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|ASEAN STOCK WATCH
||Asean Affairs 14 May2013
The FTSE Straits Times Index (STI) ended -14.81 points lower or -0.43% lower to 3,428.96, taking the year-to-date performance to +8.27%.
The FTSE ST Mid Cap Index gained +0.21% while the FTSE ST Small Cap Index declined -0.40%.
The top active stocks were THBEV (+3.97%), Croesus RTr (-4.80%), Kep REIT (+4.70%), GoldenAgr (-1.85%), and Singtel (+0.26%).
The outperforming sectors today were represented by the FTSE ST Consumer Goods which gained +0.51%. The two biggest stocks of the Consumer Goods Index are Wilmar International (-1.17%) and Thai Beverage(+3.97%).
The underperforming sector, FTSE ST Basic Materials, declined -3.10% with Midas Holdings declining -5.94% and Geo Energy declining -4.49%. The FTSE ST Real Estate Index gained +0.09%, the FTSE ST Consumer Services declined -0.61% and the FTSE ST Utilities gained +0.06%.
The three most active Exchange Traded Funds (ETFs) by value today were LYXOR CHINA H 10 (-2.24%), IS MSCI INDIA 100 (+1.39%) and SPDR GOLD SHARES (-1.06%).
The three most active Real Estate Investment Trusts (REITs) by value were Croesus RTr (-4.80%), Kep REIT (+4.70%) and CapitaComm (-0.29%).
The most active index warrants by value today were HSI23000MBePW130627 (+15.04%), HSI23200MBeCW130627 (-24.75%) and HSI23400UBeCW130627 (-29.87%).
The most active stock warrants by value today were DBS MB eCW131001 (-6.32%), DBS MB ePW130909 (+3.15%), and OCBC Bk BPeCW130702 (+3.15%).
*Please note the Real Estate, Consumer Services and Utilities sectors will be the focus of SGX My Gateway Educational events in 2Q13.
Malindo Air, which is due to take delivery of its first turboprop aircraft by the middle of this month, should begin services from the SkyPark terminal in Subang by mid-June, if it gets the necessary approvals.
The plan is to use Subang as a feeder hub for its jet operations anchored at the KL International Airport (KLIA). It would initially have at least half a dozen turboprops to ply domestic routes and destinations in southern Thailand and northern Sumatra.
“Any route that falls within the two-hour flying radius would be operated from Subang, while anything beyond that would be operated by its jet operations from KLIA,” a source said.
Approvals are expected at the end of May, while ticket sales will open in early June.
Upon obtaining its first turboprop, the new low-fare airline will conduct trials for the necessary approvals. Sources said Malindo did not need a new air operator's certificate (AOC) as the turboprop operations would be added to its existing AOC.
Malindo is a 51:49 joint venture between Malaysia's National Aerospace and Defence Industries Sdn Bhd and Indonesian's PT Lion Grup, which owns the largest privately owned airline Lion Air and Wings Air. A third airline to be launched by the group in Indonesia would be Batik Air.
The Subang SkyPark plan is part of Malindo's expansion strategy in Malaysia. It began operating in the country on March 23, and a month later managed to carry 50,000 passengers by operating two aircraft (B737-900) to two destinations, i.e. Kota Kinabalu and Kuching.
It is targeting more than 300,000 passengers by year-end, sources said.
The airline will have 12 B737-900 jets by then. It will take delivery of two new B737-900 in June, two more in September and the rest before the year is out.
Malindo Air has begun selling tickets for Miri, Sibu and Tawau for service in June.
The airline will also begin plying international routes in June and expects the Indian capital of New Delhi to be its first stop. Some other routes in south India will be added.
“They have secured the slots for New Delhi and are now waiting for approvals from the Indian authorities,” said the source.
After hitting multiple record peaks this year, the stock market may have room to scale new heights at least for the next six months, according to stockbrokerage Campos Lanuza & Co.
The local stock market will reopen Tuesday after a longer weekend break due to Monday’s mid-term elections. Last week, the main index gained by 0.65 percent to close at another all-time high of 7,262.38 on Friday.
Campos Lanuza head of research Jose Mari Lacson said the stock market outlook for the next six months remained positive.
“Excess liquidity driven by historically low interest rates will continue to drive stock prices. While the market’s valuations are already high relative to comparable bull market years, we believe there is still room for these stock valuations to move higher,” Lacson said.
“We believe that the extremely low-interest rate environment is temporarily driving the equity risk premium to lows that can justify market P/Es (price to equity ratios) of over 30x,” he said.
A P/E ratio of 30x means that investors are paying 30 times the amount of money that the company is earning per share in a given year.
“The key word though is temporary. Investors should be aware that the main risk factors are the continuing weakness in gold prices and rising equity returns in the United States, which may lead to a reversal of capital flows or a shift to a tighter monetary policy by the BSP (Bangko Sentral ng Pilipinas),” he said.
Tokyo rose 1.20 percent, or 174.67 points, to 14,782.21 as the US dollar briefly breached the 102 yen mark after Japan avoided criticism about its forex policy at a weekend meeting of Group of Seven (G7) financial chiefs in Britain.
Sydney was flat, edging up 0.08 percent to 5,210.3, Seoul rose 0.2 percent, or 3.95 points, to 1,948.70, while Hong Kong lost 1.42 percent, or 331.41 points, to 22,989.81.
Shanghai slipped 0.22 percent, or 4.91 points, to 2,241.92 as traders digested new Chinese economic data for April including industrial output, which rose 9.3 percent on-year, below market expectations.
– Taipei fell 0.39 percent, or 31.94 points, to 8,248.32.
Hon Hai Precision was 1.12 percent lower at Tw$79.6 while leading smartphone maker HTC gained 0.72 percent to Tw$281.0.
– Wellington rose 0.41 percent, or 18.86 points, to 4,671.63.
Sky City casino was up 2.27 percent at NZ$4.50 after reaching a deal to extend its licence, while market heavyweight Fletcher Building eased 1.27 percent to NZ$8.55.
– Kuala Lumpur gained 0.88 percent, or 15.52 points, to 1,787.90.
CIMB climbed 2.1 percent to 8.46 ringgit while Felda Global Ventures lost 1.5 percent to 4.56 ringgit and YTL eased 1.1 percent to 1.77.
– Singapore was down 0.43 percent, or 14.81 points, to 3,428.96.
United Overseas Bank shed 0.55 percent to Sg$21.74 while agricultural firm Wilmar International was down 1.17 percent at Sg$3.38.
– Jakarta fell 1 percent, or 51.31 points, to 5,054.63.
Car maker Astra International lost 3.47 percent to 6,950 rupiah, while palm oil producer Astra Agro Lestari gained 1.46 percent to 17,400 rupiah.
– Bangkok lost 0.29 percent, or 4.75 points, to 1,617.73.
Thai Union Frozen Products added 3.48 percent to 59.50 baht, while IT company Jasmine International jumped 5.14 percent to 9.20 baht.
Shayne Heffernan Ph.D.
Economist/Hedge Fund Manager/Snr Partner
Knightsbridge Law Co Ltd
Heffernan Group of Companies
Chinese Society of Economists
American Economic Society
Linda Johnson, Business Development Director - Private Client Group, Heffernan Capital Management
3 Raffles Place #07-01
Bharat Building Singapore 048617
Tel: +65 6329 6408 Fax: +65 6329 9699
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