KTT slide continues with 27.66% dive
Keppel Telecommunications and Transportation (KTT) – KTT shares continued to plunge yesterday - sinking 27.66%, after Friday's 43.9% dive - on sales by substantial shareholder Kapital Asia Pte Ltd, sources said. The two days of sales have wiped $1.4bn off the market capitalisation of KTT, which is more than 80%-owned by Keppel Corporation. The stock ended yesterday at $1.70, down 60% from last Thursday's close of $4.19. 5m shares changed hands yesterday, following the 5.1m traded last Friday. KTT typically has low liquidity. Often, less than 500,000 shares are transacted in a day. Hong Kong based-Kapital Asia, owned by Indonesian businessmen with interests in oil and gas, became a substantial shareholder in KTT in 2006, with 7.34%. By July this year, it had increased its holding to 9.27% or 51.136m shares. Based on KTT's annual report, Kapital Asia, an investment holding company, is controlled by Agus Anwar and Marcel Tjia. KTT filed changes in stockholding to the Singapore Exchange (SGX) after it received notification from Kapital Asia yesterday that the latter sold 2,658,000 shares on Sept 26 at between $4 and $3.50.
Raffles Edu to invest in new Tianjin college
Raffles Education Corporation – Plans to invest RMB3m (S$628,000) in a new college in Tianjin over the next five years, after getting the nod from the Tianjin Education Bureau. The new school - a collaboration with its Tianjin University of Commerce Boustead College in China - will offer advanced diplomas in fashion design, interior design, visual communication, and multimedia design, among others. The first intake is expected in January 2009, but this will not contribute significantly to the group's financial results for FY2009. With the addition of this new college, the group operates three universities and 25 colleges across nine countries in the Asia-Pacific region. For the year ended June 30, 2008, Raffles doubled its net profit to $98.8m, thanks to strong revenue growth, a jump in other operating income, and negative goodwill. Turnover came to $190 million, and EPS rose to 4.33 cents from 2.34 cents previously.
ST Engg US unit clinches US$393m navy deal
ST Engineering – The company's US shipyard unit, VT Halter Marine, has secured a US$393m contract for Phase II of the Egyptian Navy's Fast Missile Craft (FMC) project. This new deal, in addition to another US$13.5 million awarded due to changes in work scope in Phase I brings the total contract value for the overall project for the three FMCs to US$642m. Work commences immediately, and delivery of the first FMC is expected by mid-2012 with full completion by April 2013. ST Engineering had previously announced on Dec 1, 2005 that it had secured the initial Phase I functional design contract for approximately US$29m. At the time, it was estimated that the programme's value could grow to over US$450m after Phase II was added. Two subsequent contract modifications were awarded in November 2006 and June 2007 respectively for procuring the project's long lead items which added US$206.5m to the contract. Subsequent changes in the scope of work further increased the Phase I contract value to the current US$249.2m. This contract is not expected to have any material impact on the consolidated net tangible assets per share and earnings per share of ST Engineering for the current financial year.
NOL, Hamburg party declare battle over Hapag-Lloyd
NOL - Both NOL and the Hamburg consortium have officially declared they have made binding bids for Hapag Lloyd, the container shipping business of Germany's TUI. But both parties declined to show their hands. The Hamburg-based group comprising main investor Kuehne & Nagel boss Klaus-Michael Kuehne as well as Hanse Merkur, the city of Hamburg, HSH Nordbank, Signal Iduna and MM Warburg did not reveal their bid but German newspaper Frankfurter Allgemeine Zeitung reported yesterday that the Hamburg consortium would bid more than 4bn euros (S$8.2bn) including debt for Hapag-Lloyd. NOL also did not reveal details, saying it 'remains bound by strict confidentiality undertakings, which legally restrict the company's ability to share information'. However, with its Temasek parentage the Singapore line is expected to easily match any competing offer. It is believed NOL has arranged a US$6bn loan to fund its bid. Hapag-Lloyd parent TUI is expected to make a decision by the middle of next month. An NOL takeover would make it the world's third biggest container line behind Maersk and Mediterranean Shipping Company.
Source: Kim Eng
Tuesday, September 30, 2008
Monday, September 29, 2008
Review on ST701 Property website
I won’t be surprised if many people including me are not aware the presence of one of the biggest local classifieds on the internet. I came across ST701 website long time ago but only began to register recently when I saw an offer to write a sponsored post about them.
If you are wondering what does ST701 stands for, ST is an abbreviation which is taken from The Straits Times which is an identity of Singapore Press Holdings national English newspaper. The numbers 701 symbolises a search experience of 7 days a week at the 01 place that a user may get. ST701 has a long history of establishments as far as 1969 and its milestones can be summarised by the following picture:
That is so much on the introduction of ST701. Now I am going to write a short review of one of its section that is ST701 Property website.
After browsing for some time, I am impressed with the website which is apart from being an advertising portal; it does provide useful information for buyers or sellers to find out everything about Singapore real estate. For example, it is on one of the “Useful Links” shortcut from the website that I am able to find the following chart from URA:
From an investor point of view, the chart can give a feel of the overall price index of property in Singapore by type. After a fast ran up of prices in 2006 and 2007, now prices seem to slow down or flat. Whether the prices will start a u-turn downwards is anyone guesses. But in my opinion, it may remain flat for some time like in post 2003 before it starts to go up again as land is scarce in Singapore and population is set to increase in future.
If you are planning to sell your HDB or private property, ST701 is a good place to advertise your offer. Simply register a free account with them and follow ST701 step-by-step guide to advertise your property. With their basic package, you are able to advertise your property for free up to duration of 14 days. For longer durations, you may refer to the following charges:
Another useful feature on the website is the “Just Ask” section. You may post any property related questions there and someone who has the answer can just reply to that post. It is actually an alternative to forum threads style. From the posts that I see, there are more questions asked than answers rendered and some of the answers are infested with agents trying to sell their services. Maybe ST701 can employ a neutral person to help answer some these questions.
In overall, ST701 Property is definitely one of the recommended one stop solutions for all your property needs. There is a thing that can be improved from ST701 Property website especially the interaction section. I am sure people are also interested to find answers to their questions rather than for the sake of advertising only. In my opinion, there could have been better interactions among different people if the "Just Ask" section is converted into a forum instead.
If you are wondering what does ST701 stands for, ST is an abbreviation which is taken from The Straits Times which is an identity of Singapore Press Holdings national English newspaper. The numbers 701 symbolises a search experience of 7 days a week at the 01 place that a user may get. ST701 has a long history of establishments as far as 1969 and its milestones can be summarised by the following picture:
That is so much on the introduction of ST701. Now I am going to write a short review of one of its section that is ST701 Property website.
After browsing for some time, I am impressed with the website which is apart from being an advertising portal; it does provide useful information for buyers or sellers to find out everything about Singapore real estate. For example, it is on one of the “Useful Links” shortcut from the website that I am able to find the following chart from URA:
From an investor point of view, the chart can give a feel of the overall price index of property in Singapore by type. After a fast ran up of prices in 2006 and 2007, now prices seem to slow down or flat. Whether the prices will start a u-turn downwards is anyone guesses. But in my opinion, it may remain flat for some time like in post 2003 before it starts to go up again as land is scarce in Singapore and population is set to increase in future.
If you are planning to sell your HDB or private property, ST701 is a good place to advertise your offer. Simply register a free account with them and follow ST701 step-by-step guide to advertise your property. With their basic package, you are able to advertise your property for free up to duration of 14 days. For longer durations, you may refer to the following charges:
Another useful feature on the website is the “Just Ask” section. You may post any property related questions there and someone who has the answer can just reply to that post. It is actually an alternative to forum threads style. From the posts that I see, there are more questions asked than answers rendered and some of the answers are infested with agents trying to sell their services. Maybe ST701 can employ a neutral person to help answer some these questions.
In overall, ST701 Property is definitely one of the recommended one stop solutions for all your property needs. There is a thing that can be improved from ST701 Property website especially the interaction section. I am sure people are also interested to find answers to their questions rather than for the sake of advertising only. In my opinion, there could have been better interactions among different people if the "Just Ask" section is converted into a forum instead.
Friday, September 26, 2008
Daily news - 26 Sep
Yanlord dismisses rumours of links with China graft case
Yanlord Land Group yesterday dismissed market rumours of links with a graft case concerning a former Chinese official and lifted the trading halt on its shares. The rumours surrounded the sale of units to Kang Huijun, a former vice-governor of the Pudong New Area, allegedly at a steep discount in 2001 and 2006 in exchange for help in securing land-use rights to land parcels in Pudong. Yanlord shares slipped further when trading resumed yesterday, down 4.8 per cent to 99 cents. In a filing with SGX, the Chinese property developer said the prices at which its units were sold to Mr Kang were set in view of the publicity benefits his residency could have on the sale of units at the development. Yanlord denied having received any help from Mr Kang to secure land-use rights.
OUB Centre to get $540m adjacent office tower
United Overseas Bank and OUB Centre will invest $540 million to jointly develop a new commercial tower in the heart of Raffles Place. The 38-storey development will take shape next to the existing OUB Centre tower and retail mall. The three components will together be known as One Raffles Place. Due for completion in 2011, the tower will provide 350,000 square feet of prime Grade A office space. The site has a remaining tenure of around 75 years but there are plans to top this up to 99 years. The $540 million investment excludes land cost and will be financed through syndicated loans from several financial institutions. OUB Centre, which counts Overseas Union Enterprise, UOL Group and the Kuwait Investment Office among its shareholders, owns an 81.54 per cent stake in the partnership. An anticipated economic slowdown and the US financial turmoil have affected outlook for the office property sector.
Source: Kim Eng
Yanlord Land Group yesterday dismissed market rumours of links with a graft case concerning a former Chinese official and lifted the trading halt on its shares. The rumours surrounded the sale of units to Kang Huijun, a former vice-governor of the Pudong New Area, allegedly at a steep discount in 2001 and 2006 in exchange for help in securing land-use rights to land parcels in Pudong. Yanlord shares slipped further when trading resumed yesterday, down 4.8 per cent to 99 cents. In a filing with SGX, the Chinese property developer said the prices at which its units were sold to Mr Kang were set in view of the publicity benefits his residency could have on the sale of units at the development. Yanlord denied having received any help from Mr Kang to secure land-use rights.
OUB Centre to get $540m adjacent office tower
United Overseas Bank and OUB Centre will invest $540 million to jointly develop a new commercial tower in the heart of Raffles Place. The 38-storey development will take shape next to the existing OUB Centre tower and retail mall. The three components will together be known as One Raffles Place. Due for completion in 2011, the tower will provide 350,000 square feet of prime Grade A office space. The site has a remaining tenure of around 75 years but there are plans to top this up to 99 years. The $540 million investment excludes land cost and will be financed through syndicated loans from several financial institutions. OUB Centre, which counts Overseas Union Enterprise, UOL Group and the Kuwait Investment Office among its shareholders, owns an 81.54 per cent stake in the partnership. An anticipated economic slowdown and the US financial turmoil have affected outlook for the office property sector.
Source: Kim Eng
Thursday, September 25, 2008
Daily news - 25 Sep
Yanlord shares hit by graft trial of China ex-official
Yanlord Group – Shares of Yanlord Group went into a tailspin yesterday, hurt by market rumours linking it to a corruption trial in Shanghai involving a former Chinese official. Following a request by Yanlord, share trading was halted at 2 pm, pending an announcement in response to the market talk. But the stock had by then plummeted as low as 99 cents before ending the morning session at $1.04, down 22 cents or 17.5 per cent. According to a China magazine, Caijing, the group allegedly allowed a former Shanghai official - currently on trial for suspected corruption - to buy an apartment at a price substantially below market levels. Caijing said in an online report that Yanlord allegedly allowed Kang Huijun, former deputy chief of the Pudong district in Shanghai, to buy a luxury apartment at Yanlord Riverside Garden in the prosperous Lujiazui area, at a steeply discounted price of 8,300 yuan (S$1,719) per square metre in 2001, at a time when the prevailing market price was 11,000-12,000 yuan per sq m.
Allgreen consortium wins Nanjing commercial sit
Allgreen Properties – A three-party consortium, which includes Singapore-listed Allgreen Properties, has won the bid for a commercial site in China's Nanjing City. Allgreen, which participated in the tender exercise through wholly owned subsidiary Belfin Investments, said the 17,014 square metre site is designated for hotel, commercial and office use. The purchase price is 200 million yuan (S$41.6 million). The other members in the consortium are subsidiaries of Kerry Properties and Shangri-la Asia. To undertake the acquisition and development, the consortium will set up a foreign-owned enterprise in China. Allgreen, Kerry Properties and Shangri-La will have respective stakes of 15, 45 and 40 per cent. Allgreen said in its announcement yesterday that it would benefit from the joint venture because of the partners' expertise in and understanding of China's property market. Kerry Properties will provide project development, construction management and project consultancy services, while the Shangri-La group will provide hotel management services. Allgreen has other joint investments with the two partners in Shanghai, Tianjin and Tangshan and more joint projects with Kerry in Chengdu, Shenyang and Qinhuangdao. The maximum total investment cost for this latest Nanjing site is about 1.5 billion yuan.
Source: Kim Eng
Yanlord Group – Shares of Yanlord Group went into a tailspin yesterday, hurt by market rumours linking it to a corruption trial in Shanghai involving a former Chinese official. Following a request by Yanlord, share trading was halted at 2 pm, pending an announcement in response to the market talk. But the stock had by then plummeted as low as 99 cents before ending the morning session at $1.04, down 22 cents or 17.5 per cent. According to a China magazine, Caijing, the group allegedly allowed a former Shanghai official - currently on trial for suspected corruption - to buy an apartment at a price substantially below market levels. Caijing said in an online report that Yanlord allegedly allowed Kang Huijun, former deputy chief of the Pudong district in Shanghai, to buy a luxury apartment at Yanlord Riverside Garden in the prosperous Lujiazui area, at a steeply discounted price of 8,300 yuan (S$1,719) per square metre in 2001, at a time when the prevailing market price was 11,000-12,000 yuan per sq m.
