ASEAN KEY DESTINATIONS
03 January 2014
The Straits Times Index (STI) ended 43.18 points lower or -1.36% to 3131.47, taking the year-to-date performance to -1.06%.
The FTSE ST Mid Cap Index declined -1.01% while the FTSE ST Small Cap Index declined -0.31%. The top active stocks were HanKore (+1.71%), SingTel (-1.64%), DBS (-0.70%), UOB (-1.51%) and Keppel Corporation (-1.52%).
The outperforming sectors today were represented by the FTSE ST Utilities Index (+1.19%). The two biggest stocks of the FTSE ST Utilities Index are United Envirotech (+3.18%) and Hyflux (-0.43%). The underperforming sector was the FTSE ST Basic Materials Index, which declined -1.62% with Midas Holdings’ share price declining -2.91% and Geo Energy Resources’ share price declining -3.08%. The FTSE ST Financials Index declined -1.22%.
The three most active Exchange Traded Funds (ETFs) by value today were the SPDR Gold Shares (+0.60%), SPDR Straits Times Index ETF (-1.24%), Nikko AM Singapore STI ETF (-1.24%).
The three most active Real Estate Investment Trusts (REITs) by value were Ascendas REIT (-1.80%), CapitaMall Trust (-1.32%), CapitaCommercial Trust (-1.72%).
The most active index warrants by value today were HSI23200MBeCW140129 (-33.33%), HSI23600MBeCW140227 (-33.64%), HSI23200MBePW140227 (+33.33%).
The most active stock warrants by value today were DBS MB eCW140502 (-6.04%), UOB MB eCW140303 (-16.55%), KepCorp MBeCW140401 (-11.11%).
Singapore Stock Market
*ST Index 3,131.47 -43.18 3,167.43 +14.14
Volume: 3,295.2M 2,950.1M
Value: $904.6M $1,219.4M
Gainers/Losers: 141/298 206/163
Daily Market Commentary (Securities)
3 Jan 2014
The FBM KLCI index lost 18.21 points or 0.98% on Friday. The Finance Index fell 0.49% to 16804.1 points, the Properties Index up 0.30% to 1295.21 points and the Plantation Index down 0.13% to 8827.01 points. The market traded within a range of 14.49 points between an intra-day high of 1849.23 and a low of 1834.74 during the session.
Actively traded stocks include HUBLINE, MINETEC, TIGER-WB, CAP-WA, TNLOGIS-WC, MAS, TMS, KNM, XDL and SKPETRO. Trading volume increased to 1310.60 mil shares worth RM1617.54 mil as compared to Thursday’s 1245.83 mil shares worth RM1351.08 mil.
Leading Movers were HLFG (+18 sen to RM15.50), GENM (+2 sen to RM4.38), IHH (+1 sen to RM3.91), TM (+1 sen to RM5.39) and FGV (+2 sen to RM4.53). Lagging Movers were PETDAG (-58 sen to RM30.40), PPB (-34 sen to RM15.92), BAT (-28 sen to RM63.88), PETGAS (-22 sen to RM23.60) and KLK (-20 sen to RM24.12). Market breadth was negative with 348 gainers as compared to 412 losers.
The KLCI plunged 18.21 points to 1834.74 on the last trading days of the week, amid profit taking following its record high last week and the negative performance in US markets. The poor performance by KLCI index came after losses in selected blue chips counters, led by Petronas linked stocks.
Indonesia to sell 78 trln rupiah of bonds in Q1
Indonesia plans to issue 78 trillion rupiah ($6.41 billion) of bonds in the first quarter of the year to help fund its budget deficit, the finance ministry's debt office said.
Southeast Asia's largest economy will hold its first auction of the year on Jan. 7, aiming to raise 10 trillion rupiah. It will offer 3-month and 1-year T-bills, as well as five-, 10-, 20-year bonds.
The bond issuance excludes dollar-denominated, foreign-denominated bonds, and retail bonds of both conventional and sharia securities.
