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ASEAN STOCK WATCH Asean Affairs   28 November 2012

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Dealings in Washington obscured strong economic figures, including an increase in planned business spending and consumer confidence hitting its highest level in more than four years.
Strengthening the case for a sustained rebound in housing, single-family home prices rose for an eighth straight month in September.

U.S. stocks slid on Tuesday in a choppy session, losing ground in the last hour before the close after Senate Majority Leader Harry Reid expressed disappointment that there has been "little progress" in dealing with the "fiscal cliff."


Olam International Ltd is under attack from short sellers but the company looks to be holding on OK, I do not think Olam is the new Enron, and if we were to extend the theory of pre booked profits that is being spouted by the short sellers then every insurance company in the world is in bankruptcy and so are most of the banks.

Olam will survive this, and considering how much short selling would have been generated, and the net short position the company may bounce back over $10SGD and give the short sellers a nasty, but well deserved shock.

“There is no substance in their broad allegations,” Olam said today in a statement, promising a fuller response in due course. “We will clear our name and hold Muddy Waters accountable for their damaging actions.”

But instead of fighting the short sellers CEO Sunny Verghese needs to reach in to his pockets, rally his friends and burn the short sellers, it is not our opinion that the short sellers are Well-heeled enough to withstand much of an attack.


Ananda Development has priced its initial public offering at the lower end of the price range, raising 5.6 billion baht (US$182.4 million) in the second largest IPO out of Thailand this year.

Barclays is acting as the sole global coordinator as well as joint bookrunner along with CIMB. Bualuang and KT ZMICO are domestic joint bookrunners. KT ZMICO is also the international co-bookrunner while CLSA is the international co-lead manager.

Ananda, controlled by founder Chanond Ruangkritya and his family, sold 1.33 billion shares at 4.20 baht, against the marketed range of 4.20 baht to 4.90 baht per share, according to a term sheet. The offer represents 40% of its enlarged share capital.

Post the IPO, the company’s market capitalization will be around US$456 million.

The deal size comes second to the US$602 million listing in March 2012 of a property fund by British supermarket chain Tesco Plc.

A total of 57.7% of the transaction was sold to international institutions, while the domestic tranche accounts for 42.5% of the offering.

The company plans to use the proceeds to finance investment, acquisitions and new projects as well as for the repayment of existing bank debts and for working capital requirements.


Petronas Chemicals Group Bhd recorded net profit of RM742mil and revenue of RM3.94bil in its third quarter ended Sept 30, 2012 (Q3,2012).

The company said on Tuesday that profit fell 40% or RM531mil as feedstock prices did not move in tandem with lower product prices.

PetChem's earnings before interest, taxes, depreciation, and amortisation fell by RM649mil or 34% to RM1.2bil.

Its revenue declined 15% to RM703mil due to lower prices and lower volumes.

In the nine-month period, net profit stood at RM2.62bil against RM12.22bil in turnover.


Citra Group and its partner Philippine conglomerate San Miguel are reportedly seeking up to $1 billion in funds next year to finance their infrastructure projects in Indonesia and the Philippines, as construction is expected to pick up.

Citra Group and San Miguel are the controlling shareholders in Indonesia’s private toll road operator, Citra Marga Nusaphala Persada. They control the toll-road operations through Atlantic Aurum. Fifty-four percent of Atlantic Aurum is owned by Citra Group and 46 percent by San Miguel.

Atlantic Aurum is also the controlling shareholder of Citra Metro Manila Tollways Corporation and South Luzon Tollways Corporation.

Citra expects Atlantic Aurum to raise funds through an initial public offering next year.

“Atlantic Aurum will undergo an IPO next year,” said Shadik Wahono, chairman of Citra Group.

Atlantic Aurum is expected to raise around $200 million from the IPO next year, said Shadik, who is also president director of Citra Marga Nusaphala Persada.

Michael Rusli, a director of Atlantic Aurum, said that the company has held several meetings to gauge investors’ demand on the company’s IPO plan. The company held meetings with investors in Singapore and Hong Kong.

“We have received positive responses from investors,” Rusli said.

Atlantic Aurum is expected to list on the Philippine Stock Exchange next year.

Atlantic Aurum plans to bring in revenue of $266 million this year, up from last year’s $237 million, Rusli said,

Citra Marga Nusaphala Persada is competing with other companies, like state toll-road operator Jasa Marga, in Indonesia’s huge infrastructure plan to revamp toll roads and ports this year and next year.

The company and its Indonesian partners, Nusantara Infrastructure are preparing themselves for a project that will connect Serpong to Balaraja, in the Banten province. Citra Marga Nusaphala Persada corporate secretary Hudaya Aryanto said the company intends to bid for the project and become the majority shareholder.