Allgreen consortium wins Nanjing commercial sit
Allgreen Properties – A three-party consortium, which includes Singapore-listed Allgreen Properties, has won the bid for a commercial site in China's Nanjing City. Allgreen, which participated in the tender exercise through wholly owned subsidiary Belfin Investments, said the 17,014 square metre site is designated for hotel, commercial and office use. The purchase price is 200 million yuan (S$41.6 million). The other members in the consortium are subsidiaries of Kerry Properties and Shangri-la Asia. To undertake the acquisition and development, the consortium will set up a foreign-owned enterprise in China. Allgreen, Kerry Properties and Shangri-La will have respective stakes of 15, 45 and 40 per cent. Allgreen said in its announcement yesterday that it would benefit from the joint venture because of the partners' expertise in and understanding of China's property market. Kerry Properties will provide project development, construction management and project consultancy services, while the Shangri-La group will provide hotel management services. Allgreen has other joint investments with the two partners in Shanghai, Tianjin and Tangshan and more joint projects with Kerry in Chengdu, Shenyang and Qinhuangdao. The maximum total investment cost for this latest Nanjing site is about 1.5 billion yuan.
Source: Kim Eng
Wednesday, September 24, 2008
Daily news - 24 Sep
Cosco units secure US$256m of contracts
Cosco Corp (Singapore) – through 51 per cent-owned Cosco Shipyard Group (CSG) - has won newbuilding and conversion contracts worth US$256.2 million, its first new orders since July. The newbuilding contracts were awarded by a German customer to CSG's subsidiary, Cosco Dalian Shipyard, which will build two 80,000 dwt Kamsarmax bulk carriers for a total contract value of US$108 million. Cosco said the first 30 per cent instalment payments for the contracts have been received, and the two vessels are scheduled for delivery in 2010 and 2011 respectively. The other orders were nine conversion contracts valued at US$148.2 million, which CSG secured through subsidiaries Cosco Nantong Shipyard, Cosco Dalian Shipyard, Cosco Zhoushan Shipyard and Cosco Guangdong Shipyard. The contracts were awarded by various customers from the US, China, Hong Kong, India and Italy. They comprise one oil tanker-to-FPSO conversion from a repeat customer valued at US$60 million, one forward hull conversion worth US$21.7 million, and seven oil tanker-to-bulk carrier conversions totalling US$66.5 million. The projects are slated for progressive completion by the fourth quarter of next year.
StarHub CFO worried about credit tightening
StarHub Ltd – Singapore's second-largest phone company, said it is concerned that customers will scale back their spending on telecommunications and television services because of the fallout from the financial turmoil in the United States. 'My biggest worry is that there's suddenly credit tightening, not on StarHub, but for the corporates' and smaller businesses, chief financial officer Kwek Buck Chye said in a phone interview from Hong Kong yesterday. Consumers 'will still use our services but less'. Slowing economic growth in Singapore amid the global credit crisis may undermine demand for Star-Hub's services, Mr Kwek said. Still, StarHub is sticking to its 2008 sales growth forecast of 7 per cent, which was lowered from a 10 per cent estimate in May.
CapitaLand JV awards US$500m contract
CapitaLand - a joint venture with Abu Dhabi-based Mubadala, has awarded the main construction contract for Rihan Heights, the first phase of its US$5-6 billion flagship project Arzanah in Abu Dhabi. The contract, valued at AED 1.9 billion (about US$500 million) has been awarded to a joint venture between Malaysia's Sunway Construction and Abu Dhabi-based Silver Coast Construction & Boring Est. Capitala said the contract cost of AED 1.9 billion is within budget and is part of the estimated total development cost of Arzanah. Wong Heang Fine, acting CEO of Capitala, said: 'We have achieved a significant advantage with the completion of our enabling works ahead of schedule. Main construction works are due to commence this coming November. We are on target to complete Rihan Heights and start the gradual handover of residences to buyers in the first quarter of 2011.' Capitala was formed this year to design, build, manage and maintain integrated communities in Abu Dhabi. Mubadala has a 51 per cent stake and CapitaLand the other 49 per cent.
Source: Kim Eng
Cosco Corp (Singapore) – through 51 per cent-owned Cosco Shipyard Group (CSG) - has won newbuilding and conversion contracts worth US$256.2 million, its first new orders since July. The newbuilding contracts were awarded by a German customer to CSG's subsidiary, Cosco Dalian Shipyard, which will build two 80,000 dwt Kamsarmax bulk carriers for a total contract value of US$108 million. Cosco said the first 30 per cent instalment payments for the contracts have been received, and the two vessels are scheduled for delivery in 2010 and 2011 respectively. The other orders were nine conversion contracts valued at US$148.2 million, which CSG secured through subsidiaries Cosco Nantong Shipyard, Cosco Dalian Shipyard, Cosco Zhoushan Shipyard and Cosco Guangdong Shipyard. The contracts were awarded by various customers from the US, China, Hong Kong, India and Italy. They comprise one oil tanker-to-FPSO conversion from a repeat customer valued at US$60 million, one forward hull conversion worth US$21.7 million, and seven oil tanker-to-bulk carrier conversions totalling US$66.5 million. The projects are slated for progressive completion by the fourth quarter of next year.
StarHub CFO worried about credit tightening
StarHub Ltd – Singapore's second-largest phone company, said it is concerned that customers will scale back their spending on telecommunications and television services because of the fallout from the financial turmoil in the United States. 'My biggest worry is that there's suddenly credit tightening, not on StarHub, but for the corporates' and smaller businesses, chief financial officer Kwek Buck Chye said in a phone interview from Hong Kong yesterday. Consumers 'will still use our services but less'. Slowing economic growth in Singapore amid the global credit crisis may undermine demand for Star-Hub's services, Mr Kwek said. Still, StarHub is sticking to its 2008 sales growth forecast of 7 per cent, which was lowered from a 10 per cent estimate in May.
CapitaLand JV awards US$500m contract
CapitaLand - a joint venture with Abu Dhabi-based Mubadala, has awarded the main construction contract for Rihan Heights, the first phase of its US$5-6 billion flagship project Arzanah in Abu Dhabi. The contract, valued at AED 1.9 billion (about US$500 million) has been awarded to a joint venture between Malaysia's Sunway Construction and Abu Dhabi-based Silver Coast Construction & Boring Est. Capitala said the contract cost of AED 1.9 billion is within budget and is part of the estimated total development cost of Arzanah. Wong Heang Fine, acting CEO of Capitala, said: 'We have achieved a significant advantage with the completion of our enabling works ahead of schedule. Main construction works are due to commence this coming November. We are on target to complete Rihan Heights and start the gradual handover of residences to buyers in the first quarter of 2011.' Capitala was formed this year to design, build, manage and maintain integrated communities in Abu Dhabi. Mubadala has a 51 per cent stake and CapitaLand the other 49 per cent.
Source: Kim Eng
Paying advance bills with Manhattan card (Revised)
I am sure everyone knows the high cash rebates as offered by Standard Chartered Manhattan credit card if you make huge transactions. A fellow visitor of this blog suggested paying our bills in advance so as to enjoy the highest tier of 5% cash rebates. I know he got a huge chunk of monthly bills to settle; so basically he has been been paying bills in advance every month with the card.
Take note you need to spend at least $3001 in a month to qualify for the 5% rebates which will be credited 1 month after that quarter. For various bill sizes, I want to compute the cash values at the end of the year by paying in advance with Manhattan credit card and by making normal payment like Xtrasaver card for various bill sizes.
I created four scenarios with monthly bill sizes of $2000, $1000, $800 and $600. Under each scenario, two options of payment are used. They are payment using Manhattan and Xtrasaver cards.
I made a few assumptions to simplify my calculation.
In conclusion, it is not true that Manhattan credit card is beneficial only for spending on big tickets but it is also beneficial for those who have huge combined household bills. It can really help to save your bills annually.
Take note you need to spend at least $3001 in a month to qualify for the 5% rebates which will be credited 1 month after that quarter. For various bill sizes, I want to compute the cash values at the end of the year by paying in advance with Manhattan credit card and by making normal payment like Xtrasaver card for various bill sizes.
I created four scenarios with monthly bill sizes of $2000, $1000, $800 and $600. Under each scenario, two options of payment are used. They are payment using Manhattan and Xtrasaver cards.
I made a few assumptions to simplify my calculation.
1) Manhattan acts like debit card. That means transaction and settlement is on same day
2) Minimum monthly spending of $3000 instead of $3001 is used to qualify for Manhattan 5% cash rebates
3) Cash rebates are credited at the end of the quarter for Manhattan credit card
Scenario A
Monthly Bills = $2,000
Quarterly Bills = $6,000
Annually Bills = $24,000
Peter and Sam keep aside $6000 for bills every quarter
Remaining money are kept in bank with interest of 1.2% per annum
Scenario B
Monthly Bills = $1,000
Quarterly Bills = $3,000
Annually Bills = $12,000
Peter and Sam keep aside $3000 for bills every quarter
Remaining money are kept in bank with interest of 1.2% per annum
Scenario C
Monthly Bills = $800
Quarterly Bills = $2,400
Annually Bills = $9,600
Peter and Sam keep aside $10000 at the beginnning of the year for bills
Remaining money are kept in bank with interest of 1.2% per annum
Scenario D
Monthly Bills = $600
Quarterly Bills = $1,800
Annually Bills = $7,200
Peter and Sam keep aside $8000 at the beginnning of the year for bills
Remaining money are kept in bank with interest of 1.2% per annum
From all the above scenarios, the conclusion is a no brainer suggestion to use Manhattan credit card if you really have a huge chunk of bills to settle off. You can see a big difference in the remaining amount of money kept in the bank or money market funds at the end of the year if you choose this option.
I did not try to compute under other scenarios where the monthly bills get smaller than $600 though. You may try similar calculation yourself to see whether you are better off to pay in advance to earn that 5% rebates. The only drawback of choosing Manhattan credit card to pay for your bill is that you need to go down to the billing organisation to pay instead of setting up a recurring standing instruction to charge under Manhattan credit card. This is because the rebates is entitled only for retail spending.
2) Minimum monthly spending of $3000 instead of $3001 is used to qualify for Manhattan 5% cash rebates
3) Cash rebates are credited at the end of the quarter for Manhattan credit card
Scenario A
Monthly Bills = $2,000
Quarterly Bills = $6,000
Annually Bills = $24,000
Peter and Sam keep aside $6000 for bills every quarter
Remaining money are kept in bank with interest of 1.2% per annum
Scenario B
Monthly Bills = $1,000
Quarterly Bills = $3,000
Annually Bills = $12,000
Peter and Sam keep aside $3000 for bills every quarter
Remaining money are kept in bank with interest of 1.2% per annum
Scenario C
Monthly Bills = $800
Quarterly Bills = $2,400
Annually Bills = $9,600
Peter and Sam keep aside $10000 at the beginnning of the year for bills
Remaining money are kept in bank with interest of 1.2% per annum
Scenario D
Monthly Bills = $600
Quarterly Bills = $1,800
Annually Bills = $7,200
Peter and Sam keep aside $8000 at the beginnning of the year for bills
Remaining money are kept in bank with interest of 1.2% per annum
From all the above scenarios, the conclusion is a no brainer suggestion to use Manhattan credit card if you really have a huge chunk of bills to settle off. You can see a big difference in the remaining amount of money kept in the bank or money market funds at the end of the year if you choose this option.
I did not try to compute under other scenarios where the monthly bills get smaller than $600 though. You may try similar calculation yourself to see whether you are better off to pay in advance to earn that 5% rebates. The only drawback of choosing Manhattan credit card to pay for your bill is that you need to go down to the billing organisation to pay instead of setting up a recurring standing instruction to charge under Manhattan credit card. This is because the rebates is entitled only for retail spending.
In conclusion, it is not true that Manhattan credit card is beneficial only for spending on big tickets but it is also beneficial for those who have huge combined household bills. It can really help to save your bills annually.
Daily news - 23 Sep
SingTel makes bigger IT services play
Singapore Telecommunications is hoping to increase sales from its business segment by moving from basic offerings such as selling Internet connectivity to providing higher- margin, outsourced infocomm services to corporations. According to SingTel's executive vice-president Bill Chang, the company is looking to double revenues from its ICT (infocomm technology) portfolio within the next five years and have them account for half of its business unit sales. 'Two years ago, we had almost zero ICT revenue,' Mr Chang told reporters at a briefing yesterday. SingTel's Singapore operations registered sales of $4.9 billion for the last financial year. Revenue from providing data and Internet services accounted for more than $1 billion of the total figure and the business segment was a key contributor, he said. The company has historically focused on providing basic Internet and data services such as selling access packages to businesses. However, a combination of thinning margins from its consumer business and a growing trend among companies to consolidate their technology supplier base has prompted SingTel to move higher up the corporate technology value chain. With its new business mantra, SingTel will expand its technology partnerships and develop more 'one-stop' ICT offerings for different business sectors. And instead of being the main selling point, the firm's infrastructural services such as Internet connectivity will now be bundled as part of the overall ICT service package.
SIA says premium-class travel 'relatively strong'
Singapore Airlines, which gets 40 per cent of revenue from business passengers, said the credit crisis in the US has not hurt demand for premium-class travel. Demand from business travellers in the US remains 'relatively strong', spokesman Stephen Forshaw said in an e-mail reply to Bloomberg queries. Leisure traffic has declined recently for Asia's most profitable carrier and the airline may alter its route network in response, he said. Economic turmoil and record fuel prices have eroded profits at Asia-Pacific airlines, forcing Qantas Airways, Thai Airways International and Korean Air Lines to cut routes. With the credit crisis in the US deepening and financial institutions cutting at least 125,000 jobs, demand for premium-class travel may wane, an airline grouping official said.
