SGX close to allowing exceptions for dual-class share listings

THE Singapore Exchange's Listings Advisory Committee (LAC) is set to lay out ground rules in the coming weeks that will allow for multiple-class share structures, according to sources familiar with the matter.

The LAC, an autonomous body that provides independent opinions on unusual listing applications for SGX, is expected to allow dual-class structures only when there are compelling reasons to do so, the sources said.

Examples of such reasons would be when there are certain individuals who play indispensable roles in the company, such as the founders of search engine giant Google; or when an uneven ownership structure is long-standing practice.Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg

Read More

Singapore shares open lower as STI eases 0.2% to 2,861.54

SINGAPORE shares opened lower on Monday, with the Straits Times Index (‪#‎STI‬) slipping 0.20 per cent, or 5.86 points, to 2,861.54 as at 9:06am.

Gainers outnumbered losers 80 to 65, or about six up for every five down, after 46.2 million shares worth S$53.9 million changed hands.

Investment firm Attilan Group was the top active out of the gates, jumping 75 per cent, or 0.3 Singapore cent, to trade at 0.7 Singapore cent.

Among the blue chips, the banks presented an early drag. DBS Group Holdings slipped 1.3 per cent, or 20 Singapore cents, to S$14.84, while United Overseas Bank eased 1.5 per cent, or 26 Singapore cents, to trade at S$17.66. ‪#‎OCBC‬ Bank traded at S$8.42, down 0.1 per cent or one Singapore cent.



Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg

Read More

SGX MARKET UPDATE OF 12th AUG'2016

The Straits Times Index (STI) ended 5.75 points or 0.20% lower to 2869.82, taking the year-to-date performance to -

0.45%.

The top active stocks today were Singtel, which gained 1.67%, UOB, which declined 1.00%, DBS, which declined 0.20%,

OCBC Bank, which declined 0.24% and Sembcorp Marine, with a 5.39% advance.

The FTSE ST Mid Cap Index gained 0.09%, while the FTSE ST Small Cap Index rose 0.46%.

The outperforming sectors today were represented by the FTSE ST Basic Materials Index, which rose 2.01%. The two

biggest stocks of the Index - Midas Holdings and Geo Energy Resources - ended 4.26% higher and 1.91% higher

respectively.

The underperforming sector was the FTSE ST Real Estate Holding and Development Index, which slipped 0.92%.

Hongkong Land Holdings shares declined 1.21% and Global Logistic Properties declined 0.76%.

The three most active Exchange Traded Funds (ETFs) by value today were:

STI ETF (unchanged) ,SPDR Gold Shares (-0.61%) ,DBXT FTSE Vietnam ETF (+1.71%)

The three most active Real Estate Investment Trusts (REITs) by value were:

Ascendas REIT (-0.41%) ,CapitaLand Mall Trust (unchanged) ,CapitaLand Commercial Trust (unchanged)

The most active index warrants by value today were:

HSI22800VTeCW160929 (+10.48%) ,HSI23800UBeCW161229 (+6.20%) ,HSI23000MBeCW160929 (+7.87%)


Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg

Read More

HSBC says investors should look at where companies make their revenue

Equity investors who look at indexes based on revenue rather than domicile will discover an entirely different investment universe, according to HSBC.

Global indexes are based on domicile. The MSCI U.K. Index, for example, is composed of companies from the U.K. But as two-thirds of their revenue comes from overseas markets, the index isn't really providing investors with exposure to the U.K., HSBC analysts wrote in a new report.

All the companies in the Dow Jones Industrial Average DJIA, +0.64% are based in the U.S., but more than 40% of the overall revenue is derived from outside the U.S.


See also: Why Marc Faber is calling for an ugly stock-market crash—again

At the same time, companies are inconsistent in their disclosures of where they generate their revenue and accounting rules don’t help. Combined, those factors mean that understanding where revenue is made is a “fertile ground to add value,” they wrote.

