MORNING BUZZ 06 March 2015
Market Indicators Mkt. T/O (S$ mil) 3‐Mar
4‐Mar
5‐Mar
Market Colour 1,173.1
1,023.3
938.3
Stock Advances 220
232
189
The STI retreated 0.59% for the day, following news that China has cut its official Stock Declines 287
274
282
economic growth target from 7.5% to 7.0%. Gainers in the STI were led by Ascendas REIT (S$2.520; +2.02%) and CapitaMall Trust (S$2.140; +0.94%). The SGD Major Indices DJ Ind Avg 18,203.4
S & P 500 2,107.8
4,979.9
Nasdaq Comp 24,702.8
Hang Seng 18,096.9 18,135.7
has been steadily declining in recent months and fell to a new 4.5 years low of 2,098.5
2,101.0
USD/SGD 1.3710 on Thursday. With MAS set to review Singapore monetary policy 4,967.1
4,982.8
in April, MAS may potentially move to ease its currency policy further amid a weak 24,465.4 24,193.0
inflation environment, further exacerbating the weakening of the SGD. Weakness in the SGD has seen SOR up by around 17% since the start of the year and 249% STI Index since November last year. Main beneficiaries of a rise in SOR will be the local banks 3,395.27 (‐0.59%) (DBS +0.05%; OCBC ‐0.48%; UOB ‐0.35%) as borrowers will need to pay more interest on their SOR‐pegged loans. Overnight, the US markets closed slightly higher as investors await Friday’s closely watched jobs report. Data released on Thursday showed that the number of Source: Bloomberg Commodities
also announced that it will begin its 1.1 trillion‐euro bond buying programme next Current % Chge from Price Close Gold (SPOT) US$ / OZ Oil (NYMEX CWTI|) US$ / bbl Baltic Dry Index people who applied for US unemployment benefits increased to 320,000 for the last week of February, higher than the 301,000 expected by economists. The ECB 1,199.81
‐0.12% 51.02
‐1.43% 561.00
0.36% Exchange Rates week, with 60 billion euros in asset purchases each month. Stocks to Watch 
CNA: Wins S$3.1 million contract in Thailand 
Straits Times Index: No changes to STI after quarterly review 
Jardine Matheson & Jardine Strategic: Posted a solid set of earnings in 2014 as most of its businesses performed well 
EMAS Offshore: Sets up US$500‐million multi‐currency debt programme 
Asia Fashion: Sell convertible bonds for working capital USD : SGD 1.3711 / MYR : SGD 0.3758 Source: Bloomberg Interest Rates 3‐mth Sibor 0.793%
SGS (10 yr) 2.315%
KGI Fraser Research Team KGI Fraser Securities Pte. Ltd. Please see important disclosures at the end of this publication MORNING BUZZ
KGI Fraser Securities Pte. Ltd. CNA (CNA SP): Wins S$3.1 million contract in Thailand CNA Group was awarded a contract worth approximately S$3.1mil by Shinwa group from Japan to undertake the design and project management for 143 units of a new condominium to be developed in the Sukhumvit area of Bangkok. Straits Times Index: No changes to STI after quarterly review Singapore Press Holdings, Singapore Exchange and FTSE Group announced that constituents of the Straits Times Index will remain unchanged following the conclusion of its quarterly review. Jardine Matheson (JM SP) & Jardine Strategic (JS SP): Posted a solid set of earnings in 2014 as most of its businesses performed well Jardine Matheson saw net profit jumped 9.2% to US$1.71bil, on the back of a 1.2% increase in revenue to US$39.92bil. EPS rose 8 per cent to US$4.62 and NAV per share grew 4% to US$51.79 as at the end of last year. For Jardine Strategic, net profit climbed 7.8% to US$1.83bil even though revenue slid 1.3% to US$32.24bil from the preceding year. EPS expanded 8% to US$3.02 and NAV per share shot up 15% to US$57.75 as at the end of 2014. It proposed a final dividend of US$1.07 and Jardine Strategic a final dividend of 19 US cents. EMAS Offshore (EMAS SP): Sets up US$500‐million