Source: Kim Eng
Singapore Telecommunications is hoping to increase sales from its business segment by moving from basic offerings such as selling Internet connectivity to providing higher- margin, outsourced infocomm services to corporations. According to SingTel's executive vice-president Bill Chang, the company is looking to double revenues from its ICT (infocomm technology) portfolio within the next five years and have them account for half of its business unit sales. 'Two years ago, we had almost zero ICT revenue,' Mr Chang told reporters at a briefing yesterday. SingTel's Singapore operations registered sales of $4.9 billion for the last financial year. Revenue from providing data and Internet services accounted for more than $1 billion of the total figure and the business segment was a key contributor, he said. The company has historically focused on providing basic Internet and data services such as selling access packages to businesses. However, a combination of thinning margins from its consumer business and a growing trend among companies to consolidate their technology supplier base has prompted SingTel to move higher up the corporate technology value chain. With its new business mantra, SingTel will expand its technology partnerships and develop more 'one-stop' ICT offerings for different business sectors. And instead of being the main selling point, the firm's infrastructural services such as Internet connectivity will now be bundled as part of the overall ICT service package.
SIA says premium-class travel 'relatively strong'
Singapore Airlines, which gets 40 per cent of revenue from business passengers, said the credit crisis in the US has not hurt demand for premium-class travel. Demand from business travellers in the US remains 'relatively strong', spokesman Stephen Forshaw said in an e-mail reply to Bloomberg queries. Leisure traffic has declined recently for Asia's most profitable carrier and the airline may alter its route network in response, he said. Economic turmoil and record fuel prices have eroded profits at Asia-Pacific airlines, forcing Qantas Airways, Thai Airways International and Korean Air Lines to cut routes. With the credit crisis in the US deepening and financial institutions cutting at least 125,000 jobs, demand for premium-class travel may wane, an airline grouping official said.
Source: Kim Eng
Monday, September 22, 2008
Daily news - 22 Sep
NOL will definitely bid for Hapag-Lloyd: report
Neptune Orient Lines (NOL) will definitely bid for TUI container shipping unit Hapag-Lloyd, German paper Welt am Sonntag reported, quoting NOL chief executive office Ronald Widdows. Mr Widdows said his company would bid for Hapag-Lloyd by Sept 26, but added that the chances of TUI selling the business were only 50 per cent, according to the report. The paper also quoted Mr Widdows as saying the global container-shipping business would remain difficult for the next 18 to 24 months.
Source: Kim Eng
Neptune Orient Lines (NOL) will definitely bid for TUI container shipping unit Hapag-Lloyd, German paper Welt am Sonntag reported, quoting NOL chief executive office Ronald Widdows. Mr Widdows said his company would bid for Hapag-Lloyd by Sept 26, but added that the chances of TUI selling the business were only 50 per cent, according to the report. The paper also quoted Mr Widdows as saying the global container-shipping business would remain difficult for the next 18 to 24 months.
Source: Kim Eng
Sunday, September 21, 2008
US market review - 19 Sep
The US market ended historically with S&P index gaining about 121 points on the last two days of the week. That was almost a 10% rise in just two days. The rally was boosted by the government bailout of AIG and a plan for the biggest revamp of US financial market as announced by President Bush himself.
I believe it will take some time for the turmoil in financial market to cool down as liquidity is still of a concern. It is evident from the TED spread chart which is currently at a level of 3. This level was last reached in the year 1987. You may take a look at what TED spread is all about from the link I provided.
Another concern you need to take note is the trailing twelve months S&P PE ratio. It is currently at a ratio of 24.7 which is on the high side I would say. I remember S&P ratio was about 18 in late 2007 and despite of S&P index crashing more than 300 points from peak to trough, the PE ratio is still higher now. That means earnings have dropped tremendously. Some experts commented that the high ratio is meaningless as a major portion of reduced earnings is contributed from stocks in banking sector. You may visit the link if you wish to check PE ratio of various markets.
Let us see the latest S&P daily chart. There are positive trends that you can deduce from the chart. First of all, trading volume had been flat since March but lately there is an evidence of increased volume with a big rise in S&P index. There is also a positive divergence forming on the MACD line. It looks like soon the index is going to test the 200 days moving average for the second time which was held as resistance in late May.
Also with the ban of naked short selling of stocks in US market, it means downward or selling pressure is greatly reduced. I think that is a good move to curb speculators who have been taking advantage of the down trend and abusing the power of shorting without paying financing charges to borrow shares.
In my opinion even though the financial market turmoil is not over yet, now is a good opportunity for long term investors to do some bargain hunting if they have not done so previously. If not, they may miss the ride. As usual, personally I have already picked up some stocks before the rebound and in the beginning of the month.
I believe it will take some time for the turmoil in financial market to cool down as liquidity is still of a concern. It is evident from the TED spread chart which is currently at a level of 3. This level was last reached in the year 1987. You may take a look at what TED spread is all about from the link I provided.
Another concern you need to take note is the trailing twelve months S&P PE ratio. It is currently at a ratio of 24.7 which is on the high side I would say. I remember S&P ratio was about 18 in late 2007 and despite of S&P index crashing more than 300 points from peak to trough, the PE ratio is still higher now. That means earnings have dropped tremendously. Some experts commented that the high ratio is meaningless as a major portion of reduced earnings is contributed from stocks in banking sector. You may visit the link if you wish to check PE ratio of various markets.
Let us see the latest S&P daily chart. There are positive trends that you can deduce from the chart. First of all, trading volume had been flat since March but lately there is an evidence of increased volume with a big rise in S&P index. There is also a positive divergence forming on the MACD line. It looks like soon the index is going to test the 200 days moving average for the second time which was held as resistance in late May.
Also with the ban of naked short selling of stocks in US market, it means downward or selling pressure is greatly reduced. I think that is a good move to curb speculators who have been taking advantage of the down trend and abusing the power of shorting without paying financing charges to borrow shares.
In my opinion even though the financial market turmoil is not over yet, now is a good opportunity for long term investors to do some bargain hunting if they have not done so previously. If not, they may miss the ride. As usual, personally I have already picked up some stocks before the rebound and in the beginning of the month.
Saturday, September 20, 2008
Daily news - 19 Sep
SATS sees business growth despite aviation turmoil
Singapore Airport Terminal Services (SATS) is in a strong financial position and expects to grow both locally and globally despite the turmoil in the aviation industry. The company could leverage on its food service capabilities and expand into other areas, given efforts to position Singapore as an attractive tourist destination, CEO Clement Woon said at a media briefing yesterday. 'Our catering service does not have to be tied to the airport.' At Changi Airport, SATS - of which Singapore Airlines owns 81 per cent - has a market share of 78 per cent for ground and cargo handling and a market share of 83 per cent for inflight catering. Other industry players include CIAS and Swissport. Aside from the aviation industry, SATS also provides food services to hospitals such as St Luke's and NUH. SATS also plans to customise its airport services to suit the needs of its different clients. Currently, its airport handling and catering follows a traditional 'one size fits all' solution. However, going forward, it plans to create differentiated offerings to suit different tiers of customers - premium airlines, full service airlines and low-cost carriers (LCCs). Earlier this week, SATS announced a new low-cost inflight catering facility which will cater to both LCCs and full service airlines come January next year. Another emerging growth avenue is LCCs, Mr Woon said, pointing to LCC handling, given the strong growth of LCCs in Asia. While the bulk of its overseas revenue stems from Asia, SATS also has plans to grow beyond the region through selective acquisitions, increasing its shareholding in existing joint ventures as well as through strategic partnerships with strong global players. In Asia, SATS aims to increase its presence in both India and China.
Source: Kim Eng
Singapore Airport Terminal Services (SATS) is in a strong financial position and expects to grow both locally and globally despite the turmoil in the aviation industry. The company could leverage on its food service capabilities and expand into other areas, given efforts to position Singapore as an attractive tourist destination, CEO Clement Woon said at a media briefing yesterday. 'Our catering service does not have to be tied to the airport.' At Changi Airport, SATS - of which Singapore Airlines owns 81 per cent - has a market share of 78 per cent for ground and cargo handling and a market share of 83 per cent for inflight catering. Other industry players include CIAS and Swissport. Aside from the aviation industry, SATS also provides food services to hospitals such as St Luke's and NUH. SATS also plans to customise its airport services to suit the needs of its different clients. Currently, its airport handling and catering follows a traditional 'one size fits all' solution. However, going forward, it plans to create differentiated offerings to suit different tiers of customers - premium airlines, full service airlines and low-cost carriers (LCCs). Earlier this week, SATS announced a new low-cost inflight catering facility which will cater to both LCCs and full service airlines come January next year. Another emerging growth avenue is LCCs, Mr Woon said, pointing to LCC handling, given the strong growth of LCCs in Asia. While the bulk of its overseas revenue stems from Asia, SATS also has plans to grow beyond the region through selective acquisitions, increasing its shareholding in existing joint ventures as well as through strategic partnerships with strong global players. In Asia, SATS aims to increase its presence in both India and China.
Source: Kim Eng
Friday, September 19, 2008
Daily news - 18 Sep
CMT Management CEO Pua Seck Guan resigns
CapitaMall Trust Management Ltd (CMTML) – The manager of CapitaMall Trust (CMT) has announced the resignation of Pua Seck Guan as CEO, director and member of the executive committee. Mr Pua, who has been with CapitaLand for eight years, will also step down from his position as CEO of CapitaLand Retail Ltd. Mr Pua said that he had resigned to 'pursue personal interests'. Before joining CapitaLand, Mr Pua held senior positions with Lend Lease Asia Holdings and Hotel Properties Ltd. CapitaLand said that the present deputy CEO of CapitaLand Retail Ltd, Lim Beng Chee, will assume the CEO positions of both the retail business and CMTML with effect from Nov 1. Mr Lim, who is presently CEO of CapitaRetail China Trust Management Ltd, will relinquish his post to deputy CEO Wee Hui Kan, with effect from Oct 1. Mr Pua will, however, stay on until the end of October to effect a smooth transition. Mr Lim started his real estate career in DBS Land as an executive for property fund and investment. After DBS Land's merger with Pidemco Land to form CapitaLand, he held various senior positions in investment, asset management and business development.
SembMarine unit wins US$229m Sinopec contract
SembCorp Marine (SembMarine) – PPL Shipyard, a SembMarine unit, has won a US$229m contract from a subsidiary of China oil major Sinopec Corporation. The contract, which came from Sinopec International (HK), is for the construction of a jackup rig, Sinopec Corporation's first to be built outside China and which could pave the way for more deals in the future from the group. The Pacific Class 375 rig to be built is scheduled for delivery in the first quarter of 2011, and will be owned and operated by Sinopec Corporation unit Shanghai Offshore Petroleum Bureau. The high performance jackup rig will be built based on PPL Shipyard's proprietary Pacific Class 375 design and proprietary components. It will be equipped to drill high-pressure and high-temperature wells at 30,000 feet while operating in 375 feet of water and will have accommodation for 120 crew. This contract is not expected to have any material impact on the net tangible assets and EPS of SembMarine for the year ending Dec 31, 2008.
Source: Kim Eng
CapitaMall Trust Management Ltd (CMTML) – The manager of CapitaMall Trust (CMT) has announced the resignation of Pua Seck Guan as CEO, director and member of the executive committee. Mr Pua, who has been with CapitaLand for eight years, will also step down from his position as CEO of CapitaLand Retail Ltd. Mr Pua said that he had resigned to 'pursue personal interests'. Before joining CapitaLand, Mr Pua held senior positions with Lend Lease Asia Holdings and Hotel Properties Ltd. CapitaLand said that the present deputy CEO of CapitaLand Retail Ltd, Lim Beng Chee, will assume the CEO positions of both the retail business and CMTML with effect from Nov 1. Mr Lim, who is presently CEO of CapitaRetail China Trust Management Ltd, will relinquish his post to deputy CEO Wee Hui Kan, with effect from Oct 1. Mr Pua will, however, stay on until the end of October to effect a smooth transition. Mr Lim started his real estate career in DBS Land as an executive for property fund and investment. After DBS Land's merger with Pidemco Land to form CapitaLand, he held various senior positions in investment, asset management and business development.
SembMarine unit wins US$229m Sinopec contract
SembCorp Marine (SembMarine) – PPL Shipyard, a SembMarine unit, has won a US$229m contract from a subsidiary of China oil major Sinopec Corporation. The contract, which came from Sinopec International (HK), is for the construction of a jackup rig, Sinopec Corporation's first to be built outside China and which could pave the way for more deals in the future from the group. The Pacific Class 375 rig to be built is scheduled for delivery in the first quarter of 2011, and will be owned and operated by Sinopec Corporation unit Shanghai Offshore Petroleum Bureau. The high performance jackup rig will be built based on PPL Shipyard's proprietary Pacific Class 375 design and proprietary components. It will be equipped to drill high-pressure and high-temperature wells at 30,000 feet while operating in 375 feet of water and will have accommodation for 120 crew. This contract is not expected to have any material impact on the net tangible assets and EPS of SembMarine for the year ending Dec 31, 2008.
Source: Kim Eng
Thursday, September 18, 2008
Daily news - 17 Sep
Sembcorp wins US$229m contract from Sinopec
Sembcorp Marine – A wholly-owned unit of SembMarine has won a $229m contract to build a jack-up rig for the Hong Kong unit of China Petroleum & Chemical Corp (Sinopec). This is the first rig to be constructed outside of China and delivery is due in the first quarter of 2011, Sembcorp said in a statement on Wednesday.
SATS to start low-cost inflight catering service
Singapore Airport Terminal Services Limited (SATS) – Is spending $2-3m to set up a low-cost inflight catering facility to provide meals to low-cost carriers (LCCs) and full-service airlines requiring alternative meal offerings. Operated by its wholly owned unit, Country Foods Pte Ltd, which SATS bought for $4m in end-2002, the facility is being built at the SATS Inflight Catering Centre 2, and will be ready in January 2009. Established in 1989, Country Foods Pte Ltd has grown from a small food company to become a leading manufacturer and supplier of chilled and frozen processed foods and ready-to-eat meals. SATS currently has two LCC clients - Jetstar Asia and Cebu Pacific. Singapore's largest LCC operator, Tiger Airways, is handled by rival Swissport. The company said the dedicated low-cost inflight catering facility would provide an alternative catering platform that complements SATS' conventional airline catering, enabling it to serve different airline segments using different product offerings and cost structures.
