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ASEAN STOCK WATCH Asean Affairs   18  February 2011

Asean Shares are going to add to gains

Shayne Heffernan

Overnight in the USA stocks moved marginally higher on Thursday as investors bought on early dips, keeping indexes near multiyear highs, even as both inflation and weekly jobless claims rose more than expected. In Singapore the STI closed lower on Thursday, with the Index down 11.89 points, or 0.38 percent, at 3,082.83.

Las Vegas Sands NYSE:LVS Marina Bay Sands bosses are already thinking of expanding if given the opportunity.

“We are already running out of meetings, incentives, conventions and exhibitions space,” said Mr. Sheldon Adelson, chairman of parent company Las Vegas Sands.

“I’ve told the government that we need some more land to expand the Mice space…if they want to give me 10 times more land, I won’t turn it down.”

He was speaking on Thursday at a press conference before the grand opening of the integrated resort (IR). It had its soft launch last April.

Las Vegas Sands’ chief operating officer Michael Leven told the media that Singapore will need more hotel rooms to accommodate the 17 million annual visitors it aims to attract by 2015.

“Demand is going to be higher than supply very shortly as the entire hospitality industry is running at over 80 per cent occupancy,” said Mr. Leven, who is eyeing two plots in the Marina Bay area for hospitality developments.

A day before finance minister Tharman Shanmugaratnam presents his Budget, this island nation on Thursday reported Gross Domestic Product (GDP) growth for 2010 at 14.5 per cent, slightly lower than earlier estimates of 14.7 per cent growth, and made an upward adjustment in its inflation outlook.

However, the ministry of trade and industry (MTI) kept the GDP growth forecast for this year unchanged, with between four to six per cent expansion expected during 2011.v “The economy expanded by 14.5 percent in 2010, driven largely by the manufacturing sector. Due to a surge in electronics and biomedical manufacturing output, the manufacturing sector rebounded by 29.7 per cent in 2010, following a 4.2 percent contraction in 2009,” the MTI said in a statement.

The city-state’s financial sector, which had only expanded by 4.3 per- cent in 2009, saw growth of 12.2 percent in 2010, while wholesale and retail trade also posted a strong rebound at 15.1 per cent growth during the period, compared to a contraction of six percent in 2009.

Additionally, tourism-related service sectors were bolstered by strong visitor arrivals, as well as the opening of the Integrated Resorts, the statement added, with the hotels and restaurants sector registering a growth of 8.8 percent during 2010, as against contraction of 1.6 percent in 2009.

For the current year, the global economic recovery, coupled with continuing robust demand from Asian nations, would allow the Singapore economy to grow by between four and six per cent in 2011, the MTI said.

“The steady pace of growth in the advanced economies is expected to lend support to Singapore’s manufacturing activities. In Asia, resilient domestic demand will continue to drive intra-regional trade flows and benefit Singapore’s wholesale trade sector… In addition, domestic factors such as capacity expansion in the electronics and biomedical manufacturing clusters will bolster growth in the manufacturing sector in 2011,” the statement added.

In Early January Shayne Heffernan issued a strong buy on Tiger Airways Singapore Tiger carried 32 percent more passengers in 2010.

Tiger Airways carried 555,000 passengers in December, up from 456,000 in the same month a year earlier, it said in a statement.

Tiger Airways Holdings Limited (Tiger Airways), formerly Tiger Airways Holdings Pte. Ltd., is a Singapore-based company.

The company is engaged in airline and aircraft management. The company provides various ancillary services and generates additional revenue through the provision of additional products and services, connected with its core air passenger service.

Its flight-related services include in-flight sale of beverages, food and merchandise. Through its Website, the Company offers its passengers a range of Tiger Add-On products, such as luggage upsize, seat selector and sports equipment check-in.

The Company’s subsidiaries are Tiger Airways Singapore Pte. Ltd. and Tiger Airways Australia Pty Limited.

It had an average load factor of 91 per cent across Asia and Australia last month,compared with 90 percent in December 2009.

For the 12 months to Dec 31, 2010, Tiger carried 5.8 million passengers, a 32 percent rise over 2009.

