Singapore IPO market languishes as Hong Kong surges
TODAY reports: As the Singapore Exchange languishes with only one IPO listed on the mainboard this year, Hong Kong has been on a tear as it reclaims its position as the world’s top IPO market.
By Angela Teng, TODAY
Posted 29 Dec 2015 09:06
SINGAPORE: The number of initial public offerings (IPO) on the Singapore Exchange (SGX) plunged 57 per cent this year from last year, with analysts attributing the lacklustre performance to a weak market outlook and competition from a much stronger Hong Kong.
Only 13 IPOs were listed on the SGX this year — just one on the mainboard and the other 12 on Catalist, raising a total of about S$630 million. This compared to the 30 IPOs last year, of which 12 were on the mainboard and 18 on the junior board, raising about S$3.5 billion altogether.
BHG Retail Real Estate Investment Trust (REIT) raised S$394.2 million when it listed on the mainboard this month, making it the biggest IPO in Singapore for the year. The units closed unchanged at S$0.80 on its debut day after the underwriter emerged to support the market. At the close on Monday (Dec 28), BHG Retail REIT units remained at S$0.80. Most of the Catalist-listed IPOs, which had offer prices ranging from S$0.20 to S$0.46, gave investors little cheer this year.
Mr Ernest Lim, a remisier at CIMB Securities, said: “Performance of the new listings had more than half registering negative returns, with five of them registering almost 40 per cent drops since their debut. While two of them registered flat returns and two of them, namely Jumbo and Singapore O&G, soared 48 per cent and 198 per cent, respectively … the overall performance is not exactly fantastic.”
“Most clients traded less this year as they are cautious on the overall market environment, slowing China economy, weak Singapore economy and generally lacklustre corporate results,” he added.
As the SGX languishes, Hong Kong has been on a tear as it reclaims its position as the world’s top IPO market. In the first 11 months of the year, 71 companies listed in the city, raising a total of US$31.2 billion (S$43.9 billion), accounting for almost 16 per cent market share of IPO funds worldwide, the South China Morning Post reported.
IG market strategist Bernard Aw said: “Firstly, the red-hot Hong Kong IPO market may have drawn companies away from listing in Singapore … Hong Kong benefited from its proximity to mainland China, compared to Singapore. We can see this advantage quite clearly from the growing number of mainland firms listing in Hong Kong.”
“Secondly, the higher financial bar for a mainboard listing in Singapore (minimum market value of S$150 million or pre-tax profit of at least S$30 million) may have continued to disqualify medium-sized companies, which earned about S$20 million.”
The poor IPO market came amid a turbulent year for the SGX. In June, the bourse had to pony up an estimated S$20 million to address gaps in its service recovery capabilities after it was reprimanded by the Monetary Authority of Singapore over two trading outages last year, one of which brought trading to a halt for hours and hurt Singapore’s reputation as a financial centre.
In July, veteran banker Loh Boon Chye took over from Mr Magnus Bocker as chief executive to spearhead a revival in the fortunes of SGX. In September, local shares plunged in line with other Asian markets following a slew of weak Chinese economic data, with the Straits Times Index falling past the key 2,800 mark. On Monday, the benchmark ended at 2,875.32 in thin year-end trade.
The SGX toughened up its rules on corporate governance in October and this month launched a listing compliance bulletin as part of moves to increase transparency on disciplinary actions.
“At the moment, the initiatives are not directly geared towards attracting new public listings. The new changes at SGX are certainly welcoming, and should provide a fresh start for Singapore’s stock market, but it remains to be seen how they can attract more IPOs,” said Mr Aw.
Read the original TODAY report here.
-TODAY/ek
-wong chee tat :)
Showing posts with label SGX. Show all posts
Showing posts with label SGX. Show all posts
Tuesday, December 29, 2015
Monday, November 10, 2014
SGX sets up board of inquiry to probe power outage: DPM Tharman
SGX sets up board of inquiry to probe power outage: DPM Tharman
The power outage caused a halt in the trading of securities and derivatives for more than three hours on Wednesday afternoon (Nov 5).
SINGAPORE: A board of inquiry has been set up by the Singapore Exchange (SGX) to investigate the power outage which caused a halt in the trading of securities and derivatives for more than three hours on Wednesday afternoon (Nov 5).
Deputy Prime Minister and Minister for Finance Tharman Shanmugaratnam said this on the sidelines of a free health screening event in Jurong on Sunday. Mr Tharman said SGX has appointed independent experts to look into several matters, including power supply and recovery processes.
Preliminary investigations showed that SGX's backup power supply, also known as the Uninterruptible Power Supply, did not kick in. Mr Tharman said this is one area the board of inquiry will investigate.
"This is equipment that had been tested, has gone through disaster recovery exercises, but something failed. Not just with regard to the primary power supply, but the backup system. So they have to get to the bottom of that," he said.
The inquiry team will comprise four Board directors who are all independent of management. It will be chaired by Mr Quah Wee Ghee, the Chairman of SGX's Risk Management Committee. The other three members are Mr Chew Choon Seng, Mr Kevin Kwok and Mr Lee Hsien Yang. SGX is required to submit a preliminary investigation report to the Monetary Authority of Singapore (MAS) within two weeks of the Nov 5 incident.
Mr Tharman also said the board of inquiry will be looking into decision-making processes during a crisis. "Sometimes you need a setback like this to look at all your processes very thoroughly, because crises don't happen often, but you have got to have a tight system of SOPs so that you can make decisions quickly and understand the risks and make a judgment quickly in that circumstance."
Mr Tharman said Wednesday's incident "does not help" Singapore's reputation as a financial hub, even though similar incidents have occurred in financial centres overseas. "It doesn't matter what happens overseas. We've got to get it right here, and make sure our reputation is kept intact," he said.
He added that the Monetary Authority of Singapore (MAS) will be monitoring investigations closely and will decide on any course of action at a later date.
Mr Tharman was speaking after touring the Community Health Day at SATA CommHealth Jurong East Medical Centre. Some 300 Jurong residents received free health screening on Sunday morning.
Those above the age of 50 had glaucoma and osteoporosis checks. In Singapore, glaucoma affects about 3 per cent of people aged over 50, and the risk increases with age. Given the ageing population, more people are expected to suffer from hip fractures.
During Sunday's event, participants also went for chest X-rays or had their blood pressure, blood glucose and cholesterol levels checked. SATA CommHealth provided these services as part of Community Health Day. This is the 12th time that Community Health Day is held in Singapore.
- CNA/nd/ir
- wong chee tat :)
The power outage caused a halt in the trading of securities and derivatives for more than three hours on Wednesday afternoon (Nov 5).
SINGAPORE: A board of inquiry has been set up by the Singapore Exchange (SGX) to investigate the power outage which caused a halt in the trading of securities and derivatives for more than three hours on Wednesday afternoon (Nov 5).
Deputy Prime Minister and Minister for Finance Tharman Shanmugaratnam said this on the sidelines of a free health screening event in Jurong on Sunday. Mr Tharman said SGX has appointed independent experts to look into several matters, including power supply and recovery processes.
Preliminary investigations showed that SGX's backup power supply, also known as the Uninterruptible Power Supply, did not kick in. Mr Tharman said this is one area the board of inquiry will investigate.
"This is equipment that had been tested, has gone through disaster recovery exercises, but something failed. Not just with regard to the primary power supply, but the backup system. So they have to get to the bottom of that," he said.
The inquiry team will comprise four Board directors who are all independent of management. It will be chaired by Mr Quah Wee Ghee, the Chairman of SGX's Risk Management Committee. The other three members are Mr Chew Choon Seng, Mr Kevin Kwok and Mr Lee Hsien Yang. SGX is required to submit a preliminary investigation report to the Monetary Authority of Singapore (MAS) within two weeks of the Nov 5 incident.
Mr Tharman also said the board of inquiry will be looking into decision-making processes during a crisis. "Sometimes you need a setback like this to look at all your processes very thoroughly, because crises don't happen often, but you have got to have a tight system of SOPs so that you can make decisions quickly and understand the risks and make a judgment quickly in that circumstance."
Mr Tharman said Wednesday's incident "does not help" Singapore's reputation as a financial hub, even though similar incidents have occurred in financial centres overseas. "It doesn't matter what happens overseas. We've got to get it right here, and make sure our reputation is kept intact," he said.
He added that the Monetary Authority of Singapore (MAS) will be monitoring investigations closely and will decide on any course of action at a later date.
Mr Tharman was speaking after touring the Community Health Day at SATA CommHealth Jurong East Medical Centre. Some 300 Jurong residents received free health screening on Sunday morning.
Those above the age of 50 had glaucoma and osteoporosis checks. In Singapore, glaucoma affects about 3 per cent of people aged over 50, and the risk increases with age. Given the ageing population, more people are expected to suffer from hip fractures.
During Sunday's event, participants also went for chest X-rays or had their blood pressure, blood glucose and cholesterol levels checked. SATA CommHealth provided these services as part of Community Health Day. This is the 12th time that Community Health Day is held in Singapore.
- CNA/nd/ir
- wong chee tat :)
Wednesday, August 27, 2014
SGX to introduce reduced board lot size from 19 January
SGX to introduce reduced board lot size from 19 January
Singapore Exchange (SGX) will reduce the standard board lot size of securities listed on SGX from 1,000 to 100 units from 19 January 2015. A smaller board lot size will make it more affordable for retail investors to invest in a wider range of equities, including blue chips, and enable them to build more balanced and diversified portfolios.
The reduction will apply to ordinary shares, including shares traded on GlobalQuote, real estate investment trusts, business trusts, company warrants, structured warrants and extended settlement contracts. Existing counters[1] with board lot sizes of 100 or less units will remain unchanged.
Magnus Bocker, CEO of SGX, said: “The reduced board lot size will benefit all investors and make it easier to invest in blue chips and index component stocks which tend to be higher-priced. It will also allow institutional investors to better manage their risk exposures through finer asset allocation of funds.”