Read: Why even the best investing advice may be wrong

“By looking beyond locally listed stocks incorporated in the country benchmark, analysts can broaden the universe of potential investments,” said the report. “This often gives exposure to harder-to-access sectors and countries.” 

The report analyzes 29 major developed and emerging country indexes and outlines ways to play both GDP and currency trends. It found that European companies are the most global, generating almost half their revenue overseas. At a time when global economic growth rates are weak and risk perception high, that has led many European indexes to underperform. Europe’s big exposure to emerging markets (EM) on the other hand, has been a positive, as EM markets have stabilized. 


Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg

Read More

Singaporesharesopen 0.43% higher on Friday

SINGAPORE share prices opened higher on Friday, with the Straits Times Index up 12.22 points or 0.43 per cent to 2,882.04 as at 9.01am, after Wall Street hit record highs overnight.

Top gainers in early-morning trade included #Jardine Cycle & Carriage, #Pan Ocean and Singapore O&G.

A total of 63.9 million shares worth S$58.7 million changed hands. Gainers outnumbered losers 101 to 39.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg

Read More

COMEX UPDATE 11th AUG'BY EPIC RESEARCH

Oil edged further above $45 a barrel on Tuesday as forecasts for a drop in U.S. inventories and speculation of producer

action to prop up prices countered concern about a supply glut.Total U.S. crude inventories were expected to fall by 1

million barrels in weekly reports, although market intelligence firm Genscape has reported a rise of more than 307,000

barrels at the Cushing, Oklahoma U.S. crude delivery hub, traders said.

 Gold prices slumped to a one-week low in European trade on Tuesday, amid growing expectations of a U.S. interest

rate hike by the end of this year.Gold for December delivery on the Comex division of the New York Mercantile Exchange

fell to a session low of $1,336.70 a troy ounce, the weakest since July 29. It was last at $1,337.15 by 06:59GMT,

or 2:59AM ET, down $4.15, or 0.31%.

 Copper futures fell during late noon trade in the domestic market on Tuesday as investors and speculators cut positions

in the industrial metal as improved China inflation data dimmed the case for fresh policy easing dampening demand

prospects.China’s producer prices fell 1.7 per cent year on year in July 2016 marking the smallest decline in

nearly two years while consumer inflation stood at 2 per cent matching analysts’ estimates.

Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg

Read More

Singaporesharesopen lower on Thursday

SINGAPOREshareprices opened 0.59 per cent lower on Thursday with the Straits Times Index down 17.1 points to 2,858.47 at 9.04am.
This followed US markets, which analysts say were hit by profit-taking after US stocks reached new records over the last three sessions.
The

DowJonesIndustrial Average lost 0.2 per cent to 18,495.66. The broad-based S&P 500 fell 0.3 per cent to 2,175.49, while the tech-rich Nasdaq Composite Index shed 0.4 per cent to 5,204.58.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg

Read More

Singapore shares close‬ mixed in line with weak Europe opening, O&G concerns

Wednesday put paid to hopes earlier in the day that the Straits Times Index could end the session in the black for the year.
After rising to an intraday high of 2,893, the index closed a net 4.79 points higher at 2,875.57, about seven points below its end-2015 level of 2,882. Turnover was relatively heavy at 886 million units worth S$1.2 billion and, excluding warrants, there were 202 rises versus 203 falls.
Banks were in focus, particularly DBS after it released its Q2 figures last week and disclosed its exposure to failed oil and gas (O&G) company Swiber Holdings.
Maybank Kim Eng maintained its "sell" on DBS, saying the latter's second-quarter results suggested that provisions may not be adequate and that there is broad-based asset quality deterioration in various areas including the O&G sector and in Hong Kong.


Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg

Read More

SINGAPORE COMEX UPDATE BY EPIC RESEARCH

Oil edged higher to $42 a barrel on Wednesday after hitting its lowest since April the previous day, supported by an

industry report showing a fall in U.S. inventories and a weaker dollar.But prices could struggle to make much headway,

analysts said, as sentiment remains bearish. A supply glut that has weighed on prices could increase if oil exports actually

restart from ports in Libya that have been closed since 2014.