Tiger Airways, part-owned by Singapore Airlines, said it will take delivery of nine new Airbus A320 aircraft over the next 12 months, representing a fleet increase of 36 percent over its current fleet of 25 aircraft.

The Stock Exchange of Thailand (SET) composite index went up 13.50 points or 1.37 percent to close at 995.57 points at the end of trading session on Thursday afternoon. The trade value was 32.99 billion baht.

Today markets will be closed for Makha Bucha Day.

Monday’s Strong Buy is Polyplex (Thailand) Plc (PTL)

Polyplex (Thailand) Plc (PTL), the SET-listed plastic film producer, is proceeding with a 2.3-billion-baht investment in thick-film production in a bid to add more value to its product lines.

Managing director Rohit Vashistha said the company’s board approved the new production line for PET thick film, which is widely used in diverse industries, from electrical equipment and electronics to solar cells.

“This investment is aimed at tapping new and fast-growing segments where competition is limited compared with traditional packaging. Plus the margins are comparatively higher and more stable, benefiting PTL in the long term,” he said.

The new production line for thick plastic film will be up and running by 2013 with annual capacity of 28,000 tonnes.

The Polyplex Group operates manufacturing facilities in India (its base), Thailand and Turkey, supplying the global market with combined annual production capacity of 100,000 tonnes.

The new investment plan comes after the group spent US$79 million last year to begin adding 31,000 tonnes to the Turkish facility’s present annual capacity of 58,000 tonnes. That project will be finished in the second half of next year.

Meanwhile, PTL this week reported the net profit for its fiscal third quarter ending Dec 31 rose by 450 percent year-on-year to a record 1.43 billion baht. Sales revenue rose by 77.2 percent to 3.19 billion thanks to significant increases in selling prices and sales volumes.

SET Symbol:




Last Done


Volume (Shares)




Percent Change

0.96 percent

Bid Price / Volume (Shares)

26.25 / 300,100

Sell Price / Volume (Shares)

26.50 / 577,900





Day’s Range

25.25 – 26.75

52 Weeks’ Range 5.70 – 46.50 Top five most active values were as follows;

BANPU closed at 760.00 baht up 20.00 baht (2.70 percent)

PTT closed at 334.00 baht, up 5.00 baht (1.52 percent)

KBANK closed at 118.00 baht, up 1.00 baht (0.85 percent)

PTTAR closed at 40.50 baht, up 0.75 baht (1.89 percent)

TOP closed at 74.00 baht, up 1.50 baht (2.07 percent)

In Manila Yesterday, Philippine Stock Exchange index gained 1.42

percent or 54.34 points to 3,866.38, while the broader all-share index

slipped by 1.46 percent or 44.39 points to 2,981.53.

Today’s best buys from Shayne Heffernan San Miguel, Filivest, Banco de Oro.

Trading volume reached 1.18 billion shares worth 3.73 billion pesos (85.5 million U.S. dollars). Advancers led decliners 66 to 60 while 39 stocks did not move.

Of the six counters, only the service sector closed in the red.

Investors’ sentiments were lifted Thursday after news of an economic growth upgrade in the U.S. from the Federal Reserves, raising hopes of a sustained recovery path.

At the local front, the property sector led the advance after news that the country’s Department of Finance said it is considering bringing down the initial public float requirement to below 50 percent for companies who will join the real estate investment trust (REIT).

This, DBP-Daiwa Securities said, will allow property firms to keep a majority stake in the REIT entity they plan to establish for listing. The new investment scheme, which was supposed to start last year, was put on hold, sending property shares tumbling for quite sometime.

Philippines’ largest property developer Ayala Land, Inc. on Thursday jumped by 4.09 percent following the news.

If the plan pushes through, this will further improve the company’s war chest for its future projects.

Following the local equities’ positive performance in the past two sessions, analyst Justino Calaycay of Accord Capital Equities Corp. said he is keeping his fingers crossed that such optimism will continue on Friday.

Most stocks in the 30-company index closed higher. Other property issues that went up are Megaworld Corp., Robinsons Land, Corp. and Filinvest Land, Inc.