Keppel Seghers inks deal for 'green' projects in Guangdong
Keppel Corp Group – Keppel Seghers Engineering Singapore, a wholly owned subsidiary of Keppel Integrated Engineering (KIE) of KepCorp, is entering into an agreement for environmental infrastructure projects in China's Guangdong province. The framework agreement, with Guangdong GuangYe Environmental Protection Industrial Group Co (GuangYe), outlines the collaboration of the two companies in developing a near-term pipeline of water and solid waste treatment and management projects totalling almost RMB6bn (about S$1.2bn) for cities and counties across Guangdong province. Keppel Seghers already has 70% of the imported waste-to-energy market in China and is involved in developing waste-to-energy plants across the country, including the cities of Suzhou, Shenzhen, Tianjin, Jiangyin and Guangzhou. It has also carried out several wastewater treatment projects in Guangdong province. Guangdong has the largest GDP in China. The framework agreement will not have a material impact on the net tangible assets or earnings per share of Keppel Corp for the financial year ending Dec 31, 2008.
Source: Kim Eng
Sembcorp Marine – A wholly-owned unit of SembMarine has won a $229m contract to build a jack-up rig for the Hong Kong unit of China Petroleum & Chemical Corp (Sinopec). This is the first rig to be constructed outside of China and delivery is due in the first quarter of 2011, Sembcorp said in a statement on Wednesday.
SATS to start low-cost inflight catering service
Singapore Airport Terminal Services Limited (SATS) – Is spending $2-3m to set up a low-cost inflight catering facility to provide meals to low-cost carriers (LCCs) and full-service airlines requiring alternative meal offerings. Operated by its wholly owned unit, Country Foods Pte Ltd, which SATS bought for $4m in end-2002, the facility is being built at the SATS Inflight Catering Centre 2, and will be ready in January 2009. Established in 1989, Country Foods Pte Ltd has grown from a small food company to become a leading manufacturer and supplier of chilled and frozen processed foods and ready-to-eat meals. SATS currently has two LCC clients - Jetstar Asia and Cebu Pacific. Singapore's largest LCC operator, Tiger Airways, is handled by rival Swissport. The company said the dedicated low-cost inflight catering facility would provide an alternative catering platform that complements SATS' conventional airline catering, enabling it to serve different airline segments using different product offerings and cost structures.
Keppel Seghers inks deal for 'green' projects in Guangdong
Keppel Corp Group – Keppel Seghers Engineering Singapore, a wholly owned subsidiary of Keppel Integrated Engineering (KIE) of KepCorp, is entering into an agreement for environmental infrastructure projects in China's Guangdong province. The framework agreement, with Guangdong GuangYe Environmental Protection Industrial Group Co (GuangYe), outlines the collaboration of the two companies in developing a near-term pipeline of water and solid waste treatment and management projects totalling almost RMB6bn (about S$1.2bn) for cities and counties across Guangdong province. Keppel Seghers already has 70% of the imported waste-to-energy market in China and is involved in developing waste-to-energy plants across the country, including the cities of Suzhou, Shenzhen, Tianjin, Jiangyin and Guangzhou. It has also carried out several wastewater treatment projects in Guangdong province. Guangdong has the largest GDP in China. The framework agreement will not have a material impact on the net tangible assets or earnings per share of Keppel Corp for the financial year ending Dec 31, 2008.
Source: Kim Eng
Wednesday, September 17, 2008
Daily news - 16 Sep
CapitaLand's one-north investment costs more
CapitaLand – Said that its investment in one-north hub will now cost $476.8m - up from $380m announced in September 2007 - because of rising construction costs. CapitaLand will own and manage a retail and entertainment zone called the hub at Vista Xchange at JTC's one-north. Partner New Creation Church's Rock Productions, which will own and manage a civic and cultural zone, will invest $499.5m in that project - up from $280m announced last year. Rock's increase is partly due to a planned increase in gross floor area (GFA) at the civic and cultural zone. The zone will now have a GFA of 38,000 square metres, up from 'over 30,000' sq m announced previously. The new investment figures mean that the hub will now cost $976.3m, up from $660m announced in September 2007. CapitaLand and Rock yesterday said that they have awarded a $633m contract for construction of the hub to Hexacon Construction Pte Ltd. The project is expected to be completed by mid-2012. CapitaLand said that despite the higher cost, its projected return will remain the same.
SIA Cargo inks $500m deal with Pratt & Whitney
Singapore Airlines Cargo - Has signed a 10-year, $500m fleet management deal with Pratt & Whitney Global Service Partners. The agreement covers engine maintenance for 13 Boeing 747-400F cargo aircraft powered by Pratt & Whitney PW4000-94 engines, as well as six spare engines. SIA Cargo is one of the world's largest operators of B747-400 freighters, with a network that covers 76 destinations in 38 countries. The wholly owned Singapore Airlines subsidiary, which took over its parent's cargo business in 2001, is ranked fourth worldwide in terms of international freight tonne-kilometres. Pratt and Whitney is a leading player in the aviation maintenance and repair industry. SIA Cargo flew back into the black with a $5m profit for FY07/08 - a $16m reversal from an $11m loss the year before. In recent years, its fleet has been gradually boosted by SIA's B747 freighter conversion programme.
SIA passenger, cargo loads decline in Aug
Singapore Airlines - Softening travel demand and increase in capacity saw SIA fill 79.4% of its seats in August, down from 81.6% a year earlier. The airline's cargo loads dipped 1.2 percentage points year on year to 61%, from 62.2% in August 2007. Overall load factor dipped 1.2 percentage points to 68.2%, from 69.4%. During the month, the airline recorded a 5.3% rise in year-on-year growth in systemwide passenger carriage (measured in revenue passenger kilometres) while capacity (measured in available seat kilometres) grew by 8.2%. The number of passengers carried continued to rise by 2.2% over the same month last year, to 1.66m. SIA said all route regions recorded declines in PLF (passenger load factor) and this was mainly due to the new capacity introduced not fully met by the increase in passenger traffic. It added that softening demand due to the weak US economy contributed to the lower PLF in the Americas routes region.
Olam pumping US$128.4m into Nigerian ventures
Olam Imternational - Will be investing US$128.4m in a sugar refinery and a wheat mill in Nigeria. Olam said yesterday that it will take on these investments through a strategic partnership with the Modandola Group (MG). MG is a Nigerian conglomerate with interests across the shipping, agriculture, real estate and other sectors. Olam will form a joint venture (JV) with MG to set up the sugar refinery and sink in US$91m for a 49%-stake in the partnership. Olam will also acquire a 49%-stake in the MG-owned Standard Flour Mills for US$32.5m, and put in another US$4.9m to raise operating capacity. Both transactions will be funded from borrowings, internal accruals and proceeds from Olam's recent capital raising. The sugar refinery will have a captive port in Lagos and Olam will undertake project management for setting it up. Olam will also handle overall operational activities such as sales and distribution, while MG will look after local support services and relationship management with local regulatory agencies. The sugar refinery will incur a total capital cost of US$190m across FY2009 to FY2011. Production is expected to start in January 2011, reaching full capacity by FY2013.
Source: Kim Eng
CapitaLand – Said that its investment in one-north hub will now cost $476.8m - up from $380m announced in September 2007 - because of rising construction costs. CapitaLand will own and manage a retail and entertainment zone called the hub at Vista Xchange at JTC's one-north. Partner New Creation Church's Rock Productions, which will own and manage a civic and cultural zone, will invest $499.5m in that project - up from $280m announced last year. Rock's increase is partly due to a planned increase in gross floor area (GFA) at the civic and cultural zone. The zone will now have a GFA of 38,000 square metres, up from 'over 30,000' sq m announced previously. The new investment figures mean that the hub will now cost $976.3m, up from $660m announced in September 2007. CapitaLand and Rock yesterday said that they have awarded a $633m contract for construction of the hub to Hexacon Construction Pte Ltd. The project is expected to be completed by mid-2012. CapitaLand said that despite the higher cost, its projected return will remain the same.
SIA Cargo inks $500m deal with Pratt & Whitney
Singapore Airlines Cargo - Has signed a 10-year, $500m fleet management deal with Pratt & Whitney Global Service Partners. The agreement covers engine maintenance for 13 Boeing 747-400F cargo aircraft powered by Pratt & Whitney PW4000-94 engines, as well as six spare engines. SIA Cargo is one of the world's largest operators of B747-400 freighters, with a network that covers 76 destinations in 38 countries. The wholly owned Singapore Airlines subsidiary, which took over its parent's cargo business in 2001, is ranked fourth worldwide in terms of international freight tonne-kilometres. Pratt and Whitney is a leading player in the aviation maintenance and repair industry. SIA Cargo flew back into the black with a $5m profit for FY07/08 - a $16m reversal from an $11m loss the year before. In recent years, its fleet has been gradually boosted by SIA's B747 freighter conversion programme.
SIA passenger, cargo loads decline in Aug
Singapore Airlines - Softening travel demand and increase in capacity saw SIA fill 79.4% of its seats in August, down from 81.6% a year earlier. The airline's cargo loads dipped 1.2 percentage points year on year to 61%, from 62.2% in August 2007. Overall load factor dipped 1.2 percentage points to 68.2%, from 69.4%. During the month, the airline recorded a 5.3% rise in year-on-year growth in systemwide passenger carriage (measured in revenue passenger kilometres) while capacity (measured in available seat kilometres) grew by 8.2%. The number of passengers carried continued to rise by 2.2% over the same month last year, to 1.66m. SIA said all route regions recorded declines in PLF (passenger load factor) and this was mainly due to the new capacity introduced not fully met by the increase in passenger traffic. It added that softening demand due to the weak US economy contributed to the lower PLF in the Americas routes region.
Olam pumping US$128.4m into Nigerian ventures
Olam Imternational - Will be investing US$128.4m in a sugar refinery and a wheat mill in Nigeria. Olam said yesterday that it will take on these investments through a strategic partnership with the Modandola Group (MG). MG is a Nigerian conglomerate with interests across the shipping, agriculture, real estate and other sectors. Olam will form a joint venture (JV) with MG to set up the sugar refinery and sink in US$91m for a 49%-stake in the partnership. Olam will also acquire a 49%-stake in the MG-owned Standard Flour Mills for US$32.5m, and put in another US$4.9m to raise operating capacity. Both transactions will be funded from borrowings, internal accruals and proceeds from Olam's recent capital raising. The sugar refinery will have a captive port in Lagos and Olam will undertake project management for setting it up. Olam will also handle overall operational activities such as sales and distribution, while MG will look after local support services and relationship management with local regulatory agencies. The sugar refinery will incur a total capital cost of US$190m across FY2009 to FY2011. Production is expected to start in January 2011, reaching full capacity by FY2013.
Source: Kim Eng
Monday, September 15, 2008
Daily news - 15 Sep
China Energy to seek board renewal at AGM
China Energy – Set for a board renewal come Sept 29 when its shareholders gather at its annual general meeting (AGM). Last Saturday, the group said its three incumbent independent directors who make up the audit committee (AC) will retire at the AGM. The other three newly appointed directors will seek re-election and form the new AC. This is part of the renewal process within the board as current directors Ong Kian Guan, Robson Lee and Seah Kian Wee have expressed their desire not to seek re-election, China Energy said. Forming the 'new blood' are Peter Lai Hock Meng, former MP Leong Horn Kee and current MP Ong Kian Min - corporate heavyweights who have held several directorships in the government and private sector. The NC has recommended with the board's approval that these three directors will form the new AC upon re-election, with Mr Lai as chairman and Mr Ong as the lead independent director.
Senoko waste plant to be sold to Keppel unit KIE
Keppel Corp – The Senoko Incineration Plant will be sold to a unit of Keppel Corp for eventual public listing, the Singapore government announced. The indicative price is $462m but the final price will be determined once the plant is listed, likely by mid-2009, according to a joint statement from the Finance and Environment and Water Resources Ministries and the Monetary Authority of Singapore. Keppel Integrated Engineering (KIE), the environmental technology and engineering unit of Keppel Corp, was selected for the tender out of five bids received. A KIE unit, Keppel Seghers Engineering Singapore, will operate and maintain the plant under a long-term contract from the government. KIE will inject the Senoko plant into a newly set-up infrastructure trust, which will subsequently be listed on the Singapore Exchange. Keppel said the tender award will have no material impact on its net tangible assets and earnings per share for the year ending Dec 31, 2008.
Source: Kim Eng
China Energy – Set for a board renewal come Sept 29 when its shareholders gather at its annual general meeting (AGM). Last Saturday, the group said its three incumbent independent directors who make up the audit committee (AC) will retire at the AGM. The other three newly appointed directors will seek re-election and form the new AC. This is part of the renewal process within the board as current directors Ong Kian Guan, Robson Lee and Seah Kian Wee have expressed their desire not to seek re-election, China Energy said. Forming the 'new blood' are Peter Lai Hock Meng, former MP Leong Horn Kee and current MP Ong Kian Min - corporate heavyweights who have held several directorships in the government and private sector. The NC has recommended with the board's approval that these three directors will form the new AC upon re-election, with Mr Lai as chairman and Mr Ong as the lead independent director.
Senoko waste plant to be sold to Keppel unit KIE
Keppel Corp – The Senoko Incineration Plant will be sold to a unit of Keppel Corp for eventual public listing, the Singapore government announced. The indicative price is $462m but the final price will be determined once the plant is listed, likely by mid-2009, according to a joint statement from the Finance and Environment and Water Resources Ministries and the Monetary Authority of Singapore. Keppel Integrated Engineering (KIE), the environmental technology and engineering unit of Keppel Corp, was selected for the tender out of five bids received. A KIE unit, Keppel Seghers Engineering Singapore, will operate and maintain the plant under a long-term contract from the government. KIE will inject the Senoko plant into a newly set-up infrastructure trust, which will subsequently be listed on the Singapore Exchange. Keppel said the tender award will have no material impact on its net tangible assets and earnings per share for the year ending Dec 31, 2008.
Source: Kim Eng
NTUC Thrift
I have read about NTUC thrift account before but I never really pay too much attention to it. But today a regular visitor of this blog Cukcuk, alerted me to look further into it.
I find their saving account currently giving out good interest at 2% per annum. While SIBOR is low and money market funds giving out lower interests, I am surprised NTUC Thrift can still give 2% per annum.