 Gold prices held steady below a two-year high in European trade on Wednesday, as investors looked ahead to key U.S.

data later in the session to gauge the health of the world's largest economy and whether it is strong enough to warrant

an interest rate hike later this year.The U.S. is due to release the ADP jobs report for July at 12:15GMT, or 8:15AM ET,

with market analysts expecting a gain of 170,000 private sector payrolls.

 Nickel futures rose during evening trade in the domestic market on Wednesday as investors and speculators booked

fresh positions in the industrial metal amid a pickup in physical demand for nickel from alloy-makers in the spot market.A

pickup in the 19-member Euro Area economy also bolstered the demand outlook for the metal as a combined

gauge measuring manufacturing and services in the Euro area climbed to 53.2 in July from 53.1 in June with a reading

above 50 signaling expansion.

 Bank of Japan Deputy Governor Kikuo Iwata said on Thursday that a comprehensive review of the central bank's monetary

policy due next month would focus on the transmission mechanism and obstacles to its monetary policy.The review

is not meant to transmit a specific direction for future monetary policy, Iwata said, according to the text of a

speech.

 A constitutional amendment proposed by interim President Michel Temer to put a ceiling on Brazil's public spending

will pass the lower house this year but not the Senate until 2017, lower chamber Speaker Rodrigo Maia said on

Wednesday.The proposed cap is the cornerstone of Temer's strategy to plug a bulging deficit inherited from the Workers

Party government of suspended President Dilma Rousseff, yet its impact on fiscal accounts will be delayed until it

wins Senate approval next year.

 The Bank of England is poised to cut interest rates for the first time since 2009 later on Thursday, as Britain's economy

teeters on the brink of recession after June's vote to leave the European Union.Although the BoE wrong-footed financial

experts three weeks ago by leaving rates unchanged, the central bank said most of its policymakers were likely to

support action in August as post-referendum uncertainty depressed the economy.

Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg

Read More

‪Updatedhotstock‬ Noble tumbles in active trade, prompting SGX query

THE share price of ‪#‎NobleGroup‬ tumbled more than 15 per cent in active trade on Tuesday, prompting a query from the Singapore Exchange (‪#‎SGX‬) on its trading activity.

At 03:59pm, Noble was trading at S$0.137 a share, down S$0.025, or 15.432 per cent. More than 272 million shares changed hands, making the commodities group the most actively traded stock on SGX.

In a reply to the regulator's query, Noble said it was unaware of any possible explanation of the trading, and confirmed that it was in compliance with the listing rules.

Asked for a reason for the latest tumble, a broker attributed the sell-off to the prevailing negative market sentiment towards debt-ridden companies with weak balance sheets.

As of March 31, 2016, Noble's cash and cash equivalents stood at US$1.35 billion, compared to US$1.95 billion at the end of 2015. It had about US$3.69 billion in net debt.

The stock has been trodden on by all sorts of downgrades by ratings agencies and the "buy" recommendations have virtually disappeared. To Know More Updates Register Here

Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg

Read More

Yoma’s 1Q17 earnings drop 28.6% to $1.8 million on softer property-related sales

Myanmar-focused business conglomerate, Yoma Strategic Holdings, reported a decrease in earnings to $1.8 million for the three months ended 30 June 2016 in 1Q17.

Revenue fell 22.4% to $17.6 million in 1Q17 from $22.7 million in 1Q16. The bulk of Yoma’s revenue was driven by the group’s consumer and automotive & equipment businesses, as well as from investment properties, which offset the lower revenue from its sales of residences and land development rights.

Revenue from the group’s non-real estate businesses recorded a 37.2% growth to $9.6 million. The group’s Case New Holland business contributed $5.6 million or 58.6% of its non-real estate revenue. The group’s fleet leasing business expanded to 359 vehicles under lease with growing demand from organisations expanding their operations in Myanmar. The group’s KFC business also continued its growth momentum with two new stores openings in April and June which brought the total store count to six as at end of June 2016.