David Gerald, President and CEO of Securities Investors Association (Singapore), said: “This is a much anticipated move that will be welcomed by our citizens. Now that blue chip stocks are more accessible in board lot size of 100 units, I would encourage retail investors to seriously consider share investing as a way to diversify their portfolio and grow their savings for retirement. SIAS hopes that citizens will invest with knowledge.”
The board lot sizes for exchange traded funds [2], American Depositary Receipts and fixed income instruments, including retail bonds, Singapore Government Securities and preference shares will remain unchanged.
Amendments will be made to the Listing Rules to cater for the reduction of the board lot size. Details are available at this link and include:
• Removal of Mainboard Listing Rules relating to board lot sizes for structured warrants; and
• Amendments to Mainboard and Catalist Listing Rules to require issuers to specify in the annual report, the number of shareholders who hold less than 100 shares.
More details on this initiative can be found at http://www.sgx.com/wps/portal/sgxweb/home/faqs#Reduction-of-Board-Lot-Size
-End-
[1] For securities with more than one board lot size, the counters with a current board lot size of 100 units or more will be consolidated into a single board lot size of 100 units. For example, Singtel is currently traded in board lots of 1,000, 100 and 10 units. After the reduction of board lot size, Singtel will only be traded in board lots of 100 and 10 units.
[2] Except for SPDR STI ETF and ABF SG Bond Fund for which the board lot size will be reduced to 100 units.
- wong chee tat :)
Singapore Exchange (SGX) will reduce the standard board lot size of securities listed on SGX from 1,000 to 100 units from 19 January 2015. A smaller board lot size will make it more affordable for retail investors to invest in a wider range of equities, including blue chips, and enable them to build more balanced and diversified portfolios.
The reduction will apply to ordinary shares, including shares traded on GlobalQuote, real estate investment trusts, business trusts, company warrants, structured warrants and extended settlement contracts. Existing counters[1] with board lot sizes of 100 or less units will remain unchanged.
Magnus Bocker, CEO of SGX, said: “The reduced board lot size will benefit all investors and make it easier to invest in blue chips and index component stocks which tend to be higher-priced. It will also allow institutional investors to better manage their risk exposures through finer asset allocation of funds.”
David Gerald, President and CEO of Securities Investors Association (Singapore), said: “This is a much anticipated move that will be welcomed by our citizens. Now that blue chip stocks are more accessible in board lot size of 100 units, I would encourage retail investors to seriously consider share investing as a way to diversify their portfolio and grow their savings for retirement. SIAS hopes that citizens will invest with knowledge.”
The board lot sizes for exchange traded funds [2], American Depositary Receipts and fixed income instruments, including retail bonds, Singapore Government Securities and preference shares will remain unchanged.
Amendments will be made to the Listing Rules to cater for the reduction of the board lot size. Details are available at this link and include:
• Removal of Mainboard Listing Rules relating to board lot sizes for structured warrants; and
• Amendments to Mainboard and Catalist Listing Rules to require issuers to specify in the annual report, the number of shareholders who hold less than 100 shares.
More details on this initiative can be found at http://www.sgx.com/wps/portal/sgxweb/home/faqs#Reduction-of-Board-Lot-Size
-End-
[1] For securities with more than one board lot size, the counters with a current board lot size of 100 units or more will be consolidated into a single board lot size of 100 units. For example, Singtel is currently traded in board lots of 1,000, 100 and 10 units. After the reduction of board lot size, Singtel will only be traded in board lots of 100 and 10 units.
[2] Except for SPDR STI ETF and ABF SG Bond Fund for which the board lot size will be reduced to 100 units.
- wong chee tat :)
Sunday, January 12, 2014
报业控股房地产投资信托可派发收入比预测高
报业控股房地产投资信托可派发收入比预测高
报业控股房地产投资信托（SPH REIT）首次在上市后发布业绩，信托从去年7月24日上市至11月底的可派发收入达4653万元，相当于每单位可派发收入（DPU）1.86分，比首次公开售股时的预测高出0.04分或2.2％。
该信托的两个资产——百利宫（Paragon）与金文泰广场（Clementi Mall）都已全面租出。其中，百利宫保持优异表现，在去年7月24日至11月底期内的续租及新租约的租金调升12.4％。
金文泰广场的租约情况也取得长足进展，大多数于2014年到期的租约都已续期或重新出租，超过90％租户（按净出租面积而计）也已承诺继续第二个租期。
报业控股房地产投资信托管理公司总裁练美英说：“我们很高兴信托首次派发的收入超越上市时的预测。这两家购物商场都保持100％承诺租约的表现，其中百利宫续约租金表现强劲，金文泰广场也取得稳定业绩。”
她说，信托将继续积极管理其房地产，为信托单位持有者提供可持续的回报，同时寻求创造价值的新机会。
由于新加坡交易所豁免该信托发布截至去年8月底的2013财年全年业绩，信托将去年上市日至8月底的业绩并入了截至11月底的第一季业绩中。
该信托在这四个多月期间的总营业额为7040万元，较预测少了50万元或0.7％；净房地产收入则比预期高出了30万元或0.5％，计5137万元。
以每单位0.90元的发售价来计算，信托的年率化派息率为5.80％，这也比预测的5.68％高出2.1％。
信托每单位盈利为1.54分，每单位净资产值为0.90元。
信托将于下月14日派发收入。
- See more at: http://news.omy.sg/News/Finance/Bao-Ye-Kong-Gu-Fang-Di-Chan-Tou-Zi-Xin-Tuo-Ke-Pai-Fa-Shou-Ru-Bi-Yu-Ce-Gao-233783#sthash.AnBlyJv4.dpuf
- wong chee tat :)
报业控股房地产投资信托（SPH REIT）首次在上市后发布业绩，信托从去年7月24日上市至11月底的可派发收入达4653万元，相当于每单位可派发收入（DPU）1.86分，比首次公开售股时的预测高出0.04分或2.2％。
该信托的两个资产——百利宫（Paragon）与金文泰广场（Clementi Mall）都已全面租出。其中，百利宫保持优异表现，在去年7月24日至11月底期内的续租及新租约的租金调升12.4％。
金文泰广场的租约情况也取得长足进展，大多数于2014年到期的租约都已续期或重新出租，超过90％租户（按净出租面积而计）也已承诺继续第二个租期。
报业控股房地产投资信托管理公司总裁练美英说：“我们很高兴信托首次派发的收入超越上市时的预测。这两家购物商场都保持100％承诺租约的表现，其中百利宫续约租金表现强劲，金文泰广场也取得稳定业绩。”
她说，信托将继续积极管理其房地产，为信托单位持有者提供可持续的回报，同时寻求创造价值的新机会。
由于新加坡交易所豁免该信托发布截至去年8月底的2013财年全年业绩，信托将去年上市日至8月底的业绩并入了截至11月底的第一季业绩中。
该信托在这四个多月期间的总营业额为7040万元，较预测少了50万元或0.7％；净房地产收入则比预期高出了30万元或0.5％，计5137万元。
以每单位0.90元的发售价来计算，信托的年率化派息率为5.80％，这也比预测的5.68％高出2.1％。
信托每单位盈利为1.54分，每单位净资产值为0.90元。
信托将于下月14日派发收入。
- See more at: http://news.omy.sg/News/Finance/Bao-Ye-Kong-Gu-Fang-Di-Chan-Tou-Zi-Xin-Tuo-Ke-Pai-Fa-Shou-Ru-Bi-Yu-Ce-Gao-233783#sthash.AnBlyJv4.dpuf
- wong chee tat :)
Tuesday, November 26, 2013
SGX hunting for 89,000 investors with $68.3m in unclaimed shares, dividends
SGX hunting for 89,000 investors with $68.3m in unclaimed shares, dividends
You could be richer than you think.
According to a release, Singapore Exchange (SGX) wants to locate 89,000 investors who own $68.3 million in unclaimed shares and dividends.
These unclaimed assets comprise $14.6 million of SingTel shares and dividends belonging to investors without Central Depository (CDP) accounts. The 15,000 individuals who own these shares bought them at $2.00 each in the company’s 1993 IPO. The shares have returned more than twice that amount since.
Also, the unclaimed assets account for $53.7 million of dividends belonging to investors who cannot be contacted. Each year, thousands of shareholders do not cash their dividend cheques.
Unclaimed dividends are returned to the relevant listed companies after six years. Currently, 74,000 investors have yet to claim $53.7 million in dividends which SGX is safe-keeping.
“This initiative highlights the benefits Singaporeans enjoy when they invest in shares over the long term. We hope to locate the rightful owners of these assets through this exercise while making Singaporeans more aware of the role share investing can play in their financial planning for their retirement and other needs,” said Chew Sutat, Executive Vice President at SGX.
“Many listed companies pay sizeable dividends. In the past 12 months, the 30 companies making up the Straits Times Index paid $15.5 billion in dividends, equivalent to a 3% yield.
We encourage investors to take advantage of SGX’s direct crediting service which automatically deposits their dividends into their bank accounts,” said Lynn Gaspar, Head of Retail Investors at SGX.
“It is always encouraging to hear real-life examples of investors who invested in shares for the long term and enjoyed healthy returns. There are two lessons here for all of us; first, share investing is a crucial part of financial planning and second, investors should monitor their company’s corporate actions and developments,” said David Gerald, President and CEO of the Securities Investors Association (Singapore).
To encourage investors to come forward during this initiative, SGX is waiving the administrative fee for the re-issuance of dividend cheques and dividend crediting until 26 January 2014.
- wong chee tat :)
You could be richer than you think.
According to a release, Singapore Exchange (SGX) wants to locate 89,000 investors who own $68.3 million in unclaimed shares and dividends.
These unclaimed assets comprise $14.6 million of SingTel shares and dividends belonging to investors without Central Depository (CDP) accounts. The 15,000 individuals who own these shares bought them at $2.00 each in the company’s 1993 IPO. The shares have returned more than twice that amount since.
Also, the unclaimed assets account for $53.7 million of dividends belonging to investors who cannot be contacted. Each year, thousands of shareholders do not cash their dividend cheques.
Unclaimed dividends are returned to the relevant listed companies after six years. Currently, 74,000 investors have yet to claim $53.7 million in dividends which SGX is safe-keeping.
