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The FTSE Straits Times Index (STI) ended -10.33 points lower or -0.30% lower to 3,443.90, taking the year-to-date performance to +8.74%.
The FTSE ST Mid Cap Index declined -0.27% while the FTSE ST Small Cap Index declined -0.18%.
The top active stocks were Kep REIT (-2.49%), Singtel (-2.21%), UOB (-0.45%), Capitaland (-1.33%), and DBS (-0.91%).
The outperforming sectors today were represented by the FTSE ST Industrials which gained +0.62%. The two biggest stocks of the Industrials Index are Jardine Matheson Holdings (+1.34%) and Jardine Strategic Holdings (+1.00%). The underperforming sector, FTSE ST Telecommunications, declined -1.89% with Singtel declining -2.21% and Starhub gaining +0.46%. The FTSE ST Real Estate Index declined -0.36%, the FTSE ST Consumer Services gained +0.22% and the FTSE ST Utilities gained +0.16% .
The three most active Exchange Traded Funds (ETFs) by value today were LYXOR CHINA H 10 (unchanged), IS MSCI INDIA 100 (-0.46%) and SPDR GOLD SHARES (+1.57%).
The three most active Real Estate Investment Trusts (REITs) by value were Kep REIT (-2.49%), MapletreeGCC (-2.67%) and CapitaMall (+2.18%).
The most active index warrants by value today were HSI23000MBePW130627 (+5.88%), HSI23200MBeCW130627 (-7.14%) and HSI23400UBeCW130627 (-10.00%).
The most active stock warrants by value today were KepCorp MBeCW131001 (-5.13%), DBS MB eCW131001 (-7.60%), and OCBC Bk MBeCW131101 (-2.78%).
An Indonesian tycoon who owns a big stake in a huge copper and gold prospect taken from Australia’s Intrepid Mines last year is willing to resolve the ownership dispute, he said in a letter to an investor looking to oust the company’s board.
The dispute is over the Tujuh Bukit project, potentially holding 30 million ounces of gold and 19 billion pounds of copper, now owned by Bumi Sukses Indo, which is led by Provident Capital Partners and Edwin Soeryadjaya.
Intrepid Mines lost an 80 percent interest in the project last year when its Indonesian partner Indo Multi Niaga set up the new company, BSI, and sold stakes in it to Indonesian investors.
The Australian company has been pursuing several legal approaches to win back its rights but has had little discussion directly with BSI.
It is now trying to fend off an activist fund, Quantum Pacific, that wants to oust the board and negotiate a deal with BSI to try to restore some value to Intrepid, whose shares have lost nearly 90 percent of their value over the past year.
Quantum Pacific, which has a 5.4 percent stake in Intrepid, has been talking to Edwin ever since he became involved with the Tujuh Bukit project. It obtained a letter from him in March saying that he would be willing to negotiate with the fund.
“We welcome and encourage Quantum or any other party to pursue a course of action involving amicable discussions regarding Tujuh Bukit,” Edwin said in the letter dated March 25, obtained by Reuters from Quantum Pacific.
The Indonesian businessmen, whose private equity firm Saratoga Investama Sedaya is in the midst of launching an initial public offering, has not responded to requests for comment on the Intrepid Mines dispute.
In the letter, Edwin said he wanted to resolve the dispute with Intrepid.
“However, we are not optimistic that such an outcome could be agreed with the current Intrepid management, given the way they have conducted their relationships with local parties in Indonesia and their confrontational statements in the press,” Edwin said in his letter.
Reuters has not independently verified that Soeryadjaya sent the letter.
If Quantum Pacific is successful in its plan take over the board of Intrepid at a vote on June 20, it aims to win back a direct stake in Tujuh Bukit, though not as much as 80 percent, within six to nine months, Quantum Pacific managing partner Greg Mazur told reporters on Monday.
Mazur has criticized Intrepid for having spent $100 million on work at Tujuh Bukit without securing rights to the project, but on Monday said there was value in the work the firm had done, when asked why Quantum Pacific had invested in Intrepid.
“It’s becoming obvious the Indonesian players need Intrepid, otherwise why would you bother?” Intrepid chief executive Brad Gordon told Reuters.
Bloomberg News reported on Monday that Taurus Fund is Interpid’s biggest shareholder with 8.7 percent shareholding, Van Eck Associates 7.5 percent and a group of investors represented by Quantum Pacific Investment owning 5.4 percent.
Interpid is based in Spring Hill, Queensland, Australia and is one of several companies that have run into disputes over ownership of mining projects and confrontations with powerful businessmen in Indonesia after funding exploration work on potentially lucrative assets.
Tujuh Bukit project is located near Banyuwangi, East Java.
Malaysia's blue chips closed higher on Tuesday at 1,787.38, which was a shade below the all-time record high of 1,788.43 recorded a week ago, with investor sentiment remaining firm.
At the close, the FBM KLCI was up 10.23 points or 0.58% to 1,787.38. Turnover was 2.97 billion shares valued at RM3.01bil. Gainers beat losers 633 to 363 while 226 counters were unchanged.
Key Asian markets closed mixed. Japan's Nikkei 225 edged up to a fresh 5-1/2-year high on Tuesday, reversing earlier losses, as retail investors scooped up underperforming stocks such as Sharp Corp and Tokyo Electric Power Co Inc, Reuters reported.
At Bursa Malaysia, banks were the top gainers, wih Maybank up 14 sen to RM10.22, pushing the KLCI up 2.17 points.
