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ASEAN STOCK WATCH Asean Affairs   1  April  2011

Asean Market News

Shayne Heffernan

Asean Markets will consolidate today.

After a good week of gains Asean Markets will have a slow start to Q2. Overnight in the USA;

The DJIA fell 30.88 pts, or 0.25 percent to 12,319.73.

The Standard & Poor's 500 dipped 2.43 pts, or 0.18 percent, to 1,325.83.

The NASDAQ edged up 4.28 pts, or 0.15 percent, to 2,781.07.

On the Month, the Dow was + 0.76%, the S&P dipped 0.1 percent and NAS was minus 0.04 percent.

Thailand Stocks are set for a lower open today after a late fall in the USA.

Shayne Heffernan best buys are:

Varopakorn Public Company Limited manufactures and distributes semi-finished aluminum products in Thailand. The company offers aluminum roll and sheet products.

It offers finstocks and pre-coated finstocks for refrigerators and air-conditioners; capstocks, an aluminum sheet for the fabrication of pilier-proff closures for energy drinks or electrolyte beverages and liquid medicines; foils, which are used as raw materials in packaging and construction industries; and aluminum sheets and coils for the production of various products, such as satellite dishes, traffic signs, plate eyelets, television antennas, and rolled bonds.

United Securities Public Company Limited engages in securities business in Thailand. The company offers securities brokerage, securities dealing, investment advisory, and underwriting services. It also provides private fund management, Internet trading, and derivatives trading services.

In Bangkok yesterday The Stock Exchange of Thailand main index went down 3.19 points or 0.30 percent to close at 1,047.48 points at the end of trading session on Thursday afternoon. The trade value was 33.02 billion baht.

Top five most active values were

SCB closed at 108.00 baht, unchanged BANPU closed at 762.00 baht, down 2.00 baht (0.26 percent)

PTT closed at 354.00 baht, up 2.00 baht (0.57 percent)

IVL closed at 52.50 baht, up 0.50 baht (0.96 percent)

BBL closed at 172.00 baht, down 5.00 baht (2.82 percent)

The Singapore dollar hit new highs today and is well on the way to reach parity by 2015, as more and more investors seek a safe haven from the ever falling USD many have turned to Asian investments giving most regional currencies a strong currencies a lift.

The U.S. dollar fell below the support level at S$1.2600, hitting a new low of S$1.2592 on the day.

Singapore equities have had a solid week and their outlook is one of the most positive in the world.

The Singapore Dollar will Reach Parity in 2015 according to Shayne Heffernan.

The Singapore dollar exchange rate with respect to the US dollar has mostly fluctuated between SGD$ 1.5 and SGD$ 1.8 per 1 US$ since 2003.

The Growth:

1.7422 (2003)

1.6902 (2004)

1.6644 (2005)

1.5889 (2006)

1.507 (2007)

1.4377 (2008)

1.279 (2010)

Singapore dollar began weakening in early 2009 due to a decline in regional prices and reduced demand for market assets, and its value floated around the SGD1.5/USD mark for the initial months of 2009.

However the path is clear, as Singapore develops the Singapore Dollar will see parity.

As at Dec 2010

In US$ million unless otherwise stated.

I. Official reserve assets and other foreign currency assets*


A. Official reserve assets 225,754.2
(1) Foreign currency reserves (in convertible foreign currencies) 222,694.2
(a) securities 188,581.2
of which: issuer headquartered in reporting country but located abroad 0.0
(b) total currency and deposits with 34,113.0
(ii) banks headquartered in the reporting country 7,555.9
of which: located in the reporting country 0.0
(iii) banks headquartered outside the reporting country 26,355.0
(2) IMF reserve position 327.0
(3) SDRs 1,537.5
(4) Gold (including gold deposits and, if appropriate, gold swapped) 211.7
- volume in fine troy ounces 4,096,439


Kuala Lumpur will open lower tomorrow the market seen a good rally this week traders will take profits following a mixed night in USA trading.

Shayne Heffernan Best Buys are

Yee Lee

Yee Lee has seen a strong run forward since 2009, based on the low P/E this stock should rally back toward $1.50 according to Shayne Heffernan.

The stock has fallen away of late and is great buying at these levels.

There is a legal matter regarding a property rented by one of the companies subsidiaries that should be ignored by investors. I have spoken with Yap Sin Kheong the Yee Lee Group Financial Controller, and the both the company and subsidiary are in sound financial condition and the current litigation.

“First of all, I would like to clarify that the court has not issued the winding up order. The plaintiff lawyer has filed a petition winding up to the court and now is pending for hearing. We’ve made an announcement to Bursa Malaysia on 10/03/11 on this matter.

