CAPITALAND shares have endured a turbulent journey of late, and this week was no different.
The property stock plunged from $7.05 on Tuesday last week to as low as $5.85 during intra-day trade this week amid heavy volume.
Unlike in the previous week, when the daily volume never exceeded 17 million units, the daily volume remained above 21 million this week.
The stock closed five cents up at $6.15 yesterday - down 45 cents for the week.
Real estate investment trusts, or Reits, associated with CapitaLand also went south this week.
CapitaMall Trust fell to as low as $3.10 on Tuesday before it rebounded to end flat for the week at $3.30, while CapitaCommercial Trust dropped seven cents to $2.36.
Shares of CapitaLand were worst-hit on Monday, when they fell 50 cents to $6.10 - their lowest close so far this year.
Strong selling pressure triggered by an 11 per cent fall in Australia’s property trust index caused that day’s plunge.
That came amid news that Centro Properties, an Australian property trust that owns 700 United States shopping malls, had problems refinancing its debts.
Centro shares plunged 76 per cent on Monday after the firm said it was struggling to refinance $1A.3 billion ($1S.9 billion) worth of maturing debts because of the collapse in the US sub-prime housing market.
There are, however, signs that the worst might be over for CapitaLand.
An AmFraser Securities report on Tuesday said: ‘These two days could well mark the selling climax for CapitaLand, which lost 17 per cent in the past week, falling from $7.05 to a new 2007 low of $5.85 today.’
That seems true, with the shares staying above $6 since Tuesday.
In a show of confidence, UBS maintained its ‘buy’ call, while keeping its target price of $10.60 that same day.
A UBS report says CapitaLand still enjoys strong access to capital. It also doubts whether the property firm will face the same debt problems as Centro since ‘it has not overextended itself’.
But OCBC Investment Research kept its ‘hold’ rating, while slashing its price forecast from $7.83 to $6.94.
It noted: ‘As for its recent results, though headline numbers were strong, this was due mainly to one-off items.
‘Excluding these one-off items, we estimate that its profit after tax and minority interests would have been more modest at about $34 million.’
Source : Straits Times - 22 Dec 2007
Showing posts with label SGX. Show all posts
Showing posts with label SGX. Show all posts
Sunday, December 23, 2007
Monday, November 19, 2007
THE corporate shareholder activity surged last week with huge numbers posted by directors, substantial shareholders, and listed companies
THE corporate shareholder activity surged last week with huge numbers posted by directors, substantial shareholders, and listed companies, based on filings on the Singapore Exchange from Nov 12 to 16. The increase in the trading coincided with the 4.4 per cent drop in the Straits Times Index (STI) last week to 3,440.96. Directors and substantial shareholders were very active last week with 47 firms that recorded 152 purchases versus 23 companies with 72 disposals. The number of purchases and sales were sharply up from the previous week’s four-day totals of 88 acquisitions and 56 disposals, respectively.
Although the overall trading was up, there was a significant drop in the number of institutional shareholders that reported trades last week. A paltry eight fund managers posted 32 purchases and six asset managers did 48 sales last week. The number of institutions were down from the previous week’s four-day totals of 11 buyers and 11 sellers. The buying among fund managers was particularly low, as the number of purchases last week was sharply lower than the previous week’s 52 acquisitions.
On the buybacks side, a total of 17 listed firms recorded a whopping 65 repurchases worth $48 million.
The figures were sharply up from the previous week’s nine companies, 32 transactions, and $32 million.
The trades last week boosted the buyback totals this month to 19 firms, 105 trades, and $87 million. The figures are already higher than the 14 companies, 45 transactions, and $18 million in October, and there are still 10 trading days remaining in November. The surge in the buybacks this month is not surprising as the STI has fallen by 11.2 per cent from the record high of 3,875.77 on Oct 11.
The surge in the buybacks this month following the steep fall in the market from the record high in October is similar to heavy buyback activity in August, after the market fell by 14.6 per cent from what was then the record high of 3,665.13 in July. The sharp correction prompted 27 firms to record a whopping 210 repurchases worth $208 million in August, which were significantly more than the four companies, 83 trades, and $53 million in July.
Four listed firms repurchased shares for the first time last week. Three of the firms - the Lexicon Group, Chip Eng Seng Corporation, and DBS Group Holdings - bought back following the steep fall in their share prices. The exception was Magnecomp International as the group recorded its first buybacks after the stock rebounded by 17 per cent. Aside from those four firms, investors should also watch out for Wing Tai Holdings, as the group resumed buying back after the counter fell by 31 per cent.
Lexicon Group
Niche magazine publisher Lexicon Group bought back shares for the first time since listing in July 1998, with 1.7 million shares purchased last Thursday and Friday at seven cents each. The acquisitions were made after the stock fell by 33 per cent from 10.5 cents on Sept 12. The repurchases were made after the group announced its interim results last Wednesday.
The Lexicon Group posted a loss after tax of $3.51 million for the six months to Sept 30, 2007, versus a loss of $34.98 million in the same period last year. The stock closed flat from the group’s buyback price at seven cents on Friday.
Chip Eng Seng Corporation
Construction firm Chip Eng Seng Corporation bought back shares for the first time since listing in November 1999 with 2.3 million shares purchased last Thursday at 60 cents each. The buyback was made on the back of the 31 per cent drop in the share price since Oct 5, from 87 cents.
The group’s buyback was made after founder and executive chairman Lim Tiam Seng’s purchase last month. Mr Lim picked up 100,000 shares on Oct 1 at 79 cents each, which boosted his deemed holdings to 83.5 million shares or 12.5 per cent of the issued capital. He previously acquired 500,000 shares on Feb 21 at 40 cents each. Chip Eng Seng announced its interim results in August with net profit up by 859.9 per cent to $19.38 million for the six months to June 30, 2007. The counter closed sharply higher from the company’s buyback price at 67.5 cents on Friday.
DBS Group Holdings
Investment holding and banking & financing firm DBS Group Holdings has bought back shares for the first time since buybacks were implemented by the Singapore Exchange in June 1999, with 900,000 shares purchased from last Monday to Friday at an average of $19.76 each. The initial buybacks were made after the stock fell by 12 per cent this month from $22.40.
Also positive is director John Alan Ross with 5,000 shares purchased last Thursday at $20.18 each, which increased his direct holdings by 33 per cent to 20,000 shares. He also acquired 5,000 shares on Aug 23 at $20.50 each. Mr Ross previously acquired an initial 10,000 shares from April 2003 to March 2005 at $8.75 to $15.30 each.
Fellow director Kwa Chong Seng also bought shares in August with 50,000 shares purchased at $19.00 each, which increased his deemed stake by 54 per cent to 142,000 shares. He previously acquired 50,000 shares in February 2005 at $15.40 each. The stock closed at $19.50 on Friday.
Magnecomp International
Suspension assemblies manufacturer Magnecomp International has bought back shares for the first time since listing in January 1998, with 286,000 shares purchased from last Monday to Wednesday at an average of 90 cents each. The trades were hefty as they accounted for 36 per cent of the stock’s trading volume. The initial buybacks were surprising as they were made after the stock rebounded by 17 per cent from 77.5 cents on Oct 22.
The acquisitions were also made after the group announced its Q3 results on Nov 9. Magnecomp posted a net profit of $7.52 million for the three months to Sept 30, 2007, versus a loss of $4.45 million in the same period last year. Earnings in the first nine months fell by 24.1 per cent to $22.79 million.
There were also semi-bullish signals from executive non-independent director and chief executive officer Steven Glenn Campbell this month. The CEO acquired 625,000 shares last Tuesday via exercise of options at 57 cents each, which increased his direct holdings by 63 per cent - to 1.63 million shares or 0.7 per cent of the issued capital. He refrained from taking profits despite the stock trading sharply higher from his exercise price on that day at 89 cents.
The fact that he did not take any profits, however, was not unusual as he also did not sell any of the one million shares that he acquired via options from May 2004 to April this year at an average of 16.4 cents each.
The stock closed slightly higher from Magnecomp’s buyback price at 93.5 cents on Friday.
Wing Tai Holdings
Property developer Wing Tai Holdings recorded its first buyback since December 2002 with 437,000 shares purchased last Friday at $2.66 each. The rare buyback was made on the back of the 31 per cent drop in the share price since October from $3.86.
Although the recent trade was prompted by the steep fall in the share price, the group’s buyback price was sharply higher than its previous purchase prices, based on the 11.9 million shares that the company acquired from August 2000 to December 2002 at $1.29 to $0.51 each.
The stock closed slightly higher from the group’s buyback price at $2.73 on Friday.
The writer is Managing Director, Asia Insider Limited
Source: Business Times 19 Nov 07
Although the overall trading was up, there was a significant drop in the number of institutional shareholders that reported trades last week. A paltry eight fund managers posted 32 purchases and six asset managers did 48 sales last week. The number of institutions were down from the previous week’s four-day totals of 11 buyers and 11 sellers. The buying among fund managers was particularly low, as the number of purchases last week was sharply lower than the previous week’s 52 acquisitions.
On the buybacks side, a total of 17 listed firms recorded a whopping 65 repurchases worth $48 million.
The figures were sharply up from the previous week’s nine companies, 32 transactions, and $32 million.
The trades last week boosted the buyback totals this month to 19 firms, 105 trades, and $87 million. The figures are already higher than the 14 companies, 45 transactions, and $18 million in October, and there are still 10 trading days remaining in November. The surge in the buybacks this month is not surprising as the STI has fallen by 11.2 per cent from the record high of 3,875.77 on Oct 11.
The surge in the buybacks this month following the steep fall in the market from the record high in October is similar to heavy buyback activity in August, after the market fell by 14.6 per cent from what was then the record high of 3,665.13 in July. The sharp correction prompted 27 firms to record a whopping 210 repurchases worth $208 million in August, which were significantly more than the four companies, 83 trades, and $53 million in July.
Four listed firms repurchased shares for the first time last week. Three of the firms - the Lexicon Group, Chip Eng Seng Corporation, and DBS Group Holdings - bought back following the steep fall in their share prices. The exception was Magnecomp International as the group recorded its first buybacks after the stock rebounded by 17 per cent. Aside from those four firms, investors should also watch out for Wing Tai Holdings, as the group resumed buying back after the counter fell by 31 per cent.
Lexicon Group
Niche magazine publisher Lexicon Group bought back shares for the first time since listing in July 1998, with 1.7 million shares purchased last Thursday and Friday at seven cents each. The acquisitions were made after the stock fell by 33 per cent from 10.5 cents on Sept 12. The repurchases were made after the group announced its interim results last Wednesday.
The Lexicon Group posted a loss after tax of $3.51 million for the six months to Sept 30, 2007, versus a loss of $34.98 million in the same period last year. The stock closed flat from the group’s buyback price at seven cents on Friday.
Chip Eng Seng Corporation
Construction firm Chip Eng Seng Corporation bought back shares for the first time since listing in November 1999 with 2.3 million shares purchased last Thursday at 60 cents each. The buyback was made on the back of the 31 per cent drop in the share price since Oct 5, from 87 cents.
The group’s buyback was made after founder and executive chairman Lim Tiam Seng’s purchase last month. Mr Lim picked up 100,000 shares on Oct 1 at 79 cents each, which boosted his deemed holdings to 83.5 million shares or 12.5 per cent of the issued capital. He previously acquired 500,000 shares on Feb 21 at 40 cents each. Chip Eng Seng announced its interim results in August with net profit up by 859.9 per cent to $19.38 million for the six months to June 30, 2007. The counter closed sharply higher from the company’s buyback price at 67.5 cents on Friday.
DBS Group Holdings
Investment holding and banking & financing firm DBS Group Holdings has bought back shares for the first time since buybacks were implemented by the Singapore Exchange in June 1999, with 900,000 shares purchased from last Monday to Friday at an average of $19.76 each. The initial buybacks were made after the stock fell by 12 per cent this month from $22.40.