Other income increased to $11.8 million in 1Q17 from $1.6 million in 1Q16, mainly driven by the fair value gain of $10.3 million from the group’s telecommunications towers investment.

Administrative expenses increased to $12.6 million in 1Q2017 as compared to $8.4 million in 1Q2016. The increase was mainly due to higher staff cost.

“The real estate market remained sluggish but is seeing signs of recovery, and we have received encouraging feedbacks from our recent launch of the townhouses in Pun Hlaing Estate,” says Melvyn Pun, CEO of Yoma.

“The real estate market remains a bit uncertain as the new government introduced its policies for the sector, although there are signs of a recovery from last year’s slow down. I am confident that the long term outlook for the country and its economy, and in turn, Yoma Strategic, remains bright.”

Yoma last traded at 60 cents on Monday.

Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg

Read More

AA REIT posts 1Q DPU of 2.75 cents

The manager of AIMS AMP Capital Industrial REIT (AA REIT) has announced a DPU of 2.75 cents for the 1Q ended June, unchanged from the same period a year ago.

Gross revenue came in at $29.2 million in the first quarter, thanks to a property tax refund of $1.1 million. Net property income improved by 1.0% to $20.4 million compared to a year ago while distribution to unitholders was $17.5 million.

CEO Koh Wee Lih of AIMS AMP Capital Industrial REIT Management Limited, AA REIT’s manager, says: “We increased net property income with proactive asset and lease management focused on managing cost while maintaining prudent gearing of 33.1%, and continued on our strategy to unlock organic growth from our portfolio. Our redevelopments at 30 & 32 Tuas West Road and 8 & 10 Tuas Avenue 20 are tracking on time and budget and will further grow our portfolio value upon completion.”

As at end June, approximately 67% of AA REIT’s redevelopment at 30 & 32 Tuas West Road has been completed. Upon completion, the property will boost annual rental income four-fold to $4.15 million which is already 100% pre-committed. Meanwhile, demolition work at 8 & 10 Tuas Avenue 20 will be completed by end of this month, with the target completion in 2H of 2017.

In its outlook, AA REIT, which has a diversified portfolio of income-producing industrial real estate located throughout the Asia Pacific, will continue its proactive approach in managing its assets and leases to help navigate the short-term volatility and these challenging market conditions

Units of AA REIT closed 0.3% higher at $1.465.

Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg

Read More

MapletreeLog, PLife, Yoma, Noble, Katrina, Fortune REIT

Here are some stocks that could move the market this Tuesday morning:

Mapletree Logistics Trust (MLT) has posted a distribution per unit of 1.85 cents for 1QFY2017, unchanged from the DPU declared in 1QFY2016. For the quarter to June, revenue rose 5.3% to $89.6 million with the full contribution from three properties acquired in Australia, Vietnam and Korea in FY2016. The group also recognised revenue from the completed extension building in Moriya Centre in Japan and higher revenue from existing properties in Hong Kong. Units in MLT closed at $1.06 on Monday.

Parkway Life REIT (PLife REIT) has declared a 2Q DPU of 3.01 cents, which is 10.2% lower than the DPU of 3.35 cents a year ago. This was due to the absence of one-off distribution of divestment gain recorded for the corresponding period in 2015. PLife REIT closed 1.59% higher at $2.55 on Monday.

Yoma Strategic posted a 28.6% drop in 1Q earnings to $1.8 million from $2.6 million a year ago. Revenue fell 22.4% to $17.6 million from $22.7 million. This revenue was largely driven by the Group’s Consumer and Automotive& Equipment (Non-Real Estate) businesses and its rental revenue from investment properties, which offset the lower revenue from its sales of residences and land development rights (LDRs). Yoma closed at 60 cents.