The last saving account that I have was Citibank Step-Up account which I managed to step-up till 2%. That account I need to wait patiently for 1 year to step up the interest rate but Thrift account starts off from 2% instead.
I read the FAQ section but did not manage to settle a few questions. Below are some questions which I wrote to NTUC Thrift.
Letter to NTUC Thrift
Hi,
1) May I know the historical yield of dividend payout for Subscription Capital Account?
2) Is the money in the Subscription Capital Account capital guaranteed?
3) I understand full redemption of Subscription Capital is allowed only upon cessation of membership. Which membership is this? Is it The NTUC union membership or thrift membership?
Thanks
Reply from NTUC Thrift
Dear Mr. Mike,
Thank you for your feedback.
The past few years dividend payout is as follow:
Yr Mar 2002/Apr 2003 - 2%
Yr Mar 2003/Apr 2004 - 0.5%
Yr Mar 2004/Apr 2005 - 4%
Yr Mar 2005/Apr 2006 - 5%
Yr Mar 2006/Apr 2007 - 5%
Yr Mar 2007/Apr 2008 - 0%
The money in Subscription Capital A/c is principal protected. If Thrift is not doing well, we are not required to have any dividend payout. For example, the financial year that just ended has no dividend payout because of "paper loss" Thrift suffered.
For every member, they need to open Subcription Capital A/c with a min deposit of $20. This $20 is refundable when a member cease membership with Thrift.
In case if you are not aware, you need to make a one time payment of $20 to NTUC Thrift when opening a Thrift membership. This money is so called your membership fee which will be contributed to your Subscription Capital account. You can potentially earn dividend payout from that account. You may deposit more funds into this capital account if you wish to.
If you don’t wish to contribute more into the capital account, you may make use of NTUC Thrift saving account, fixed deposits and loans to enjoy attractive rates.
I find their saving account currently giving out good interest at 2% per annum. While SIBOR is low and money market funds giving out lower interests, I am surprised NTUC Thrift can still give 2% per annum.
The last saving account that I have was Citibank Step-Up account which I managed to step-up till 2%. That account I need to wait patiently for 1 year to step up the interest rate but Thrift account starts off from 2% instead.
I read the FAQ section but did not manage to settle a few questions. Below are some questions which I wrote to NTUC Thrift.
Letter to NTUC Thrift
Hi,
1) May I know the historical yield of dividend payout for Subscription Capital Account?
2) Is the money in the Subscription Capital Account capital guaranteed?
3) I understand full redemption of Subscription Capital is allowed only upon cessation of membership. Which membership is this? Is it The NTUC union membership or thrift membership?
Thanks
Reply from NTUC Thrift
Dear Mr. Mike,
Thank you for your feedback.
The past few years dividend payout is as follow:
Yr Mar 2002/Apr 2003 - 2%
Yr Mar 2003/Apr 2004 - 0.5%
Yr Mar 2004/Apr 2005 - 4%
Yr Mar 2005/Apr 2006 - 5%
Yr Mar 2006/Apr 2007 - 5%
Yr Mar 2007/Apr 2008 - 0%
The money in Subscription Capital A/c is principal protected. If Thrift is not doing well, we are not required to have any dividend payout. For example, the financial year that just ended has no dividend payout because of "paper loss" Thrift suffered.
For every member, they need to open Subcription Capital A/c with a min deposit of $20. This $20 is refundable when a member cease membership with Thrift.
In case if you are not aware, you need to make a one time payment of $20 to NTUC Thrift when opening a Thrift membership. This money is so called your membership fee which will be contributed to your Subscription Capital account. You can potentially earn dividend payout from that account. You may deposit more funds into this capital account if you wish to.
If you don’t wish to contribute more into the capital account, you may make use of NTUC Thrift saving account, fixed deposits and loans to enjoy attractive rates.
Friday, September 12, 2008
Daily news - 12 Sep
Golden Agri and JMH to replace two stocks in STI
Golden Agri-Resources and Jardine Matheson Holdings – The first review of the 30-stock Straits Times Index (STI) since its relaunch in January this year has resulted in the entry of two new components - Golden Agri-Resources and Jardine Matheson Holdings - to replace Thai Beverage PCL and Yangzijiang Shipbuilding Holdings. The replacement takes effect on Sept 22. The STI comprises the top 30 mainboard companies selected by full market capitalisation. On the STI reserve list - to be used in between index reviews - are STX Pan Ocean Co, ComfortDelgro Corp, Ascendas Real Estate Investment Trust, Keppel Telecommunications & Transportation and SMRT Corp. Reserve lists are created at each half-yearly review and contain the next five companies ranked in order of market capitalisation below the STI. In the event of corporate actions or mergers which impact the index between reviews, companies in the reserve list will be included in the STI to replace any component stocks that may be excluded as a result of the corporate actions or mergers. The next review date is March 12 next year.
Olam's gearing still within a comfortable range: CEO
Olam International – Says its group borrowings are still within a comfortable range as its net gearing is still well below the limit agreed with banks. CEO and managing director Sunny Verghese, said Olam’s convenant with the banks for net gearing is five times net debt to equity ratio. It is at 3.17 times, so it has “enough headroom”. Olam has raised almost $750m of capital in the past five months, which included a $307m preferential share offering in April and a US$300m convertible bond issue in July despite tough credit conditions. Consequently, Olam has raised equity capital between last year and this year by 65% to $964m. Olam has made 13 acquisitions since the start of 2007, according to Bloomberg data, and more may follow in the next 12 months, which may need further capital-raising. Its stock currently has 'buy' or 'overweight' calls from brokerage houses such as JPMorgan, Nomura and DMG & Partners Securities in view of its strong profitability. But CIMB-GK recently downgraded the stock to 'underperform' from 'outperform' as it expects Olam's risk profile to increase as it expands upstream and downstream.
OCBC raises stake in Great Eastern
OCBC Bank – Has purchased 582,000 shares in Great Eastern Holdings (GEH) at $14.00 per share for a total consideration of about $8.2m. The purchase has increased its shareholding in GEH from 86.89% to 87.02%.
Source: Kim Eng
Golden Agri-Resources and Jardine Matheson Holdings – The first review of the 30-stock Straits Times Index (STI) since its relaunch in January this year has resulted in the entry of two new components - Golden Agri-Resources and Jardine Matheson Holdings - to replace Thai Beverage PCL and Yangzijiang Shipbuilding Holdings. The replacement takes effect on Sept 22. The STI comprises the top 30 mainboard companies selected by full market capitalisation. On the STI reserve list - to be used in between index reviews - are STX Pan Ocean Co, ComfortDelgro Corp, Ascendas Real Estate Investment Trust, Keppel Telecommunications & Transportation and SMRT Corp. Reserve lists are created at each half-yearly review and contain the next five companies ranked in order of market capitalisation below the STI. In the event of corporate actions or mergers which impact the index between reviews, companies in the reserve list will be included in the STI to replace any component stocks that may be excluded as a result of the corporate actions or mergers. The next review date is March 12 next year.
Olam's gearing still within a comfortable range: CEO
Olam International – Says its group borrowings are still within a comfortable range as its net gearing is still well below the limit agreed with banks. CEO and managing director Sunny Verghese, said Olam’s convenant with the banks for net gearing is five times net debt to equity ratio. It is at 3.17 times, so it has “enough headroom”. Olam has raised almost $750m of capital in the past five months, which included a $307m preferential share offering in April and a US$300m convertible bond issue in July despite tough credit conditions. Consequently, Olam has raised equity capital between last year and this year by 65% to $964m. Olam has made 13 acquisitions since the start of 2007, according to Bloomberg data, and more may follow in the next 12 months, which may need further capital-raising. Its stock currently has 'buy' or 'overweight' calls from brokerage houses such as JPMorgan, Nomura and DMG & Partners Securities in view of its strong profitability. But CIMB-GK recently downgraded the stock to 'underperform' from 'outperform' as it expects Olam's risk profile to increase as it expands upstream and downstream.
OCBC raises stake in Great Eastern
OCBC Bank – Has purchased 582,000 shares in Great Eastern Holdings (GEH) at $14.00 per share for a total consideration of about $8.2m. The purchase has increased its shareholding in GEH from 86.89% to 87.02%.
Source: Kim Eng
Daily news - 11 Sep
Chartered updates Q3 guidance
Chartered Semiconductor Manufacturing - yesterday updated an earlier guidance for its current third quarter. In its customary mid-quarter update, the Singapore contract chipmaker reiterated its earlier Q3 forecast, but said that its revenue and plant capacity utilisation will be at the lower end of its previous guidance range. This is due to 'some changes in customer delivery schedules', the Temasek Holdings-linked company said in a statement. Chartered's third quarter ends on Sept 30.
Sembcorp Marine wins $99m tanker contract
SembCorp Marine – Sembawang Shipyard has won a $99 million contract to convert a 111,567 deadweight ton tanker into a floating, drilling, production, storage and offloading (FDPSO) vessel for Dynamic Producer, a unit of Brazil-based offshore service company Petroserv.
Keppel Offshore and Marine US unit Keppel AmFels, meanwhile, has picked up a US$1.4 million bonus for successful delivery of Scorpion Offshore's fourth jack-up rig.
Noble - Coalmine running normally
Noble Group – In a statement filed with the stock exchange, said one of its coalmine sources in Indonesia's South Kalimantan region is running normally, denying an earlier Reuters report that operations were disrupted by heavy rains, forcing Noble to declare force majeure on shipments, according to Bloomberg.
Strong demand for UOB share offering
United Overseas Bank (UOB) – An offering of preferred shares aimed at institutional investors has closed earlier than expected due to strong demand, indicating success for the bank's S$1 billion deal. The transaction, which also includes a retail tranche, is now oversubscribed, and lead managers HSBC and UOB have stopped taking orders for the institutional portion, according to a Dow Jones report, citing two market sources.
Source: Kim Eng
Chartered Semiconductor Manufacturing - yesterday updated an earlier guidance for its current third quarter. In its customary mid-quarter update, the Singapore contract chipmaker reiterated its earlier Q3 forecast, but said that its revenue and plant capacity utilisation will be at the lower end of its previous guidance range. This is due to 'some changes in customer delivery schedules', the Temasek Holdings-linked company said in a statement. Chartered's third quarter ends on Sept 30.
Sembcorp Marine wins $99m tanker contract
SembCorp Marine – Sembawang Shipyard has won a $99 million contract to convert a 111,567 deadweight ton tanker into a floating, drilling, production, storage and offloading (FDPSO) vessel for Dynamic Producer, a unit of Brazil-based offshore service company Petroserv.
Keppel Offshore and Marine US unit Keppel AmFels, meanwhile, has picked up a US$1.4 million bonus for successful delivery of Scorpion Offshore's fourth jack-up rig.
Noble - Coalmine running normally
Noble Group – In a statement filed with the stock exchange, said one of its coalmine sources in Indonesia's South Kalimantan region is running normally, denying an earlier Reuters report that operations were disrupted by heavy rains, forcing Noble to declare force majeure on shipments, according to Bloomberg.
Strong demand for UOB share offering
United Overseas Bank (UOB) – An offering of preferred shares aimed at institutional investors has closed earlier than expected due to strong demand, indicating success for the bank's S$1 billion deal. The transaction, which also includes a retail tranche, is now oversubscribed, and lead managers HSBC and UOB have stopped taking orders for the institutional portion, according to a Dow Jones report, citing two market sources.
Source: Kim Eng
Thursday, September 11, 2008
Golden Agri-Resources and Jardine Matheson Holdings upgraded
Singapore Press Holdings (SPH), Singapore Exchange (SGX) and FTSE Group (FTSE) announced today the results of the first review of the Straits Times Index (STI) and FTSE ST Index Series.
In the STI, Golden Agri-Resources and Jardine Matheson Holdings will be included in place of Thai Beverage PCL and Yangzijiang Shipbuilding Holdings. The full list of the changes is in Appendix 1, the full list of the latest component stocks of the major indices is in Appendix 2, and the selection criteria in Appendix 3.
The changes to the STI and 19 other FTSE ST indices were approved by the newly formed FTSE ST Index Advisory Committee. The committee, comprising eight independent market practitioners, convened today for the first half-yearly review of the indices against the index ground rules available at www.ftse.com/st. Half-yearly index reviews ensure that the indices remain an accurate reflection of the market they represent. This is essential when the indices are used to benchmark investment portfolios and for use as the basis for index-linked products.
The STI reserve list to be used in between index reviews will contain STX Pan Ocean Co, ComfortDelgro Corp, Ascendas Real Estate Investment Trust, Keppel Telecommunications & Transportation and SMRT Corp. Reserve lists are created at each half-yearly review and contain the next five companies ranked in order of market capitalisation below the STI. In the event of corporate actions or mergers which impact the index between reviews, companies in the reserve list will be included in the STI to replace any component stocks that may be excluded as a result of the corporate actions or mergers.
All changes from this review will take effect from the start of trading on Monday, 22 September 2008, with the next review scheduled for Thursday, 12 March 2009.
For more information about the STI and FTSE ST Index Series or the full review results please visit www.ftse.com/st
In the STI, Golden Agri-Resources and Jardine Matheson Holdings will be included in place of Thai Beverage PCL and Yangzijiang Shipbuilding Holdings. The full list of the changes is in Appendix 1, the full list of the latest component stocks of the major indices is in Appendix 2, and the selection criteria in Appendix 3.
The changes to the STI and 19 other FTSE ST indices were approved by the newly formed FTSE ST Index Advisory Committee. The committee, comprising eight independent market practitioners, convened today for the first half-yearly review of the indices against the index ground rules available at www.ftse.com/st. Half-yearly index reviews ensure that the indices remain an accurate reflection of the market they represent. This is essential when the indices are used to benchmark investment portfolios and for use as the basis for index-linked products.
The STI reserve list to be used in between index reviews will contain STX Pan Ocean Co, ComfortDelgro Corp, Ascendas Real Estate Investment Trust, Keppel Telecommunications & Transportation and SMRT Corp. Reserve lists are created at each half-yearly review and contain the next five companies ranked in order of market capitalisation below the STI. In the event of corporate actions or mergers which impact the index between reviews, companies in the reserve list will be included in the STI to replace any component stocks that may be excluded as a result of the corporate actions or mergers.