Philippine Realty and Holdings Corp. (Philrealty) is not exiting court-assisted corporate rehabilitation anytime soon but the property developer expects to settle all remaining obligations within 2013.

Philrealty disclosed late Monday that the Quezon City Regional Trial Court branch 93 had denied its motion to terminate the rehabilitation proceedings. The court ruling, as quoted by Philrealty, said the company still had “substantial” amount to pay in accordance with court-approved rehabilitation plan and the termination should thus be “deferred” until the full settlement of its obligations.

In an interview, Philrealty president Amador Bacani explained that the remaining receivables referred to by the court amounted to over P100 million and should thus be settled by 2013, in line with the timetable mentioned during the company’s recent stockholders meeting on the end of rehabilitation proceedings.

Bacani said that notwithstanding this ruling, Philrealty would terminate court-assisted rehabilitation by 2013 with the settlement of its remaining obligations by then.  He said this ruling only deferred the exit pending the settlement of those residual obligations.

“What we’ll do is to submit a payment schedule which the receiver will evaluate,” Bacani said.

“I think one year should be sufficient (to complete everything) because the amount involved is not as big compared to that when we went to rehab,” Bacani said.

When Philrealty underwent court-assisted rehabilitation in early 2000s, Bacani said outstanding bank loans excluding accrued interest amounted to P2 billion. Including interest, this reached as much as P3 billion.

The remaining over P100 million liabilities, Bacani said, had arisen from cases that Philrealty had lost in court.

During its recent stockholders’ meeting, Philrealty unveiled plans to pursue more property projects such as a prime mixed-use development in Bonifacio Global City. For instance, it expects to sign within this year a memorandum of understanding with its principal stockholder Greenhills Properties Inc. to develop the latter’s 6,400-square-meter lot fronting BGC’s 5th Avenue.

After completing the first building Skyline Tower in Andrea North, which is now 35-percent occupied, Philrealty also plans to bring to the property market early next year the second tower, Sky Breeze, which will offer 278 units in 31 floors and targeted for delivery to buyers by mid-2015.  Sales value of all units in this second building is estimated at over P2 billion.

Philrealty also expects to unlock values out of a townhouse subdivision project in San Fernando, La Union. The company plans to sell 236 units with a total sales value of P600 million to P700 million from this townhouse project.

In Asia Yesterday

Tokyo closed up 0.37 percent, or 34.36 points, at 9,423.30, Seoul rose 0.87 percent, or 16.69 points, to 1,925.20 while Sydney ended 0.74 percent, or 32.6 points, higher at 4,456.8.

Hong Kong ended flat, slipping 17.78 points to 21,844.03, while Shanghai fell 1.30 percent, or 26.29 points, to 1,991.17 – the lowest close for the index since January 23, 2009.

– Taipei rose 0.31 percent, or 22.83 points, to 7,430.20.

Taiwan Semiconductor Manufacturing Co. gained 1.05 percent to Tw$96.3 while leading smartphone maker HTC was 1.00 percent lower at Tw$248.5.

– Wellington was flat, falling 2.42 points, at 4,009.61.

Telecom Corp. was down 0.85 percent at NZ$2.33 and Fletcher Building rose 0.13 percent to NZ$7.98.

– Manila was up 0.13 percent, or 7.03 points, to close at a record high of 5,586.45.

Philippine Long Distance Telephone rose 1.59 percent to 2,550 pesos and Manila Electric Co. edged up 0.08 percent to 255.20 pesos.

– Singapore closed 0.25 percent, or 7.41 points, higher at 3,011.91.

Farm commodities supplier Olam tumbled 6.0 percent to Sg$1.56.

– Jakarta ended down 37.66 points, or 0.86 percent, at 4,337.51.

Retailer Ramayana Lestari dropped 4.86 percent to 1,370 rupiah while cigarette maker Gudang Garam fell 0.76 percent to 52,100 rupiah.

– Kuala Lumpur fell 0.60 percent, or 9.71 points, to 1,598.17.

CIMB Group Holdings lost 1.1 percent to 7.50 ringgit, while shed 0.7 percent to 4.55.

– Bangkok gained 0.48 percent, or 6.18 points, to 1,297.03.

– Telecoms company Advanced Info Service added 3.05 percent to 203 baht, while coal producer Banpu edged up 1.02 percent to 398 baht.

– Mumbai closed up 1.65 percent, or 305.07 points, at 18,842.08 rupees.

New York 347 5th Avenue, Suite 1402-508 NY, NY 10016

Shayne Heffernan Ph.D.  
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
Email :
Suite 53 Athenee Tower
63 Wireless Road, Lumpini, Pathumwan, Bangkok 10330
New York 347 5th Avenue, Suite 1402-508 NY, NY 10016


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This year in Thailand-what next?

AseanAffairs   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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