Also positive is director John Alan Ross with 5,000 shares purchased last Thursday at $20.18 each, which increased his direct holdings by 33 per cent to 20,000 shares. He also acquired 5,000 shares on Aug 23 at $20.50 each. Mr Ross previously acquired an initial 10,000 shares from April 2003 to March 2005 at $8.75 to $15.30 each.
Fellow director Kwa Chong Seng also bought shares in August with 50,000 shares purchased at $19.00 each, which increased his deemed stake by 54 per cent to 142,000 shares. He previously acquired 50,000 shares in February 2005 at $15.40 each. The stock closed at $19.50 on Friday.
Magnecomp International
Suspension assemblies manufacturer Magnecomp International has bought back shares for the first time since listing in January 1998, with 286,000 shares purchased from last Monday to Wednesday at an average of 90 cents each. The trades were hefty as they accounted for 36 per cent of the stock’s trading volume. The initial buybacks were surprising as they were made after the stock rebounded by 17 per cent from 77.5 cents on Oct 22.
The acquisitions were also made after the group announced its Q3 results on Nov 9. Magnecomp posted a net profit of $7.52 million for the three months to Sept 30, 2007, versus a loss of $4.45 million in the same period last year. Earnings in the first nine months fell by 24.1 per cent to $22.79 million.
There were also semi-bullish signals from executive non-independent director and chief executive officer Steven Glenn Campbell this month. The CEO acquired 625,000 shares last Tuesday via exercise of options at 57 cents each, which increased his direct holdings by 63 per cent - to 1.63 million shares or 0.7 per cent of the issued capital. He refrained from taking profits despite the stock trading sharply higher from his exercise price on that day at 89 cents.
The fact that he did not take any profits, however, was not unusual as he also did not sell any of the one million shares that he acquired via options from May 2004 to April this year at an average of 16.4 cents each.
The stock closed slightly higher from Magnecomp’s buyback price at 93.5 cents on Friday.
Wing Tai Holdings
Property developer Wing Tai Holdings recorded its first buyback since December 2002 with 437,000 shares purchased last Friday at $2.66 each. The rare buyback was made on the back of the 31 per cent drop in the share price since October from $3.86.
Although the recent trade was prompted by the steep fall in the share price, the group’s buyback price was sharply higher than its previous purchase prices, based on the 11.9 million shares that the company acquired from August 2000 to December 2002 at $1.29 to $0.51 each.
The stock closed slightly higher from the group’s buyback price at $2.73 on Friday.
The writer is Managing Director, Asia Insider Limited
Source: Business Times 19 Nov 07
JOSEPH Stiglitz, a Nobel-prize winning economist, said the United States economy risks tumbling into recession because of the sub-prime crisis
LONDON - MR JOSEPH Stiglitz, a Nobel-prize winning economist, said the United States economy risks tumbling into recession because of the sub-prime crisis and a ‘mess’ left by former Federal Reserve chairman Alan Greenspan.
‘I’m very pessimistic,’ Professor Stiglitz said in an interview in London yesterday. ‘Alan Greenspan really made a mess of all this. He pushed out too much liquidity at the wrong time. He supported the tax cut in 2001, which is the beginning of these problems. He encouraged people to take out variable-rate mortgages.’
Prof Stiglitz said there was a 50 per cent chance of a recession in the US, and that growth would slow to less than half its 3 per cent potential.
The comments add to criticism of Mr Greenspan’s 18 years in control of the US central bank. He stepped down in January last year.
After the 2001 recession, the Fed cut its benchmark rate to a four-decade low of 1 per cent. That move, along with a hands-off approach to regulation, have brought Mr Greenspan under fire, as the bursting of the housing bubble and the sub-prime mortgage crisis again threaten to sink the economy.
Mr Greenspan, 81, said on Nov 7 that he predicted a ‘less than 50:50′ probability of a US recession, reiterating previous remarks made late last month. Home prices in the world’s largest economy have not bottomed out, he said.
Prof Stiglitz, an author and professor of economics at Columbia University in New York, estimated that US consumers borrowed up to US$950 billion (S$1.38 trillion) last year against the value of their homes to finance spending.
‘That game is over,’ Prof Stiglitz said. ‘As house prices are going down, people are not going to be able to take more money. We are looking at a major slowdown. The impact of that is going to be a very major slowdown, maybe recession.’ He also faulted US President George W. Bush for cutting taxes in 2001 and, thus, widening the US’ budget deficit and allowing political support for free-market trading to wane.
Source: BLOOMBERG NEWS (The Straits Times 17 Nov 07)
‘I’m very pessimistic,’ Professor Stiglitz said in an interview in London yesterday. ‘Alan Greenspan really made a mess of all this. He pushed out too much liquidity at the wrong time. He supported the tax cut in 2001, which is the beginning of these problems. He encouraged people to take out variable-rate mortgages.’
Prof Stiglitz said there was a 50 per cent chance of a recession in the US, and that growth would slow to less than half its 3 per cent potential.
The comments add to criticism of Mr Greenspan’s 18 years in control of the US central bank. He stepped down in January last year.
After the 2001 recession, the Fed cut its benchmark rate to a four-decade low of 1 per cent. That move, along with a hands-off approach to regulation, have brought Mr Greenspan under fire, as the bursting of the housing bubble and the sub-prime mortgage crisis again threaten to sink the economy.
Mr Greenspan, 81, said on Nov 7 that he predicted a ‘less than 50:50′ probability of a US recession, reiterating previous remarks made late last month. Home prices in the world’s largest economy have not bottomed out, he said.
Prof Stiglitz, an author and professor of economics at Columbia University in New York, estimated that US consumers borrowed up to US$950 billion (S$1.38 trillion) last year against the value of their homes to finance spending.
‘That game is over,’ Prof Stiglitz said. ‘As house prices are going down, people are not going to be able to take more money. We are looking at a major slowdown. The impact of that is going to be a very major slowdown, maybe recession.’ He also faulted US President George W. Bush for cutting taxes in 2001 and, thus, widening the US’ budget deficit and allowing political support for free-market trading to wane.
Source: BLOOMBERG NEWS (The Straits Times 17 Nov 07)
Saturday, November 17, 2007
SHARE prices tumbled across Asia, as deepening credit woes in the United States and renewed weakness of the greenback against the yen prompted traders
SHARE prices tumbled across Asia, as deepening credit woes in the United States and renewed weakness of the greenback against the yen prompted traders to liquidate positions before the weekend.
Yet, for all the regional bloodletting, local investors took some solace that the fallout in Singapore was not as severe as in other markets.
The Straits Times Index (STI) fell 36.63 points, or 1.05 per cent, to 3,440.96, after plunging by as much as 71 points at one stage.
Other markets did not get off as easily, though. Hong Kong’s Hang Seng Index was down 3.95 per cent, hurt by concerns that China might again raise interest rates, while Tokyo’s Nikkei 225 Index lost 1.6 per cent due to fears a US slowdown might hurt the Japanese economy.
The key concern here was the striking drop in investor interest in equities as prices swung down. Overall, market volume fell to just 1.82 billion shares worth $2.11 billion.
‘Investors are moving to the sidelines and taking a wait-and-see attitude, given the uncertainties caused by the mortgage crisis in the United States,’ said a dealer.
While that was the big picture, there was an equally compelling drama going on among China plays.
Jittery traders dumped recently-listed China New Town Development on concerns its project in China probably did not receive the authorities’ blessing.
China New Town shed 12.1 per cent to 69 cents on a hefty volume of 79.6 million shares. It has now lost 16.8 per cent since it listed on Wednesday.
A China New Town spokesman said it was not the company’s policy ‘to comment on specific share price performance and market speculations’.
One dealer said investor confidence was shaken by a belated realisation that a risk factor disclosed in China New Town’s prospectus might cast a serious pall on its business prospects.
By listing here, China New Town is now regarded on the mainland as a foreign firm. This means it must get the approval of China’s Commerce Ministry for any investment that exceeds US$100 million (S$144.8 million) - a rule that applies to a 1.17 billion yuan (S$228 million) project mentioned in its prospectus.
The firm had been caught in limbo, as the Shanghai branch of the Commerce Ministry did not send its proposal to Beijing after approving it.
‘As the transfer is an internal government procedure, we are not in a position to seek clarification or confirmation,’ it said.
The plunge in China New Town rippled across other China plays, with recent losers continuing their declines.
Source: The Straits Times 17 Nov 07
Yet, for all the regional bloodletting, local investors took some solace that the fallout in Singapore was not as severe as in other markets.
The Straits Times Index (STI) fell 36.63 points, or 1.05 per cent, to 3,440.96, after plunging by as much as 71 points at one stage.
Other markets did not get off as easily, though. Hong Kong’s Hang Seng Index was down 3.95 per cent, hurt by concerns that China might again raise interest rates, while Tokyo’s Nikkei 225 Index lost 1.6 per cent due to fears a US slowdown might hurt the Japanese economy.
The key concern here was the striking drop in investor interest in equities as prices swung down. Overall, market volume fell to just 1.82 billion shares worth $2.11 billion.
‘Investors are moving to the sidelines and taking a wait-and-see attitude, given the uncertainties caused by the mortgage crisis in the United States,’ said a dealer.
While that was the big picture, there was an equally compelling drama going on among China plays.
Jittery traders dumped recently-listed China New Town Development on concerns its project in China probably did not receive the authorities’ blessing.
China New Town shed 12.1 per cent to 69 cents on a hefty volume of 79.6 million shares. It has now lost 16.8 per cent since it listed on Wednesday.
A China New Town spokesman said it was not the company’s policy ‘to comment on specific share price performance and market speculations’.
One dealer said investor confidence was shaken by a belated realisation that a risk factor disclosed in China New Town’s prospectus might cast a serious pall on its business prospects.
By listing here, China New Town is now regarded on the mainland as a foreign firm. This means it must get the approval of China’s Commerce Ministry for any investment that exceeds US$100 million (S$144.8 million) - a rule that applies to a 1.17 billion yuan (S$228 million) project mentioned in its prospectus.
The firm had been caught in limbo, as the Shanghai branch of the Commerce Ministry did not send its proposal to Beijing after approving it.
‘As the transfer is an internal government procedure, we are not in a position to seek clarification or confirmation,’ it said.
The plunge in China New Town rippled across other China plays, with recent losers continuing their declines.
Source: The Straits Times 17 Nov 07
A monkey would have beaten the pants off the S&P 500 by following Warren’s buying and selling
NEW YORK - BUYING whatever billionaire investment guru Warren Buffett bought, even months after his share purchases, delivered twice the returns of the Standard & Poor’s (S&P) 500 Index during the past three decades.
Investors would have earned an annual return of 24.6 per cent by buying the same stocks as Mr Buffett after he disclosed his holdings in regulatory filings, sometimes four months later, according to a soon-to-be released study by Professor Gerald Martin of American University in Washington and Professor John Puthenpurackal of the University of Nevada.
The S&P 500 rose 12.8 per cent a year in the same period.
‘A monkey would have beaten the pants off the S&P 500 by following Warren’s buying and selling,’ said Mr Mohnish Pabrai of Pabrai Investment Funds. Mr Pabrai and a friend paid US$650,100 (S$941,000) this year in an annual charity auction to lunch with the 77-year-old Mr Buffett.
Mr Buffett’s stock picks outperformed shares of his company, Berkshire Hathaway, from 2002 to last year when Berkshire shares advanced at a yearly rate of 7.8 per cent.
By comparison, Berkshire’s holdings in USG, the biggest maker of gypsum wallboard in North America, increased by about 1,140 per cent, and in PetroChina, China’s largest oil producer, soared eightfold.
Prof Martin said he and Prof Puthenpurackal initiated their study because they wanted to know whether it was better to purchase the stocks that Mr Buffett was buying or invest in Berkshire. The market-beating returns on copycat investing are based on buying and selling at the end of the month following disclosure over 31 years.
‘Over the past five years, people haven’t been attributing enough of the value Buffett adds to Berkshire,’ Prof Martin said. ‘They’re missing his managerial expertise and how that makes his business grow.’
