following a fall of around 30% in May. An analyst at CIMB said that the company was "milking the Nigerian market" and strengthening its packaged-food business with the acquisition, which it called "a good fit."
Casino group Genting Singapore ended 4.3% lower at S$1.435, after it confirmed it had taken a stake in Australian-listed casino company Echo Entertainment, without revealing the size of the stake. Confirmation that Genting has a stake in the Australian company has sparked speculation that it could be set to launch a takeover bid. Such a move would, however, set up a battle with Echo's largest shareholder and rival casino company Crown Ltd., which has a 10% interest in Echo.
Just to Share.
Singapore's benchmark Straits Times Index closed 0.8%, or 21.37 points, lower at 2,737.89. For the week, the index was down 0.3%. "The STI ends the week as it started it, in the red and with plenty of downside risk ahead of a crucial Greek election," said Avis Wang at IG Markets Singapore. Apart from disappointment over Bernanke's comments, he said that "there also seems to be a degree of caution ahead of a swathe of economic data due out of China this weekend," he added.
Losers across the market outnumbered gainers 235 to 87 and volumes were lower at 918 million shares compared with 993 million Thursday. Among blue chips, losses were widespread with only four members of the STI closing in positive territory.
Banks were lower across the board, with United Overseas Bank losing 0.7% to 17.32 Singapore dollars, DBS Group slipping 1.3% to S$13.05 and Oversea-Chinese Banking Corp. losing 0.2% to S$8.25.
Supply-chain manager Olam International was a notable decliner, shedding 2.7% to close at S$1.625, after announcing late Thursday that it has acquired Nigerian dairy-goods company Kayass Enterprises SA for about US$66.5 million. Analysts, however, said the acquisition, which is part of Olam's ongoing M&A strategy, was small and therefore not a major factor for the share price. The losses were instead likely a result of profit taking after the stock had risen 9.2% over the previous three sessions, following a fall of around 30% in May. An analyst at CIMB said that the company was "milking the Nigerian market" and strengthening its packaged-food business with the acquisition, which it called "a good fit."
Casino group Genting Singapore ended 4.3% lower at S$1.435, after it confirmed it had taken a stake in Australian-listed casino company Echo Entertainment, without revealing the size of the stake. Confirmation that Genting has a stake in the Australian company has sparked speculation that it could be set to launch a takeover bid. Such a move would, however, set up a battle with Echo's largest shareholder and rival casino company Crown Ltd., which has a 10% interest in Echo.
Just to Share.
The shares market looks declining now, those major factors affecting the shares market looks unpleasant to me. Firstly, the China's industrial output grew at a slower than expected 9.6% year on year in May, a better result then previous month but still near three year lows. It is lower then forecasts 9.9% in a Dow Jones Newswires poll of 14 economists according to news.
Secondly, USA rises their concern toward EURO Zone Crisis. Their action created anxiousness toward investor. Buying confidence remains low as investors will choose to observe and stay away from current market situation until any fruitful or positive news to regain the rally.
Thirdly, EURO Debt Crisis remains unsolved even the EURO Zone members are trying so hard to resolve the issue. EURO zone is busy grappling with Spain's banking crisis and the Greek election gets closer. It is a tough battle and USA rising their concern toward this. It can be a positive result for USA involvement but it also can be a negative impact if USA choose to stay aside from this. At the moment, USA just rising their concern as worrying EURO Debt Crisis may affect their economy at long term but have not come to the conclusion for lending their hand or not? USA is the world largest economy, their involvement definitely will spark the situation.
The shares market remains uncertain, more rooms for downturn are sight for forthcoming few weeks. It is advisable to observe and monitor rather then take action now.
Saturday, June 2, 2012
Market Summary at 2 Jun 2012
Singapore’s shares closed lower on Friday, capping a volatile week with losses as global markets were roiled by bad news arising from the political and economic turmoil in Europe and data pointing to weakness in the Chinese economy.
The 30-share Straits Times Index closed 1%, or 26.83 points, lower at 2,745.71 after touching as low as 2,737.99 intraday. The benchmark's total loss this week was also 1.0%. Volume was lower at 1.10 billion shares compared with 1.52 billion on Thursday and losers outnumbered gainers 218 to 126.
However, the markets appeared to have taken weaker-than-expected purchasing managers' index data in China in their stride as some players took disappointing manufacturing data as a signal that Beijing may pursue further economic stimulus measures. "Chinese PMI did little to steady the nerves of traders today with the number undershooting the forecast, and risk assets initially reacted accordingly by slipping further into the red. However, the low PMI fuelled new stimulus hopes, which saw markets shift off the lows," Tim Waterer, CMC Markets' senior trader in Sydney, wrote in a note.
Europe's mixed opening didn't spur much buying interest, with players waiting on the sidelines before key U.S. nonfarm payrolls data later. "Traders are searching far and wide for signs of optimism, but the economic data continues to paint a gloomy picture, hence the departure en masse from risk assets in May appears not to have run its course yet," Waterer said.
Commodity suppliers, with a large exposure to China, were among the worst hit on Friday. Olam International was the biggest loser, shedding 3.3% to close at S$1.61. Noble Group closed 2.2% lower at S$1.09 while Wilmar International gave up 1.6% to close at S$3.60.
Real estate companies too were hurt by the weak economic sentiment, especially in China. CapitaLand closed 1.6% lower at S$2.50, City Developments shed 1.7% to close at S$9.78 and CapitaMalls Asia was down 1.8% at S$1.385.
Global Logistic Properties, however, rose 0.5% to close at S$2.09 on value buying after the company's shares were battered in the two previous sessions.
The 30-share Straits Times Index closed 1%, or 26.83 points, lower at 2,745.71 after touching as low as 2,737.99 intraday. The benchmark's total loss this week was also 1.0%. Volume was lower at 1.10 billion shares compared with 1.52 billion on Thursday and losers outnumbered gainers 218 to 126.
However, the markets appeared to have taken weaker-than-expected purchasing managers' index data in China in their stride as some players took disappointing manufacturing data as a signal that Beijing may pursue further economic stimulus measures. "Chinese PMI did little to steady the nerves of traders today with the number undershooting the forecast, and risk assets initially reacted accordingly by slipping further into the red. However, the low PMI fuelled new stimulus hopes, which saw markets shift off the lows," Tim Waterer, CMC Markets' senior trader in Sydney, wrote in a note.
Europe's mixed opening didn't spur much buying interest, with players waiting on the sidelines before key U.S. nonfarm payrolls data later. "Traders are searching far and wide for signs of optimism, but the economic data continues to paint a gloomy picture, hence the departure en masse from risk assets in May appears not to have run its course yet," Waterer said.
Commodity suppliers, with a large exposure to China, were among the worst hit on Friday. Olam International was the biggest loser, shedding 3.3% to close at S$1.61. Noble Group closed 2.2% lower at S$1.09 while Wilmar International gave up 1.6% to close at S$3.60.
Real estate companies too were hurt by the weak economic sentiment, especially in China. CapitaLand closed 1.6% lower at S$2.50, City Developments shed 1.7% to close at S$9.78 and CapitaMalls Asia was down 1.8% at S$1.385.
Global Logistic Properties, however, rose 0.5% to close at S$2.09 on value buying after the company's shares were battered in the two previous sessions.
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