“This initiative highlights the benefits Singaporeans enjoy when they invest in shares over the long term. We hope to locate the rightful owners of these assets through this exercise while making Singaporeans more aware of the role share investing can play in their financial planning for their retirement and other needs,” said Chew Sutat, Executive Vice President at SGX.
“Many listed companies pay sizeable dividends. In the past 12 months, the 30 companies making up the Straits Times Index paid $15.5 billion in dividends, equivalent to a 3% yield.
We encourage investors to take advantage of SGX’s direct crediting service which automatically deposits their dividends into their bank accounts,” said Lynn Gaspar, Head of Retail Investors at SGX.
“It is always encouraging to hear real-life examples of investors who invested in shares for the long term and enjoyed healthy returns. There are two lessons here for all of us; first, share investing is a crucial part of financial planning and second, investors should monitor their company’s corporate actions and developments,” said David Gerald, President and CEO of the Securities Investors Association (Singapore).
To encourage investors to come forward during this initiative, SGX is waiving the administrative fee for the re-issuance of dividend cheques and dividend crediting until 26 January 2014.
- wong chee tat :)
Wednesday, October 30, 2013
SGX seeks high-frequency traders
SGX seeks high-frequency traders
Written by Bloomberg
Monday, 28 October 2013 09:16
Singapore Exchange, Southeast Asia’s biggest bourse operator, wants to lure more high-speed traders onto its stock market as it grapples with lower volume.
Computerized trading firms, which execute transactions in fractions of a second, account for a negligible share of volume on Singapore Exchange’s cash equities market, according to bourse spokeswoman Loh Wei Ling, while they contribute 30% of revenue from derivatives. Singapore Exchange will seek to change that once it introduces safeguards, Chief Executive Officer Magnus Bocker said at a briefing this month.
“We will pursue high-frequency trading once we have circuit breakers and other policies in place,” he said. “That will enhance the liquidity and quality of the Singapore market.”
High-frequency traders facilitate the majority of US equity transactions, where computerized firms have ample opportunity to profit from fleeting price discrepancies because transactions take place on more than 50 venues. Singapore isn’t as fragmented, which keeps computer traders away. Credit Suisse Group AG and Tabb Group LLC said the city’s relatively high trading and clearing fees also deter those firms.
Bocker is seeking more business with the daily average value of equity trades down to about $1.5 billion this year, a 36% plunge from 2007, according to data compiled by Bloomberg. Singapore Exchange’s net income was $336 million for the fiscal year that ended in June, 20% lower than fiscal 2007.
‘Pretty Substantial’
He’s been building the infrastructure and regulatory framework to attract high-speed traders. The bourse rolled out a $250 million trading platform in August 2011 that can execute transactions in 90 microseconds.
The exchange hasn’t been successful in attracting orders from the fastest traders because of the high cost of trading in the city, according to Credit Suisse and Tabb Group.
“There is a pretty substantial clearing fee in Singapore that will stop many of the largest high-frequency traders,” said Larry Tabb, founder and CEO of New York-based market research firm Tabb Group. “The exchange fabric isn’t fragmented, so that there will never be the kind of high- frequency trading that we see in the US and or Europe in Singapore.”
Fees for trading on the Singapore bourse amount to about 20 basis points, or 0.2% of the value of shares traded, according to data compiled by Credit Suisse. That compares with Sydney-based ASX’s 15 basis points, the data show.
Speed Limits
“If SGX is serious about high-frequency trading, it could change its fee structure to encourage more high-frequency trading,” said Arjan Van Veen, a Hong Kong-based analyst at Credit Suisse.
Australia, Hong Kong and Singapore have considered the extent to which trading strategies that rely on speedy placement of bids and offers should be regulated amid concern that they can be used to manipulate prices. Germany was the first developed market to legislate the practice, and the European Parliament is pushing for tougher rules.
While circuit breakers provide the market a mechanism to take a pause during times of extreme market volatility, allowing high-frequency traders will introduce unfamiliar risks to investors, according to Securities Investors Association of Singapore, the largest investor lobbying group in Asia.
Good, Dangerous
“A knife is good as well as dangerous,” said David Gerald, president of SIAS. “The exchange and manufacturers of products will put out products to improve their bottom line. Investors must know the risks and decide for themselves whether they want to invest or not. There are many products out there which are very risky and investors have to be educated on the risks and they must make an informed decision.”
One of the hallmarks of high-speed trading has already arrived in Singapore. The bourse has about 100 clients that house their trading computers near the exchange’s servers, an arrangement known as co-location, spokeswoman Loh said. That lets them speed up trading by cutting reaction times.
“We have said in the past that high-frequency trading accounts for roughly 30% of our derivatives market,” Loh said. “SGX has announced previously that we will enhance market safeguards before opening up the cash equities market for high- frequency trading. These include random opening and closing routines, pre-trade risk controls and circuit breakers.”
Trading Safeguards
Regulators worldwide have evaluated safeguards since the May 2010 plunge known as the flash crash briefly erased about $862 billion from the value of US equities. Exchanges in that country have since implemented a limit-up/limit-down initiative that prevents market makers from quoting shares at prices deemed too far above or below current levels.
SGX will introduce circuit breakers by early next year after a plunge in shares of three commodity companies erased US$6.9 billion in market value over three days, the bourse operator said on Oct 10. Under the proposal, trading of a stock will be halted for five minutes if it moves 10% in either direction, the bourse said.
Since becoming CEO in December 2009, Bocker scrapped the midday trading break and introduced dual listings of American Depositary Receipts at SGX to boost profits. Brokerages are turning less bearish on the company, with the number of sell recommendations at the lowest since 2011, according to data compiled by Bloomberg.
Getting high-speed traders to operate in Singapore will improve liquidity and market efficiency, Tabb said.
“The more liquidity and the more trading generally makes the market better, lowers trading cost and helps smaller investors,” Tabb said. “Generally, it doesn’t make the market more risky unless it becomes as complex and fragmented as the US market.”
- wong chee tat :)
Written by Bloomberg
Monday, 28 October 2013 09:16
Singapore Exchange, Southeast Asia’s biggest bourse operator, wants to lure more high-speed traders onto its stock market as it grapples with lower volume.
Computerized trading firms, which execute transactions in fractions of a second, account for a negligible share of volume on Singapore Exchange’s cash equities market, according to bourse spokeswoman Loh Wei Ling, while they contribute 30% of revenue from derivatives. Singapore Exchange will seek to change that once it introduces safeguards, Chief Executive Officer Magnus Bocker said at a briefing this month.
“We will pursue high-frequency trading once we have circuit breakers and other policies in place,” he said. “That will enhance the liquidity and quality of the Singapore market.”
High-frequency traders facilitate the majority of US equity transactions, where computerized firms have ample opportunity to profit from fleeting price discrepancies because transactions take place on more than 50 venues. Singapore isn’t as fragmented, which keeps computer traders away. Credit Suisse Group AG and Tabb Group LLC said the city’s relatively high trading and clearing fees also deter those firms.
Bocker is seeking more business with the daily average value of equity trades down to about $1.5 billion this year, a 36% plunge from 2007, according to data compiled by Bloomberg. Singapore Exchange’s net income was $336 million for the fiscal year that ended in June, 20% lower than fiscal 2007.
‘Pretty Substantial’
He’s been building the infrastructure and regulatory framework to attract high-speed traders. The bourse rolled out a $250 million trading platform in August 2011 that can execute transactions in 90 microseconds.
The exchange hasn’t been successful in attracting orders from the fastest traders because of the high cost of trading in the city, according to Credit Suisse and Tabb Group.
“There is a pretty substantial clearing fee in Singapore that will stop many of the largest high-frequency traders,” said Larry Tabb, founder and CEO of New York-based market research firm Tabb Group. “The exchange fabric isn’t fragmented, so that there will never be the kind of high- frequency trading that we see in the US and or Europe in Singapore.”
Fees for trading on the Singapore bourse amount to about 20 basis points, or 0.2% of the value of shares traded, according to data compiled by Credit Suisse. That compares with Sydney-based ASX’s 15 basis points, the data show.
Speed Limits
“If SGX is serious about high-frequency trading, it could change its fee structure to encourage more high-frequency trading,” said Arjan Van Veen, a Hong Kong-based analyst at Credit Suisse.
Australia, Hong Kong and Singapore have considered the extent to which trading strategies that rely on speedy placement of bids and offers should be regulated amid concern that they can be used to manipulate prices. Germany was the first developed market to legislate the practice, and the European Parliament is pushing for tougher rules.
While circuit breakers provide the market a mechanism to take a pause during times of extreme market volatility, allowing high-frequency traders will introduce unfamiliar risks to investors, according to Securities Investors Association of Singapore, the largest investor lobbying group in Asia.
Good, Dangerous
“A knife is good as well as dangerous,” said David Gerald, president of SIAS. “The exchange and manufacturers of products will put out products to improve their bottom line. Investors must know the risks and decide for themselves whether they want to invest or not. There are many products out there which are very risky and investors have to be educated on the risks and they must make an informed decision.”
One of the hallmarks of high-speed trading has already arrived in Singapore. The bourse has about 100 clients that house their trading computers near the exchange’s servers, an arrangement known as co-location, spokeswoman Loh said. That lets them speed up trading by cutting reaction times.
“We have said in the past that high-frequency trading accounts for roughly 30% of our derivatives market,” Loh said. “SGX has announced previously that we will enhance market safeguards before opening up the cash equities market for high- frequency trading. These include random opening and closing routines, pre-trade risk controls and circuit breakers.”
Trading Safeguards
Regulators worldwide have evaluated safeguards since the May 2010 plunge known as the flash crash briefly erased about $862 billion from the value of US equities. Exchanges in that country have since implemented a limit-up/limit-down initiative that prevents market makers from quoting shares at prices deemed too far above or below current levels.
SGX will introduce circuit breakers by early next year after a plunge in shares of three commodity companies erased US$6.9 billion in market value over three days, the bourse operator said on Oct 10. Under the proposal, trading of a stock will be halted for five minutes if it moves 10% in either direction, the bourse said.