‘We don’t go in and out of the market,’ said Mr Buffett, explaining his investment strategy. ‘I simply look at individual businesses and try to figure out where they’re likely to be in 5 or 10 or 20 years from now.’
Source: BLOOMBERG NEWS (The Straits Times 17 Nov 07)
Investors would have earned an annual return of 24.6 per cent by buying the same stocks as Mr Buffett after he disclosed his holdings in regulatory filings, sometimes four months later, according to a soon-to-be released study by Professor Gerald Martin of American University in Washington and Professor John Puthenpurackal of the University of Nevada.
The S&P 500 rose 12.8 per cent a year in the same period.
‘A monkey would have beaten the pants off the S&P 500 by following Warren’s buying and selling,’ said Mr Mohnish Pabrai of Pabrai Investment Funds. Mr Pabrai and a friend paid US$650,100 (S$941,000) this year in an annual charity auction to lunch with the 77-year-old Mr Buffett.
Mr Buffett’s stock picks outperformed shares of his company, Berkshire Hathaway, from 2002 to last year when Berkshire shares advanced at a yearly rate of 7.8 per cent.
By comparison, Berkshire’s holdings in USG, the biggest maker of gypsum wallboard in North America, increased by about 1,140 per cent, and in PetroChina, China’s largest oil producer, soared eightfold.
Prof Martin said he and Prof Puthenpurackal initiated their study because they wanted to know whether it was better to purchase the stocks that Mr Buffett was buying or invest in Berkshire. The market-beating returns on copycat investing are based on buying and selling at the end of the month following disclosure over 31 years.
‘Over the past five years, people haven’t been attributing enough of the value Buffett adds to Berkshire,’ Prof Martin said. ‘They’re missing his managerial expertise and how that makes his business grow.’
‘We don’t go in and out of the market,’ said Mr Buffett, explaining his investment strategy. ‘I simply look at individual businesses and try to figure out where they’re likely to be in 5 or 10 or 20 years from now.’
Source: BLOOMBERG NEWS (The Straits Times 17 Nov 07)
Fund managers’ appetite for risk has also weakened considerably.
THE flood of foreign funds surging into Asian bourses over the past four weeks has been reversed by the ongoing credit woes in the United States.
Singapore has started experiencing an outflow, with a net sale of US$2.1 million (S$3 million) last week by funds investing exclusively in Asian equities, according to Citigroup Investment Research.
This is a striking contrast to the situation in end-September, when US$110.4 million flowed into local equities in the space of a week.
And in other bullish regional markets such as Hong Kong, China and India, the inflow of foreign funds into equities has slowed down considerably.
Only US$84.3 million was invested in H-shares - shares of China firms listed in Hong Kong - between Nov 1 and Nov 7, compared with US$576.5 million between Sept 27 and Oct 3.
Over the same period, foreign funds spent just US$29.9 million on Hong Kong stocks, excluding H-shares, an 86 per cent plunge from the US$216.5 million they spent in the week of Sept 27 to Oct 3.
The slowdown in fresh investments in Asian equities coincided with the bearish mood in the US, where banks have been writing down billions of dollars in their pool of debts.
That has been coupled with the greenback plunging against regional currencies following two US interest rate cuts.
It raises fears of an unravelling in the carry trade - hedge funds taking out huge yen loans because of Japan’s low interest rates to invest in higher-yielding assets.
Sentiment has also been spooked by perception that H-shares have shot up too fast, fuelled by foreign investors entering Hong Kong and Singapore in anticipation of China allowing domestic funds to invest in overseas equities.
Fund managers’ appetite for risk has also weakened considerably. Merrill Lynch’s latest survey of Pacific Rim fund managers showed that defensive sectors - insurance, retail and consumer products - are now preferred over sexy growth stocks.
And despite oil soaring close to US$100 a barrel, fund managers have started to pare down positions in the energy sector.
Despite the falls in regional markets, the Merrill Lynch report noted that fund managers are still ‘overweight’ on shares, having reduced cash holdings to 2.8 per cent from 3.7 per cent last month.
And even as Hong Kong’s Hang Seng Index has dropped by more than 10 per cent from its record high in September, Merrill Lynch said fund managers continue to favour Hong Kong and ’sharply increase their enthusiasm for frontier markets’.
‘Fund managers have also returned to Singapore and reduced their exposure in other Asean markets,’ it added.
But Morgan Stanley’s head of global emerging markets equity strategy, Mr Jonathan Garner, said that next year may be more difficult than this year.
While the focus is on the impact any slowdown in the US economy could have on emerging markets, Europe is a much bigger export market for developing countries. ‘Weakness in the US economy could spill over to the euro zone. Emerging markets may survive a slowdown in the US, but not the US and Europe combined,’ said Mr Garner.
He expressed particular concern over a possible ‘contraction in valuations’ in China and India, after their exceptional stock market performances this year. ‘H-shares valuations are back at the 1997 and 2000 peak levels.’
Morgan Stanley has adopted a defensive posture, adding Telekom Malaysia and removing China Mobile and Hyundai Heavy from its focus list last week.
Source: The Straits Times 17 Nov 07
Singapore has started experiencing an outflow, with a net sale of US$2.1 million (S$3 million) last week by funds investing exclusively in Asian equities, according to Citigroup Investment Research.
This is a striking contrast to the situation in end-September, when US$110.4 million flowed into local equities in the space of a week.
And in other bullish regional markets such as Hong Kong, China and India, the inflow of foreign funds into equities has slowed down considerably.
Only US$84.3 million was invested in H-shares - shares of China firms listed in Hong Kong - between Nov 1 and Nov 7, compared with US$576.5 million between Sept 27 and Oct 3.
Over the same period, foreign funds spent just US$29.9 million on Hong Kong stocks, excluding H-shares, an 86 per cent plunge from the US$216.5 million they spent in the week of Sept 27 to Oct 3.
The slowdown in fresh investments in Asian equities coincided with the bearish mood in the US, where banks have been writing down billions of dollars in their pool of debts.
That has been coupled with the greenback plunging against regional currencies following two US interest rate cuts.
It raises fears of an unravelling in the carry trade - hedge funds taking out huge yen loans because of Japan’s low interest rates to invest in higher-yielding assets.
Sentiment has also been spooked by perception that H-shares have shot up too fast, fuelled by foreign investors entering Hong Kong and Singapore in anticipation of China allowing domestic funds to invest in overseas equities.
Fund managers’ appetite for risk has also weakened considerably. Merrill Lynch’s latest survey of Pacific Rim fund managers showed that defensive sectors - insurance, retail and consumer products - are now preferred over sexy growth stocks.
And despite oil soaring close to US$100 a barrel, fund managers have started to pare down positions in the energy sector.
Despite the falls in regional markets, the Merrill Lynch report noted that fund managers are still ‘overweight’ on shares, having reduced cash holdings to 2.8 per cent from 3.7 per cent last month.
And even as Hong Kong’s Hang Seng Index has dropped by more than 10 per cent from its record high in September, Merrill Lynch said fund managers continue to favour Hong Kong and ’sharply increase their enthusiasm for frontier markets’.
‘Fund managers have also returned to Singapore and reduced their exposure in other Asean markets,’ it added.
But Morgan Stanley’s head of global emerging markets equity strategy, Mr Jonathan Garner, said that next year may be more difficult than this year.
While the focus is on the impact any slowdown in the US economy could have on emerging markets, Europe is a much bigger export market for developing countries. ‘Weakness in the US economy could spill over to the euro zone. Emerging markets may survive a slowdown in the US, but not the US and Europe combined,’ said Mr Garner.
He expressed particular concern over a possible ‘contraction in valuations’ in China and India, after their exceptional stock market performances this year. ‘H-shares valuations are back at the 1997 and 2000 peak levels.’
Morgan Stanley has adopted a defensive posture, adding Telekom Malaysia and removing China Mobile and Hyundai Heavy from its focus list last week.
Source: The Straits Times 17 Nov 07
Wednesday, November 14, 2007
SC Global Developments’ net profit more than quadrupled
PRIME residential developer SC Global Developments’ net profit more than quadrupled to $4.3 million for the third quarter ended Sept 30, from $931,000 for the previous corresponding period. Revenue rose 4 per cent to $30 million.
The group said that Q3 revenue comprised mainly the recognition of sales of the remaining units at The Tomlinson and sale of units at The Boulevard Residence and The Lincoln Modern.
Share of profits from the group’s associated company in Australia, AVJennings Limited, came to $2.5 million, against a loss of $600,000 for Q3 2006.
For the first nine months, SC Global’s net profit doubled to $20.6 million as revenue edged up 4 per cent to $117.9 million.
Q3 earnings per share (EPS) rose to 2.28 cents from 0.75. EPS for the first nine months rose to 12.46 cents from 8.48.
The group said that its recent projects, The Marq on Paterson Hill and Hilltops have received approval to offer the deferred payment scheme which will continue to be available.
With the recent acquisition of sites at Ardmore Park and Sentosa Cove in the third quarter, the group says that it will aim to deliver high quality residential developments in prime locations.
SC Global shares remained unchanged at $2.50 yesterday.
Source : Business Times - 14 Nov 2007
The group said that Q3 revenue comprised mainly the recognition of sales of the remaining units at The Tomlinson and sale of units at The Boulevard Residence and The Lincoln Modern.
Share of profits from the group’s associated company in Australia, AVJennings Limited, came to $2.5 million, against a loss of $600,000 for Q3 2006.
For the first nine months, SC Global’s net profit doubled to $20.6 million as revenue edged up 4 per cent to $117.9 million.
Q3 earnings per share (EPS) rose to 2.28 cents from 0.75. EPS for the first nine months rose to 12.46 cents from 8.48.
The group said that its recent projects, The Marq on Paterson Hill and Hilltops have received approval to offer the deferred payment scheme which will continue to be available.
With the recent acquisition of sites at Ardmore Park and Sentosa Cove in the third quarter, the group says that it will aim to deliver high quality residential developments in prime locations.
SC Global shares remained unchanged at $2.50 yesterday.
Source : Business Times - 14 Nov 2007
They expected Lee Hsien Yang to face the media for the first time as Fraser & Neave’s chairman
IT was a news conference many journalists were looking forward to. They expected Lee Hsien Yang to face the media for the first time as Fraser & Neave’s chairman at the group’s full-year financial results announcement yesterday.
But Mr Lee was a no-show, and director and group company secretary Anthony Cheong fielded the questions.
Mr Lee was not required to attend the news conference, Mr Cheong said. ‘Mr Lee is a non-executive chairman, so he need not be here.’
Operationally, the strong property market helped the food and beverage and property and publishing conglomerate lift net profit for the full year ended Sept 30 by 18.5 per cent to $378.6 million, from $319.5 million.
Before exceptional items, net profit attributable to shareholders increased 28 per cent to $377.9 million.
Full-year revenue rose 25 per cent to $4.74 billion. Earnings per share rose to 28.7 cents from 27.3 cents.
‘Our properties division continues to benefit from better-than-expected development margins and higher rental rates achieved from new and renewed leases,’ Mr Lee said in a statement. ‘Likewise, for eight consecutive years, food and beverage has maintained strong growth momentum and delivered rising profits. Publishing and printing also showed good progress and is on track to return to historical levels of profitability.’
Development property, which accounts for the lion’s share of the group’s attributable profit, came in at $214 million for the full year. Revenue from development property grew 24 per cent to $1.4 billion for the year.
During the year, the company sold more than 1,680 units at 19 developments in Singapore and close to 200 units at five projects overseas. It launched One St Michael’s, St Thomas Suites and Soleil @ Sinaran to strong interest.
Meanwhile, F&N subsidiary Asia Pacific Breweries (APB) reported a 3 per cent increase in net profit attributable to shareholders to $133.7 million for the full year. This was on a 17 per cent increase in revenue to $1.78 billion.
CEO Koh Poh Tiong said: ‘APB achieved strong organic profit growth amidst a healthy regional economy. Our ongoing strategy to expand our business, enhance the equity of our brands, and continually enlarge the global footprint of Tiger beer have once again delivered robust top line growth.’