Earlier, the ministry raised 3 trillion rupiah of sukuk to the state-managed Islamic Haj Fund via a private placement.
Date As of: 03 January 2014
Description Volume Value Frequency
ETF 24,000 8,782,500 07
Stock 2,675,013,386 3,353,071,173,240 95,832
Right 52,500 2,002,500 02
Warrant 26,510,500 1,872,757,000 627
Total 2,701,600,386 3,354,954,715,240 96,468
TFEX reports 2013 strong growth, aims to increase liquidity in 2014
The Thailand Futures Exchange PCL (TFEX), under The Stock Exchange of Thailand group, announced that 2013 average daily trading volume jumped 55.2 percent from a year earlier to 68,017 contracts, mainly driven by a 2.9 times jump in stock futures. In 2014, TFEX planned to implement its new trading system, boost liquidity and build its quality investor base.
TFEX Managing Director Kesara Manchusree said that total trading volume in 2013 was 16,664,126 contracts, or 68,017 contracts per day, up from 43,823 contracts per day from the previous year. Most of the derivatives contracts traded were stock futures, up 288 percent to 34,351 contacts per day. SET50 futures rose 41 percent to 23,218, while gold futures dropped 39.4 percent to 9,009 and USD futures decreased 64.5 percent to 977 contracts per day. The average daily trading value was THB26.97 billion (approx.USD817 million). Meanwhile, total derivatives trading accounts reached 87,693 accounts.
“Due to the volatility of indices and stock prices in 2013, stock futures and SET50 futures became popular for risk management. In addition, investors were able to manage their portfolios more efficiently after TFEX amended stock futures’ rules by increasing position limits and reducing the minimum size required for block trade transaction of high notional-valued contracts. Also, TFEX added additional underlying securities for stock futures, to make a total of 60,” Kesara added.
TFEX plans to improve its current products and services, especially SET50 index futures and options, in order to increase liquidity in 2014. Starting this February, USD futures holders will be able to receive physical US dollars on the last trading day at Krung Thai Bank. To continue to improve and expand quality investor, TFEX will continue to develop its existing projects, such as the TFEX Challenge, an intensive trading simulation; TFEX Open House, an intensive seminar for technical analysts, and cooperate with other finance organizations to present other financial instruments for currency risk management. Moreover, the new trading and clearing system for derivatives is expected to go live in May, Kesara concluded.
Thai alternative bourse lists palm oil refiner AI Energy on Jan 6
The Stock Exchange of Thailand (SET) kicks off 2014 by welcoming AI Energy pcl, producer and distributor of biodiesel from crude palm oil, to its Market for Alternative Investment (mai). The company, with a market capitalization of THB 5.34 billion (approx. USD 163 million), will list and start trading on January 6 as mai’s first listing of the year, under the ticker symbol "AIE."
Chanitr Charnchainarong, mai President, said that AIE was a subsidiary of Asian Insulators pcl (AI), which realized the growth potential of the alternative energy business, and therefore decided to spin off AIE and list it on mai. The company is listed under mai’s market capitalization rule, paving the way for companies having a market capitalization of more than THB1 billion to list on mai.
AIE produces and distributes biodiesel refined from palm oil, manufactures palm olien oil under the “PAMOLA” brand, and sells raw materials and by-products of biodiesel production, such as palm acid oil and glycerin.
AIE has a paid-up registered capital of THB 1.13 billion, with a par value of THB 1.00 each, consisting of 960 million existing common shares and 170 million newly-issued shares. It sold a total of 445 million shares during its initial public offering, of which 250 million went to AI’s shareholders, and 195 million to the general public at THB 4.75 per share. Asset Pro Management Co., Ltd. is the company's financial advisor, while Capital Nomura Securities pcl, Finansia Syrus Securities pcl, and Phillip Securities (Thailand) pcl are its underwriters.