Since becoming CEO in December 2009, Bocker scrapped the midday trading break and introduced dual listings of American Depositary Receipts at SGX to boost profits. Brokerages are turning less bearish on the company, with the number of sell recommendations at the lowest since 2011, according to data compiled by Bloomberg.
Getting high-speed traders to operate in Singapore will improve liquidity and market efficiency, Tabb said.
“The more liquidity and the more trading generally makes the market better, lowers trading cost and helps smaller investors,” Tabb said. “Generally, it doesn’t make the market more risky unless it becomes as complex and fragmented as the US market.”
- wong chee tat :)
Tuesday, August 6, 2013
Singapore companies rely heavily on estimates: KPMG study
Singapore companies rely heavily on estimates: KPMG study
By Toni Waterman
POSTED: 05 Aug 2013 8:25 PM
KPMG analysed the financial statements of 200 companies on the Singapore Exchange and found that 82 per cent of the total assets on their balance sheets are valued on estimates and some form of human judgement.
SINGAPORE: Eighty-two per cent of the total asset values on a typical balance sheet today are based on estimates, according to a KPMG study.
KPMG analysed the financial statements of 200 companies on the Singapore Exchange (SGX) and found that 82 per cent of the total assets on their balance sheets are valued on estimates and some form of human judgement.
KPMG's head of audit Ong Pang Thye, said: "The problem with having estimates in the books are the issues of comparability and consistency.
"The other issue that we are looking at is whether they are susceptible to human errors and are unintentional, or if they are subject to one form or another of human bias. This could be in the form of the more intentional ones."
The study shows that as little as a one per cent fluctuation in the total asset value can result in a 38 per cent change in net profit and up to a 50 per cent change in comprehensive income.
This means that even slight changes could turn a profit into a loss and vice versa.
Although fair value estimates for financial instruments were a key concern during the global financial crisis, it appears they are less of a concern for companies in Singapore as less than one per cent of total assets on average use unobservable inputs - known as "level three inputs" - and are subjected to level three fair value measurements.
Those who create financial statements said another problem with estimation is consistency.
BW Maritime's group CFO, Nicholas Gleeson, said: "The risk is that the shareholders become a little bit lost.
"They look at two sets of financial statements and think the companies are quite comparable but what they see flowing to the profit and loss in one (statement) is different from what is happening in the other (statement)."
The study shows that no sector is spared from the use of estimates and that some sectors like energy and telcos rely more heavily on estimation then others.
The study looked at 11 industries, including information technology, industrials, healthcare, real estate and energy.
Sam Ong, group senior executive vice president and group deputy CEO of Hyflux, said: "What I want to challenge the profession is that of all this volatility and accuracy that we are trying to derive, we have to make sure that we present it in such a way that is structured and as comparable as possible."
There is no expectation that estimation will stop being a part of financial reporting.
However, the study suggests that a robust process for deriving estimations and auditors with the right skill set to work with those estimates could make them more accurate and consistent.
Of the 200 companies analysed by KPMG, about 58 per cent were classified as small-cap, nine per cent as mid-cap and 33 per cent as large cap.
About 60 per cent of these companies are local and 40 per cent are foreign companies with significant presence in Singapore.
- CNA/fa
- wong chee tat :)
By Toni Waterman
POSTED: 05 Aug 2013 8:25 PM
KPMG analysed the financial statements of 200 companies on the Singapore Exchange and found that 82 per cent of the total assets on their balance sheets are valued on estimates and some form of human judgement.
SINGAPORE: Eighty-two per cent of the total asset values on a typical balance sheet today are based on estimates, according to a KPMG study.
KPMG analysed the financial statements of 200 companies on the Singapore Exchange (SGX) and found that 82 per cent of the total assets on their balance sheets are valued on estimates and some form of human judgement.
KPMG's head of audit Ong Pang Thye, said: "The problem with having estimates in the books are the issues of comparability and consistency.
"The other issue that we are looking at is whether they are susceptible to human errors and are unintentional, or if they are subject to one form or another of human bias. This could be in the form of the more intentional ones."
The study shows that as little as a one per cent fluctuation in the total asset value can result in a 38 per cent change in net profit and up to a 50 per cent change in comprehensive income.
This means that even slight changes could turn a profit into a loss and vice versa.
Although fair value estimates for financial instruments were a key concern during the global financial crisis, it appears they are less of a concern for companies in Singapore as less than one per cent of total assets on average use unobservable inputs - known as "level three inputs" - and are subjected to level three fair value measurements.
Those who create financial statements said another problem with estimation is consistency.
BW Maritime's group CFO, Nicholas Gleeson, said: "The risk is that the shareholders become a little bit lost.
"They look at two sets of financial statements and think the companies are quite comparable but what they see flowing to the profit and loss in one (statement) is different from what is happening in the other (statement)."
The study shows that no sector is spared from the use of estimates and that some sectors like energy and telcos rely more heavily on estimation then others.
The study looked at 11 industries, including information technology, industrials, healthcare, real estate and energy.
Sam Ong, group senior executive vice president and group deputy CEO of Hyflux, said: "What I want to challenge the profession is that of all this volatility and accuracy that we are trying to derive, we have to make sure that we present it in such a way that is structured and as comparable as possible."
There is no expectation that estimation will stop being a part of financial reporting.
However, the study suggests that a robust process for deriving estimations and auditors with the right skill set to work with those estimates could make them more accurate and consistent.
Of the 200 companies analysed by KPMG, about 58 per cent were classified as small-cap, nine per cent as mid-cap and 33 per cent as large cap.
About 60 per cent of these companies are local and 40 per cent are foreign companies with significant presence in Singapore.
- CNA/fa
- wong chee tat :)
Saturday, July 27, 2013
Yangzijiang to trade shares in RMB on SGX's dual currency trading platform
Yangzijiang to trade shares in RMB on SGX's dual currency trading platform
POSTED: 25 Jul 2013 1:01 PM
Singapore Exchange (SGX) announced on Thursday that Yangzijiang Shipbuilding will be the first company to trade its shares in renminbi (RMB) on SGX's dual currency trading platform.
SINGAPORE: Singapore Exchange (SGX) announced on Thursday that Yangzijiang Shipbuilding will be the first company to trade its shares in renminbi (RMB) on SGX's dual currency trading platform.
Yangzijiang's RMB-denominated shares will start trading on 5 August.
Magnus Bocker, CEO of SGX, said this is an exciting and positive development for Singapore as an offshore RMB centre. It also demonstrates how SGX is contributing to the infrastructure and capabilities required for issuers and investors to tap opportunities offered by China.
The exchange currently offers other services such as the listing and depository of offshore RMB bonds and the listing, quotation, trading, clearing and settlement of RMB-denominated securities.
SGX also offers China A50 index futures, the only offshore access to the China A-share market.
- CNA/xq
- wong chee tat :)
POSTED: 25 Jul 2013 1:01 PM
Singapore Exchange (SGX) announced on Thursday that Yangzijiang Shipbuilding will be the first company to trade its shares in renminbi (RMB) on SGX's dual currency trading platform.
SINGAPORE: Singapore Exchange (SGX) announced on Thursday that Yangzijiang Shipbuilding will be the first company to trade its shares in renminbi (RMB) on SGX's dual currency trading platform.
Yangzijiang's RMB-denominated shares will start trading on 5 August.
Magnus Bocker, CEO of SGX, said this is an exciting and positive development for Singapore as an offshore RMB centre. It also demonstrates how SGX is contributing to the infrastructure and capabilities required for issuers and investors to tap opportunities offered by China.
The exchange currently offers other services such as the listing and depository of offshore RMB bonds and the listing, quotation, trading, clearing and settlement of RMB-denominated securities.
SGX also offers China A50 index futures, the only offshore access to the China A-share market.
- CNA/xq
- wong chee tat :)
Tuesday, July 16, 2013
SGX expecting healthy pipeline of IPOs for rest of 2013
SGX expecting healthy pipeline of IPOs for rest of 2013
By Linette Lim
POSTED: 16 Jul 2013 5:03 PM
The Singapore Exchange said it is looking at a healthy pipeline of initial public offerings for the rest of the year.
SINGAPORE: The Singapore Exchange (SGX) said it is looking at a healthy pipeline of initial public offerings (IPO) for the rest of the year.
Bankers said improving market sentiment is one key reason driving confidence among potential issuers.
OCBC said the most popular IPOs among investors will continue to be yield instruments like real estate investment trusts (REIT).
This is because interest rates are widely expected to remain low for this year at least.
Even as investors eagerly await the OUE and SPH Reit IPOs, SGX said there are listings from other business sectors coming on-stream.
Lawrence Wong, head of listings at SGX, said, explained: "Of course there are certain sectors that we are better at so we tend to attract more attention from these, like the offshore (companies), REITs and business trusts, our commodities and resources (listings). Now increasingly, we are seeing healthcare as well. In fact, the other trend we are bringing to see is actually consumer related."
- CNA/fa
- wong chee tat :)
By Linette Lim
POSTED: 16 Jul 2013 5:03 PM
The Singapore Exchange said it is looking at a healthy pipeline of initial public offerings for the rest of the year.
SINGAPORE: The Singapore Exchange (SGX) said it is looking at a healthy pipeline of initial public offerings (IPO) for the rest of the year.
Bankers said improving market sentiment is one key reason driving confidence among potential issuers.
OCBC said the most popular IPOs among investors will continue to be yield instruments like real estate investment trusts (REIT).
This is because interest rates are widely expected to remain low for this year at least.
Even as investors eagerly await the OUE and SPH Reit IPOs, SGX said there are listings from other business sectors coming on-stream.
Lawrence Wong, head of listings at SGX, said, explained: "Of course there are certain sectors that we are better at so we tend to attract more attention from these, like the offshore (companies), REITs and business trusts, our commodities and resources (listings). Now increasingly, we are seeing healthcare as well. In fact, the other trend we are bringing to see is actually consumer related."
