ASEAN KEY DESTINATIONS
Asean Stock Watch- July 22
A day after its best rally since March, Wall Street closed flat as the forthcoming debt ceiling deadline offset strong earnings from Apple Inc. Overnight, the Dow Jones Industrial Average lost 15.51 points, or 0.12 percent to 12,571.91
Offshore oil and gas service provider Bumi Armada Bhd, which made its debut on Bursa Malaysia’s Main Market on Thursday, closed at RM4.14 for a RM1.11 premium over its issue price.
The shares opened at RM3.65 with a 62 sen premium and closed 37 percent higher than its issue price of RM3.03 per share. It was the top gainer and the most actively traded stock with 303.7 million shares changing hands.
To recap, under the IPO, the public issue saw an offer of 644.26 million new shares while the offer for sale comprised 234.28 million existing shares.
Controlled by billionaire T. Ananda Krishnan, Bumi Armada has a market capitalisation of RM8.9bil based on the IPO price of RM3.03 per share.
The IPO was Malaysia’s largest this year and the second biggest in South-East Asia after the listing of Singapore’s Hutchison Port Holdings Trust.
Bumi Armada’s income stream is derived from the deployment of floating production storage and offloading (FPSO) and offshore support vessels (OSV) as well as transport and installation and oilfield services.
With three FPSOs and 43 OSVs in operation, Bumi Armada is the largest OSV owner-operator in Malaysia and the eighth largest FPSO operator in the world.
As of June 1, the company had a presence in Malaysia and more than 10 countries in Asia, Africa and Latin America.
About 85 percent of the company’s RM1.24 billion revenue last year was derived from outside Malaysia.
Bumi Armada executive director and chief executive officer Hassan Assad Basma said his immediate plan was to continue the journey of growth. “We are on a growth trajectory. Another two FPSOs are under conversion,” he said after the company’s listing ceremony yesterday.
Hassan pointed out that, for the first time ever, the company was in a “sweet spot” where there were far more projects in the FPSO segment than there were contractors.
The FTSE Bursa Malaysia KLCI (FBM KLCI) futures contracts on Bursa Malaysia Derivatives were mixed Friday morning, tracking the similar trend in the underlying cash market.
At 9.49am, July 2011 and August 2011 were each 3.5 points higher at 1,566.5 and 1,567 respectively, while September 2011 and December 2011 were untraded.
Turnover stood at 1,141 lots while open interest totalled 22,719 contracts.
Meanwhile, the underlying benchmark FBM KLCI was down 0.84 of a point at 1,564.97, after opening 0.77 of a point better at 1,566.58.
The Philippine peso rose to an eight-month high while Philippine share prices retreated on Thursday after hitting fresh records in previous sessions.
At the Philippine Dealing System, the peso gained 9 centavos to close at 42.62 against the US dollar from 42.71 the day before, after the International Monetary Fund said the pace of the country’s economic growth will remain solid.
The IMF on Wednesday said the gradual withdrawal of policy stimulus has resulted in a favorable outlook for the Philippines, characterized by moderating but still rapid growth amid manageable inflation expectations.
The dollar-peso pair opened at 42.65 and moved to a high of 42.66 and a low of 42.57.
Total trading volume eased to $798.87 million from $983.70 million the previous trading day. The local pair is expected to trade within a 42.55 to 42.750 range during the last two trading days, given the sudden surge in the euro-dollar ahead of the EU leaders’ meeting.
“Expect the central bank to be present in the market once again to limit excessive peso strength,” a trader said.
At the Philippine Stock Exchange, the composite index dropped 27.03 points, or 0.60 percent to 4,480.01, while the broader all-shares index fell 10.82 points, or 0.35 percent to 3,113.27.
Decliners beat advancers, 103 to 67, while 35 stocks were unchanged. A total of 9.88 billion stocks worth P6.04 billion changed hands.
“The problem is that the PSEi may stay below 4,500 as the world awaits the resolution of the debt problem of the US,” said Prince Anthony Yeung of AB Capital Securities Inc.
“As long as whether or not the US will default remains uncertain, the main index may consolidate below 4,500,” Yeung said.
He said the main index and some key stocks, which have led the PSEi to all-time highs in the last four sessions, failed to breach their respective resistance levels.
