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ASEAN STOCK WATCH 10  September  2010

ASEAN to Post Gains on Positive USA Data

Shayne Heffernan

Trading overnight on Wall St pointed to continued growth, Initial claims for state unemployment benefits dropped 27,000 to 451,000, the lowest since the week ended July 10, the Labor Department said. That was well below financial market expectations for 470,000.

Separately, the trade deficit shrank 14 percent to $42.8 billion in July, smaller than the $47.3 billion gap that markets had expected. Analysts said that suggested the pace of economic growth would quicken in the third quarter.

Government data on Friday showed private employers added a better-than-expected 67,000 jobs in August, while 36,000 more jobs were created in July than previously reported.

Singapore closed higher on Thursday, with the benchmark Straits Times Index at 3,022.28, up 0.36 per cent, or 10.86 points.

About 1.37 billion shares exchanged hands.

The Government of Singapore Investment Corp., the world’s fourth-biggest sovereign fund with a portfolio valued at more than $185 billion, is set to list some of its logistics assets October 15 via an initial public offering, with a goal to raise up to $3 billion.

Global Logistical Properties (GLP), which owns industrial and logistic properties in China and Japan, will be the first listing of a majority-owned firm by the GIC. The firm is one of Asia’s biggest operators of logistics parks, managing 53 logistics parks in 18 major cities, according to its website.

Singapore’s SWF aims to raise the money in what could be the city-state’s biggest IPO since Singapore Telecommunications Ltd. listed in 1993 and raised $2.98 billion. If successful, the IPO would also dwarf CapitaMalls Asia’s $2.02 billion IPO launched last year.

GLP’s listing will be among several large listings expected in Asia in the next few weeks. In the coming months, a S$1 billion IPO is planned by Mapletree Industrial Real Estate Investment Trust, a unit associated with state investment firm Temasek Holdings Pte. Ltd, while China-based New Century Shipbuilding is also exploring the possibility of a S$700 million Singapore IPO this year, the Wall Street Journal reported.


The Jakarta Futures Exchange today announced that it has gone live with its new integrated trading, surveillance and risk management system from Trayport(R) Exchange Systems and 3i Infotech. The Jakarta Futures Exchange has been live with Trayport’s GlobalVision Exchange Trading System(SM) since the start of August, but this has now been integrated with the AWACS specialist surveillance and risk management system from 3i Infotech.

Trayport’s GlobalVision Exchange Trading System integrates fully with 3i Infotech’s AWACS solution and it is expected that both systems will link to 3i Infotech’s Tradis online broker workstation and order routing system later this year.

“The new exchange trading platform allows us to monitor clients’ positions and margin management, market exposure and trading limits,” said Lukas Lauw, Head of Trading and IT at Jakarta Futures Exchange. “We are pleased with the way the systems have been deployed so quickly and effectively. The support provided by both Trayport and 3i Infotech has been first rate and allowed us to make the change much more easily.”

“GlobalVision Exchange Trading System is being increasingly used by exchanges worldwide,” said Paul Constantinou, Sales Manager for Exchange Systems, Trayport. “The Jakarta Futures Exchange is an important player in commodities trading in Asia and their rapid expansion and move to electronic trading shows its clear objective for the future. More exchanges are looking for integrated trading and risk management systems that improve their futures and derivatives markets. We believe that the Trayport and 3i Infotech approach gives exchanges an advanced trading platform while providing the best fraud and risk monitoring solutions available today.”

“We have already seen an increase in trading volumes as a result of switching to Trayport’s GlobalVision Exchange Trading System. We also expect that when we implement FIX Gateway, it will allow our members to connect their broker systems to the exchange, and so we will see an even greater effect,” said Lukas Lauw. “The platform already offers members electronic trading of Olein (palm oil) futures and Gold contracts. We will soon add other products including Coffee and Cocoa.”

Bharat SV, 3i Infotech, commented, “Implementation of advanced trading and risk management systems from Trayport and 3i Infotech, will ensure the Jakarta Futures Exchange has what it needs to meet the demands of a rapidly expanding market place.”

KLCI continued its uptrend in midday trade in tandem with Asian bourses which were boosted by a slight rebound on Wall Street last night.

The FBM KLCI added 3.64 points to close at 1,437.78 at midday.

402 counters were up, 162 were down while 280 remained unchanged. There were 449.6 million shares done at a total value of RM861.1 million.

The local bourse closed for the afternoon session onwards today for the Hari Raya holidays and will resume trading on Monday, Sept 13.

Among the top gainers were Nestle which gained 70 sen to RM42, British American Tobacco added 52 sen to RM47.72 and F&N rose 38 sen to RM14.28.

KFC rose 27 sen to RM3.08, Tan Chong added 27 sen to RM5.30 and Supermax gained 19 sen to RM4.83.

The country’s industrial output rose 3.2% in July from a year earlier after gaining a revised 9.3% in June, the statistics department said in a statement today.

That compares with the median estimate for a 5.7% increase in a Bloomberg News survey of 17 economists.

Nymex crude oil was 2 cents higher at US$74.69 per barrel.

The ringgit was quoted at 3.1123 to the US dollar.

SET index closed at 921.49, down 2.39 or 0.26% in trade worth 37.58 billion baht on Thursday.

Despite being the best performing bourse in the region, the average price to earnings ratio of companies is still relatively below regional peers and far from its historical peak before the Asian economic crisis, said Yanyong Thaicharoen, director of the SET’s Research Institute for Capital Market.

Fund inflows, which have pressured the baht to a 29-month-high, may be part of the SET Index surge but the enlarging trading contribution from retail investors has eased worries of prices overheating, he told reporters.

“The Thai forward P/E ratio improved to 13.17x in August from 12.33x in July. However, it is still below the average of 13.62x in the region,” Yanyong said, adding that the P/E ratio of the local bourse used to hit 20x before the economic crisis in Asia.

He added that the dividend yield of the Thai market is 3.51%, which is the second largest after the Philippines.

Yanyong said the Thai market is supported by retail investors, while the improving economy is expected to lead to further capital increases for business expansion by companies and investment from the government.

Stocks with most active value were as follows:

BANPU increased to 650.00 baht, up 26.00 baht.

PTT decreased to 285.00 baht, down 4.00 baht.

KTB decreased to 14.90 baht, down 0.40 baht.

PTTCH increased to 119.50 baht, up 3.50 baht.

ADVANC increased to 99.00 baht, up 1.50 baht.


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