- CNA/fa
- wong chee tat :)
Monday, July 1, 2013
Olam Raises $712.5 Million From Oversubscribed Bond Offering
Olam Raises $712.5 Million From Oversubscribed Bond Offering
By Michelle Yun & Klaus Wille - Jan 25, 2013 5:47 PM GMT+0800
Olam International Ltd. (OLAM), the commodity supplier targeted by short-seller Carson Block, raised $712.5 million from a 10 percent-oversubscribed bond sale, which was backed by its two largest shareholders.
Kewalram Singapore Ltd. and Temasek Holdings Pte took up all of their entitlement of bonds, which were were priced at 95 cents on the dollar, and warrants, the Singapore-based trading company said yesterday in a statement. Olam, which expects the bonds and warrants to start trading Jan. 31, said Chief Executive Officer Sunny Verghese also took up his share.
Olam, the world’s second-largest rice trader, said last month that it planned to sell $750 million in bonds and as much as $500 million in warrants to address any “lingering doubts” about its finances. Olam’s bonds and shares sank in November after Block, founder of Los Angeles-based Muddy Waters LLC, questioned its accounting and expansion strategy.
“Muddy Waters has caused greater scrutiny,” said Carey Wong, a senior analyst at OCBC Investment Research Pte. The bond sale results mean there are other people willing to put their money into Olam and the proceeds of the sale “really do come in handy. There’s no question about it,” he said.
Olam shares advanced 0.9 percent to close at S$1.63 in Singapore. That compares with a 0.6 percent gain in the benchmark Straits Times index.
‘Strong Support’
Temasek, which agreed to buy any rights not taken up by other investors, didn’t go beyond its entitlement, according to Jeffrey Fang, a spokesman for the Singaporean state investment company. The offer indicates “strong support from the bond and equity markets for Olam,” Verghese said in the statement.
Olam received applications for $827 million, or about 10 percent more than the $750 million under offer, it said.
The company, also one of the world’s top six cotton traders, fell 27 percent last year in Singapore trading and is down 6.3 percent since Block first said he was short on the stock and the company was likely to fail. Olam has dismissed the claims, saying it’s in the best financial health since its initial public offering in 2005.
A short seller profits by selling borrowed shares and buying them back at a lower price. Olam’s 5.75 percent bonds due September 2017 fell to a record low of 83.2 cents on Nov. 30, from 97 cents on Nov. 19, the day Block first said he was short the stock, Bloomberg prices show.
“We maintain our belief that Olam will fail because it has squandered huge amounts of money on investments that are incapable of repaying the debt incurred to finance them,” Block said yesterday in a statement. “This financing only postpones the inevitable, while putting more investors’ funds at risk.”
Temasek Holding
Temasek increased its stake in Olam to 20 percent from 16 percent last month in a series of transactions. Kewalram Singapore is the largest shareholder with 20.2 percent, according to data compiled by Bloomberg. It said last month it would also subscribe to the bonds.
Olam shareholders approved a sub-underwriting fee to be paid to a Temasek unit by the banks arranging the sale, the company said Jan. 15.
RRJ Capital, a fund run by former Goldman Sachs Group Inc. banker Richard Ong, planned to buy Olam bonds and shares, a person with knowledge of the matter said last week. The fund bought the rights to $90 million of Olam bonds on Jan. 15, their last trading day, the person said. It also plans to invest $60 million to exercise the warrants to be issued with the five- year, 6.75 percent bonds.
Fracking Services
RRJ’s team includes Ong’s brother, Charles Ong, who left his post as senior managing director of special projects at Temasek last January. RRJ teamed up with a group including Temasek in 2011 to purchase Frac Tech Holdings LLC, a Fort Worth-based hydraulic-fracturing services company.
The price of rights to participate in the bond issue, which traded for a week, fell about 41 percent to 7 U.S. cents on Jan. 15. They reached a high of 22.5 cents on the first trading day.
The decline in the price indicated a lack of interest from shareholders as Olam’s finances were still “far too opaque,” Michael Dee, a former senior managing director at Temasek, said in an article in Singapore’s Business Times newspaper Jan. 19.
In November, Muddy Waters offered to pay to get Olam’s debt rated, saying “investors should wonder whether the company is worried that a rating would mortally wound it.” Olam’s Verghese rejected the offer. Block reiterated his offer yesterday.
To contact the reporters on this story: Michelle Yun in Hong Kong at myun11@bloomberg.net; Klaus Wille in Singapore at kwille@bloomberg.net.
To contact the editor responsible for this story: Jason Rogers at jrogers73@bloomberg.net.
- wong chee tat :)
By Michelle Yun & Klaus Wille - Jan 25, 2013 5:47 PM GMT+0800
Olam International Ltd. (OLAM), the commodity supplier targeted by short-seller Carson Block, raised $712.5 million from a 10 percent-oversubscribed bond sale, which was backed by its two largest shareholders.
Kewalram Singapore Ltd. and Temasek Holdings Pte took up all of their entitlement of bonds, which were were priced at 95 cents on the dollar, and warrants, the Singapore-based trading company said yesterday in a statement. Olam, which expects the bonds and warrants to start trading Jan. 31, said Chief Executive Officer Sunny Verghese also took up his share.
Olam, the world’s second-largest rice trader, said last month that it planned to sell $750 million in bonds and as much as $500 million in warrants to address any “lingering doubts” about its finances. Olam’s bonds and shares sank in November after Block, founder of Los Angeles-based Muddy Waters LLC, questioned its accounting and expansion strategy.
“Muddy Waters has caused greater scrutiny,” said Carey Wong, a senior analyst at OCBC Investment Research Pte. The bond sale results mean there are other people willing to put their money into Olam and the proceeds of the sale “really do come in handy. There’s no question about it,” he said.
Olam shares advanced 0.9 percent to close at S$1.63 in Singapore. That compares with a 0.6 percent gain in the benchmark Straits Times index.
‘Strong Support’
Temasek, which agreed to buy any rights not taken up by other investors, didn’t go beyond its entitlement, according to Jeffrey Fang, a spokesman for the Singaporean state investment company. The offer indicates “strong support from the bond and equity markets for Olam,” Verghese said in the statement.
Olam received applications for $827 million, or about 10 percent more than the $750 million under offer, it said.
The company, also one of the world’s top six cotton traders, fell 27 percent last year in Singapore trading and is down 6.3 percent since Block first said he was short on the stock and the company was likely to fail. Olam has dismissed the claims, saying it’s in the best financial health since its initial public offering in 2005.
A short seller profits by selling borrowed shares and buying them back at a lower price. Olam’s 5.75 percent bonds due September 2017 fell to a record low of 83.2 cents on Nov. 30, from 97 cents on Nov. 19, the day Block first said he was short the stock, Bloomberg prices show.
“We maintain our belief that Olam will fail because it has squandered huge amounts of money on investments that are incapable of repaying the debt incurred to finance them,” Block said yesterday in a statement. “This financing only postpones the inevitable, while putting more investors’ funds at risk.”
Temasek Holding
Temasek increased its stake in Olam to 20 percent from 16 percent last month in a series of transactions. Kewalram Singapore is the largest shareholder with 20.2 percent, according to data compiled by Bloomberg. It said last month it would also subscribe to the bonds.
Olam shareholders approved a sub-underwriting fee to be paid to a Temasek unit by the banks arranging the sale, the company said Jan. 15.
RRJ Capital, a fund run by former Goldman Sachs Group Inc. banker Richard Ong, planned to buy Olam bonds and shares, a person with knowledge of the matter said last week. The fund bought the rights to $90 million of Olam bonds on Jan. 15, their last trading day, the person said. It also plans to invest $60 million to exercise the warrants to be issued with the five- year, 6.75 percent bonds.
Fracking Services
RRJ’s team includes Ong’s brother, Charles Ong, who left his post as senior managing director of special projects at Temasek last January. RRJ teamed up with a group including Temasek in 2011 to purchase Frac Tech Holdings LLC, a Fort Worth-based hydraulic-fracturing services company.
The price of rights to participate in the bond issue, which traded for a week, fell about 41 percent to 7 U.S. cents on Jan. 15. They reached a high of 22.5 cents on the first trading day.
The decline in the price indicated a lack of interest from shareholders as Olam’s finances were still “far too opaque,” Michael Dee, a former senior managing director at Temasek, said in an article in Singapore’s Business Times newspaper Jan. 19.
In November, Muddy Waters offered to pay to get Olam’s debt rated, saying “investors should wonder whether the company is worried that a rating would mortally wound it.” Olam’s Verghese rejected the offer. Block reiterated his offer yesterday.
To contact the reporters on this story: Michelle Yun in Hong Kong at myun11@bloomberg.net; Klaus Wille in Singapore at kwille@bloomberg.net.
To contact the editor responsible for this story: Jason Rogers at jrogers73@bloomberg.net.
- wong chee tat :)
Wednesday, June 5, 2013
OUE gets SGX approval to list REIT
OUE gets SGX approval to list REIT
POSTED: 05 Jun 2013 8:46 PM
Overseas Union Enterprise has received approval from SGX to list a hospitality-focused real estate investment trust.
SINGAPORE: Property developer Overseas Union Enterprise (OUE) has received approval from the Singapore Exchange (SGX) to list a hospitality-focused real estate investment trust (REIT).
In a filing with the SGX, OUE said the REIT manager plans to appoint real estate veteran Chong Kee Hiong as chief executive officer and executive director.
Mr Chong is the former CEO of The Ascott, the serviced apartment arm of property developer CapitaLand.
On May 13, OUE had said it planned to establish a REIT, which will include a hotel, Mandarin Orchard Singapore, and its adjoining Mandarin Gallery shopping mall.
OUE - controlled by Indonesia's Lippo Group - did not reveal details about the size and timing of the initial public offering (IPO) for the proposed OUE hospitality REIT.
But according to reports, the hotel REIT is expected to raise US$700 million to US$800 million, making it Singapore's third-biggest IPO this year. The deal is expected to be priced in early July, with the proposed listing later in the month.
- CNA/ms
- wong chee tat :)
POSTED: 05 Jun 2013 8:46 PM
Overseas Union Enterprise has received approval from SGX to list a hospitality-focused real estate investment trust.