IndoChina - Cambodia, Laos and Vietnam - remained APB’s largest profit contributor, accounting for about 48 per cent of APB’s total profit before interest and tax.
F&N and APB have recommended a final dividend of 8.5 cents and 18 cents a share respectively.
In response to a recent BT report, Mr Cheong said that there is a possibility that F&N’s business may be split in the future, but not now. ‘There are ways of increasing shareholder value,’ he said, adding: ‘All kinds of options will be explored and scenarios worked out, I’m sure some of these process will include examining the scenario of break up. But at this stage, at this time, there’re no plans to split.’
He also acknowledged Temasek’s role in growing the F&B business for F&N. ‘Temasek was looking for a vehicle for F&B, and we were looking for somebody who has a good track record and good stream of deals, a very good deal-maker to help us grow our F&B business,’ he said. F&N looked at several deals but unfortunately none of them came to fruition, so it is still looking.
Mr Cheong also acknowledged differences between former CEO Han Cheng Fong and the board. ‘We don’t want to get into details about the differences but I think at this stage, differences in opinion are par for the course,’ he said. ‘It is common when you put a group of people together. Dr Han left not because he had a difference in opinion with the board but because this resulted in a dysfunctional relationship.’
The separation was amicable and both sides had moved on, Mr Cheong said.
On the search for the new CEO, he said that it is in the hands of the chairman of the board and chairman of the nominating committee. ‘I’m afraid we don’t have any progress reports,’ he said. But F&N is open to looking internally and externally.
When asked about who the likely candidates were, he said to much laughter: ‘Why don’t you ask Conrad Raj?’ - referring to the BT correspondent who has broken many stories on F&N, including Mr Lee’s appointment as chairman and the possible splitting up of F&N.
Source : Business Times - 14 Nov 2007
But Mr Lee was a no-show, and director and group company secretary Anthony Cheong fielded the questions.
Mr Lee was not required to attend the news conference, Mr Cheong said. ‘Mr Lee is a non-executive chairman, so he need not be here.’
Operationally, the strong property market helped the food and beverage and property and publishing conglomerate lift net profit for the full year ended Sept 30 by 18.5 per cent to $378.6 million, from $319.5 million.
Before exceptional items, net profit attributable to shareholders increased 28 per cent to $377.9 million.
Full-year revenue rose 25 per cent to $4.74 billion. Earnings per share rose to 28.7 cents from 27.3 cents.
‘Our properties division continues to benefit from better-than-expected development margins and higher rental rates achieved from new and renewed leases,’ Mr Lee said in a statement. ‘Likewise, for eight consecutive years, food and beverage has maintained strong growth momentum and delivered rising profits. Publishing and printing also showed good progress and is on track to return to historical levels of profitability.’
Development property, which accounts for the lion’s share of the group’s attributable profit, came in at $214 million for the full year. Revenue from development property grew 24 per cent to $1.4 billion for the year.
During the year, the company sold more than 1,680 units at 19 developments in Singapore and close to 200 units at five projects overseas. It launched One St Michael’s, St Thomas Suites and Soleil @ Sinaran to strong interest.
Meanwhile, F&N subsidiary Asia Pacific Breweries (APB) reported a 3 per cent increase in net profit attributable to shareholders to $133.7 million for the full year. This was on a 17 per cent increase in revenue to $1.78 billion.
CEO Koh Poh Tiong said: ‘APB achieved strong organic profit growth amidst a healthy regional economy. Our ongoing strategy to expand our business, enhance the equity of our brands, and continually enlarge the global footprint of Tiger beer have once again delivered robust top line growth.’
IndoChina - Cambodia, Laos and Vietnam - remained APB’s largest profit contributor, accounting for about 48 per cent of APB’s total profit before interest and tax.
F&N and APB have recommended a final dividend of 8.5 cents and 18 cents a share respectively.
In response to a recent BT report, Mr Cheong said that there is a possibility that F&N’s business may be split in the future, but not now. ‘There are ways of increasing shareholder value,’ he said, adding: ‘All kinds of options will be explored and scenarios worked out, I’m sure some of these process will include examining the scenario of break up. But at this stage, at this time, there’re no plans to split.’
He also acknowledged Temasek’s role in growing the F&B business for F&N. ‘Temasek was looking for a vehicle for F&B, and we were looking for somebody who has a good track record and good stream of deals, a very good deal-maker to help us grow our F&B business,’ he said. F&N looked at several deals but unfortunately none of them came to fruition, so it is still looking.
Mr Cheong also acknowledged differences between former CEO Han Cheng Fong and the board. ‘We don’t want to get into details about the differences but I think at this stage, differences in opinion are par for the course,’ he said. ‘It is common when you put a group of people together. Dr Han left not because he had a difference in opinion with the board but because this resulted in a dysfunctional relationship.’
The separation was amicable and both sides had moved on, Mr Cheong said.
On the search for the new CEO, he said that it is in the hands of the chairman of the board and chairman of the nominating committee. ‘I’m afraid we don’t have any progress reports,’ he said. But F&N is open to looking internally and externally.
When asked about who the likely candidates were, he said to much laughter: ‘Why don’t you ask Conrad Raj?’ - referring to the BT correspondent who has broken many stories on F&N, including Mr Lee’s appointment as chairman and the possible splitting up of F&N.
Source : Business Times - 14 Nov 2007
Monday, November 12, 2007
Citigroup expects Yanlord to report 2007 net profit of 263 million dollars compared to 171 million dollars in 2006.
SINGAPORE, Nov 12, 2007 (Thomson Financial via COMTEX) -- YLDGF | charts | news | PowerRating -- Citigroup said Monday it has lifted its target price on Yanlord Land Group Ltd, a Singapore-listed property developer in China, to 4.91 Singapore dollars a share from 3.97 dollars previously as it expects the company to post robust earnings for the full year despite weaker third-quarter results.
Yanlord reported last week that net profit fell 11 percent to 34.6 million dollars in the third quarter from a year earlier as it has yet to book profits from residential projects already sold.
The company generated 1.1 billion dollars in sales from pre-sold properties under development but the income will only be recognized from the fourth quarter onwards as project construction progresses.
"In our view, the third-quarter results were not a meaningful benchmark for 2007 (results) as there was a significant mismatch between expenses booking and revenue recognition," Citigroup said.
Citigroup expects Yanlord to report 2007 net profit of 263 million dollars compared to 171 million dollars in 2006. The net profit is expected to rise further to 365 million dollars next year and to 487 million dollars in 2009.
At 11.20 am, Yanlord was down 14 cents or 4.1 percent at 3.30 dollars with 5.83 million shares traded.
Yanlord reported last week that net profit fell 11 percent to 34.6 million dollars in the third quarter from a year earlier as it has yet to book profits from residential projects already sold.
The company generated 1.1 billion dollars in sales from pre-sold properties under development but the income will only be recognized from the fourth quarter onwards as project construction progresses.
"In our view, the third-quarter results were not a meaningful benchmark for 2007 (results) as there was a significant mismatch between expenses booking and revenue recognition," Citigroup said.
Citigroup expects Yanlord to report 2007 net profit of 263 million dollars compared to 171 million dollars in 2006. The net profit is expected to rise further to 365 million dollars next year and to 487 million dollars in 2009.
At 11.20 am, Yanlord was down 14 cents or 4.1 percent at 3.30 dollars with 5.83 million shares traded.
Saturday, November 10, 2007
Tuan Sing Holdings has declared a net special dividend of 0.5 cent per share for the financial year ending Dec 31, 2007
MAINBOARD-listed Tuan Sing Holdings has declared a net special dividend of 0.5 cent per share for the financial year ending Dec 31, 2007. The company announced this when it unveiled its third-quarter results yesterday.
Tuan Sing achieved net profit of $14.5 million for the July-September quarter, down 66 per cent from $43.1 million for the previous corresponding quarter, which included a $43.6 million profit after tax from discontinued operations. Q3 revenue rose 2 per cent to $81.1 million.
The Q3 results raised its net profit for the first nine months to $62.5 million, a 19 per cent year-on-year rise. This is despite revenue for the nine months slipping 5 per cent to $260.8 million from $273.6 million, and the absence of the $43.6 million one-off deconsolidation gain on its investment in Gul Technologies Singapore that boosted its results last year.
Earnings per share for the nine months stood at 5.5 cents, up from 4.6 cents. This represents an annualised return on equity of 27 per cent.
NTA per share was 31.9 cents, up from 22.5 cents nine months ago.
The company made no mention of plans to redevelop its cluster of three properties comprising the ageing 13-storey Robinson Towers on Robinson Road, its adjacent Annex building, and the 13-storey International Factors Buildings which sits sandwiched between Robinson Road and Maxwell Street.
Source : Business Times - 8 Nov 2007
Tuan Sing achieved net profit of $14.5 million for the July-September quarter, down 66 per cent from $43.1 million for the previous corresponding quarter, which included a $43.6 million profit after tax from discontinued operations. Q3 revenue rose 2 per cent to $81.1 million.
The Q3 results raised its net profit for the first nine months to $62.5 million, a 19 per cent year-on-year rise. This is despite revenue for the nine months slipping 5 per cent to $260.8 million from $273.6 million, and the absence of the $43.6 million one-off deconsolidation gain on its investment in Gul Technologies Singapore that boosted its results last year.
Earnings per share for the nine months stood at 5.5 cents, up from 4.6 cents. This represents an annualised return on equity of 27 per cent.
NTA per share was 31.9 cents, up from 22.5 cents nine months ago.
The company made no mention of plans to redevelop its cluster of three properties comprising the ageing 13-storey Robinson Towers on Robinson Road, its adjacent Annex building, and the 13-storey International Factors Buildings which sits sandwiched between Robinson Road and Maxwell Street.
Source : Business Times - 8 Nov 2007
PROPERTY giant City Developments (CDL) has teamed up with United States financial services group Wachovia to buy 44 homes
PROPERTY giant City Developments (CDL) has teamed up with United States financial services group Wachovia to buy 44 homes in CDL’s freehold Grange Road project for $432.4 million.
Industry analysts suggest CDL might be preparing to list a real estate investment trust (Reit) using the properties. Knight Frank executive director Peter Ow said: ‘The only reason I can think of for this deal is so that they can put the apartments in a Reit in the future.’
CDL, however, declined to say if a Reit was in the pipeline, but it acknowledged it was studying this as well as other business models.
Under the deal, which works out to an average price of $3,750 per sq ft (psf), Wachovia’s real estate arm, Wachovia Development, will take a 60 per cent stake in the joint-venture company.
According to CDL, there are plans to rent out the 44 three- and four-bedroom apartments and penthouses - which take up two of the four towers at Cliveden at Grange - as well as possibly selling them off later if prices rise.
CDL executive chairman Kwek Leng Beng said yesterday: ‘The development has seen strong foreign interest from both individual buyers and retail investors since its launch… The deal is in line with our business strategy of leveraging on the capital appreciation potential of our developments.’
He had earlier indicated that CDL was considering keeping two blocks of homes at Cliveden instead of selling them off in a rush.
The deal could also mark the start of CDL’s preparation for a residential Reit, property analysts said.
The venture would mean that there are now just 24 units left for sale at Cliveden, which was launched for sale in July.
A total of 42 units were sold at an average price of $3,690 psf before the joint venture was announced yesterday. Many of the buyers are foreigners from Britain, Australia, Hong Kong, China, Taiwan and Indonesia, among other centres.
Wachovia is not new to the local real estate scene. It is also teaming up with CapitaLand to redevelop Char Yong Gardens and Farrer Court.
Mr Ow said the deal was positive for CDL due to the limited upside now for luxury homes. Putting the homes in a Reit, he said, would allow CDL to keep the apartments over a longer period of time, say three to seven years, and ride out any possible drop in prices in the near future.
Source : Straits Times - 6 Nov 2007
Industry analysts suggest CDL might be preparing to list a real estate investment trust (Reit) using the properties. Knight Frank executive director Peter Ow said: ‘The only reason I can think of for this deal is so that they can put the apartments in a Reit in the future.’