All changes from this review will take effect from the start of trading on Monday, 22 September 2008, with the next review scheduled for Thursday, 12 March 2009.
For more information about the STI and FTSE ST Index Series or the full review results please visit www.ftse.com/st
Daily news - 10 Sep
China Energy replaces CFO, adds new directors
CHINA Energy yesterday announced changes at its helm, replacing its chief financial officer (CFO) and adding some corporate heavyweights to its board of directors. William Wong stepped down yesterday as CFO and handed over his duties to Leslie Ying. China Energy said that this was part of its internal succession plans formulated in the fourth quarter of last year. Mr Ying had entered into a service agreement with China Energy last December, under which he would commence employment as CFO on or before April 1 this year.
Noble Group declares force majeure
COMMODITIES trader Noble Group has declared force majeure on thermal coal shipments from its DEJ mine in Indonesia because of recent heavy rains, traders said yesterday. Traders said that Japanese utility J-Power was affected by the move. Noble's force majeure, which comes amid tight supplies from Australia, China and South Africa, is expected to boost Asian thermal coal prices, which fell about US$5 to about US$156 a tonne on the globalCOAL NEWC index on Monday due to weaker prices in the oil and gas markets.
Source: Kim Eng
CHINA Energy yesterday announced changes at its helm, replacing its chief financial officer (CFO) and adding some corporate heavyweights to its board of directors. William Wong stepped down yesterday as CFO and handed over his duties to Leslie Ying. China Energy said that this was part of its internal succession plans formulated in the fourth quarter of last year. Mr Ying had entered into a service agreement with China Energy last December, under which he would commence employment as CFO on or before April 1 this year.
Noble Group declares force majeure
COMMODITIES trader Noble Group has declared force majeure on thermal coal shipments from its DEJ mine in Indonesia because of recent heavy rains, traders said yesterday. Traders said that Japanese utility J-Power was affected by the move. Noble's force majeure, which comes amid tight supplies from Australia, China and South Africa, is expected to boost Asian thermal coal prices, which fell about US$5 to about US$156 a tonne on the globalCOAL NEWC index on Monday due to weaker prices in the oil and gas markets.
Source: Kim Eng
Tuesday, September 9, 2008
Daily news - 9 Sep
IDA gives SingTel partial relief from 'dominant licensee' rules
Singapore Telecommunication – SingTel's claim that it no longer has a competitive edge in major business telephony segments is not holding up fully under regulatory scrutiny, with the Government denying most of its requests to be unshackled from the strict regulations that come with its market dominance. The Infocomm Development Authority of Singapore (IDA) has decided not to grant SingTel full exemption from 'dominant licensee' obligations across all the market segments. Under the Singapore Telecom Competition Code, SingTel is subject to a stringent set of operating rules in markets where it is deemed dominant. In October last year, the island's largest telco submitted two requests to IDA for regulatory relief from such conditions in two business markets. The first was for customers who spend more than $250,000 a year on telecom services, while the second was made up of six business-related phone and Internet offerings. IDA reached its preliminary decision on SingTel's request after seeking public feedback and factoring in the dissenting views of rival operators M1 and StarHub.
China Energy acts on PwC's proposals
China Energy - Has taken measures to enhance and strengthen its approval processes and ensure compliance with continuing listing obligations and corporate governance practices after it reviewed and considered the findings of PricewaterhouseCoopers (PwC). In an update filed with Singapore Exchange (SGX), China Energy provided an overview on its follow-up action since PwC released its findings on an additional payment of RMB191m (S$39.9m) made in its acquisition of Jiutai Guangzhou, on top of an agreed sum of RMB197.8m. The bulk of the additional payment went to repaying debts incurred by Jiutai Guangzhou for the construction of its dimethyl ether (DME) Phase 1 plant. PwC had said in the report that there is no irregularity in the payments but highlighted that certain approval processes in the group could be improved. It recommended that the board of directors implement measures to enhance or strengthen such processes. China Energy said it has since appointed KW Capital as Group Compliance Adviser to assist its management in complying with continuing listing obligations under the SGX listing manual.
CapitaLand to book $43m gain from building sale
CapitaLand – Will book a gross gain of about $43m from the sale of Somerset Orchard by its fully owned serviced residences unit The Ascott Group. Ascott has entered into a conditional sale-and-purchase agreement to sell Somerset Orchard, an 88-unit serviced residence in Orchard Road, for $100m cash or about $1,530 per square foot to OG Private Limited. The property is on a site with a remaining lease of 74 years. The carrying value of the property is $57m. After the divestment, Ascott will continue to manage the serviced residence for 15 years, with an option to renew the contract for another 10 years. Somerset Orchard is part of Orchard Point, which also includes a four-storey retail podium owned by department store retailer OG. Ascott made an offer to OG to buy the serviced residence component of the complex in accordance with the right of first refusal granted to OG when the latter bought the retail podium from Ascott in 2001 for $91m.
Source: Kim Eng
Singapore Telecommunication – SingTel's claim that it no longer has a competitive edge in major business telephony segments is not holding up fully under regulatory scrutiny, with the Government denying most of its requests to be unshackled from the strict regulations that come with its market dominance. The Infocomm Development Authority of Singapore (IDA) has decided not to grant SingTel full exemption from 'dominant licensee' obligations across all the market segments. Under the Singapore Telecom Competition Code, SingTel is subject to a stringent set of operating rules in markets where it is deemed dominant. In October last year, the island's largest telco submitted two requests to IDA for regulatory relief from such conditions in two business markets. The first was for customers who spend more than $250,000 a year on telecom services, while the second was made up of six business-related phone and Internet offerings. IDA reached its preliminary decision on SingTel's request after seeking public feedback and factoring in the dissenting views of rival operators M1 and StarHub.
China Energy acts on PwC's proposals
China Energy - Has taken measures to enhance and strengthen its approval processes and ensure compliance with continuing listing obligations and corporate governance practices after it reviewed and considered the findings of PricewaterhouseCoopers (PwC). In an update filed with Singapore Exchange (SGX), China Energy provided an overview on its follow-up action since PwC released its findings on an additional payment of RMB191m (S$39.9m) made in its acquisition of Jiutai Guangzhou, on top of an agreed sum of RMB197.8m. The bulk of the additional payment went to repaying debts incurred by Jiutai Guangzhou for the construction of its dimethyl ether (DME) Phase 1 plant. PwC had said in the report that there is no irregularity in the payments but highlighted that certain approval processes in the group could be improved. It recommended that the board of directors implement measures to enhance or strengthen such processes. China Energy said it has since appointed KW Capital as Group Compliance Adviser to assist its management in complying with continuing listing obligations under the SGX listing manual.
CapitaLand to book $43m gain from building sale
CapitaLand – Will book a gross gain of about $43m from the sale of Somerset Orchard by its fully owned serviced residences unit The Ascott Group. Ascott has entered into a conditional sale-and-purchase agreement to sell Somerset Orchard, an 88-unit serviced residence in Orchard Road, for $100m cash or about $1,530 per square foot to OG Private Limited. The property is on a site with a remaining lease of 74 years. The carrying value of the property is $57m. After the divestment, Ascott will continue to manage the serviced residence for 15 years, with an option to renew the contract for another 10 years. Somerset Orchard is part of Orchard Point, which also includes a four-storey retail podium owned by department store retailer OG. Ascott made an offer to OG to buy the serviced residence component of the complex in accordance with the right of first refusal granted to OG when the latter bought the retail podium from Ascott in 2001 for $91m.
Source: Kim Eng
Monday, September 8, 2008
Daily news - 8 Sep
Keppel, SembMarine shares tumble on cheaper crude
Keppel Corp and Sembcorp Marine – Shares of KepCorp and SembMarine were hammered Friday as crude oil prices looked set to continue its downward spiral. Oil prices have fallen more than 7% this week, with crude for October delivery sinking to as low as just over US$106 a barrel Friday. Prices are down by 27% from the record US$147.27 on July 11. Keppel Corp shares fell 49 cents or 5.4% to close at a 12-month low of $8.64, while SembMarine shed 18 cents or 5.3% to end Friday at $3.23. The two biggest local rig builders were not the only ones affected by the falling oil price. China-based Cosco Corp (Singapore) fell 8.8% to a year-low of $1.87. Analysts said that the sell-off was a knee-jerk reaction to oil prices. With respective net order books of $13bn and $9.6bn at end-June, and deliveries extending until 2012, Keppel and SembMarine are sitting pretty and churning out rigs as fast as they can build them. Deepwater rig charter rates have risen to around US$700,000 a day and owners are still keen to take delivery as quickly as possible.
SingPost warns of higher fees
Singapore Post – Has warned of a potential increase in its net terminal dues payments for international mailing. This comes after it was announced at the recent 24th Universal Postal Union (UPU) Congress in Geneva, Switzerland, that Singapore would be reclassified as a Target Country (previously known as 'Industrialised Country') from the current category of Net Contributor Country for the purpose of terminal dues settlement. The change will take effect from Jan 1, 2010. Terminal dues refer to settlements for the processing and delivery of international mail between countries. Singapore will have to apply the relevant terminal dues system from 2010 to 2013 and contribute to the UPU Quality of Service Fund. The group foresees an increase in its net terminal dues payments for international mailing as the dues payable by target countries are generally higher.
Source: Kim Eng
Keppel Corp and Sembcorp Marine – Shares of KepCorp and SembMarine were hammered Friday as crude oil prices looked set to continue its downward spiral. Oil prices have fallen more than 7% this week, with crude for October delivery sinking to as low as just over US$106 a barrel Friday. Prices are down by 27% from the record US$147.27 on July 11. Keppel Corp shares fell 49 cents or 5.4% to close at a 12-month low of $8.64, while SembMarine shed 18 cents or 5.3% to end Friday at $3.23. The two biggest local rig builders were not the only ones affected by the falling oil price. China-based Cosco Corp (Singapore) fell 8.8% to a year-low of $1.87. Analysts said that the sell-off was a knee-jerk reaction to oil prices. With respective net order books of $13bn and $9.6bn at end-June, and deliveries extending until 2012, Keppel and SembMarine are sitting pretty and churning out rigs as fast as they can build them. Deepwater rig charter rates have risen to around US$700,000 a day and owners are still keen to take delivery as quickly as possible.
SingPost warns of higher fees
Singapore Post – Has warned of a potential increase in its net terminal dues payments for international mailing. This comes after it was announced at the recent 24th Universal Postal Union (UPU) Congress in Geneva, Switzerland, that Singapore would be reclassified as a Target Country (previously known as 'Industrialised Country') from the current category of Net Contributor Country for the purpose of terminal dues settlement. The change will take effect from Jan 1, 2010. Terminal dues refer to settlements for the processing and delivery of international mail between countries. Singapore will have to apply the relevant terminal dues system from 2010 to 2013 and contribute to the UPU Quality of Service Fund. The group foresees an increase in its net terminal dues payments for international mailing as the dues payable by target countries are generally higher.
Source: Kim Eng
Friday, September 5, 2008
Daily news - 5 Sep
CCT - signs up leases for 77,900 sq ft in 2 office towers
CapitaCommercial Trust (CCT) says 77,900 sq ft of office space at Capital Tower and One George Street has been renewed or newly committed for between two and three years. Three companies account for the leases - JPMorgan Chase & Co, BHP Billiton and Shinhan Bank.
Noble - closes at 5-mth low on commodities slump fears
Noble Group Ltd, the commodities supplier that ships iron ore, soybeans and coal, slumped to the lowest close in more than five months in Singapore on concern growth in global demand for raw materials may slow. Share price plunged 8.7 per cent to S$1.58, the second-worst performer in the 30-member Straits Times Index, extending the previous day's 8 per cent decline. It was the stock's lowest close since March 20.
Source: Kim Eng
CapitaCommercial Trust (CCT) says 77,900 sq ft of office space at Capital Tower and One George Street has been renewed or newly committed for between two and three years. Three companies account for the leases - JPMorgan Chase & Co, BHP Billiton and Shinhan Bank.
Noble - closes at 5-mth low on commodities slump fears
Noble Group Ltd, the commodities supplier that ships iron ore, soybeans and coal, slumped to the lowest close in more than five months in Singapore on concern growth in global demand for raw materials may slow. Share price plunged 8.7 per cent to S$1.58, the second-worst performer in the 30-member Straits Times Index, extending the previous day's 8 per cent decline. It was the stock's lowest close since March 20.
Source: Kim Eng
Daily news - 4 Sep
CapitaLand reaps $163m gain from Capital Tower Beijing sale
CapitaLand –Has entered into a share purchase deed for the sale of its indirect wholly owned subsidiary Hua Lei Holdings, which indirectly owns 100% of Capital Tower Beijing. CapitaLand said the consideration of US$352m takes into account the assignment of a shareholder's loan of US$166m and values Capital Tower Beijing at US$488m. CapitaLand said it will obtain net cash flow of about $498m and expects to recognise a gain of $163m. It said Capital Tower Beijing had been intended as a core long-term asset and the divestment following an unsolicited offer will allow it to redeploy the capital to undertake more developments in China. Capital Tower Beijing was completed in 2006. CapitaLand said it received unsolicited offers from 'several prospective investors' but would only say that the buyer is a Fortune 500 company that hopes to set up its headquarters in Beijing. It is understood that CapitaLand has its Beijing office in Capital Tower Beijing and has no plans to move. CapitaLand said Capital Tower Beijing had been intended as a core long-term asset, but that divestment will allow it to redeploy the capital to undertake more developments in China.
Swiber to sell and lease back 5 support vessels
Swiber Holdings – Will sell and lease back five offshore support vessels for US$225m as it continues its asset-light expansion strategy. The deal, brokered by Norwegian ship leasing arranger RS Platou Finans Shipping, will see Swiber unit Kreuz Engineering selling three anchor handling, towing and supply (AHTS) vessels, as well as two diving support vessels (DSVs), to units of RS Platou and Atlantis Navigation respectively. They in turn will lease the five vessels back to another Swiber unit, Kreuz Offshore Marine, on a bareboat charter for 10 years. The US$225m sale price is at a slight premium to the US$207m net asset value of the vessels, which are currently under construction and due for delivery between next year and 2010. Swiber will use the excess US$18m proceeds from the disposal to acquire new vessels for its future expansion. The arrangement will help the company finance its fleet expansion plan, especially for deepwater and subsea vessels, without straining its balance sheet, and improve cashflow, while also allowing Swiber to maintain full operational and commercial control over the vessels.