Banks Banco de Oro Unibank, Inc. and the Bank of the Philippine Islands were also among the most actively traded issues that closed in the positive.

In Jakarta, the JCI rallied for a fourth successive day on Thursday, closing up 17.6 points, or 0.5 percent, at 3,434.38.

Bank Mandiri (Persero) Tbk PT looks like a good buy today after a flat day trading yesterday, Bumi Resources Tbk PT also looks like good buying as does Adaro Energy Tbk PT.


Kimia Farma, a state-run pharmaceutical company, was among the most active stocks, rising 12 percent to Rp 149. Kimia Farma’s president director, Sjamsul Arifin, said the company planned a rights offer next year to raise the public’s stake to as much as 30 percent. Its net income is expected to rise from Rp 100.9 billion last year to Rp 150 billion this year.

Astra International, the nation’s biggest automotive retailer, was up 3.5 percent to Rp 51,000. Shares rose after Astra announced January domestic vehicle sales increased 5.4 percent from December to 73,849 units.

Medco Energi Internasional, Indonesia’s biggest listed oil company, gained 2.3 percent to Rp 3,300. Crude oil futures rose 0.4 percent to $85.30 per barrel in after-hours trading in New York on Wednesday.

5 Indonesian Banks now rank among the world’s 500 most valuable banking brands,according to consultancy company Brand Finance.

The Indonesian banks on the list are Bank Rakyat Indonesia, which came in 195th, followed by Bank Mandiri (208), Bank Central Asia (225), Bank Negara Indonesia (256) and Bank Danamon (311).

BRI, the second-largest bank in the country by assets, moved past Mandiri, the leader by assets, on the strength of its brand value. BRI’s value was estimated at $682 million, up from $455 million, while Mandiri improved to $638 million from $473 million. BRI had a brand rating of AA- while Mandiri was rated A.

BCA had the highest market capitalization of the ranked Indonesian banks and its rating matched that of BRI, but its brand value was third among its peers. BNI surged into the ranking, meanwhile, outstripping Danamon in all three categories.

Among the factors supporting the growth of Indonesia’s banking sector, the survey said, are growing consolidation in the sector, the growth of Islamic finance, better access to loans for micro, small and medium enterprises, and the growing strength of lenders in rural areas.

Those factors allow national banks to compete with international brands, it said.

Brand Finance also said Indonesia was relatively immune to the global financial crisis thanks to stable growth and strong domestic markets. The survey was published on Tuesday in The Banker magazine.

Brand Finance calculated brand value using the royalty relief method, which has been validated by the International Standard Organization. It estimates the price of royalties to be paid by a company executive to the company owner of the brand.

Shayne Heffernan has issued a Strong Buy PT Bank Mandiri (Persero) Tbk with a Price target of 9000RP by 2012.

Bank Mandiri is the largest bank in Indonesia in terms of total assets, loans and deposits. As per 31 December 2009, it has IDR 394.6 trillion (US$42 billion) in total assets. The Bank offers a broad range of banking products and services to its customers ranging from individuals and small and medium-sized enterprises (SMEs) to large corporations and Government entities.

Bank Mandiri was established and acquired ownership of the share capital of four state-owned banks on October 2, 1998. The four state-owned banks legally merged on July 31, 1999 and Bank Mandiri commenced commercial operations in August 1999. The Bank serves more than 8.7 million customers, which makes it, based on number of customers, one of the largest retail banks in Indonesia.

Customers also have access to their accounts through the Bank’s network of ATMs in Indonesia through arrangements with Indonesia’s other state-owned banks via the LINK network. Bank Mandiri has one of the largest foreign exchange networks in Indonesia with four overseas branch offices, one subsidiary, one representative office and two remittance offices.

Bank Mandiri, Singapore Branch is one of the Bank’s four overseas branches. Besides Singapore, the Bank also has branches in Cayman Islands, Dili (Timor Leste), Hong Kong, a subsidiary in London, a representative office in Shanghai and two remittance office in Hong Kong and Malaysia. The Singapore branch operates under an offshore banking licence granted by the Monetary Authority of Singapore on 31 July 1999.


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?

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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