We refused to pay the plaintiff is due to dispute of the handling back of the rented premises to the plaintiff and not because we are unable to pay the amount. We assured you that this subsidiary is financially sound and we are in the midst of settling this matter” Yap Sin Kheong said today.

This is an International Award Winning Company.

Palm oil and the other oils produced by Yee Lee have seen strong demand and strong price increases.

Diversification in to the other retail and industrial products has set a secure future.

Mitrajaya Holdings Bhd has been upgraded to a Strong Buy by Shayne Heffernan with a 2012 price target of 4.10MYR.

Mitrajaya Holdings Berhad is a Malaysia-based investment holdings company. The principal activities of the subsidiary companies are investment holdings, civil engineering, building and road construction works, as well as property development and property management.

In addition, through its subsidiaries, it is also involved in renovations work, supply of construction materials, manufacturing and selling premix and renting of plant and machinery.

Other activities include the provision of photorefractive keratectomy and related services, golf management, maintenance of properties and quarry operations.

The Company has 13 subsidiaries, including Pemninaan Mitrajaya Sdn. Bhd., Daya Asfalt Sdn. Bhd., Dutawani Sdn. Bhd., Mitrajaya Homes Sdn. Bhd., Leo Vista Sdn. Bhd., Awana Prisma Sdn. Bhd. and Kina-Bijak Sdn. Bhd., among others.

In Kuala Lumpur Yesterday the index gained 13.50 points or 0.88% to 1545.


The winners were GENTING (+42 sen to RM11.04), TENAGA (+19 sen to RM6.25), IOICORP (+7 sen to RM5.76), PETDAG (+90 sen to RM16.50) and GENM (+8 sen to RM3.68).

The losers were AXIATA (-1 sen to RM4.79), HLFG (-5 sen to RM9.00) and BAT (-2 sen to RM48.06). Market breadth was negative with 261 gainers as compared to 297 losers.

The Finance Index increased 0.53 percent to 14004.71 points, the Properties Index up 0.09 percent to 1095.24 points and the Plantation Index rose 0.63 percent to 7809.13 points. The market traded within a range of 10.13 points between an intra-day high of 1545.13 and a low of 1535.00 during the session.

Trading volume decreased to 1951.28 mil shares worth RM2566.72 mil as compared to Wednesday's 2338.48 mil shares worth RM2481.65 mil.

Philippines Stocks should hold the 4000 level today but may not rally after choppy trading in the USA overnight.

Shayne Heffernan best buys are:


Jollibee Foods Corp. has ramped up its global expansion with the acquisition of a controlling stake in Chow Fun Holdings, operator of Asian restaurants in the US.

In a disclosure to the Philippine Stock Exchange, JFC announced that it had acquired from Aspen Partners LLC additional shares in Chow Fun, bringing up its equity to 80.55 percent from 12 percent.

The additional investment, equivalent to 2,400 shares in Chow Fund, cost JFC $3.24 million. JFC, through an overseas unit, first invested in Chow Fund in 2008, when it purchased a 12 percent stake for $950,000.

Banco de Oro Unibank, Inc., the country's largest bank, with over P1 trillion in assets, reported a net income of P8.8 billion in 2010, 46% higher than in 2009.

"Continuing reforms have sustained the banking system's soundness and stability, enabling it to perform a catalytic role for a more dynamic and participatory development. Banks balance sheets have been strengthening. NPL (nonperforming loan) ratios have been below the pre-1997 crisis level of 4 percent," central bank Governor Amando M. Tetangco, Jr. said during his speech during a Management Association of the Philippines (MAP) meeting last Tuesday.

Banco de Oro Uni Bank Inc. (BDO) offers an array of products and services that include retail banking, lending (corporate, commercial, consumer and SME), treasury, trust, credit cards, corporate cash management and remittances. Through its subsidiaries, the Bank offers leasing and financing, investment banking, private banking, bancassurance, insurance brokerage and stock brokerage services.

As of Dec. 31, 2010, it had 726 operating branches and more than 1,400 automated teller machines (ATMs) nationwide. Some of the Bank’s subsidiaries are BDO Private Bank Inc., BDO Strategic Holdings, Inc, BDO Elite Savings Bank, Inc, BDO Insurance Brokers, Inc., PCIB Europe, S.P.A., BDO Remittance (USA), Inc. and Express Padala Frankfurt GmbH.

In Manila yesterday the Philippine Stock Exchange index added 31.40 points or 0.78 percent to close at 4,055.14.

The Winners were Aboitiz Equity Ventures, Cebu Air, Aboitiz Power, AGI, First Gen, Ayala Land, Meralco, Ayala Corp., SM Investments, EDC, Megaworld, Metrobank, FPH, Banco de Oro, BPI and Atlas Mining.

The financial, mining/oil, industrial and property sectors were all up by over 1 percent.