Source: Kim Eng
CapitaLand –Has entered into a share purchase deed for the sale of its indirect wholly owned subsidiary Hua Lei Holdings, which indirectly owns 100% of Capital Tower Beijing. CapitaLand said the consideration of US$352m takes into account the assignment of a shareholder's loan of US$166m and values Capital Tower Beijing at US$488m. CapitaLand said it will obtain net cash flow of about $498m and expects to recognise a gain of $163m. It said Capital Tower Beijing had been intended as a core long-term asset and the divestment following an unsolicited offer will allow it to redeploy the capital to undertake more developments in China. Capital Tower Beijing was completed in 2006. CapitaLand said it received unsolicited offers from 'several prospective investors' but would only say that the buyer is a Fortune 500 company that hopes to set up its headquarters in Beijing. It is understood that CapitaLand has its Beijing office in Capital Tower Beijing and has no plans to move. CapitaLand said Capital Tower Beijing had been intended as a core long-term asset, but that divestment will allow it to redeploy the capital to undertake more developments in China.
Swiber to sell and lease back 5 support vessels
Swiber Holdings – Will sell and lease back five offshore support vessels for US$225m as it continues its asset-light expansion strategy. The deal, brokered by Norwegian ship leasing arranger RS Platou Finans Shipping, will see Swiber unit Kreuz Engineering selling three anchor handling, towing and supply (AHTS) vessels, as well as two diving support vessels (DSVs), to units of RS Platou and Atlantis Navigation respectively. They in turn will lease the five vessels back to another Swiber unit, Kreuz Offshore Marine, on a bareboat charter for 10 years. The US$225m sale price is at a slight premium to the US$207m net asset value of the vessels, which are currently under construction and due for delivery between next year and 2010. Swiber will use the excess US$18m proceeds from the disposal to acquire new vessels for its future expansion. The arrangement will help the company finance its fleet expansion plan, especially for deepwater and subsea vessels, without straining its balance sheet, and improve cashflow, while also allowing Swiber to maintain full operational and commercial control over the vessels.
Source: Kim Eng
Thursday, September 4, 2008
Maybank inflation rider structured deposit
As much as possible I try to stay far far away from structured deposit. This time I came across a structured deposit from Maybank which warrants a good consideration. It is called Inflation-Rider Structured Deposit.
I find the terms very simple to understand. The most basic rule of investment is NOT to invest in anything that you don’t understand. Now let us see what the benefits of this structured deposit are.
According to the website, the structured deposit is capital guaranteed. Thus you are assured to get back your principal at the end of the term. It is a short term investment that requires to be locked in for 21 months and the minimum payout is at 0.9% of your capital. It means if you were to put $10,000 then the payout at the end of the term can potentially be higher than $10,090 which works out to be at least 0.51% per annum.
Now on the upside, you are able to earn a maximum payout of 17.5%. Based on the $10,000 amount again, then your payout can potentially be $11,750 which works out to be 10% per annum.
Even though I really got no idea of how the money is invested as there is no information from the website, I consider this structured deposit to be low risk but gives the potential of earning higher returns. The key point in this structured deposit is the guarantee of capital.
Since the investment period is short, you can consider it as a 21-month fixed deposit with 0.51% returns per annum. Anything above is considered a bonus to you. Before putting your money in, it is good to check with Maybank to find out how your money is invested.
I find the terms very simple to understand. The most basic rule of investment is NOT to invest in anything that you don’t understand. Now let us see what the benefits of this structured deposit are.
According to the website, the structured deposit is capital guaranteed. Thus you are assured to get back your principal at the end of the term. It is a short term investment that requires to be locked in for 21 months and the minimum payout is at 0.9% of your capital. It means if you were to put $10,000 then the payout at the end of the term can potentially be higher than $10,090 which works out to be at least 0.51% per annum.
Now on the upside, you are able to earn a maximum payout of 17.5%. Based on the $10,000 amount again, then your payout can potentially be $11,750 which works out to be 10% per annum.
Even though I really got no idea of how the money is invested as there is no information from the website, I consider this structured deposit to be low risk but gives the potential of earning higher returns. The key point in this structured deposit is the guarantee of capital.
Since the investment period is short, you can consider it as a 21-month fixed deposit with 0.51% returns per annum. Anything above is considered a bonus to you. Before putting your money in, it is good to check with Maybank to find out how your money is invested.
Wednesday, September 3, 2008
Daily news - 3 Sep
SIA shares soar 3% to hit 5-week high
Singapore Airlines – SIA shares recorded one of its strongest rallies in recent months to close at a five-week high, triggering a slew of rumours about potential corporate activity. The stock raced up 46 cents or 3% to close at $15.64 yesterday - its highest close since July 30. Volume was heavier than recent daily sessions, with some 3.7m units changing hands. The strong performance sparked off frenzied market speculation that SIA could be launching another bid for a stake in Shanghai-based China Eastern Airlines. But an SIA spokesman dismissed the speculation, saying he was not aware of any new developments on that front. Last November, SIA and its majority owner Temasek Holdings launched a joint bid to buy a 24% stake in China Eastern at HK$3.80 (S$0.69) a share in a US$920m deal, but it was rejected by China Eastern's minority shareholders with many complaining that the stake was being sold too cheaply. In January, the parent group of domestic rival Air China proposed a cash injection of US$1.9bn that involved a broad tie-up between the two airlines' operations for HK$5 per share, but China Eastern rejected the offer.
Source: Kim Eng
Singapore Airlines – SIA shares recorded one of its strongest rallies in recent months to close at a five-week high, triggering a slew of rumours about potential corporate activity. The stock raced up 46 cents or 3% to close at $15.64 yesterday - its highest close since July 30. Volume was heavier than recent daily sessions, with some 3.7m units changing hands. The strong performance sparked off frenzied market speculation that SIA could be launching another bid for a stake in Shanghai-based China Eastern Airlines. But an SIA spokesman dismissed the speculation, saying he was not aware of any new developments on that front. Last November, SIA and its majority owner Temasek Holdings launched a joint bid to buy a 24% stake in China Eastern at HK$3.80 (S$0.69) a share in a US$920m deal, but it was rejected by China Eastern's minority shareholders with many complaining that the stake was being sold too cheaply. In January, the parent group of domestic rival Air China proposed a cash injection of US$1.9bn that involved a broad tie-up between the two airlines' operations for HK$5 per share, but China Eastern rejected the offer.
Source: Kim Eng
Daily news - 2 Sep
DBS signs pact with China Unionpay
DBS Bank – DBS and Chinese card payment network operator China Unionpay (CUP) have struck a deal that will allow Chinese visitors to Singapore to use their CUP cards at participating merchants. The memorandum of understanding also allows DBS to issue CUP debit and credit cards in markets where DBS has a presence, including Singapore, China and Indonesia. Takashimaya Shopping Centre - the largest department store here - is the first merchant to accept payment by CUP cardholders under the agreement. DBS is targeting other department stores popular with Chinese visitors, including BHG and OG. It hopes eventually to expand the service to the rest of its near 10,000 merchants here. Under an agreement between DBS and CUP in April last year, CUP cardholders could already withdraw money at DBS cash machines in Singapore and Hong Kong. The latest deal will expand this to all DBS cash machines in the region. DBS said that withdrawals by Chinese visitors at its cash machines here have doubled since last year. The agreement also paves the way for DBS to offer all of CUP's card products and services through the bank's network.
ST Engg unit wins $112m LTA job
Singapore Technologies Electronics – Has won a $112m contract from the Land Transport Authority of Singapore (LTA) for Half Height Platform Screen Doors (HHPSD) and its associated works for all existing elevated Mass Rapid Transit (MRT) stations. Under the contract, Singapore Technologies Electronics - the electronics arm of Singapore Technologies Engineering (ST Engg) - will design, supply, install and commission the HHPSD and deliver associated works for all 36 existing elevated MRT stations. This is the first such HHPSD retrofit project in Singapore and work will start this month. Completion is set for 2012. ST Electronics offers system solutions to government, commercial, defence, and industrial customers worldwide. It has a presence in more than 18 countries and 28 cities worldwide and markets its solutions to more than 70 countries internationally. It specialises in the design, development and integration of advanced electronics and communications systems.
Alpha to put US$1.2b in Asian properties
Keppel Land – Alpha Investment Partners, KepLand’s fund management unit, said its new fund will invest US$1.2bn into Asian retail, residential and hospitality property by 2011 despite a global slowdown. The group, which closed the Asia Macro Trends fund in July, now has five Asia-focused funds with S$3.9bn in property assets under management. Alpha managing director Loh Chin Hua said the fund takes a long-term view of eight to 10 years. It believes that the region will do well in the medium to long-term. The new fund has set an internal rate of return of 16-18% and has so far invested US$41m in a hotel near South Korea's Incheon Airport, and US$30m in a stake to build a Hong Kong hotel with an unlisted local developer. Mr Loh said that the Korea hotel already provides a yield higher than the projected 17.3%. He added that he is more prudent about the office and logistics sectors as these have already seen strong growth. Asia's developers are also more willing to accept property funds as equity partners for their projects, Mr Loh said, as other sources of financing become more expensive after banks turned increasingly prudent about lending.
Wilmar to pay US$36m for Fortune Gas stake
Wilmar International Limited – Is investing US$36m for a 15% stake in Fortune Gas Investments Holdings - a holding company for London-listed Fortune Oil's gas business. The investment is part of a conditional subscription agreement which also sees Star Medal - owned by the Kuok Group in Hong Kong - paying US$36m for a similar stake. Hong Kong-headquartered and London-listed Fortune Oil owns oil and gas supply infrastructure in China. It will own the remaining 70% stake in Fortune Gas. Fortune Gas is a Hong Kong-registered company holding all of Fortune Oil's gas operations, including gas distribution and coal bed methane. Both Wilmar and the Kuok Group have substantial business interests and experience in China that will assist in the development of Fortune Gas, Fortune Oil said in an announcement released by Wilmar. The investment is subject to completion of certain due diligence and Fortune Oil and Fortune Gas having to provide warranties and indemnities to the new investors concerning the gas business. Completion is expected within two months. For the six months ended June 30, 2008, Fortune Gas reported an unaudited operating profit of 2.3m pounds (S$5.9m), with unaudited gross assets of 63.7m pounds.
Source: Kim Eng
DBS Bank – DBS and Chinese card payment network operator China Unionpay (CUP) have struck a deal that will allow Chinese visitors to Singapore to use their CUP cards at participating merchants. The memorandum of understanding also allows DBS to issue CUP debit and credit cards in markets where DBS has a presence, including Singapore, China and Indonesia. Takashimaya Shopping Centre - the largest department store here - is the first merchant to accept payment by CUP cardholders under the agreement. DBS is targeting other department stores popular with Chinese visitors, including BHG and OG. It hopes eventually to expand the service to the rest of its near 10,000 merchants here. Under an agreement between DBS and CUP in April last year, CUP cardholders could already withdraw money at DBS cash machines in Singapore and Hong Kong. The latest deal will expand this to all DBS cash machines in the region. DBS said that withdrawals by Chinese visitors at its cash machines here have doubled since last year. The agreement also paves the way for DBS to offer all of CUP's card products and services through the bank's network.
ST Engg unit wins $112m LTA job
Singapore Technologies Electronics – Has won a $112m contract from the Land Transport Authority of Singapore (LTA) for Half Height Platform Screen Doors (HHPSD) and its associated works for all existing elevated Mass Rapid Transit (MRT) stations. Under the contract, Singapore Technologies Electronics - the electronics arm of Singapore Technologies Engineering (ST Engg) - will design, supply, install and commission the HHPSD and deliver associated works for all 36 existing elevated MRT stations. This is the first such HHPSD retrofit project in Singapore and work will start this month. Completion is set for 2012. ST Electronics offers system solutions to government, commercial, defence, and industrial customers worldwide. It has a presence in more than 18 countries and 28 cities worldwide and markets its solutions to more than 70 countries internationally. It specialises in the design, development and integration of advanced electronics and communications systems.
Alpha to put US$1.2b in Asian properties
Keppel Land – Alpha Investment Partners, KepLand’s fund management unit, said its new fund will invest US$1.2bn into Asian retail, residential and hospitality property by 2011 despite a global slowdown. The group, which closed the Asia Macro Trends fund in July, now has five Asia-focused funds with S$3.9bn in property assets under management. Alpha managing director Loh Chin Hua said the fund takes a long-term view of eight to 10 years. It believes that the region will do well in the medium to long-term. The new fund has set an internal rate of return of 16-18% and has so far invested US$41m in a hotel near South Korea's Incheon Airport, and US$30m in a stake to build a Hong Kong hotel with an unlisted local developer. Mr Loh said that the Korea hotel already provides a yield higher than the projected 17.3%. He added that he is more prudent about the office and logistics sectors as these have already seen strong growth. Asia's developers are also more willing to accept property funds as equity partners for their projects, Mr Loh said, as other sources of financing become more expensive after banks turned increasingly prudent about lending.
Wilmar to pay US$36m for Fortune Gas stake
Wilmar International Limited – Is investing US$36m for a 15% stake in Fortune Gas Investments Holdings - a holding company for London-listed Fortune Oil's gas business. The investment is part of a conditional subscription agreement which also sees Star Medal - owned by the Kuok Group in Hong Kong - paying US$36m for a similar stake. Hong Kong-headquartered and London-listed Fortune Oil owns oil and gas supply infrastructure in China. It will own the remaining 70% stake in Fortune Gas. Fortune Gas is a Hong Kong-registered company holding all of Fortune Oil's gas operations, including gas distribution and coal bed methane. Both Wilmar and the Kuok Group have substantial business interests and experience in China that will assist in the development of Fortune Gas, Fortune Oil said in an announcement released by Wilmar. The investment is subject to completion of certain due diligence and Fortune Oil and Fortune Gas having to provide warranties and indemnities to the new investors concerning the gas business. Completion is expected within two months. For the six months ended June 30, 2008, Fortune Gas reported an unaudited operating profit of 2.3m pounds (S$5.9m), with unaudited gross assets of 63.7m pounds.