Noble Group says valid acceptances for 6.3 billion shares and excess applications for 5.1 billion shares representing 95.7% and 78% of the total rights shares available for application were received at the close of the rights issue on July 21. As applications were received for a total of 11.4 billion rights shares out of the 6.5 billion rights shares available for subscription, Noble’s rights issue was 173.7% subscribed. Shares of Noble closed 1.8% lower at 17 cents.

Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg

Read More

SGX Singapore Opening Market Update : Epic Research Singapore

SINGAPORE share prices opened lower on Tuesday with the Straits Times Index down 18.59 points or 0.63 per cent to 2,911.26 as at 9.01am. Wall Street closed lower overnight.

Top losers in early-morning trade included UOB and DBS.

Some 55.7 million shares worth S$60.6 million changed hands, with losers outnumbering gainers 70 to 54.

Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg

Read More

SGX Singapore Closing Market Update : Epic Research Singapore

CAUTION reigned on Monday ahead of central bank meetings in Japan and the United States this week.

Singapore stocks finished 0.5 per cent lower in the session, with the Straits Times Index dropping 15.5 points to 2,929.85.

About 923.6 million shares worth S$941.5 million in total changed hands, which worked out to an average unit price of S$1.02 per share.

The most actively traded counter was Annica Holdings, which was flat at S$0.001 with 51 million shares changing hands. Other actives included QT Vascular and Spackman Entertainment.

Losers outnumbered gainers 229 to 172, or about four down for every three up.

Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg

Read More

SGX Stock Recommendations : Epic Research Singapore

MARKET UPDATES :

• The Straits Times Index (STI) ended 4.87 points or 0.17% higher to 2945.35, taking the year-to-date performance to +2.17%.

• The top active stocks today were Singtel, which gained 1.66%, DBS, which declined 0.06%, Wilmar Intl, which declined 0.97%, UOB, which gained 0.26% and ComfortDelGro, with a 1.73% fall.

• The FTSE ST Mid Cap Index declined 0.84%, while the FTSE ST Small Cap Index declined 0.24%.

• The outperforming sectors today were represented by the FTSE ST Telecommunications Index, which rose 1.48%.

• The two biggest stocks of the Index – Singtel and StarHub – ended 1.66% higher and remained unchanged respectively.

• The underperforming sector was the FTSE ST Oil & Gas Index, which slipped 1.45%. Keppel Corp shares declined 1.43% and Sembcorp Industries declined 0.35%.

• The three most active Exchange Traded Funds (ETFs) by value today were : Nikko AM Singapore STI ETF (-0.33%) ,SPDR Gold Shares (+0.21%) ,DBXT MSCI Taiwan ETF (-0.59%).

• The three most active Real Estate Investment Trusts (REITs) by value were : Ascendas REIT (+1.61%) ,Suntec REIT (-2.52%) ,CapitaLand Commercial Trust (-1.28%)

• The most active index warrants by value today were : HSI23800UBeCW161229 (unchanged) ,HSI22000MBeCW160929 (-0.95%) ,HSI22400UBeCW161028 (+1.50%)

• The most active stock warrants by value today were : DBS MB eCW161031 (-6.86%) ,OCBC Bk MBeCW161004 (-6.98%) ,OCBC Bk MBeCW170118 (-6.25%).

Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg

Read More

Singtel, Raffles Medical, ZICO, Lum Chang, Rowsley, Lian Beng

Here are some stocks that could move the market this Monday morning:

Optus Business, the enterprise division of Singtel's Australian subsidiary Optus, has announced a new three year ICT services agreement with insurer QBE Australia that will see Optus deliver voice, mobile and data network services for them. The new contract supports voice and data services connecting more than 4000 QBE end users across 42 locations throughout Australia using the Optus network. Although the actual value of the contract was not disclosed, Optus says the new agreement is a “multi-million dollar deal”. Singtel last closed at $4.30.