Value turnover amounted to P6.3 billion. There were about three stocks that advanced for every single issuer that declined.

PLDT, which announced on Tuesday a deal to take over majority of Gokongwei-led Digitel, pulled back by 1.36 percent to P2,324 per share on Thursday. Some investors pocketed gains from PLDT after the 15.72 percent rally in the previous session.

Globe Telecom continued to rise, gaining by 5.82 percent to P891 per share, as PLDT's challenger sees some windfall from the PLDT-Digitel deal.

Digitel slipped by 1.28 percent to P1.54 per share, or lower than the P1.60 price at which PLDT will offer to buy out minority shareholders under the tender offer triggered by its takeover deal.

Jakarta Stocks will consolidate gains today however the Coal sector will see a strong rally based on profit reports from Bumi Resouces and Adaro Energy.

Shayne Heffernan best buys today are:


Flag carrier Garuda Indonesia has set aside at least $250 million for capital expenditure as part of its “quantum leap” expansion program, the airline’s directors said on Thursday.

“For Garuda alone, it is about $250 million. If we add the subsidiaries, the total will be around $320 to $330 million,” finance director Elisa Lumbantoruan said.

Emirsyah Satar, Garuda’s president director, said the money would go toward buying 11 new aircraft, a flight simulator and training programs for cabin crews and engineers.

“For procuring the new aircraft alone, Garuda needs about $125 million to $130 million for the security deposit and pre-delivery payment,” Elisa said.

He added that the airline only spent about $100 million in capital expenditure in 2010.

Garuda’s shares fell 3.6 percent to Rp 530 in Thursday’s trading. The shares have fallen 29 percent since the airline embarked on its initial public offering in mid-February and now represent real value.

Adaro Energy

The firm's fourth quarter net profit was 0.5 trillion rupiah ($57.3 million), compared with 0.87 trillion rupiah in the same period a year earlier, Reuters calculations based on published full-year and nine month results showed.

Unprecedented heavy rainfall affected operations last year but the firm sees a better performance ahead as the outlook for coal remains robust, said Garibaldi Thohir, Adaro's chief executive officer, in a statement.

Adaro, which has a market capitalisation of $8.4 billion, posted full year 2010 net profit of 2.2 trillion rupiah.

That compared with a net profit of 4.4 trillion rupiah in the year-ago period, and analysts' forecasts for 2010 net profit of 2.6 trillion rupiah, according to Thomson Reuters' Starmine SmartEstimate.

Adaro Energy will recover from the weather event and will post strong results for 2011.

In Jakarta Yesterday the JCI gained 37.70 points, or 1.04 percent, to close at 3,678.67. About 4.4 billion shares worth Rp 7.3 trillion ($840 million). Gainers topped decliners 119 to 93.

The rupiah strengthened to trade at 8,705 against the US dollar as the market closed on Thursday, from 8,715 on Wednesday.

Shayne Heffernan's February 7, 2011, strong buy on Indonesian Banks delivered big results today (see original)

Bank Rakyat Indonesia, the nation’s second-biggest lender, gained 6.5 percent to Rp 5,750. It said its 2010 net income jumped 58 percent to Rp 11.5 trillion.

Bank Mandiri, Indonesia’s biggest bank by assets, rose 4.6 percent to Rp 6,800 after it announced its 2010 net income rose 29 percent to Rp 9.22 trillion.

Bank Central Asia, the nation’s largest lender by market value, gained 1.5 percent to Rp 6,950. It said its 2010 net income increased 25 percent to Rp 8.52 trillion. Bank Tabungan Negara, a state mortgage lender, rose 4.4 percent to Rp 1,680. Its 2010 net income rose 87 percent to Rp 916 billion.

Shayne Heffernan strong buy Bumi Resources said Thursday its 2010 net profit rose 63 percent on the back of higher sales.

When the strong buy was issued Shayne Heffernan noted on March 23, 2010 , Bumi is positioned to capitalize on the soaring energy demands of Asian powerhouses India and China.

Bumi Resources, Asia's biggest exporter of coal used in power stations said profit climbed to $311.18 million with sales 19 percent stronger at $4.37 billion thanks to higher coal prices.

Higher dividends and gains from derivatives transactions boosted its bottom line, it said.

Bumi's share price closed flat at 3,350 rupiah on Thursday.

Meanwhile another Shayne Heffernan strong buy Adaro Energy also a major Indonesian coal producer -- reported a net profit fall of 42 percent to $243 million in 2010, due in part to unseasonal rainfall which affected operations.

Adaro president director Garibaldi Thohir said the outlook for Indonesia's coal industry was "more robust than ever."




Shayne Heffernan brings more than 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over US$500m and 1 that reach a peak market cap of US$15billion. He has managed and overseen start-ups in Mining, Shipping, Technology and Financial Services.


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This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More


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