Source: Kim Eng
Tuesday, September 2, 2008
Letter to EZlink regarding Sony Pasori
I sincerely apologise to those who have bought the Sony Pasori card reader after my post on the reader. I wrote a letter to EZlink to express my concern. Please see the letter and their reply.
Letter to EZlink
Subject: Sony Pasori card reader
Message: I am utterly disappointed in hearing that the current EZlink card will soon phase out. The news came out few days after I bought the Sony Pasori card reader which was advertised at a discount at EZlink main website.
I am surprised to hear the new multi platform EZlink card is not readable by Sony Pasori card reader. If only I know of the news in advance, I would not have bought the reader earlier. In other words, I have bought a reader which will become obsolete soon.
I felt cheated as there isn’t any warning to inform buyers in advance of the unusability of the new card on Sony Pasori card reader. Therefore I hope EZlink can come out with an exchange or upgrade scheme to accept the old card reader as trade in for a new card reader. Please understand the customers concern especially those who just bought it recently. Thanks
Reply from EZlink
Dear Mike,
Thank you for your email.
Though the current readers are design to support the current ez-link cards only, we are working with the vendor, SONY to see to the upgrade of the readers to accept the new ez-link CEPAS Compliant ez-link cards. Please be assured that we will inform you again with more details once available.
We value every feedback as we aim to continually enhance our services to increase the satisfaction level of our users. Do keep the feedbacks / suggestions coming in as we constantly seek to meet the changing needs of the consumer markets.
If you have further queries, please feel free to email us at enquiries@ezlink.com.sg or call our Customer Service Hotline at 6496 8300 between 8.00am to 6.00pm daily except public holidays. In case you need to call outside these hours, you could leave a voicemail with us and we will get back to you by the next working day.
Letter to EZlink
Subject: Sony Pasori card reader
Message: I am utterly disappointed in hearing that the current EZlink card will soon phase out. The news came out few days after I bought the Sony Pasori card reader which was advertised at a discount at EZlink main website.
I am surprised to hear the new multi platform EZlink card is not readable by Sony Pasori card reader. If only I know of the news in advance, I would not have bought the reader earlier. In other words, I have bought a reader which will become obsolete soon.
I felt cheated as there isn’t any warning to inform buyers in advance of the unusability of the new card on Sony Pasori card reader. Therefore I hope EZlink can come out with an exchange or upgrade scheme to accept the old card reader as trade in for a new card reader. Please understand the customers concern especially those who just bought it recently. Thanks
Reply from EZlink
Dear Mike,
Thank you for your email.
Though the current readers are design to support the current ez-link cards only, we are working with the vendor, SONY to see to the upgrade of the readers to accept the new ez-link CEPAS Compliant ez-link cards. Please be assured that we will inform you again with more details once available.
We value every feedback as we aim to continually enhance our services to increase the satisfaction level of our users. Do keep the feedbacks / suggestions coming in as we constantly seek to meet the changing needs of the consumer markets.
If you have further queries, please feel free to email us at enquiries@ezlink.com.sg or call our Customer Service Hotline at 6496 8300 between 8.00am to 6.00pm daily except public holidays. In case you need to call outside these hours, you could leave a voicemail with us and we will get back to you by the next working day.
My stocks portfolio - Aug 2008
My overall portfolio was down by 35.81% at the end of August 2008. It was a significant drop from the previous month due to the massive sell off on Cosco and SIA Engineering. I admit that I do overweigh on Cosco so that is partly a reason for the sharp drop in my overall portfolio. I realise it even before the sell off but I still choose not to panic and liquidate too early. A lesson to be learned is not to overweigh your holding in a particular stock unless you are 101% confident of the company. Overweighting may affect the volatility of your overall portfolio should the price of that overweight stock fall drastically.
There were two transactions for the month of August.
Bought Swiber, average price at $2.113
Bought Courage Marine, average price at $0.375
Latest quarterly report for Swiber was out on 13 of August. Revenue for half-year of 2008 is already more than whole year of 2007. Its half-year revenue and net profit increased by 337.4% and 230.8% respectively from the same period of 2007. Order book for the month of June 2008 was at a whopping US$664 million compared to US$176 million on March 2007. In overall, Swiber reported results which proved that they can deliver good earnings result but coupled with an increased in the level of debt which investors should be wary about.
I remember how irrational market can be when price of oil started its big sell off in July. Swiber was sold and dumped indiscriminately as a result. In my opinion there isn’t any logic to correlate the short term price of oil with the future earnings of Swiber. In the long run, oil is set to rise to US$200 per barrel. It is just in a matter of time. I personally think it this way. Even though price of oil has cooled down a little bit, oil and gas related companies are not sitting back and relax. I think they should be pressured to explore and research into new opportunities and regions before price of oil starts shooting up again.
Despite the short term correction in price of oil, an increased in level of offshore oil and gas exploration, fields development and production in South East Asia and India are likely to benefit Swiber in the long term. The most recent piece of good news is the soon to be built Equatorial Drilling Barge for deepwater exploration works. It has great potential to be deployed in deepwater wells that are not drilled at the moment. You may read that article from DBS Vickers.
I held a small stake with Swiber the first time I bought it. Therefore I took this opportunity to average down my buying price to $2.113.
Courage Marine is one of the few stocks which I bought since I started dwelling in stocks last year. It is a very low profile, debt free and cash rich company. Based on the dividends payout in May and September 2008, at the current price and exchange rate, the yield is around 15%. I took opportunity to buy more shares of this company bearing the fact that my holding with them is not at substantial level.
Courage Marine is an efficient dry bulk shipping company which focuses on infrastructure and energy related commodities. Its tight cost controls and higher freight rates have resulted in good profit margin and high Returns on Equity (ROE). The company topped the Marine Money International June/July 2008 rankings for overall financial performance. It is a prestigious award that ranked the financial performance of 99 shipping groups worldwide in 2007. You may read the whole article from here.
I received total dividends of $410.44 for the month of August 2008.
There were two transactions for the month of August.
Bought Swiber, average price at $2.113
Bought Courage Marine, average price at $0.375
Latest quarterly report for Swiber was out on 13 of August. Revenue for half-year of 2008 is already more than whole year of 2007. Its half-year revenue and net profit increased by 337.4% and 230.8% respectively from the same period of 2007. Order book for the month of June 2008 was at a whopping US$664 million compared to US$176 million on March 2007. In overall, Swiber reported results which proved that they can deliver good earnings result but coupled with an increased in the level of debt which investors should be wary about.
I remember how irrational market can be when price of oil started its big sell off in July. Swiber was sold and dumped indiscriminately as a result. In my opinion there isn’t any logic to correlate the short term price of oil with the future earnings of Swiber. In the long run, oil is set to rise to US$200 per barrel. It is just in a matter of time. I personally think it this way. Even though price of oil has cooled down a little bit, oil and gas related companies are not sitting back and relax. I think they should be pressured to explore and research into new opportunities and regions before price of oil starts shooting up again.
Despite the short term correction in price of oil, an increased in level of offshore oil and gas exploration, fields development and production in South East Asia and India are likely to benefit Swiber in the long term. The most recent piece of good news is the soon to be built Equatorial Drilling Barge for deepwater exploration works. It has great potential to be deployed in deepwater wells that are not drilled at the moment. You may read that article from DBS Vickers.
I held a small stake with Swiber the first time I bought it. Therefore I took this opportunity to average down my buying price to $2.113.
Courage Marine is one of the few stocks which I bought since I started dwelling in stocks last year. It is a very low profile, debt free and cash rich company. Based on the dividends payout in May and September 2008, at the current price and exchange rate, the yield is around 15%. I took opportunity to buy more shares of this company bearing the fact that my holding with them is not at substantial level.
Courage Marine is an efficient dry bulk shipping company which focuses on infrastructure and energy related commodities. Its tight cost controls and higher freight rates have resulted in good profit margin and high Returns on Equity (ROE). The company topped the Marine Money International June/July 2008 rankings for overall financial performance. It is a prestigious award that ranked the financial performance of 99 shipping groups worldwide in 2007. You may read the whole article from here.
I received total dividends of $410.44 for the month of August 2008.
| No | Stock | Mode | Unrealised P/L |
| 1 | ALLCOREIT | CASH | -33.59% |
| 2 | ARA | CASH | -32.10% |
| 3 | CAPITACOMM | CASH | -15.34% |
| 4 | CHINA HONGXING | CASH | -35.04% |
| 5 | CHINA MILK | CASH | -7.93% |
| 6 | COURAGE MAR | CASH | -12.00% |
| 7 | COSCOCORP | CASH | -31.85% |
| 8 | FIBRECHEM | CASH | -48.92% |
| 9 | FSL TRUST | CASH | -5.75% |
| 10 | GEN INT | CASH | -22.02% |
| 11 | JAYA HLDG | CASH | -33.48% |
| 12 | KS ENERGY | CASH | -18.79% |
| 13 | MACQ INT INFRA | CASH | -35.28% |
| 14 | ROTARY ENGRG LTD | CASH | -61.62% |
| 15 | TAI SIN | CASH | -46.20% |
| 16 | SWIBER | CASH | -31.38% |
| 17 | UOB-KAY HIAN | CASH | -44.75% |
| 18 | VICOM | CASH | -1.33% |
| 19 | VANGUARD EMER MRKTS | CASH | -6.89% |
| 20 | BH GLOBAL | CPF | -48.40% |
| 21 | COSCOCORP | CPF | -21.72% |
| 22 | SIAENGG | CPF | -46.71% |
Monday, September 1, 2008
CIMB-GK $1 commission
In an effort to attract new clients and encourage more trading activities, another brokerage has joined the rank like Lim & Tan in bringing down commission charges to virtually no of charge. CIMB-GK now offers up to eight trades at S$1 commission per trade.
The promotion is applicable to new cash trading account opened with them from 16 August to 31 December. The S$1 commission is applicable to SGX trades executed during the same period.
The promotion is applicable to new cash trading account opened with them from 16 August to 31 December. The S$1 commission is applicable to SGX trades executed during the same period.
Thanks to Ku for the alert. I am looking forward to open an account with them. I think the eight trades are enough for me to last till the end of the year. What a great start for those who are about to embark their investment journey with stocks. They get to enjoy lots of no commission charges with their trades during these volatile and uncertain periods.
Daily news - 1 Sep
Olam's takeover targets may become cheaper
Olam International Ltd – Says potential takeover targets may become cheaper as stock and commodity prices decline. The shares surged. CEO Sunny Verghese said he was seeing significant opportunities and are finding “real value targets”. Olam made 13 acquisitions since the start of 2007, according to Bloomberg data, and said last week that more may follow in the next 12 months. The Singapore-based company, which plans to boost profit by as much as 30% a year, said last week after the close of trading that fiscal Q4 net more than doubled to $64.9m. Acquisitions helped sales volumes expand 31% to 4.93m tonnes in the 12 months to June 30, Mr Verghese said last Friday. Olam's recent takeovers and investments include Australia's Queensland Cotton Holdings Ltd, US peanut processor Universal Blanchers LLC, and a 35% stake in China Grains & Oil I/E Corp.
CapitaLand divests stake in KL tower
CapitaLand – Is divesting its 30% stake in a company that owns Menara Citibank, a 50-storey office tower in Kuala Lumpur's Jalan Ampang, for RM176m (S$75.5m). Upon completing the divestment, the Singapore-based property giant will recognise a gain of about S$22.1m. The company being divested is Inverfin Sdn Bhd, whose principal asset is Menara Citibank. CapitaLand and the other Inverfin shareholders - Citibank (50%) and Lion Group (20%) - are selling their respective shareholdings in Inverfin to IOI Corporation Bhd. The total consideration for the divestment is RM586.7m and based on the net asset value of Inverfin which values the property at about RM733.6m, this works out to about RM1,000 per square foot of net lettable area for the freehold property. CB Richard Ellis Singapore and RE Group Associates Sdn Bhd acted for Inverfin's shareholders. CapitaLand Commercial Ltd CEO Wen Khai Meng said the group will recycle or redeploy proceeds from the divestment to tap on new opportunities in the growing Malaysian market.
Source: Kim Eng
Olam International Ltd – Says potential takeover targets may become cheaper as stock and commodity prices decline. The shares surged. CEO Sunny Verghese said he was seeing significant opportunities and are finding “real value targets”. Olam made 13 acquisitions since the start of 2007, according to Bloomberg data, and said last week that more may follow in the next 12 months. The Singapore-based company, which plans to boost profit by as much as 30% a year, said last week after the close of trading that fiscal Q4 net more than doubled to $64.9m. Acquisitions helped sales volumes expand 31% to 4.93m tonnes in the 12 months to June 30, Mr Verghese said last Friday. Olam's recent takeovers and investments include Australia's Queensland Cotton Holdings Ltd, US peanut processor Universal Blanchers LLC, and a 35% stake in China Grains & Oil I/E Corp.
CapitaLand divests stake in KL tower
CapitaLand – Is divesting its 30% stake in a company that owns Menara Citibank, a 50-storey office tower in Kuala Lumpur's Jalan Ampang, for RM176m (S$75.5m). Upon completing the divestment, the Singapore-based property giant will recognise a gain of about S$22.1m. The company being divested is Inverfin Sdn Bhd, whose principal asset is Menara Citibank. CapitaLand and the other Inverfin shareholders - Citibank (50%) and Lion Group (20%) - are selling their respective shareholdings in Inverfin to IOI Corporation Bhd. The total consideration for the divestment is RM586.7m and based on the net asset value of Inverfin which values the property at about RM733.6m, this works out to about RM1,000 per square foot of net lettable area for the freehold property. CB Richard Ellis Singapore and RE Group Associates Sdn Bhd acted for Inverfin's shareholders. CapitaLand Commercial Ltd CEO Wen Khai Meng said the group will recycle or redeploy proceeds from the divestment to tap on new opportunities in the growing Malaysian market.
Source: Kim Eng
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