SINGAPORE: Property developer Overseas Union Enterprise (OUE) has received approval from the Singapore Exchange (SGX) to list a hospitality-focused real estate investment trust (REIT).
In a filing with the SGX, OUE said the REIT manager plans to appoint real estate veteran Chong Kee Hiong as chief executive officer and executive director.
Mr Chong is the former CEO of The Ascott, the serviced apartment arm of property developer CapitaLand.
On May 13, OUE had said it planned to establish a REIT, which will include a hotel, Mandarin Orchard Singapore, and its adjoining Mandarin Gallery shopping mall.
OUE - controlled by Indonesia's Lippo Group - did not reveal details about the size and timing of the initial public offering (IPO) for the proposed OUE hospitality REIT.
But according to reports, the hotel REIT is expected to raise US$700 million to US$800 million, making it Singapore's third-biggest IPO this year. The deal is expected to be priced in early July, with the proposed listing later in the month.
- CNA/ms
- wong chee tat :)
Monday, May 27, 2013
Dim Sum bonds issued in Singapore
Dim Sum bonds issued in Singapore
POSTED: 27 May 2013 10:48 PM
Standard Chartered Bank and HSBC are issuing yuan-denominated (Dim Sum) bonds for the first time in Singapore.
SINGAPORE: Standard Chartered Bank and HSBC are issuing yuan-denominated (Dim Sum) bonds for the first time in Singapore.
The announcement came as the Singapore Exchange launched its own yuan-clearing system on Monday.
Both banks are also known to be among the most aggressive players in the offshore yuan market.
Standard Chartered's offshore renminbi-denominated Senior Unsecured Notes are the first RMB bond deposited with SGX.
The timing of the bonds issuance coincides with the start of offshore yuan-clearing services by the Industrial and Commercial Bank of China (ICBC) on Monday.
This could help free up trade in the currency and make Singapore an offshore hub for Dim Sum debt.
HSBC Singapore has issued a two-year yuan bond at a yield of about 2.25%. The notes will raise 500 million yuan.
Matthew Cannon, the head of Global Markets at HSBC in Singapore, said in a statement that the issuance shows HSBC's commitment to further develop the offshore RMB market.
He added: "The funds will be used to finance the bank's expansion of RMB-based lending assets.
"This issuance will help open the market to other issuers looking to fund themselves internationally in RMB, offer new investment opportunities to the substantial pool of wealth managed in Singapore and assist in funding the rapidly growing RMB denominated trade business in Asia."
Standard Chartered raised 1 billion yuan through its 3-year note issuance with a yield of 2.625% after generating over 3 billion yuan in orders from 75 investors across Asia.
With settlement of the bond set for 31 May, Standard Chartered said it would be the first offshore yuan bond that is listed, cleared and settled in Singapore.
Standard Chartered's CEO Ray Ferguson said in a statement that he sees this as another step in Singapore's development as an offshore RMB hub.
"Singapore already leads as a regional treasury centre; is a springboard to Southeast Asia along the key trade corridor with China and provides a hub for Asian wealth management and commodities trading. Singapore's contribution to the development of the RMB is further enhanced by this issuance," he added.
The sales will be cleared through SGX's Central Depository, which provides clearing and settlement services for securities in Singapore.
Will Hedden, IG Market's senior sales trader, said: "There's a lot of money here from China that would be looking for somewhere to go, in that respect in the fixed income space. And these banks are really there to capitalize on it.
"It's another kind of sign that perhaps people are moving away from dollars and yen and euros and other what we would consider major reserve currencies around the world and looking to get exposure into China."
Previously, most of the trading was handled through mainland China or Hong Kong-based banks.
Singapore is set to compete with other trading hubs such as Taipei, Tokyo, Kuala Lumpur, London and Luxembourg in a market estimated to worth up to 360 billion yuan, or US$59 billion.
SGX's depository service adds to the exchange's current offering of listing, quotation, trading, clearing and settlement of RMB-denominated securities and listing of offshore RMB bonds.
Magnus Bocker, CEO of SGX, said in a statement: "Our enhanced RMB capabilities support customers interested in the internationalization of the RMB and the growth of the Chinese economy.
"It will also complement the Industrial and Commercial Bank of China's yuan-clearing service to participating banks, which starts today (Monday).
"As Singapore's role as an international offshore RMB centre becomes increasingly important, customers coming to SGX can be assured of our commitment to keep growing and enhancing our suite of RMB and China-related products and services."
HSBC and Standard Chartered said they would manage their own sales.
Last week, DBS Group said it wants to issue yuan-denominated bonds to be cleared out of Singapore too.
- CNA/al
- wong chee tat :)
POSTED: 27 May 2013 10:48 PM
Standard Chartered Bank and HSBC are issuing yuan-denominated (Dim Sum) bonds for the first time in Singapore.
SINGAPORE: Standard Chartered Bank and HSBC are issuing yuan-denominated (Dim Sum) bonds for the first time in Singapore.
The announcement came as the Singapore Exchange launched its own yuan-clearing system on Monday.
Both banks are also known to be among the most aggressive players in the offshore yuan market.
Standard Chartered's offshore renminbi-denominated Senior Unsecured Notes are the first RMB bond deposited with SGX.
The timing of the bonds issuance coincides with the start of offshore yuan-clearing services by the Industrial and Commercial Bank of China (ICBC) on Monday.
This could help free up trade in the currency and make Singapore an offshore hub for Dim Sum debt.
HSBC Singapore has issued a two-year yuan bond at a yield of about 2.25%. The notes will raise 500 million yuan.
Matthew Cannon, the head of Global Markets at HSBC in Singapore, said in a statement that the issuance shows HSBC's commitment to further develop the offshore RMB market.
He added: "The funds will be used to finance the bank's expansion of RMB-based lending assets.
"This issuance will help open the market to other issuers looking to fund themselves internationally in RMB, offer new investment opportunities to the substantial pool of wealth managed in Singapore and assist in funding the rapidly growing RMB denominated trade business in Asia."
Standard Chartered raised 1 billion yuan through its 3-year note issuance with a yield of 2.625% after generating over 3 billion yuan in orders from 75 investors across Asia.
With settlement of the bond set for 31 May, Standard Chartered said it would be the first offshore yuan bond that is listed, cleared and settled in Singapore.
Standard Chartered's CEO Ray Ferguson said in a statement that he sees this as another step in Singapore's development as an offshore RMB hub.
"Singapore already leads as a regional treasury centre; is a springboard to Southeast Asia along the key trade corridor with China and provides a hub for Asian wealth management and commodities trading. Singapore's contribution to the development of the RMB is further enhanced by this issuance," he added.
The sales will be cleared through SGX's Central Depository, which provides clearing and settlement services for securities in Singapore.
Will Hedden, IG Market's senior sales trader, said: "There's a lot of money here from China that would be looking for somewhere to go, in that respect in the fixed income space. And these banks are really there to capitalize on it.
"It's another kind of sign that perhaps people are moving away from dollars and yen and euros and other what we would consider major reserve currencies around the world and looking to get exposure into China."
Previously, most of the trading was handled through mainland China or Hong Kong-based banks.
Singapore is set to compete with other trading hubs such as Taipei, Tokyo, Kuala Lumpur, London and Luxembourg in a market estimated to worth up to 360 billion yuan, or US$59 billion.
SGX's depository service adds to the exchange's current offering of listing, quotation, trading, clearing and settlement of RMB-denominated securities and listing of offshore RMB bonds.
Magnus Bocker, CEO of SGX, said in a statement: "Our enhanced RMB capabilities support customers interested in the internationalization of the RMB and the growth of the Chinese economy.
"It will also complement the Industrial and Commercial Bank of China's yuan-clearing service to participating banks, which starts today (Monday).
"As Singapore's role as an international offshore RMB centre becomes increasingly important, customers coming to SGX can be assured of our commitment to keep growing and enhancing our suite of RMB and China-related products and services."
HSBC and Standard Chartered said they would manage their own sales.
Last week, DBS Group said it wants to issue yuan-denominated bonds to be cleared out of Singapore too.
- CNA/al
- wong chee tat :)
Thursday, May 9, 2013
Croesus trust IPO 22.4 times subscribed
Croesus trust IPO 22.4 times subscribed
By
Mindy Tan
INVESTORS have overwhelmingly backed the listing of Croesus Retail Trust (CRT), with the total placement tranche and public offer 22.4 times subscribed.
The trust manager, Croesus Retail Asset Management, said this last night after it successfully completed its initial public offering (IPO) of about 229.2 million units at 93 cents each.
The placement tranche drew strong demand from institutional investors. Indications of interest received amounted to 4,093.2 million units, resulting in the placement tranche being about 19.7 times subscribed.
At the close of the offering to the public, 19,638 valid applications for 1,049.6 million units were received from retail investors. Based on the 21.5 million units available to the public for subscription, the public offer was about 48.8 times subscribed.
- wong chee tat :)
By
Mindy Tan
INVESTORS have overwhelmingly backed the listing of Croesus Retail Trust (CRT), with the total placement tranche and public offer 22.4 times subscribed.
The trust manager, Croesus Retail Asset Management, said this last night after it successfully completed its initial public offering (IPO) of about 229.2 million units at 93 cents each.
The placement tranche drew strong demand from institutional investors. Indications of interest received amounted to 4,093.2 million units, resulting in the placement tranche being about 19.7 times subscribed.
At the close of the offering to the public, 19,638 valid applications for 1,049.6 million units were received from retail investors. Based on the 21.5 million units available to the public for subscription, the public offer was about 48.8 times subscribed.
- wong chee tat :)
Thursday, March 21, 2013
SGX signs MOU to develop fixed income access with Philippines
SGX signs MOU to develop fixed income access with Philippines
Posted: 20 March 2013 2132 hrs
SINGAPORE : The Singapore Exchange (SGX) has signed an agreement with Philippine Dealing System Holdings Corp (PDS) to develop fixed income access between the two countries.
In a statement, SGX said both parties will also be developing trading platforms to support cross-border fixed income trading.
They will also look into the development of cross-border and intra-regional clearing, settlement and depository services for these fixed income markets.