CDL, however, declined to say if a Reit was in the pipeline, but it acknowledged it was studying this as well as other business models.
Under the deal, which works out to an average price of $3,750 per sq ft (psf), Wachovia’s real estate arm, Wachovia Development, will take a 60 per cent stake in the joint-venture company.
According to CDL, there are plans to rent out the 44 three- and four-bedroom apartments and penthouses - which take up two of the four towers at Cliveden at Grange - as well as possibly selling them off later if prices rise.
CDL executive chairman Kwek Leng Beng said yesterday: ‘The development has seen strong foreign interest from both individual buyers and retail investors since its launch… The deal is in line with our business strategy of leveraging on the capital appreciation potential of our developments.’
He had earlier indicated that CDL was considering keeping two blocks of homes at Cliveden instead of selling them off in a rush.
The deal could also mark the start of CDL’s preparation for a residential Reit, property analysts said.
The venture would mean that there are now just 24 units left for sale at Cliveden, which was launched for sale in July.
A total of 42 units were sold at an average price of $3,690 psf before the joint venture was announced yesterday. Many of the buyers are foreigners from Britain, Australia, Hong Kong, China, Taiwan and Indonesia, among other centres.
Wachovia is not new to the local real estate scene. It is also teaming up with CapitaLand to redevelop Char Yong Gardens and Farrer Court.
Mr Ow said the deal was positive for CDL due to the limited upside now for luxury homes. Putting the homes in a Reit, he said, would allow CDL to keep the apartments over a longer period of time, say three to seven years, and ride out any possible drop in prices in the near future.
Source : Straits Times - 6 Nov 2007
UPMARKET developer Wheelock Properties yesterday reported a 77.6 per cent drop in second-quarter net profit to $30.4 million.
UPMARKET developer Wheelock Properties yesterday reported a 77.6 per cent drop in second-quarter net profit to $30.4 million.
But profit from continuing operations was up 90.3 per cent from $16 million previously.
The reason for the drop in bottom-line profit was that Wheelock had booked a one-off gain of $116 million in the second quarter last year from the sale of its British-based Hamptons Group.
Revenue for the three months ended Sept 30 slipped 9.8 per cent to $97.6 million.
The company attributed this mainly to lower revenue recognition of units that had been sold in The Sea View and The Cosmopolitan condominium projects.
This was partly offset by higher dividend income from the group’s 20 per cent stake in Hotel Properties.
Second-quarter earnings per share were 2.55 cents, down from 11.38 cents previously while net asset value per share stood at $1.71 compared with $1.69 as at March 31.
Six-month net profit slipped by 65.6 per cent to $55.9 million on revenue of $191.6 million.
Wheelock said the prospects for improved rental rates are good for both office and retail space at its commercial property, Wheelock Place.
Its 338-unit Scotts Square, a luxurious condominium project, was well received during its soft launch. Half of the development has been sold at an average price of $3,986 per sq ft. Sales of the remaining units are ongoing.
Source : Straits Times - 6 Nov 2007
But profit from continuing operations was up 90.3 per cent from $16 million previously.
The reason for the drop in bottom-line profit was that Wheelock had booked a one-off gain of $116 million in the second quarter last year from the sale of its British-based Hamptons Group.
Revenue for the three months ended Sept 30 slipped 9.8 per cent to $97.6 million.
The company attributed this mainly to lower revenue recognition of units that had been sold in The Sea View and The Cosmopolitan condominium projects.
This was partly offset by higher dividend income from the group’s 20 per cent stake in Hotel Properties.
Second-quarter earnings per share were 2.55 cents, down from 11.38 cents previously while net asset value per share stood at $1.71 compared with $1.69 as at March 31.
Six-month net profit slipped by 65.6 per cent to $55.9 million on revenue of $191.6 million.
Wheelock said the prospects for improved rental rates are good for both office and retail space at its commercial property, Wheelock Place.
Its 338-unit Scotts Square, a luxurious condominium project, was well received during its soft launch. Half of the development has been sold at an average price of $3,986 per sq ft. Sales of the remaining units are ongoing.
Source : Straits Times - 6 Nov 2007
Wednesday, October 31, 2007
INDONESIA‘S eighth largest real estate developer, PT Perdana Gapuraprima, part of the Gapuraprima Group
INDONESIA‘S eighth largest real estate developer, PT Perdana Gapuraprima, part of the Gapuraprima Group, is looking to list a retail real estate investment trust (Reit) on the Singapore Exchange in early 2008.
Speaking at a press conference here yesterday, president director Rudy Margono said that the Reit will be a joint venture with Amanah Raya Berhad, a company owned by the Malaysian government.
Mr Margono said that Gapuraprima is expected to inject five malls into the Reit, and Amanah Raya two. He also revealed that the assets have an estimated value of US$250 million. He expects the retail Reit to offer a yield of between 9-10 per cent. PT Perdana Gapuraprima’s real estate assets are worth about US$500 million, he added.
Mr Margono also revealed that the three-to- five-year-old malls outside Jakarta are in cities like Solo and Bandung.
In August, Amanah Raya, together with Kuwait Finance House, acquired two villa apartment blocks in Reflections at Keppel Bay for about S$286 million. For Gapuraprima, Mr Margono said the retail Reit is largely a way for the group to divest its properties and use the capital for further expansion in the real estate business in the region.
Mr Margono said: ‘Our vision is to be one of Asia’s largest property developers, with property development projects in various countries around the region.’
PT Perdana Gapuraprima was listed on the Jakarta Stock Exchange last week and shares last traded at around 345 rupiah, up 11.3 per cent on its IPO offer price of 310 rupiah a share. The new share issue forms about 30 per cent of PT Perdana Gapuraprima’s paid-in capital after the IPO.
Mr Margono said that in FY07, the group achieved a net profit of 46.9 billion rupiah (S$7.5 million) and 514 billion rupiah in revenue. He expects the yield of its Indonesian properties to be 8-9 per cent.
He added: ‘We have also seen a capital gain of 15-20 per cent for our properties in Jakarta annually in the past 10 years, which we hope will instil more confidence in our investors investing in the group.’
Source : Business Times - 30 Oct 2007
Speaking at a press conference here yesterday, president director Rudy Margono said that the Reit will be a joint venture with Amanah Raya Berhad, a company owned by the Malaysian government.
Mr Margono said that Gapuraprima is expected to inject five malls into the Reit, and Amanah Raya two. He also revealed that the assets have an estimated value of US$250 million. He expects the retail Reit to offer a yield of between 9-10 per cent. PT Perdana Gapuraprima’s real estate assets are worth about US$500 million, he added.
Mr Margono also revealed that the three-to- five-year-old malls outside Jakarta are in cities like Solo and Bandung.
In August, Amanah Raya, together with Kuwait Finance House, acquired two villa apartment blocks in Reflections at Keppel Bay for about S$286 million. For Gapuraprima, Mr Margono said the retail Reit is largely a way for the group to divest its properties and use the capital for further expansion in the real estate business in the region.
Mr Margono said: ‘Our vision is to be one of Asia’s largest property developers, with property development projects in various countries around the region.’
PT Perdana Gapuraprima was listed on the Jakarta Stock Exchange last week and shares last traded at around 345 rupiah, up 11.3 per cent on its IPO offer price of 310 rupiah a share. The new share issue forms about 30 per cent of PT Perdana Gapuraprima’s paid-in capital after the IPO.
Mr Margono said that in FY07, the group achieved a net profit of 46.9 billion rupiah (S$7.5 million) and 514 billion rupiah in revenue. He expects the yield of its Indonesian properties to be 8-9 per cent.
He added: ‘We have also seen a capital gain of 15-20 per cent for our properties in Jakarta annually in the past 10 years, which we hope will instil more confidence in our investors investing in the group.’
Source : Business Times - 30 Oct 2007
Tuesday, October 30, 2007
PROPERTY analysts were still busy yesterday predicting how the market will be affected by the end of the deferred payment scheme (DPS) as property s
PROPERTY analysts were still busy yesterday predicting how the market will be affected by the end of the deferred payment scheme (DPS) as property shares received their expected drubbing when trading opened.
A report by OCBC Investment Research forecast tough times for the residential sector - but not everyone was gloomy.
The OCBC researchers said: ‘The significance of the current government move is that it is targeting at the demand side of the equation while previous measures (since end-2006) were mainly supply side . . . Demand-side measures historically tend to have severe repercussions on demand and hence pricing.
‘We thus see the latest action (and subsequent action if speculation continues) to be negative on the residential sector.’
A seasoned property consultant said: ‘The withdrawal of DPS will affect speculators, who have been focusing mainly on high-end homes but who have also filtered into mid-market projects as seen in One North Residences and The Rochester. However, even genuine home buyers and investors whose budgets are stretched by the rapid price appreciation will be affected. Sales volumes will come off.’
CIMB-GK Research said: ‘We believe developers with inventory in the prime districts could face pricing pressure as punters retreat. Developers are also likely to bear the brunt of greater financial prudence exercised by genuine home buyers as they no longer have the luxury of time to build up funds for repayment.’
The government’s announcement on Friday of the immediate withdrawal of the DPS means an end to the system in which private property buyers could buy units in uncompleted developments with just a 10 or 20 per cent downpayment, with the payment for the rest of the purchase price in some cases postponed until the completion of the project.
CIMB said in its research note yesterday: ‘We believe this move is aimed at discouraging speculative activity and is also a preventive measure to keep mass-market price escalations in check.’
There will be no new DPS developments available, although developers which have already obtained approval to offer the scheme for a project may continue to do so.
One development that seemed to be benefiting over the weekend from its approval for DPS was United Industrial Corporation’s (UIC) Park Natura, a five-storey freehold condo in the Toh Tuck area near the Bukit Batok Nature Reserve. The condo has an average price of about $1,000 per square foot. UIC is said to have sold more than 60 units over the weekend in the project, which has 192 units in total.
The developer is offering a partial deferred payment scheme where buyers pay an initial 10 per cent, with progress payments needed only after one year.
On the stock market yesterday morning, the Singapore Properties Equity Index fell as much as 2.1 per cent from Friday’s close to 1,545.16 points. It later recovered to end at 1,557.52 points - just 1.3 per cent lower than Friday’s finish.
City Developments lost 50 cents to close at $15.80, followed by SC Global Developments which eased 35 cents to finish at $5.50. Singapore Land lost 25 cents, closing at $9.85.
‘Purer developers with sizeable residential inventories are likely to be the most affected,’ CIMB said.
‘Stocks under our coverage with revalued net asset values that are particularly sensitive to asset price changes include Allgreen, Bukit Sembawang, City Developments, Ho Bee and UOL. We estimate that every 10 per cent change in residential prices will result in 5-10 per cent changes in stock valuations for these companies.
‘The sector is currently under review . . . we expect to lower our residential selling price assumptions by 10-15 per cent in the upcoming results season in view of mounting uncertainties in the property market,’ CIMB said.
Citigroup said that the DPS withdrawal has ‘probably removed the champagne from the party’ since property prices have been fuelled to some extent by the availability of deferred payments, which account for more than 70 per cent for some projects.
‘Sentiment will likely weaken in the short term, particularly in the luxury segment. Longer term, fundamentals, including strong economic growth, immigration and low interest rates will likely be supportive of property prices,’ the report said.
But other analysts, like JP Morgan’s Chris Gee, said that he was recommending investors to be underweight on the sector even before Friday’s announcement.
‘Pricing power is shifting very firmly away from developers because they now have more products to sell,’ he said. ‘But they’re not just competing among themselves for buyers but also with specu-vestors who’ve bought properties since 2005 and who can offer buyers properties that will be physically completed sooner than those that will be launched by developers in the near future.’
Source : Business Times - 30 Oct 2007
A report by OCBC Investment Research forecast tough times for the residential sector - but not everyone was gloomy.
The OCBC researchers said: ‘The significance of the current government move is that it is targeting at the demand side of the equation while previous measures (since end-2006) were mainly supply side . . . Demand-side measures historically tend to have severe repercussions on demand and hence pricing.