AMMB, Hong Leong Bank and HLFG rose 10 sen each to RM7.30, RM14.38 and RM15.68 respectively while Public Bank gained eight sen to RM16.70. Affin lost 11 sen to RM4.40.
Among the consumer stocks, BAT rose 74 sen to RM64.94, GAB 28 sen to RM20.78.
Tenaga rose eight sen to RM8.30 and added 1.02 points to the KLCI.
Crude palm oil for third-month futures rose RM7 to RM2,342. Batu Kawan was the top gainers among the plantations, rising 20 sen to RM19.20 while PPB Group added 18 sen to RM13.88 and FGV 12 sen to RM4.62.
Among the oil and gas related counters, Dialog was the top gainer, adding 20 sen to RM3
Property stocks were also higher with Cresendo-WA up 37 sen to RM2.52 while the mother share gained 18 sen to RM3.63. YNH Property rose 15 sen to RM2.25.
The ringgit weakened to 3.0185 against the US dollar from 3.0143 the previous close.
The Stock Exchange of Thailand main index went up 0.03 point, or 0.00%, to close at 1,643.43 points at the end of trading session this afternoon. The trade value was 57.45 billion baht, with 9.86 billion shares traded.
The SET50 index ended at 1,091.20 points, down 1.07 points, or 0.10%, with a total trade value of 32.87 billion baht.
The SET100 index fell 1.77 points, or 0.07%, to stand at 2,435.04 points, with a total turnover of 43.73 billion baht.
The SETHD index went up 1.08 points, or 0.08%, to stand at 1,281.18 points, with total trade value of 9.50 billion baht.
The MAI index closed unchanged at 489.21 points with total transaction value of 1.82 billion baht.
Top five most active values were as follows;
INTUCH stood at 96.75 baht, up 1.00 baht (1.04%)
TRUE stood at 10.20 baht, down 0.20 baht (1.92%)
CPALL stood at 44.00 baht, up 0.50 baht (1.15%)
SIRI stood at 4.32 baht, up 0.08 baht (1.89%)
ADVANC stood at 293.00 baht, down 3.00 baht (1.01%)
The Philippine Stock Exchange Index (PSEi) rose 0.72 percent to 7,327.58 Tuesday as bargain hunters prevailed after three straight sessions of closing in the red.
The broader all-shares index also added 0.38 percent to 4,506.74, data from the PSE showed. Subsectors ended mixed, with property companies driving gains at 1.94 percent. Only services and mining and oil closed in the red.
Analysts also pointed to the release of the Securities and Exchange Commission of its final guidelines on how the 40-percent foreign ownership cap should be computed. The corporate regulator did away with a contentious provision requiring companies to apply the definition on each class of shares.
A total of 1.28 billion shares changed hands Tuesday valued at P9.72 billion. Still, decliners outnumbered advancers, 100-70. There were 49 other issues that closed unchanged.
Leading the list of most actively traded stocks was Ayala Land Inc., which gained 2.75 percent to P35.5. Index heavyweight PLDT closed down 0.38 percent to P3,168. GT Capital Holdings Inc., the investment holding company of George S.K. Ty, also lost 0.7 percent to P850.
Tokyo stocks rose 0.13 percent, or 20.21 points, to 15,381.02, Sydney fell 0.56 percent, or 28.9 points, to 5,180.1, and Seoul slipped 0.07 percent, or 1.34 points, to 1,981.09.
In Shanghai shares climbed 0.22 percent, or 5.12 points, to 2,305.11, while Hong Kong fell 0.54 percent, or 126.66 points, to 23,366.37.
Japanese stocks recouped early losses to close at their best finish since December 2007.
– Taipei rose 0.07 percent, or 6.0 points, to 8,383.05.
Hon Hai Precision was 0.26 percent higher at Tw$77.3 while Taiwan Semiconductor Manufacturing Co. fell 1.32 percent to Tw$112.5.
– Wellington slipped 0.17 percent, or 7.82 points, to 4,590.84.
Contact Energy fell 1.11 percent at NZ$5.33 while Air New Zealand rose 0.33 percent to NZ$1.54.
– Manila climbed 0.72 percent, or 52.20 points, to 7,327.58.
Top-traded Ayala Land rose 2.75 percent to 35.50 pesos while SM Investments Corp. added 0.34 percent to 1,189 pesos.
– Singapore dropped 0.30 percent, or 10.33 points, to close at 3,443.90.
United Overseas Bank shed 0.45 percent to Sg$22.00 and real estate developer Capitaland dropped 1.33 percent to Sg$3.72.
– Jakarta lost 0.50 percent, or 26.22 points, to 5,188.76.
Palm oil producer Astra Agro Lestari rose 1.43 percent to 17,700 rupiah, while textile firm Indo-Rama Synthetics lost 3.70 percent to 1,300 rupiah.
– Bangkok closed flat, edging up 0.03 points to 1,643.43.
Bangkok bank slipped 0.90 percent to 219 baht, while energy giant PTT rose 0.58 percent to 345 baht.
– Kuala Lumpur shares rose 0.58 percent, or 10.23 points, to 1,787.38.
Tenaga gained 1.0 percent to 8.30 ringgit, while YTL Corp. added 1.8 percent to 1.74. UEM Land Holdings slipped 1.4 percent to 3.46 ringgit.
– Mumbai lost 0.56 percent, or 112.37 points, to close at 20,111.61.
Jindal Steel dropped 1.64 percent to 303.25 rupees and Ranbaxy Laboratories slipped 1.76 percent to 245.85 rupees.
Shayne Heffernan Ph.D.
Economist/Hedge Fund Manager/Snr Partner
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