Under the collaboration, domestic banks and institutional clients in the respective countries will be able to hold their government bond investments in their respective depositories via a link between the Philippines Depository and Trust Corp and SGX's Central Depository.
Vicente B. Castillo, President and CEO of PDS, said: "The joint efforts of SGX and PDS to work towards developing an organised regional fixed income market will not only provide the necessary price transparency, depth of liquidity and a sound settlement process that fosters investor protection but also give local dealers in the ASEAN and Pan-Asian markets an opportunity to play a central role in this endeavour. Domestic issuers and regional investors will have wider access to funding and an expanded array of investment outlets, respectively."
Mr Magnus Bocker, CEO of SGX, said: "With bond markets in Asia growing significantly and strong demand from investors for price transparency and liquidity in this asset class, this collaboration between SGX and PDS is therefore timely and beneficial to investors."
- CNA/ch
- wong chee tat :)
Posted: 20 March 2013 2132 hrs
SINGAPORE : The Singapore Exchange (SGX) has signed an agreement with Philippine Dealing System Holdings Corp (PDS) to develop fixed income access between the two countries.
In a statement, SGX said both parties will also be developing trading platforms to support cross-border fixed income trading.
They will also look into the development of cross-border and intra-regional clearing, settlement and depository services for these fixed income markets.
Under the collaboration, domestic banks and institutional clients in the respective countries will be able to hold their government bond investments in their respective depositories via a link between the Philippines Depository and Trust Corp and SGX's Central Depository.
Vicente B. Castillo, President and CEO of PDS, said: "The joint efforts of SGX and PDS to work towards developing an organised regional fixed income market will not only provide the necessary price transparency, depth of liquidity and a sound settlement process that fosters investor protection but also give local dealers in the ASEAN and Pan-Asian markets an opportunity to play a central role in this endeavour. Domestic issuers and regional investors will have wider access to funding and an expanded array of investment outlets, respectively."
Mr Magnus Bocker, CEO of SGX, said: "With bond markets in Asia growing significantly and strong demand from investors for price transparency and liquidity in this asset class, this collaboration between SGX and PDS is therefore timely and beneficial to investors."
- CNA/ch
- wong chee tat :)
Retailers say REITs are pushing up rental costs
Retailers say REITs are pushing up rental costs
By Linette Lim | Posted: 20 March 2013 2304 hrs
SINGAPORE : Real estate investment trusts (REITs) have become an investment darling in Singapore giving investors attractive returns.
But for retailers, REITs are causing them to cough out more in rents.
This is because REITs act mainly to boost returns for their shareholders.
President of the Singapore Retailers Association (SRA), Jannie Chan, says the higher rentals are adding to the woes in the retail sector which include a labour crunch and shortage of parking space.
Ms Chan says: "We've got the REITs killing us, we've got the labour killing us, and we've got no shopping (centre) car parks, so where are we going? So I think this is really (the result) of the government policies."
In Singapore, up to 75 percent of a retailer's costs are fixed costs such as rents and wages.
And over the years, the Singapore Retailers Association says rents, as a proportion of fixed costs, have risen relative to wages.
SRA says mall landlords like REIT managers raise rents by 5 to 10 percent every three years.
Ms Chan says: "(The make up of ) the fixed costs for retailers have shifted from 50 percent rental and 50 percent staff costs to 50 percent rental and 25 percent staff costs. The leases are short-term - it's renewed every three years. Each time there is a renewal, (the retailer or tenant) has to pay between 5 and 10 percent more."
She adds: "If your business is surviving, or doing well, you could afford that raise. But if not, you would then have to move, which means that the investments you have made over the last three years - the renovation, the staff - you may have to pull out. That becomes quite damaging, especially when you have been there for a long time and (are) there for the long haul within the shopping centre. So I think the REITs should be more mindful. If you have clients that over a period have been supportive of you, but during a certain period when there's a downturn in the economy, they could make adjustments and be more reasonable and more compassionate."
Speaking at the World Retail Congress, a retail industry event, which was attended by over 500 retail professionals, Ms Chan suggests that REITs could moderate their shareholders' expectations of yields.
And this can then translate to more reasonable increases in rents.
She says: "Perhaps there could be a policy to set the REITs off between 4 and 5 percent, instead of 7 to 8 percent. At the end of the day, it's what sort of returns (being delivered) to the investor. And at a time like this, when you've got very low interest rates, that seems to be compatible and reasonable."
Other industry experts say the problems that Singapore retailers face are not unique.
Ian Mcgarrigle, Chairman, World Retail Congress, says: "For Singapore retailers, the key issue seems to be the high fixed costs that they have to operate with - the rent that they are paying for space and the high cost of labour, and also the increasing scarcity of labour. They're not issues that surprise me - we hear them to greater or lesser degree around the world."
CapitaMall Trust (CMT) is one of the biggest mall landlords in Singapore.
A spokesperson from CapitaMall Trust Management says it is an industry norm to have rental reversions every three years, regardless of a REIT or non-REIT regime.
Some experts believe higher rents are justified as these REIT managers upgrade mall properties to improve its business mix and customer flow.
In the 2012 financial year, CMT revealed that it raised rents across its portfolio of malls by an average of 6 percent from preceding rental rates, typically committed three years ago.
"At an average of 2 percent a year, the change in rental is lower than inflation in Singapore," said the CapitaMall Trust Management Limited spokesperson.
The current inflation rate is around 4 percent.
The spokesperson added that the trust manager's approach is to partner its retailers to drive shopper traffic to their malls and increase their sales.
"For example, last year, we held 13 Biz+ seminars, workshops and classes in areas such as customer relationship management and visual merchandising. These initiatives help retailers to increase business in our malls," said the spokesperson.
Another major REIT manager, Frasers Centrepoint Trust management, was not available for comment.
- CNA/ch
- wong chee tat :)
By Linette Lim | Posted: 20 March 2013 2304 hrs
SINGAPORE : Real estate investment trusts (REITs) have become an investment darling in Singapore giving investors attractive returns.
But for retailers, REITs are causing them to cough out more in rents.
This is because REITs act mainly to boost returns for their shareholders.
President of the Singapore Retailers Association (SRA), Jannie Chan, says the higher rentals are adding to the woes in the retail sector which include a labour crunch and shortage of parking space.
Ms Chan says: "We've got the REITs killing us, we've got the labour killing us, and we've got no shopping (centre) car parks, so where are we going? So I think this is really (the result) of the government policies."
In Singapore, up to 75 percent of a retailer's costs are fixed costs such as rents and wages.
And over the years, the Singapore Retailers Association says rents, as a proportion of fixed costs, have risen relative to wages.
SRA says mall landlords like REIT managers raise rents by 5 to 10 percent every three years.
Ms Chan says: "(The make up of ) the fixed costs for retailers have shifted from 50 percent rental and 50 percent staff costs to 50 percent rental and 25 percent staff costs. The leases are short-term - it's renewed every three years. Each time there is a renewal, (the retailer or tenant) has to pay between 5 and 10 percent more."
She adds: "If your business is surviving, or doing well, you could afford that raise. But if not, you would then have to move, which means that the investments you have made over the last three years - the renovation, the staff - you may have to pull out. That becomes quite damaging, especially when you have been there for a long time and (are) there for the long haul within the shopping centre. So I think the REITs should be more mindful. If you have clients that over a period have been supportive of you, but during a certain period when there's a downturn in the economy, they could make adjustments and be more reasonable and more compassionate."
Speaking at the World Retail Congress, a retail industry event, which was attended by over 500 retail professionals, Ms Chan suggests that REITs could moderate their shareholders' expectations of yields.
And this can then translate to more reasonable increases in rents.
She says: "Perhaps there could be a policy to set the REITs off between 4 and 5 percent, instead of 7 to 8 percent. At the end of the day, it's what sort of returns (being delivered) to the investor. And at a time like this, when you've got very low interest rates, that seems to be compatible and reasonable."
Other industry experts say the problems that Singapore retailers face are not unique.
Ian Mcgarrigle, Chairman, World Retail Congress, says: "For Singapore retailers, the key issue seems to be the high fixed costs that they have to operate with - the rent that they are paying for space and the high cost of labour, and also the increasing scarcity of labour. They're not issues that surprise me - we hear them to greater or lesser degree around the world."
CapitaMall Trust (CMT) is one of the biggest mall landlords in Singapore.
A spokesperson from CapitaMall Trust Management says it is an industry norm to have rental reversions every three years, regardless of a REIT or non-REIT regime.
Some experts believe higher rents are justified as these REIT managers upgrade mall properties to improve its business mix and customer flow.
In the 2012 financial year, CMT revealed that it raised rents across its portfolio of malls by an average of 6 percent from preceding rental rates, typically committed three years ago.
"At an average of 2 percent a year, the change in rental is lower than inflation in Singapore," said the CapitaMall Trust Management Limited spokesperson.
The current inflation rate is around 4 percent.
The spokesperson added that the trust manager's approach is to partner its retailers to drive shopper traffic to their malls and increase their sales.
"For example, last year, we held 13 Biz+ seminars, workshops and classes in areas such as customer relationship management and visual merchandising. These initiatives help retailers to increase business in our malls," said the spokesperson.
Another major REIT manager, Frasers Centrepoint Trust management, was not available for comment.
- CNA/ch
- wong chee tat :)
Friday, December 7, 2012
Analysts downgrade SMRT stock to 'sell'
Analysts downgrade SMRT stock to 'sell'
By Linette Lim | Posted: 06 December 2012 2326 hrs
SINGAPORE: Analysts have been downgrading SMRT's stock from 'buy' to 'sell' over the past year, with the company currently facing zero 'buy' calls and 12 'sell' ratings.
Analysts agree that higher repair and maintenance costs, as well as pressure to deliver better service, has left the company in a tight squeeze.
SMRT CEO Desmond Kuek said that the company's focus on profit was one reason why the transport firm has been facing problems.
He added that the firm will undergo restructuring to help it improve service standards.
In a filing on the Singapore Exchange on December 5, Mr Kuek said SMRT will undergo a restructuring exercise to help it improve service standards.