‘We thus see the latest action (and subsequent action if speculation continues) to be negative on the residential sector.’
A seasoned property consultant said: ‘The withdrawal of DPS will affect speculators, who have been focusing mainly on high-end homes but who have also filtered into mid-market projects as seen in One North Residences and The Rochester. However, even genuine home buyers and investors whose budgets are stretched by the rapid price appreciation will be affected. Sales volumes will come off.’
CIMB-GK Research said: ‘We believe developers with inventory in the prime districts could face pricing pressure as punters retreat. Developers are also likely to bear the brunt of greater financial prudence exercised by genuine home buyers as they no longer have the luxury of time to build up funds for repayment.’
The government’s announcement on Friday of the immediate withdrawal of the DPS means an end to the system in which private property buyers could buy units in uncompleted developments with just a 10 or 20 per cent downpayment, with the payment for the rest of the purchase price in some cases postponed until the completion of the project.
CIMB said in its research note yesterday: ‘We believe this move is aimed at discouraging speculative activity and is also a preventive measure to keep mass-market price escalations in check.’
There will be no new DPS developments available, although developers which have already obtained approval to offer the scheme for a project may continue to do so.
One development that seemed to be benefiting over the weekend from its approval for DPS was United Industrial Corporation’s (UIC) Park Natura, a five-storey freehold condo in the Toh Tuck area near the Bukit Batok Nature Reserve. The condo has an average price of about $1,000 per square foot. UIC is said to have sold more than 60 units over the weekend in the project, which has 192 units in total.
The developer is offering a partial deferred payment scheme where buyers pay an initial 10 per cent, with progress payments needed only after one year.
On the stock market yesterday morning, the Singapore Properties Equity Index fell as much as 2.1 per cent from Friday’s close to 1,545.16 points. It later recovered to end at 1,557.52 points - just 1.3 per cent lower than Friday’s finish.
City Developments lost 50 cents to close at $15.80, followed by SC Global Developments which eased 35 cents to finish at $5.50. Singapore Land lost 25 cents, closing at $9.85.
‘Purer developers with sizeable residential inventories are likely to be the most affected,’ CIMB said.
‘Stocks under our coverage with revalued net asset values that are particularly sensitive to asset price changes include Allgreen, Bukit Sembawang, City Developments, Ho Bee and UOL. We estimate that every 10 per cent change in residential prices will result in 5-10 per cent changes in stock valuations for these companies.
‘The sector is currently under review . . . we expect to lower our residential selling price assumptions by 10-15 per cent in the upcoming results season in view of mounting uncertainties in the property market,’ CIMB said.
Citigroup said that the DPS withdrawal has ‘probably removed the champagne from the party’ since property prices have been fuelled to some extent by the availability of deferred payments, which account for more than 70 per cent for some projects.
‘Sentiment will likely weaken in the short term, particularly in the luxury segment. Longer term, fundamentals, including strong economic growth, immigration and low interest rates will likely be supportive of property prices,’ the report said.
But other analysts, like JP Morgan’s Chris Gee, said that he was recommending investors to be underweight on the sector even before Friday’s announcement.
‘Pricing power is shifting very firmly away from developers because they now have more products to sell,’ he said. ‘But they’re not just competing among themselves for buyers but also with specu-vestors who’ve bought properties since 2005 and who can offer buyers properties that will be physically completed sooner than those that will be launched by developers in the near future.’
Source : Business Times - 30 Oct 2007
WARRANTS of property counters drew the attention of investors yesterday, following the withdrawal of the deferred payment scheme last Friday.
WARRANTS of property counters drew the attention of investors yesterday, following the withdrawal of the deferred payment scheme last Friday.
Homebuyers in Singapore will now have to make progressive payments in step with the construction process, instead of deferring payment till the property is completed a few years later.
The most heavily traded CapitaLand contract was a Macquarie call warrant with a strike price of $8.50, which expires on Feb 1.
That warrant closed a cent higher at 13 cents with 24.83 million units done.
CapitaLand shares ended five cents higher at $8.10.
Another active property contract was a City Developments call warrant with a strike price of $15.42, which expires on Jan 10.
The warrant finished 4.5 cents lower at 16.5 cents with 2.86 million units traded.
The share closed 50 cents down at $15.80.
A call warrant lets an investor buy into a stock or index at a preset price over a period of three to nine months.
A put warrant allows an investor to sell the stock or index at a preset price over a fixed period of time.
Source : Straits Times - 30 Oct 2007
Homebuyers in Singapore will now have to make progressive payments in step with the construction process, instead of deferring payment till the property is completed a few years later.
The most heavily traded CapitaLand contract was a Macquarie call warrant with a strike price of $8.50, which expires on Feb 1.
That warrant closed a cent higher at 13 cents with 24.83 million units done.
CapitaLand shares ended five cents higher at $8.10.
Another active property contract was a City Developments call warrant with a strike price of $15.42, which expires on Jan 10.
The warrant finished 4.5 cents lower at 16.5 cents with 2.86 million units traded.
The share closed 50 cents down at $15.80.
A call warrant lets an investor buy into a stock or index at a preset price over a period of three to nine months.
A put warrant allows an investor to sell the stock or index at a preset price over a fixed period of time.
Source : Straits Times - 30 Oct 2007
Monday, October 22, 2007
QUEK Leng Chan’s Singapore-listed property arm GuocoLand has posted a group net profit of $27.7 million for the first quarter ended Sept 30, 2007
QUEK Leng Chan’s Singapore-listed property arm GuocoLand has posted a group net profit of $27.7 million for the first quarter ended Sept 30, 2007, up from $8.1 million for the corresponding year-ago period, as revenue more than doubled from $88.2 million to $191 million.
The improved showing was due mainly to higher contribution from the group’s property development projects in China, especially from West End Point condo in Beijing.
GuocoLand’s bottom line also received a fillip from other income, which jumped from $9.2 million to $15.8 million, mainly due to higher net foreign exchange gains arising from the revaluation of US dollar bank loans.
However, finance costs rose by 74 per cent to $12.6 million due to an increase in bank loans and the convertible bonds.
Cash and cash equivalents increased from $1.09 billion as at June 30 to $1.53 billion as at Sept 30, largely because of net proceeds of about $555 million received from a renounceable 1-for-3 rights issue at $2.50 per share in July this year.
GuocoLand also gave an update of its various projects. In Singapore, it achieved sales of 86 per cent for Le Crescendo in Paya Lebar and 91 per cent for The View @ Meyer as at Oct 18. The group has also sold 97 per cent of the 337 units launched in The Quartz condo in Buangkok.
In Beijing, the 810-unit West End Point is 96 per cent sold.
Piling for the group’s development sites situated in Nanjing’s Qixia District (Ascot Park Phase 1) and Shanghai’s Putuo District (Changfeng Phase 1) has been completed. Construction has started for Changfeng Phase 1. Resettlement for the development site in Nanjing’s Xuanwu District (Hillview Regency) is largely completed.
The group’s 65 per cent-owned subsidiary GuocoLand (Malaysia) Berhad has eight ongoing mixed residential development projects in the Klang Valley. Earthwork and piling for an integrated commercial development project in Damansara Heights is in progress.
In Vietnam, the master plan for the group’s integrated development project next to Vietnam Singapore Industrial Park near Ho Chi Minh City has been submitted to the authorities.
‘Given the robust economies in the countries in which the group operates, namely, Singapore, China, Malaysia and Vietnam, the group believes that demand for quality residential properties and well-located commercial properties in these countries will remain sustainable,’ GuocoLand said.
In Singapore, GuocoLand is expected to launch the 210-unit Goodwood Residence in the prime Bukit Timah area in the next few months.
GuocoLand’s earnings per share rose to 3.62 cents for Q1 ended September 2007, from 1.32 cents for the year-ago period. Net asset value per share stood at $2.37 as at Sept 30, seven cents higher than in June 30.
On the stock market yesterday, GuocoLand closed unchanged at $5.55.
Source : Business Times - 20 Oct 2007
The improved showing was due mainly to higher contribution from the group’s property development projects in China, especially from West End Point condo in Beijing.
GuocoLand’s bottom line also received a fillip from other income, which jumped from $9.2 million to $15.8 million, mainly due to higher net foreign exchange gains arising from the revaluation of US dollar bank loans.
However, finance costs rose by 74 per cent to $12.6 million due to an increase in bank loans and the convertible bonds.
Cash and cash equivalents increased from $1.09 billion as at June 30 to $1.53 billion as at Sept 30, largely because of net proceeds of about $555 million received from a renounceable 1-for-3 rights issue at $2.50 per share in July this year.
GuocoLand also gave an update of its various projects. In Singapore, it achieved sales of 86 per cent for Le Crescendo in Paya Lebar and 91 per cent for The View @ Meyer as at Oct 18. The group has also sold 97 per cent of the 337 units launched in The Quartz condo in Buangkok.
In Beijing, the 810-unit West End Point is 96 per cent sold.
Piling for the group’s development sites situated in Nanjing’s Qixia District (Ascot Park Phase 1) and Shanghai’s Putuo District (Changfeng Phase 1) has been completed. Construction has started for Changfeng Phase 1. Resettlement for the development site in Nanjing’s Xuanwu District (Hillview Regency) is largely completed.
The group’s 65 per cent-owned subsidiary GuocoLand (Malaysia) Berhad has eight ongoing mixed residential development projects in the Klang Valley. Earthwork and piling for an integrated commercial development project in Damansara Heights is in progress.
In Vietnam, the master plan for the group’s integrated development project next to Vietnam Singapore Industrial Park near Ho Chi Minh City has been submitted to the authorities.
‘Given the robust economies in the countries in which the group operates, namely, Singapore, China, Malaysia and Vietnam, the group believes that demand for quality residential properties and well-located commercial properties in these countries will remain sustainable,’ GuocoLand said.
In Singapore, GuocoLand is expected to launch the 210-unit Goodwood Residence in the prime Bukit Timah area in the next few months.
GuocoLand’s earnings per share rose to 3.62 cents for Q1 ended September 2007, from 1.32 cents for the year-ago period. Net asset value per share stood at $2.37 as at Sept 30, seven cents higher than in June 30.
On the stock market yesterday, GuocoLand closed unchanged at $5.55.
Source : Business Times - 20 Oct 2007
Sunday, October 14, 2007
The lessons of Black Monday
The lessons of Black Monday
Heather Stewart
Sunday October 14, 2007
The Observer
Twenty years ago this week, panic-stricken City traders were plucking at their red braces in alarm, as the value of the FTSE 100 plunged by more than a fifth in a single day, on what became known as Black Monday.
New research by HBOS shows they would have been wise to keep their heads as panic erupted all around them. The value of £1,000 invested in the FTSE 100 as the crash hit in October 1987 would be £6,843 today.
Heather Stewart
Sunday October 14, 2007
The Observer
Twenty years ago this week, panic-stricken City traders were plucking at their red braces in alarm, as the value of the FTSE 100 plunged by more than a fifth in a single day, on what became known as Black Monday.
New research by HBOS shows they would have been wise to keep their heads as panic erupted all around them. The value of £1,000 invested in the FTSE 100 as the crash hit in October 1987 would be £6,843 today.
Wednesday, October 10, 2007
They see good value and investors consider support to be positive sign
They see good value and investors consider support to be positive sign
PANIC was the last thing on the minds of many company founders and directors when Singapore share prices slumped in spectacular fashion just over a week ago.
Instead, they have leapt into the fray, buying up their own stock at bargain-basement prices since the Aug 17 market nosedive - which followed weeks of volatility.
Companies have also seen a buying opportunity and are weighing in to buy back their shares on the open market.
The Straits Times Index plunged as much as 190 points on Aug 17 and many directors and companies instantly saw good value.
They were emboldened by the fact that many firms had just turned in creditable second-quarter financial results, indicating that corporate fundamentals were sound.
On average, Singapore-listed firms posted a 39 per cent rise in first-half net profits.