Anurag Thareratanavibool, managing director of AIE, said that the company felt honored and very pleased to be listed on mai. The funds raised would be used to buy machinery, improve the firm’s biodiesel production process, as well as to increase raw material inventory, thus boosting the company’s growth prospects.
AIE's three major shareholders after the IPO are AI (59.59 percent), Thareratanavibool Group (12.36 percent), and Jarunee Worakitjanuwat (0.66 percent). The IPO price had a price/earnings ratio (P/E) of 31.36 times, calculated using estimated earnings in 2013 divided by the number of fully-diluted shares, equivalent to earnings per share of THB 0.15. The company reported a net profit of THB 137.27 million in January-September, 2013. Its dividend policy is to pay no less than 40 percent of net profits after corporate taxes and reserves.
As of 3 January 2014 Unit: M.Baht
Type Buy Sell Net
Institution 4,096.36 5,047.05 -950.69
Proprietary 3,816.21 5,517.36 -1,701.15
Foreign 13,083.22 12,612.42 470.80
Individual 17,076.39 14,895.35 2,181.03
Total Trading Value 38,072.18 M.Baht
Vietnam's benchmark VN Index inched up 0.17 percent on Friday, partly on gains in real estate companies after the central bank cut home loan rates. But trading volume was low as investors were away during a holiday season.
The State Bank of Vietnam cut the home loan rate to 5 percent for this year from 6 percent in 2013, to raise disbursement of home loans under its 30 trillion dong ($1.42 billion) house purchase credit package, it said in a statement on Thursday.
Trading volume dropped to 55.6 million shares, the lowest since Nov. 1, Reuters data showed.
Liquidity is expected to improve next week, said analysts, with investors returning to the market after the new year holidays.
Shares in Real estate firm Vingroup rose 0.71 percent, while property company HAGL advanced 0.49 percent. Hanoi-based lender Vietcombank rose 1.87 percent and dairy product maker Vinamilk gained 0.74 percent.
Here is a snapshot of the VN Index at the close
VN Index 505.37
PREV. CLOSE 504.51
% CHANGE 0.17%
SE Asia Stocks-Down; Thai shares reel under political protests
Most Southeast Asian stocks retreated on Friday, along with weakness in broader Asia, with Thai shares hitting a fresh 16-month closing low as domestic political protests escalated.
The Thai SET index ended down 0.5 percent at 1,224.62, recouping some of its earlier losses amid short-covering in large-caps such as Advanced Info Service and Kasikornbank.
It was down 5.7 percent on the week, the worst since August 2013 and Southeast Asia's worst performer.
Concerns over a possible delay in the Feb. 2 election and active short-selling helped spur Thursday's sell-off when the index plunged more than 5 percent.
Anti-government protesters have planned mass rallies to shut down Bangkok on Jan. 13, calling for political reform before the polls while the red-shirt United Front for Democracy against Dictatorship would stage a mass rally to counter the planned anti-government demonstrations.
Stocks in Singapore ended nine sessions of gains, falling 1.4 percent on the day and 0.6 percent on the week, while Malaysia lost 1 percent to a near two-week low, with a weekly loss of 1.4 percent, its first in seven weeks.
Vietnam inched up 0.2 percent as real-estate stocks gained after the central bank cut home loan rates, with a weekly loss of 0.2 percent.
Indonesia slid 1.6 percent to a one-week closing low while the Philippines was down 0.6 percent, both ending the week around 1 percent higher.
SOUTHEAST ASIAN STOCK MARKETS
Market Current Prev Close Pct Move
TR SE Asia Index* 379.67 383.33 -0.96
Singapore 3131.47 3174.65 -1.36
Kuala Lumpur 1834.74 1852.95 -0.98
Bangkok 1224.62 1230.77 -0.50
Jakarta 4257.66 4327.27 -1.61
Manila 5947.93 5984.26 -0.61
Ho Chi Minh 505.37 504.51 +0.17