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ASEAN STOCK WATCH Asean Affairs  30 October 2012

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Hurricane Sandy has taken it's toll on Wall St as markets for stocks, options and other exchange-based derivatives will remain closed on Tuesday due to Hurricane Sandy, the top exchange operators said on Monday, when markets were also shut.

No decision had been made on whether to reopen on Wednesday, when the worst of the storm was to have passed the financial center of New York.

In Europe the situation is clearly deteriorating and it may lead to sharp falls when the US markets reopen, Shayne Heffernan's best buys in ASEAN today are Ayala Land, Astra, Mini-Circuits, Varopakorn, CapitaLand


Property group CapitaLand has set up a housing private equity fund that will invest in value housing developments in China.

The company said in a statement that the CapitaLand China Value Housing Fund (CCVHF) was successfully closed at US$215 million (S$264 million).

CapitaLand's wholly-owned unit, CapitaValue Homes, has a 58.6 per cent stake in the fund, totalling up to S$155 million.

Meanwhile, other corporate and institutional investors hold the remaining stakes.

The CCVHF is CapitaLand's 12th real estate private equity fund in China and has a fund life of five years.

Two value housing projects which are currently in development, The Rivervale in Guangzhou and The Floravale in Shanghai, will be injected into the fund as seed investments.

CapitaValue Homes' chief executive officer, Chen Lian Pang, said in the statement that "China is currently 51 per cent urbanised and seven million new households are expected to form every year. Value housing will meet the needs and affordability of many young and first time homebuyers."

Meanwhile, CapitaLand Financial' chief executive officer, Wen Khai Meng, added "the fund will offer investors an opportunity to gain exposure to the value housing segment in China."

CapitaLand currently has total assets under management of about S$36.1 billion from its six real estate investment trusts (REIT) and 15 private equity funds.


Varopakorn is looking a little oversold today and should recover over the next week.

Varopakorn Public Co., Ltd. is one of the most modern manufacturers and suppliers of aluminium rolled products in Thailand, employing advanced technology of continuous casting.  The company commenced commercial production of aluminium roll and sheet products at its stated-of-the-art plant in Samut Prakarn province on February 21, 1979.
After registering as a member of the Stock Exchange of Thailand on January 26, 1994, the company has grown by leaps and bounds.  In order to meet the burgeoning demand of aluminium products, the company has entered into dynamic investments with Mitsubishi Corporation of Japan, Mitsubishi Aluminium Co., Ltd, and Thai-MC Co., Ltd.
The company’s products have been developed to meet a wide range of properties that are often tailor-made to customer needs.  Varopakorn Public Co., Ltd has long recognized the need to be able to offer the finest quality products to its customers and industry at large.


Mini-Circuits Technologies (M) Sdn Bhd chairman and president Datuk Seri Kelvin Kiew described the final period of the year as the worst since 2009, when the subprime crisis peaked.

The economic crisis had prompted many companies to tighten their budgets for the final quarter, as they did not want to end up with excess inventory for the year.

“Furthermore, the orders for consumer electronics products to be manufactured for the Christmas period have also stopped, as the festive holidays are just around the corner. The worldwide book-to-bill ratio for the industry has also dipped below one, indicating an unhealthy trend,” he said.

A book-to-bill ratio of above one indicates more orders are received than filled, showing a strong market where demand outpaces supply. A book-to-bill ratio of below one indicates weaker demand.

According to the September Book-to-Bill Report released by SEMI, North America-based manufacturers of semiconductor equipment posted US$952.9mil (RM2.9bil) in orders worldwide in September 2012 (three-month average basis) and a book-to-bill ratio of 0.81.


Shares in Astra International, Indonesia's largest automotive company, fell 0.6 percent on Monday to Rp 7,850 amid dicey reports from CSLA.

CLSA Asia Pacific Markets downgraded Astra to "underperform" from "outperform," saying the company's earnings are at a risk due to uncertainty in coal prices and the shares are expensive compared with peers.

"Astra's auto business is flourishing; more so with LCGC's potential boost to sales. Other automakers might follow suit, but Astra looks most ready... However, 28 percent of its earnings are at risk, mainly UT with much uncertainty in coal price direction," analysts Sarina Lesmina and Edward Tanuwijaya said in a note on Monday.


The p28.5-billion redevelopment of Ayala Land Inc.’s “crown jewel,” Ayala Center, has taken shape with the debut of two upscale hotels, two new office buildings and a revitalized Glorietta shopping center before the year ends.

Local property giant ALI is also set to launch this November a new high-end two-tower residential development, Garden Towers, the first skyscraper of which will cost P3 billion to build. The launch of the new residential project under the Ayala Land Premier brand follows the rollout of the three-tower Park Terraces where 1,128 units are now 84-percent sold since the first tower was unveiled in 2010.