One buyer was one of Singapore’s richest men, Mr Zhong Sheng Jian, chief executive of China real estate developer Yanlord Land. He bought 987,000 shares on Aug 16 at an average price of $2.57 and another one million shares at $2.65 a day later.
Even though he shelled out a hefty $5.2 million over two days, these prices are a far cry from the high of $3.68 per share seen just last month.
Market watchers say insiders sometimes buy in during tough times to inspire confidence in a counter.
Mr Kevin Scully, managing director of boutique corporate finance firm NRA Capital, said: ‘Sometimes, this buying is a show of support for the company. It is a good sign because investors want to see support.’
Another bargain-hunter was luxury property developer SC Global chairman and chief executive Simon Cheong, whose wife bought 100,000 shares on Aug 17 at $4.755 apiece, well below the record $6.75 seen last month.
Other key shareholders in the market during this recent turmoil include Yellow Pages director Stanley Tan, who has just emerged from a boardroom battle. He bought 200,000 shares at $1.197 apiece on Monday, another 350,000 units at $1.196 on Tuesday and yet another 200,000 shares on Wednesday at $1.19. The counter has not closed below $1.20 since last November.
Sino-Environment’s chairman and chief executive, Mr Sun Jiangrong, also showed support for his firm, buying 900,000 shares at $2.44 on Tuesday. In April, the waste- treatment firm’s shares hit a peak of $3.78.
Company directors were also in the action. Mr Sam Goi bought 500,000 shares in Super Coffeemix Manufacturing at 75 cents each on Aug 17.
But the swift rebound in the market on Monday also allowed some directors to make a pretty penny.
A director of a Cosco Corp subsidiary, Mr Lee Fook Choy, picked up 500,000 shares at a low of $3.882 on Aug 17 - after they slumped from the $5.65 record late last month. He then sold the shares on Tuesday at $4.60, making a tidy $360,000.
For companies which have a share buyback programme, the current market weakness presents good buying opportunities.
NRA Capital’s Mr Scully added that for firms with a performance share scheme, ‘companies may buy back the shares to allocate to employees later as part of their performance bonus scheme’.
Over the last few days, many companies have been in the market. StarHub bought nearly two million shares at prices ranging from $2.78 to $2.90 since last Friday.
Also since Aug 17, United Overseas Bank has bought back 2.1 million shares at prices as low as $18.80. These have risen as high as $21.50.
PANIC was the last thing on the minds of many company founders and directors when Singapore share prices slumped in spectacular fashion just over a week ago.
Instead, they have leapt into the fray, buying up their own stock at bargain-basement prices since the Aug 17 market nosedive - which followed weeks of volatility.
Companies have also seen a buying opportunity and are weighing in to buy back their shares on the open market.
The Straits Times Index plunged as much as 190 points on Aug 17 and many directors and companies instantly saw good value.
They were emboldened by the fact that many firms had just turned in creditable second-quarter financial results, indicating that corporate fundamentals were sound.
On average, Singapore-listed firms posted a 39 per cent rise in first-half net profits.
One buyer was one of Singapore’s richest men, Mr Zhong Sheng Jian, chief executive of China real estate developer Yanlord Land. He bought 987,000 shares on Aug 16 at an average price of $2.57 and another one million shares at $2.65 a day later.
Even though he shelled out a hefty $5.2 million over two days, these prices are a far cry from the high of $3.68 per share seen just last month.
Market watchers say insiders sometimes buy in during tough times to inspire confidence in a counter.
Mr Kevin Scully, managing director of boutique corporate finance firm NRA Capital, said: ‘Sometimes, this buying is a show of support for the company. It is a good sign because investors want to see support.’
Another bargain-hunter was luxury property developer SC Global chairman and chief executive Simon Cheong, whose wife bought 100,000 shares on Aug 17 at $4.755 apiece, well below the record $6.75 seen last month.
Other key shareholders in the market during this recent turmoil include Yellow Pages director Stanley Tan, who has just emerged from a boardroom battle. He bought 200,000 shares at $1.197 apiece on Monday, another 350,000 units at $1.196 on Tuesday and yet another 200,000 shares on Wednesday at $1.19. The counter has not closed below $1.20 since last November.
Sino-Environment’s chairman and chief executive, Mr Sun Jiangrong, also showed support for his firm, buying 900,000 shares at $2.44 on Tuesday. In April, the waste- treatment firm’s shares hit a peak of $3.78.
Company directors were also in the action. Mr Sam Goi bought 500,000 shares in Super Coffeemix Manufacturing at 75 cents each on Aug 17.
But the swift rebound in the market on Monday also allowed some directors to make a pretty penny.
A director of a Cosco Corp subsidiary, Mr Lee Fook Choy, picked up 500,000 shares at a low of $3.882 on Aug 17 - after they slumped from the $5.65 record late last month. He then sold the shares on Tuesday at $4.60, making a tidy $360,000.
For companies which have a share buyback programme, the current market weakness presents good buying opportunities.
NRA Capital’s Mr Scully added that for firms with a performance share scheme, ‘companies may buy back the shares to allocate to employees later as part of their performance bonus scheme’.
Over the last few days, many companies have been in the market. StarHub bought nearly two million shares at prices ranging from $2.78 to $2.90 since last Friday.
Also since Aug 17, United Overseas Bank has bought back 2.1 million shares at prices as low as $18.80. These have risen as high as $21.50.
CDL attracts heavy buying after clinching iconic site
CLINCHING the historic Beach Road military camp site helped ignite fresh buying interest in property giant City Developments (CDL).
The site, which cost the CDL-led consortium $1.69 billion, is just a stone’s throw from the upcoming Marina Bay Sands integrated resort and the Formula One street circuit.
Observers believe the acquisition will enhance CDL’s already high-quality portfolio, which includes top-notch commercial buildings and condos like Republic Plaza and The Sail@Marina Bay.
CDL yesterday surged 50 cents to $15.40 on a heavy volume of 5.8 million shares. It hit an intra-day high of $15.60. Its total gain for the week was 40 cents.
Kim Eng Research analyst Wilson Liew said the iconic Beach Road site is slated to include premium offices, two luxury hotels, exclusive residences and retail space with a total gross floor area of 1.58 million sq ft.
‘Assuming a breakdown of 40 per cent for office use, 30 per cent for hotel use, 15 per cent for residential use and 15 per cent for retail use, we estimate the total development cost at around $2.6 billion, should add 25 cents per share to revalued net asset value (RNAV),’ he said.
Mr Liew raised his target price for CDL to $18, based on a 20 per cent premium to his RNAV of $15.66.
The heavy buying of CDL shares also reflected investors’ conviction that demand would stay buoyant in the red-hot residential market.
On Thursday, BNP Paribas noted that developers had maintained their selling prices ‘and have no intention of lowering them at this juncture’.
This was despite a slowdown in property sales last month, which could have been due to buyers here also taking a ‘wait-and-see’ attitude, as the United States mortgage crisis deepened.
On the secondary resale market, the wide disparity between sellers’ asking prices and buyers’ offer prices is narrowing, suggesting that demand in the property market is sustainable.
‘Singapore developers are currently trading at around 6 per cent to 37 per cent below the peak share price prior to the market correction in late July, which presents an attractive discount, especially as property market fundamentals have not changed much over the period.’
BNP Paribas also expects developers with a big exposure to the Singapore mass market, such as CDL, to benefit from opportunities for collective sales still available on the city’s fringes and in suburban areas where land is still affordable.
The site, which cost the CDL-led consortium $1.69 billion, is just a stone’s throw from the upcoming Marina Bay Sands integrated resort and the Formula One street circuit.
Observers believe the acquisition will enhance CDL’s already high-quality portfolio, which includes top-notch commercial buildings and condos like Republic Plaza and The Sail@Marina Bay.
CDL yesterday surged 50 cents to $15.40 on a heavy volume of 5.8 million shares. It hit an intra-day high of $15.60. Its total gain for the week was 40 cents.
Kim Eng Research analyst Wilson Liew said the iconic Beach Road site is slated to include premium offices, two luxury hotels, exclusive residences and retail space with a total gross floor area of 1.58 million sq ft.
‘Assuming a breakdown of 40 per cent for office use, 30 per cent for hotel use, 15 per cent for residential use and 15 per cent for retail use, we estimate the total development cost at around $2.6 billion, should add 25 cents per share to revalued net asset value (RNAV),’ he said.
Mr Liew raised his target price for CDL to $18, based on a 20 per cent premium to his RNAV of $15.66.
The heavy buying of CDL shares also reflected investors’ conviction that demand would stay buoyant in the red-hot residential market.
On Thursday, BNP Paribas noted that developers had maintained their selling prices ‘and have no intention of lowering them at this juncture’.
This was despite a slowdown in property sales last month, which could have been due to buyers here also taking a ‘wait-and-see’ attitude, as the United States mortgage crisis deepened.
On the secondary resale market, the wide disparity between sellers’ asking prices and buyers’ offer prices is narrowing, suggesting that demand in the property market is sustainable.
‘Singapore developers are currently trading at around 6 per cent to 37 per cent below the peak share price prior to the market correction in late July, which presents an attractive discount, especially as property market fundamentals have not changed much over the period.’
BNP Paribas also expects developers with a big exposure to the Singapore mass market, such as CDL, to benefit from opportunities for collective sales still available on the city’s fringes and in suburban areas where land is still affordable.
INSIDE MARKETS - Buy and sell transactions hit low levels; fund managers quiet
PURCHASES by directors and substantial shareholders was low for a second straight week with only 34 companies posting 72 ‘buys’, based on filings on the Singapore Exchange from Sept 17 to 21. The figures were consistent with the previous week’s 35 companies and 72 acquisitions. Investors should note that the buying has been low in each of the past two weeks, with the number of purchases sharply lower than the 124 acquisitions in the first week of September and 106 trades in the last week of August. Sales activity last week were also down with only 23 firms posting 52 disposals, sharply lower than the previous week’s 28 companies and 100 disposals.
Fund managers were quiet. Only six institutions each posted 16 purchases and 22 disposals, against the previous week’s eight asset managers with 30 acquisitions and nine institutions recording 43 disposals.
Several buyers made their maiden entry on the local market last week. The chief executive of Dutech Holdings made his first purchase after the group announced its second-quarter results, while the managing director of Soilbuild Group Holdings returned to the market after being absent since 2006. Legg Mason Inc raised its interest in Straits Asia Resources by 7 per cent to 5.1 per cent. On the sales side, there were bearish signals in Hongguo International Holdings and Aztech Systems as two fund managers lowered their respective stakes to below 5 per cent.
Dutech Holdings
Chairman and CEO Johnny Liu Jiayan recorded his first buys in recently-listed ATM manufacturer Dutech Holdings, after the stock fell below 40 cents per share. The purchases were also made after the group announced its Q2 results on Sept 12. The CEO acquired an initial 200,000 shares on Sept 13 at 39 cents each. He picked up a further 200,000 shares on Sept 17 after the stock fell to 35 cents, doubling his stake to 400,000 shares. Mr Liu is one of two directors who have bought the company’s shares since the stock was listed on Aug 2.
Independent director Graham Macdonald Bell acquired an initial 17,000 shares on Aug 7 at 37 cents each.
Dutech Holdings posted a 5.3 per cent gain in net profit to 12.64 million yuan (S$2.54 million) for the three months to June 30, 2007. Earnings in the first half rose by 14.9 per cent to 23.29 million yuan. After rising from the IPO price of 33 cents to 46 cents on the stock’s trading debut on Aug 2, the counter closed sharply lower at 32.5 cents on Friday.
Soilbuild Group Holdings
Managing director Lim Chap Huat recorded his first buys in boutique property developer and construction firm Soilbuild Group Holdings since July 2006, with 229,000 shares snapped up from Sept 17 to 20 at an average of $1.27 each. The trades, which accounted for 44 per cent of the stock’s trading volume, boosted his holdings (direct and deemed) to 116.3 million shares, or 58 per cent of the issued capital.