Philippine Long Distance Telephone Company failed to break above P2,400, falling 0.08 percent to P2,386.00. Mining stocks Lepanto Consolidated Mining Co. dropped from all-time highs and Philex Mining Corp., the biggest index laggard, lost 5 percent to P25.65.
Singapore shares opened higher on Friday, with the benchmark Straits Times Index at 3,158.58 in early trade, up 0.63 percent, or 20.07 points.
Around 81.4 million shares exchanged hands.
Wall Street giant Goldman Sachs has significantly increased its office capacity here with enough space to add 400 staff to drive its regional expansion.
Goldman Singapore, which has about 600 people on its staff, declined to say just how many new hires there will be - or when they will be taken on.
But a spokesman said: 'We continue to grow our business in Singapore and South-east Asia. We also recently expanded our office capacity in Singapore.'
Goldman is known to run a very lean operation, so expanding to such an extent shows the strategic importance of Singapore to the bank.
It is reported that Goldman has leased two floors at Mapletree Anson in Tanjong Pagar, adding 40,000 square feet of office space.
That means it has almost doubled its existing space of some 50,000 square feet at 1Raffles Link. More than 200 employees moved to the Mapletree Anson office earlier this year to carry out mainly back-office jobs such as data-checking and information technology support.
The Stock Exchange of Thailand main index went up 2.78 points or 0.25 percent to close at 1,104.15 points at the end of trading session on Thursday. The trade value was 36.99 billion baht, with 5.57 billion shares traded.
The SET50 index ended at 773.58 points, up 1.59 points or 0.21 percent, with a total trade value of 24.56 billion baht.
The SET100 index rose 3.99 points or 0.24 percent to stand at 1,685.93 points, with a total turnover of 29.60 billion baht.
The SETHD index went up 6.19 points or 0.59 percent to stand at 1,054.22 points, with total trade value of 10.47 billion baht.
The MAI index went down 1.72 points or 0.55 percent to close at 310.10 points, with total transaction value of 701.04 million baht.
Top five most active values were as follows;
TRUE closed at 4.18 baht, up 0.24 baht (6.09 percent)
BBL closed at 169.50 baht, up 0.50 baht (0.30 percent)
PTT closed at 349.00 baht, up 3.00 baht (0.87 percent)
CPF closed at 29.00 baht down 0.25 baht (0.85 percent)
TOP closed at 75.50 baht, up 0.50 baht (0.67 percent)
Shares on both national exchanges slumped Thursday, with the financial web site stockbiz.vn calling the previous day's rebound merely a technical correction.
On the HCM Stock Exchange, the VN-Index closed down by 0.9 percent to 413.06 points. The value of trades dropped by 13.7 percent from Wednesday's level to VND345.8 billion (US$16.8 million) on a scant volume of only 18.3 million shares. Decliners outnumbered advancers by 141-74.
"Wednesday's value was still comparatively low," noted Saigon Securities Inc analyst Nguyen Ly Thu Nga. "A rally session with stagnant trading increases profit-taking pressures."
Of the 10 leading shares by capitalisation, Eximbank (EIB) managed a gain of 2.6 per cent and Sacombank (STB) closed unchanged, while all others lost value.
Banking shares, led by EIB and Vietcombank (VCB), rose following the release of information that Japan's Mizuho Bank would buy a 20 percent stake in VCB. VCB closed up 3.3 percent by the end of yesterday's trading to VND28,500 per share.
Software giant FPT tumbled by nearly 2 per cent, even after announcing that it saw an 11 per-cent increase in first-half profit.
Stockbiz.vn said that modest earnings by a majority of listed companies, particularly securities firms, had increased investor wariness.
Some securities companies which managed to be profitable in the first half did so by cutting back their brokerage operations – their core line of business – and depended on revenue from other operations.
"This, in the context of low market value and demand, made investors more pessimistic," added an analyst for StoxPlus, a financial information company.
Real estate service provider Hoang Quan Corp (HQC), along with STB, were the most-active shares, each with about 1.2 million shares changing hands.
On the Ha Noi Stock Exchange, the HNX-Index fell by half a percent to close at 71.35 points.
Trades dried up to a total value of only VND195.7 billion ($9.5 million), on a volume of just 17.5 million shares. Kim Long Securities Co (KLS) was the most-active share nationwide, with 2.95 million traded.
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