Raffles Medical Group's earnings rose 4.5% to $16.7 million in the second quarter ended June 30, 2016, from $15.9 million in the previous corresponding quarter. Revenue grew 19.8% to $119 million in 2Q from a year ago. All divisions contributed positively, with revenue from Healthcare Services and Hospital Services increasing by 42.2% and 7.9% respectively. Raffles Medical closed 1.25% higher at $1.62 on July 22.

ZICO Holdings Inc. announced that ZICO Capital has been granted a capital markets services (CMS) licence by the Monetary Authority of Singapore on July 13. The licence will allow ZICO Capital to conduct the regulated activity of advising on corporate finance. ZICO Holdings closed flat at 28 cents.

Lum Chang Holdings announced wholly owned subsidiary, Lum Chang Building Contractors, has won a $60.8 million contract to build a 14-storey high-specification industrial building and provide asset enhancement woks to three existing buildings from by DBS Trustee on behalf of Mapletree Industrial Trust. Shares of Lum Chang closed unchanged at 36 cents.

Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at :
info@epicresearch.sg

Read More

What's weighing on banks’ profitability in 2Q?

In 1Q2016, shares in DBS Group Holdings, Oversea-Chinese Banking Corp and United Overseas Bank were reeling on concerns of a surge in non-performing loans (NPLs) triggered by rising interest rates, slumping commodity prices and an uncertain economic outlook in China.

As banks head into their 2Q2016 reporting season, bank stocks have recovered somewhat, but they have not reached their 1Q2016 highs. One reason is that commodity prices have recovered somewhat, and another is that China appears to be muddling along. More importantly, with Brexit and volatile job numbers in the US, there is a growing consensus in the market that major central banks around the world will keep monetary policy looser for longer.

Yet, that could hurt earnings at the local banks, which are due to begin reporting their 2Q2016 financial results this coming week.

Net interest income (NII) contributes more than half of the banks total income, and all three of them did fairly well in 1Q2016 because of wider net interest margins (NIMs).

However, the three-month Swap Offer Rate and three-month Singapore Interbank Offered Rate have been sliding since 1Q2016. That could mean tighter NIMs weighing on NII at the banks.

Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg

Read More

Frasers Commercial Trust’s Microsoft extension a window of opportunity

OCBC Investment Research is keeping its “buy” recommendation on Frasers Commercial Trust (FCOT) and raising its fair value estimate to $1.45 from $1.42 previously.

“One major development which took place during the quarter was Microsoft’s decision to extend its current lease at Alexandra Technopark (ATP) for another five years,” says OCBC lead analyst Andy Wong Teck Ching in a Monday report.

Microsoft occupies 78,000 sq ft of space at ATP, which is 7.4% of ATP’s net leasable area. The original lease, which would expired in FY2017, has now been extended to FY2022.

“Looking ahead, we believe rental reversions are likely to moderate, as FCOT’s average passing rent for its expiring leases in Singapore are now close to market rents,” he adds.

OCBC says FCOT’s 3Q results came in within expectations.

Distribution per unit (DPU) grew 2.6% to 2.41 cents, while gross revenue increased 11.1% to $38.6 million, and net property income (NPI) increased 15.6% to $28.1 million.

As at 11.25am, units of Frasers Commercial Trust are trading flat at $1.34.

Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg

Read More

SGX Singapore Opening Market Update : Epic Research Singapore

SINGAPORE share prices opened higher on Monday with the Straits Times Index up 8.61 points or 0.29 per cent to 2,953.96 as at 9.10am, following a Wall Street rebound on Friday.

US stocks had rebounded after dipping on Thursday following a nine-day march. Telecom and utilities sectors, each rising 1.3 per cent, had led the Wall Street march on Friday.

US crude fell 56 cents or 1.2 per cent to settle at US$44.18. Brent was down 51 cents or 1.1 per cent at US$45.69.

Some 64 million shares worth S$85 million changed hands on Singapore bourse, with gainers outnumbering losers 102 to 56.

Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg

Read More