Mr Lim is one of three directors who have bought shares in the past two months. Chairman of Remuneration Committee Kelvin Tan Wee Peng bought 10,000 shares on Aug 15 and 16 at an average price of $1.22 each, boosting his direct stake to 150,000 shares. Executive director Low Soon Sim, on the other hand, picked up 10,000 shares on Aug 16 at $1.21 each, raising his direct interest to 570,000 shares.
Soilbuild Group announced its interim results on Aug 14 with a net profit of $28.69 million for the six months to June 30, 2007, against a loss of $2.34 million in the same period last year. The counter closed at $1.30 on Friday.
Straits Asia Resources
Legg Mason Inc became a substantial shareholder of resource development and mining firm Straits Asia Resources on Sept 14 following the purchase of three million shares at $1.36 each. The trade increased its deemed holdings by 7 per cent to 46.8 million shares or 5.1 per cent.
But Fidelity International Ltd reported a disposal-related filing on Sept 11 of 1.2 million shares at an estimated price of $1.33 each, which reduced its deemed stake to 54.5 million shares or 5.9 per cent. The group previously sold 3.7 million shares from Aug 2 to Sept 10 at estimated prices of $1.18 to $1.33 each.
Overall, the fund manager’s stake is down by nearly 5 million shares or 8 per cent since August. Prior to the disposals, the group acquired 13.3 million shares from July 19 to Aug 1 at estimated prices of $1.42 to $1.18 each. Fidelity reported an initial filing on July 18 of 1.8 million shares at 94 US cents each, which raised its interest to 5.01 per cent.
Investors should note that CEO Richard Ong Chui Chat acquired 400,000 shares from July 13 to 31 at $1.43 to $1.17 each, or an average of $1.30 each, which boosted his deemed holdings by 129 per cent to 710,000 shares. He previously acquired 100,000 shares on March 6 at 76 cents each.
Straits Asia Resources announced its Q2 results on Aug 14 with net profit down by 39 per cent to US $7.11 million for the three months to June 30, 2007. Earnings in H1 fell by 41.4 per cent to US$15.53 million. The counter closed at $1.44 on Friday.
Hongguo International Holdings
Consistent sales by FMR Corp in fashion shoes designer, manufacturer, and retailer Hongguo International Holdings since the last week of June totalling 21.2 million shares lowered its interest by 52 per cent to 4.9 per cent. The disposals were made from June 28 to Sept 14 at estimated prices of $1.30 to $0.86 each.
The group last sold 969,000 shares from Aug 15 to Sept 14 at estimated prices of 86 cents to 95 cents each, which reduced its deemed holdings to 19.3 million shares or 4.9 per cent. Prior to the disposals, FMR Corp acquired nearly 21 million shares from December 2006 to June 27 at estimated prices of $0.54 to $1.32 each. The group became a substantial shareholder (for the second time) on Dec 21, 2006, following the purchase of 1.2 million shares at 54 cents each, which raised its interest to 5.2 per cent.
The fund manager’s sentiment is not entirely negative as Schroder Investment Management Group became a substantial shareholder on Aug 7 following the purchase of 884,000 shares at 97 cents each. The purchase, which was made on behalf of clients by its Hong Kong branch acting as Investment Advisors, boosted its deemed holdings to 20.6 million shares or 5.2 per cent.
Investors should note that managing director Li Wei purchased 1.75 million shares in January at $1.16 each, which increased his deemed stake by 9 per cent to 21.5 million shares or 5.4 per cent. Mr Li also has direct holdings of 17.4 million shares or 4.4 per cent. He previously acquired 1.7 million shares from Nov 28 to 30, 2006 at an average of 71.4 cents each. The stock closed at 88.5 cents on Friday.
Aztech Systems
Credit Agricole Asset Management SA ceased to be a substantial shareholder of contract manufacturer Aztech Systems on Sept 19 following the sale of 2.1 million shares at an estimated price of 49.5 cents each. The trade reduced its deemed holdings by 10 per cent - to 19.3 million shares or 4.6 per cent. The sale price was far below the group’s initial filing price in July.
Credit Agricole previously reported an initial filing on July 6 of 1.04 million shares at 61 cents each, which raised its interest to 5.1 per cent. But board member Patricia Ng Sok Cheng and the company bought shares on Sept 20. Ms Ng acquired 100,000 shares at 42 cents each, which increased her direct stake by 72 per cent to 239,000 shares. She also has deemed interest of 15 million shares or 3.6 per cent.
She previously acquired 1.7 million shares from Feb 28 to June 18 via exercise of options at an average of 10.6 cents each and 50,000 shares on Feb 14 on the open market at 41.5 cents each.
Prior to her trades this year, Ms Ng bought 50,000 shares in December 2004 at nine cents each. The company, on the other hand, bought back 500,000 shares on Sept 20 at 42.5 cents each. The group previously acquired 389,000 shares on Aug 17 at 48 cents each, 500,000 shares on Aug 2 at 60 cents each, and 1.2 million shares in March at 37 cents each. The trades since March were the company’s first buybacks since listing. The stock closed at 45 cents on Friday.
The writer is Managing Director, Asia Insider Limited
Fund managers were quiet. Only six institutions each posted 16 purchases and 22 disposals, against the previous week’s eight asset managers with 30 acquisitions and nine institutions recording 43 disposals.
Several buyers made their maiden entry on the local market last week. The chief executive of Dutech Holdings made his first purchase after the group announced its second-quarter results, while the managing director of Soilbuild Group Holdings returned to the market after being absent since 2006. Legg Mason Inc raised its interest in Straits Asia Resources by 7 per cent to 5.1 per cent. On the sales side, there were bearish signals in Hongguo International Holdings and Aztech Systems as two fund managers lowered their respective stakes to below 5 per cent.
Dutech Holdings
Chairman and CEO Johnny Liu Jiayan recorded his first buys in recently-listed ATM manufacturer Dutech Holdings, after the stock fell below 40 cents per share. The purchases were also made after the group announced its Q2 results on Sept 12. The CEO acquired an initial 200,000 shares on Sept 13 at 39 cents each. He picked up a further 200,000 shares on Sept 17 after the stock fell to 35 cents, doubling his stake to 400,000 shares. Mr Liu is one of two directors who have bought the company’s shares since the stock was listed on Aug 2.
Independent director Graham Macdonald Bell acquired an initial 17,000 shares on Aug 7 at 37 cents each.
Dutech Holdings posted a 5.3 per cent gain in net profit to 12.64 million yuan (S$2.54 million) for the three months to June 30, 2007. Earnings in the first half rose by 14.9 per cent to 23.29 million yuan. After rising from the IPO price of 33 cents to 46 cents on the stock’s trading debut on Aug 2, the counter closed sharply lower at 32.5 cents on Friday.
Soilbuild Group Holdings
Managing director Lim Chap Huat recorded his first buys in boutique property developer and construction firm Soilbuild Group Holdings since July 2006, with 229,000 shares snapped up from Sept 17 to 20 at an average of $1.27 each. The trades, which accounted for 44 per cent of the stock’s trading volume, boosted his holdings (direct and deemed) to 116.3 million shares, or 58 per cent of the issued capital.
Mr Lim is one of three directors who have bought shares in the past two months. Chairman of Remuneration Committee Kelvin Tan Wee Peng bought 10,000 shares on Aug 15 and 16 at an average price of $1.22 each, boosting his direct stake to 150,000 shares. Executive director Low Soon Sim, on the other hand, picked up 10,000 shares on Aug 16 at $1.21 each, raising his direct interest to 570,000 shares.
Soilbuild Group announced its interim results on Aug 14 with a net profit of $28.69 million for the six months to June 30, 2007, against a loss of $2.34 million in the same period last year. The counter closed at $1.30 on Friday.
Straits Asia Resources
Legg Mason Inc became a substantial shareholder of resource development and mining firm Straits Asia Resources on Sept 14 following the purchase of three million shares at $1.36 each. The trade increased its deemed holdings by 7 per cent to 46.8 million shares or 5.1 per cent.
But Fidelity International Ltd reported a disposal-related filing on Sept 11 of 1.2 million shares at an estimated price of $1.33 each, which reduced its deemed stake to 54.5 million shares or 5.9 per cent. The group previously sold 3.7 million shares from Aug 2 to Sept 10 at estimated prices of $1.18 to $1.33 each.
Overall, the fund manager’s stake is down by nearly 5 million shares or 8 per cent since August. Prior to the disposals, the group acquired 13.3 million shares from July 19 to Aug 1 at estimated prices of $1.42 to $1.18 each. Fidelity reported an initial filing on July 18 of 1.8 million shares at 94 US cents each, which raised its interest to 5.01 per cent.
Investors should note that CEO Richard Ong Chui Chat acquired 400,000 shares from July 13 to 31 at $1.43 to $1.17 each, or an average of $1.30 each, which boosted his deemed holdings by 129 per cent to 710,000 shares. He previously acquired 100,000 shares on March 6 at 76 cents each.
Straits Asia Resources announced its Q2 results on Aug 14 with net profit down by 39 per cent to US $7.11 million for the three months to June 30, 2007. Earnings in H1 fell by 41.4 per cent to US$15.53 million. The counter closed at $1.44 on Friday.
Hongguo International Holdings
Consistent sales by FMR Corp in fashion shoes designer, manufacturer, and retailer Hongguo International Holdings since the last week of June totalling 21.2 million shares lowered its interest by 52 per cent to 4.9 per cent. The disposals were made from June 28 to Sept 14 at estimated prices of $1.30 to $0.86 each.
The group last sold 969,000 shares from Aug 15 to Sept 14 at estimated prices of 86 cents to 95 cents each, which reduced its deemed holdings to 19.3 million shares or 4.9 per cent. Prior to the disposals, FMR Corp acquired nearly 21 million shares from December 2006 to June 27 at estimated prices of $0.54 to $1.32 each. The group became a substantial shareholder (for the second time) on Dec 21, 2006, following the purchase of 1.2 million shares at 54 cents each, which raised its interest to 5.2 per cent.
The fund manager’s sentiment is not entirely negative as Schroder Investment Management Group became a substantial shareholder on Aug 7 following the purchase of 884,000 shares at 97 cents each. The purchase, which was made on behalf of clients by its Hong Kong branch acting as Investment Advisors, boosted its deemed holdings to 20.6 million shares or 5.2 per cent.
Investors should note that managing director Li Wei purchased 1.75 million shares in January at $1.16 each, which increased his deemed stake by 9 per cent to 21.5 million shares or 5.4 per cent. Mr Li also has direct holdings of 17.4 million shares or 4.4 per cent. He previously acquired 1.7 million shares from Nov 28 to 30, 2006 at an average of 71.4 cents each. The stock closed at 88.5 cents on Friday.
Aztech Systems
Credit Agricole Asset Management SA ceased to be a substantial shareholder of contract manufacturer Aztech Systems on Sept 19 following the sale of 2.1 million shares at an estimated price of 49.5 cents each. The trade reduced its deemed holdings by 10 per cent - to 19.3 million shares or 4.6 per cent. The sale price was far below the group’s initial filing price in July.
Credit Agricole previously reported an initial filing on July 6 of 1.04 million shares at 61 cents each, which raised its interest to 5.1 per cent. But board member Patricia Ng Sok Cheng and the company bought shares on Sept 20. Ms Ng acquired 100,000 shares at 42 cents each, which increased her direct stake by 72 per cent to 239,000 shares. She also has deemed interest of 15 million shares or 3.6 per cent.
She previously acquired 1.7 million shares from Feb 28 to June 18 via exercise of options at an average of 10.6 cents each and 50,000 shares on Feb 14 on the open market at 41.5 cents each.
Prior to her trades this year, Ms Ng bought 50,000 shares in December 2004 at nine cents each. The company, on the other hand, bought back 500,000 shares on Sept 20 at 42.5 cents each. The group previously acquired 389,000 shares on Aug 17 at 48 cents each, 500,000 shares on Aug 2 at 60 cents each, and 1.2 million shares in March at 37 cents each. The trades since March were the company’s first buybacks since listing. The stock closed at 45 cents on Friday.
The writer is Managing Director, Asia Insider Limited
Subscribe to:
Posts (Atom)