multi‐currency debt programme EMAS Offshore has set up a US$500mil ($682mil) multi‐currency debt issuance programme. The proceeds will be used for refinancing, capital expenditure and general working capital, it said in a regulatory filing. Under the programme, EMAS may issue notes and perpetual securities denominated in US dollars, Singapore dollars or any other currency. DBS Bank is the sole arranger and dealer for the programme. Asia Fashion (AFH SP): Sell convertible bonds for working capital Asia Fashion Holdings is seeking to raise $2.66mil for working capital from selling convertible bonds. It will issue the two‐year bonds to Alternus Capital Holdings, an investment firm owned by Joe Lam Cho Ying, a former banker. The bonds will pay 7% interest annually and can be redeemed by Asia Fashion any time from the seventh month from the date of issue. They can be converted into shares at a price of seven cents apiece. Source: The Business Times / Bloomberg / Straits Times 2
MORNING BUZZ
Apendix 1: Corporate Action Dividends
Results Period
Ann Date
Company
DPS
Ex‐Date
Book Close
Payable
Share Price Yield 5‐Mar‐15
(%)
Nobl e Grp 26‐Feb‐15 FY14 USD 0.007000
9‐Mar‐15
11‐Ma r‐15
20‐Ma r‐15 SGD
1.005
1.0
Ri ckmers Ma ri ti me
26‐Feb‐15 FY14 USD 0.006000
10‐Mar‐15
12‐Ma r‐15
27‐Ma r‐15 SGD
0.295
2.8
As i an Pa y Tel evi s i on Trus t
24‐Feb‐15 FY14 SGD 0.021300
18‐Mar‐15
20‐Ma r‐15
27‐Ma r‐15 SGD
0.935
2.3
M1
19‐Ja n‐15 FY14 SGD 0.119000
17‐Apr‐15
21‐Apr‐15
30‐Apr‐15 SGD
3.940
3.0
Grea t Ea s tern Hl dgs 6‐Feb‐15 FY14 SGD 0.400000
21‐Apr‐15
23‐Apr‐15
7‐Ma y‐15 SGD 24.820
1.6
Grea t Ea s tern Hl dgs ‐ Speci a l
6‐Feb‐15 FY14 SGD 0.050000
21‐Apr‐15
23‐Apr‐15
7‐Ma y‐15 SGD 24.820
0.2
Keppel Corp 23‐Ja n‐15 FY14 SGD 0.360000
22‐Apr‐15
24‐Apr‐15
6‐Ma y‐15 SGD
8.760
4.1
Keppel Tel ecoms & Tpt
20‐Ja n‐15 FY14 SGD 0.035000
22‐Apr‐15
24‐Apr‐15
5‐Ma y‐15 SGD
1.760
2.0
Keppel Tel ecoms & Tpt ‐ Speci a l
20‐Ja n‐15 FY14 SGD 0.115000
22‐Apr‐15
24‐Apr‐15
5‐Ma y‐15 SGD
1.760
6.5
Sembcorp Indus tri es 17‐Feb‐15 FY14 SGD 0.110000
23‐Apr‐15
27‐Apr‐15
18‐Ma y‐15 SGD
4.270
2.6
Ex‐Date
Book Close
23‐Feb‐15
25‐Feb‐15
Rights & Bonus Issues
Company
Rights Issue
La s s eters Interna ti ona l Hl dgs
1 Ri ghts Sha re @ S$0.06 ea ch Ri ghts Sha re for every 1 exi s ti ng Sha res hel d
Rights Trading Period
From
To
2‐Mar‐15
10‐Mar‐15
Source: SGX Annoucement
Buyout
Offer Price
Company
Remarks
Closing Date
Offeror
euNetworks Group SGD 1.16
Ca s h
5.30 p.m. on 13 Ma r 2015
EUN Hol di ngs , LLP
Keppel Land *
SGD 4.38
Ca s h
5.30 p.m. on 12 Ma r 2015
Keppel Corpora ti on
LCD Gl oba l Inves tments Ltd
SGD 0.33
Ca s h
5.30 p.m. on 12 Ma r 2015
AF Gl oba l Pte. Ltd.
Popul a r Hl dgs
SGD 0.32
Ca s h
5.30 p.m. on 18 Ma r 2015
Gra nd Apex Hol di ngs Pte. Ltd.
Source: SGX Annoucement
Keppel Land: A Base Offer Price of SGD 4.38 in cash for each Offer Share. A higher Offer Price of SGD 4.60 in cash, if KCL is able to reach the
Compulsory Acquisition Threshold.
Apendix 2: Financial Calendar KGI Fraser Securities Pte. Ltd. 3
MORNING BUZZ
Monday
Tuesday
Wednesday
2‐Mar‐15
3‐Mar
Thursday
4‐Mar
Q4: Va s hi on Grp ( Released on or before 1‐
Mar)
Friday
5‐Mar
6‐Mar
STI Review
Q4: Dairy Farm Int'l / Jardine Matheson Hldgs / Jardine Strategy / Mandarin Oriental Int'l
*Q4: Hongkong Land
9‐Mar
10‐Mar
11‐Mar
12‐Mar
13‐Mar
16‐Mar
17‐Mar
18‐Mar
19‐Mar
20‐Mar
SG: Prices of Private Residential Units Sold by Developers
*Q4: TPV Technology
23‐Mar
24‐Mar
25‐Mar
26‐Mar
27‐Mar
SG (Feb 2015): Index of Industrial Production SG (Feb 2015): CPI
30‐Mar
31‐Mar
1‐Apr‐15
2‐Apr
3‐Apr
Good Friday
* Tentative
Source: Company; Bloomberg
KGI Fraser Securities Pte. Ltd. 4
MORNING BUZZ
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