While this is good news for commuters, analysts say shareholders of SMRT will likely find themselves at the losing end.
"Shareholders are likely to see the cost of the company climb up, and this will hit the profits and ultimately the distribution," said Executive Director of DMG & Partners Research Terence Wong, adding that many investors bought into SMRT because of the company's history of good dividend payouts.
However analysts have also acknowledged that local transport firms battle declining profits and rising costs.
"Margins for bus (transport operators) are actually rather bad. If you look at ComfortDelGro and SMRT, both of their bus operations are losing money. For rail, they are still making money, but their margins have come off from previously," said Andy Sim, vice president of Investment Research at DBS Vickers Securities.
ComfortDelGro has expanded its business beyond Singapore over the years. The company reported that its overseas operations made up 45.8 per cent of its operating profit in 2011.
"ComfortDelGro has always been (looking at) overseas expansion and they have done relatively well, so I believe that will continue. For SMRT, what we'll probably see is that the focus will be domestic, and what the management has said is that they will focus on delivering better service to commuters," said Mr Sim.
SMRT's dividend payout fell 10 per cent on-year in 2012.
Shares of SMRT Corporation have also declined over 7 per cent over the past year, compared to a 20 per cent increase for ComfortDelGro's stock.
- CNA/jc
- wong chee tat :)
By Linette Lim | Posted: 06 December 2012 2326 hrs
SINGAPORE: Analysts have been downgrading SMRT's stock from 'buy' to 'sell' over the past year, with the company currently facing zero 'buy' calls and 12 'sell' ratings.
Analysts agree that higher repair and maintenance costs, as well as pressure to deliver better service, has left the company in a tight squeeze.
SMRT CEO Desmond Kuek said that the company's focus on profit was one reason why the transport firm has been facing problems.
He added that the firm will undergo restructuring to help it improve service standards.
In a filing on the Singapore Exchange on December 5, Mr Kuek said SMRT will undergo a restructuring exercise to help it improve service standards.
While this is good news for commuters, analysts say shareholders of SMRT will likely find themselves at the losing end.
"Shareholders are likely to see the cost of the company climb up, and this will hit the profits and ultimately the distribution," said Executive Director of DMG & Partners Research Terence Wong, adding that many investors bought into SMRT because of the company's history of good dividend payouts.
However analysts have also acknowledged that local transport firms battle declining profits and rising costs.
"Margins for bus (transport operators) are actually rather bad. If you look at ComfortDelGro and SMRT, both of their bus operations are losing money. For rail, they are still making money, but their margins have come off from previously," said Andy Sim, vice president of Investment Research at DBS Vickers Securities.
ComfortDelGro has expanded its business beyond Singapore over the years. The company reported that its overseas operations made up 45.8 per cent of its operating profit in 2011.
"ComfortDelGro has always been (looking at) overseas expansion and they have done relatively well, so I believe that will continue. For SMRT, what we'll probably see is that the focus will be domestic, and what the management has said is that they will focus on delivering better service to commuters," said Mr Sim.
SMRT's dividend payout fell 10 per cent on-year in 2012.
Shares of SMRT Corporation have also declined over 7 per cent over the past year, compared to a 20 per cent increase for ComfortDelGro's stock.
- CNA/jc
- wong chee tat :)
Tuesday, November 27, 2012
More public companies in the Philippines eyeing Singapore market for funds
More public companies in the Philippines eyeing Singapore market for funds
By Yvonne Chan | Posted: 26 November 2012 2334 hrs
SINGAPORE: More Filipino companies may be looking at the Singapore market to raise funds, with some eyeing a dual listing while others an initial public offering (IPO), say analysts.
Public companies in the Philippines that seek to list on the Singapore Exchange (SGX) usually do so to raise their profile and broaden their investor base.
Filipino food producer Alliance Select Foods International is seeking to list on Singapore's SGX-Catalist board in 2013, a move that will make it the first publicly-traded Filipino company to debut in Singapore.
Alliance Select Foods International was incorporated in 2003 and listed on the Philippines Stock Exchange in 2006, with Singapore investors forming its largest shareholders.
"Singapore is a regional hub for finance especially in ASEAN. We felt very strongly because of our strong Singapore based shareholders, we felt that it was natural for us to seek a dual listing here in Singapore," said Jonathan Dee, president and CEO of Alliance Select Foods International
"The interest rate in Singapore is (also) much lower than that of the Philippines… we chose the Catalist primarily because of our size. Our market cap today is 50 million dollars and so Catalist would fit perfectly with that," he added.
Experts also said that it was time for local investors to start looking at investment opportunities in the Philippine stock exchange, as the Filipino market gains attention in the international arena.
The Philippines' stock market is Asia's 12th largest with a market capitalisation of about US$212 billion.
"There are international investors, especially banks, which are actually overweight in the Philippines in terms of their Asia exposure, primarily because they see Philippines as a re-flation story," said Daryl Liew, head of Portfolio Management at Reyl.
"It's pretty much a domestic consumption play which is a pretty hot theme at this point in time. And actually if you look at the stock market performance, the Philippines stock market is probably the best stock market performance year to date," said Mr Liew.
"Last I checked it's up about 27 per cent, which is higher than the Thai stock market, the Indian stock market and the Hang Seng," he added.
Some public companies in the Philippines are already popular with international institutional investors.
Once the Philippines stock exchange is connected with the ASEAN trading link, analysts say these new linkages will help elevate its profile as well as increase retail investors' interest in Filipino public companies.
The ASEAN trading link comprises seven exchanges in six countries, with the Singapore Exchange and Bursa Malaysia being the first two exchanges to connect in September 2012. The stock exchange of Thailand followed suit on 15th October.
- CNA/jc
- wong chee tat :)
By Yvonne Chan | Posted: 26 November 2012 2334 hrs
SINGAPORE: More Filipino companies may be looking at the Singapore market to raise funds, with some eyeing a dual listing while others an initial public offering (IPO), say analysts.
Public companies in the Philippines that seek to list on the Singapore Exchange (SGX) usually do so to raise their profile and broaden their investor base.
Filipino food producer Alliance Select Foods International is seeking to list on Singapore's SGX-Catalist board in 2013, a move that will make it the first publicly-traded Filipino company to debut in Singapore.
Alliance Select Foods International was incorporated in 2003 and listed on the Philippines Stock Exchange in 2006, with Singapore investors forming its largest shareholders.
"Singapore is a regional hub for finance especially in ASEAN. We felt very strongly because of our strong Singapore based shareholders, we felt that it was natural for us to seek a dual listing here in Singapore," said Jonathan Dee, president and CEO of Alliance Select Foods International
"The interest rate in Singapore is (also) much lower than that of the Philippines… we chose the Catalist primarily because of our size. Our market cap today is 50 million dollars and so Catalist would fit perfectly with that," he added.
Experts also said that it was time for local investors to start looking at investment opportunities in the Philippine stock exchange, as the Filipino market gains attention in the international arena.
The Philippines' stock market is Asia's 12th largest with a market capitalisation of about US$212 billion.
"There are international investors, especially banks, which are actually overweight in the Philippines in terms of their Asia exposure, primarily because they see Philippines as a re-flation story," said Daryl Liew, head of Portfolio Management at Reyl.
"It's pretty much a domestic consumption play which is a pretty hot theme at this point in time. And actually if you look at the stock market performance, the Philippines stock market is probably the best stock market performance year to date," said Mr Liew.
"Last I checked it's up about 27 per cent, which is higher than the Thai stock market, the Indian stock market and the Hang Seng," he added.
Some public companies in the Philippines are already popular with international institutional investors.
Once the Philippines stock exchange is connected with the ASEAN trading link, analysts say these new linkages will help elevate its profile as well as increase retail investors' interest in Filipino public companies.
The ASEAN trading link comprises seven exchanges in six countries, with the Singapore Exchange and Bursa Malaysia being the first two exchanges to connect in September 2012. The stock exchange of Thailand followed suit on 15th October.
- CNA/jc
- wong chee tat :)
Sunday, June 26, 2011
SGX introducing new templates for new product disclosures
SGX introducing new templates for new product disclosures
By Millet Enriquez | Posted: 20 June 2011 2251 hrs
SINGAPORE : The Singapore Exchange (SGX) is introducing a new set of templates for new product disclosures to enhance the readability of term sheets for warrants, debentures and funds.
SGX said a consistent presentation of product features and risks will help investors have a clear and efficient comparison of competing products in the market.
As such, it is requiring issuers to use the guidelines and term sheet formats beginning August 1 this year.
The disclosure templates will apply to the term sheets for debt issues of asset-backed securities, exchange traded notes and structured notes.
It will also cover funds including collective investment schemes and exchange traded funds and structured warrants.
With the practice notes, SGX said that products that do not come with registered prospectus under the Monetary Authority of Singapore can now have their features and risks disclosed in standardised formats
SGX said the new guidelines are in line with the central bank's initiatives to improve disclosure through the use of product highlight sheets.
The practice notes are made available through the SGX website under the SGX Rulebooks - Rule Amendments.
- CNA/ms
- wong chee tat :)
By Millet Enriquez | Posted: 20 June 2011 2251 hrs
SINGAPORE : The Singapore Exchange (SGX) is introducing a new set of templates for new product disclosures to enhance the readability of term sheets for warrants, debentures and funds.
SGX said a consistent presentation of product features and risks will help investors have a clear and efficient comparison of competing products in the market.
As such, it is requiring issuers to use the guidelines and term sheet formats beginning August 1 this year.
The disclosure templates will apply to the term sheets for debt issues of asset-backed securities, exchange traded notes and structured notes.
It will also cover funds including collective investment schemes and exchange traded funds and structured warrants.
With the practice notes, SGX said that products that do not come with registered prospectus under the Monetary Authority of Singapore can now have their features and risks disclosed in standardised formats
SGX said the new guidelines are in line with the central bank's initiatives to improve disclosure through the use of product highlight sheets.
The practice notes are made available through the SGX website under the SGX Rulebooks - Rule Amendments.
- CNA/ms
- wong chee tat :)
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