By December, the 32-room all-suite Raffles Makati and the 280-room Fairmont Hotel will open their doors to affluent business and leisure travelers—the newest luxury accommodations to be built in the Makati central business district in nearly two decades. They will share a 30-story building with high-end serviced apartment Raffles Residences with 237 units, of which 110 units will be included in ALI’s hotel inventory. Raffles Residences will occupy the 11th to 30th floors, Raffles Makati, the 9th to 10th floors while Fairmont will be at the 3rd to 8th floors.

By April 2013, a third hotel brand—the 348-room mid-budget Holiday Inn and Suites Makati, which will be directly connected to the Glorietta hub—will also open for business.

“This is the most ambitious program Ayala has done,” ALI president Antonino Aquino told a press briefing. “We’re almost complete and about to inaugurate various components.”

Raffles will offer accommodations starting at $350 a night while Fairmont will offer at the $200 to $220 price points. Holiday Inn will offer accommodations for $130 a night.

“As we pursue our growth strategy with the development of other business districts in Metro Manila and across the country, we will continue to enhance Makati so it maintains its place as the premiere destination in the Philippines,” Aquino said. “Makati began the trend of master-planned communities in the Philippines over 50 years ago. It will remain a prime example of sustainable urbanization and the main vehicle for transformation this year is the Ayala Center.”

The Ayala Center makeover is seen boosting ALI’s recurring revenues. In addition to the completion this December of the Glorietta redevelopment, with a gross floor area of 54,000 square meters of retail space, the ambitious redevelopment also includes the addition of two office towers with a gross floor area of 50,000 sqm. The office towers will cater to business process outsourcing firms.

For the Glorietta shopping center, which has 650 existing stores, 214 new stores will be added. The complex will also have a “re-energized” activity center for diverse, round-the-clock events.

This redevelopment plan, the first phase of ALI’s long-term master plan for Ayala Center, covers only a third of the 24-hectare prime property, Aquino said. It is also part of ALI’s P60-billion investment plan for six major districts in Makati for the next five years.

While this phase of the Ayala Center redevelopment focuses on the area closer to Pasay road, ALI reserves the landbank nearer to the Ayala Ave. side for future phases of redevelopment.

On the residential component, the first tower of Park Terraces, which was launched in 2010, will be ready for turnover to residents in 2015; its Point Tower in 2016 and the third tower in 2017.

Yesterday in Asia

Tokyo ended flat, dipping 3.72 points to 8,929.34. Sydney closed 0.10 percent, or 4.5 points, higher at 4,476.9 and Seoul was almost unchanged, nudging up 0.09 points to 1,891.52.

Hong Kong closed down 0.16 percent, or 34.52 points, at 21,511.05 with developers dragged down by government plans to curb the red-hot property market.

Shanghai ended 0.35 percent lower, giving up 7.27 points to 2,058.94.

– Singapore closed down 0.91 percent, or 27.90 points, at 3,029.61.

DBS Group fell 0.86 percent to Sg$13.90 and Jardine Cycle and Carriage shed 1.02 percent to Sg$49.64.

– Taipei slipped 0.59 percent, or 42.39 points, to 7,091.67.

Leading smartphone maker HTC was 7.0 percent limit-down at Tw$219.5 while Taiwan Semiconductor Manufacturing Co. was 0.92 percent higher at Tw$88.1.

– Manila closed 0.14 percent lower, losing 7.74 points to 5,397.42.

Ayala Land rose 0.64 percent to 23.65 pesos but Puregold Price Club was unchanged at 30.05 pesos. Coal Asia Holdings, which soared 50 percent on its debut last week, slumped 14.67 percent to 1.28 pesos.

– Wellington fell 0.82 percent, or 32.48 points, to 3,951.30.

Telecom was off 3.45 percent at NZ$2.38 and Fletcher Building shed 0.7 percent to NZ$7.07.

– Jakarta closed 0.18 percent lower, shedding 7.79 points to 4,331.37.

Mobile phone operator Indosat was up 6.45 percent at 6,600 rupiah, palm oil firm Astra Agro Lestari dropped 1.2 percent to 20,650 rupiah and retailer Ramayana Lestari Sentosa slipped 0.92 percent to 1,080 rupiah.

– Bangkok lost 0.17 percent, or 2.24 points, to 1,279.57.

Banpu was unchanged at 389 baht, but PTT gained 0.96 percent or 3 baht to 316 baht.

– Kuala Lumpur was flat, nudging up 0.67 points to 1,672.56.

Public Bank gained 2.08 percent to 15.74 ringgit while Top Glove rose 0.38 percent to 5.35. Cycle & Carriage Bintang lost 3.17 percent to end at 2.75 ringgit.

– Mumbai ended virtually flat, rising 0.06 percent or 10.48 points to 18,635.82.

IT outsourcer Wipro rose 2.56 percent to 344.75 rupees. United Spirits, the flagship of the UB group led by Vijay Mallya, fell 9.15 percent to 1,095.05 rupees after he said that a deal with UK drinks giant Diageo was not a certainty.

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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