MICA (P) 081/12/2011 Ref No: RM2012_0190 1 of 17 Regional Market Focus 1 October 2012 Morning Market Commentary - STI: +0.03% to 3060.3 - MSCI SE Asia: +1.00% to 841.6 - Hang Seng: +0.38% to 20840.4 - MSCI APxJ: +0.64% to 441.3 - Euro Stoxx 50: -2.07% to 2454.3 - S&P500: -0.45% to 1440.7 MARKET OUTLOOK: By Joshua Tan, Macro Strategist & Dep. Hd Markets are still risk-off in the near term as economic data has been relentlessly bad – on Friday reports out of China, S.Korea, Thailand continue to reinforce the slowing manufacturing trajectory we are on, while US consumption and incomes was soft (see Macro Data). The overall chart patterns, however, still suggest the trend is up – S&P500, APxJ, ASEAN – which makes us very wary that equities are setting themselves up for some disappointment down the line. Clearly, markets hope that QE3 will work magic on the US, while China’s data is so bad its good in terms of hope for stimulus. We are just surprised that Equities are not much lower than where they are now, but given the unprecedented monetary intervention, who are we argue? Our SG Equity Strategist says stick to strong defensible yields with the ability to grow dividends: SIAEC, SATS, STE, SembCorp, Comfort, Singtel, all of which have outperformed the STI except for Singtel. As for Singtel, we are expecting improved monetisation of data from higher speeds and better efficiency. Best asset class given the situation? EM, Asia bonds (ETFs: N6M and O9P (SGX) ; EMB and EMHY (NYSE)) likely to head higher whether the environment is risk on or risk off. Because in the face of negative real yields when buying traditional safe havens, portfolios will be forced to expand the list of what is considered credit worthy – EM and Asia debt – will be explored where nominal GDPs tend to compound at a faster rate than debt, and yields can still be found >3.5% on 10yr issues. On this note, our ASEAN analyst Ng Weiwen has lots to say about the M’sia budget – despite what you read in their national papers about it being only mildly expansionary – we are concerned about govt finances (see Macro Data section for analysis). Essentially, while the pre- election pump priming is going to sustain the economy in the face of an external slowdown, fiscal profligacy now enters as another market risk apart from a possible poor mandate for BN. In terms of our ASEAN strategy, we prefer Phillippines (N2E:SGX), Thailand (LG6:SGX), Singapore (ES3:SGX), to Malaysia (election risk) and Indonesia (rupiah risk). Clients can access reports with preferred stock names from the “Country Strategy” list below.
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MICA (P) 081/12/2011 Ref No: RM2012_0190 1 of 17
Regional Market Focus
Phillip Securities Research Pte Ltd
1 October 2012
Morning Market Commentary - STI: +0.03% to 3060.3 - MSCI SE Asia: +1.00% to 841.6 - Hang Seng: +0.38% to 20840.4 - MSCI APxJ: +0.64% to 441.3 - Euro Stoxx 50: -2.07% to 2454.3 - S&P500: -0.45% to 1440.7
MARKET OUTLOOK: By Joshua Tan, Macro Strategist & Dep. Hd Markets are still risk-off in the near term as economic data has been relentlessly bad – on Friday reports out of China, S.Korea, Thailand continue to reinforce the slowing manufacturing trajectory we are on, while US consumption and incomes was soft (see Macro Data). The overall chart patterns, however, still suggest the trend is up – S&P500, APxJ, ASEAN – which makes us very wary that equities are setting themselves up for some disappointment down the line. Clearly, markets hope that QE3 will work magic on the US, while China’s data is so bad its good in terms of hope for stimulus. We are just surprised that Equities are not much lower than where they are now, but given the unprecedented monetary intervention, who are we argue? Our SG Equity Strategist says stick to strong defensible yields with the ability to grow dividends: SIAEC, SATS, STE, SembCorp, Comfort, Singtel, all of which have outperformed the STI except for Singtel. As for Singtel, we are expecting improved monetisation of data from higher speeds and better efficiency. Best asset class given the situation? EM, Asia bonds (ETFs: N6M and O9P (SGX) ; EMB and EMHY (NYSE)) likely to head higher whether the environment is risk on or risk off. Because in the face of negative real yields when buying traditional safe havens, portfolios will be forced to expand the list of what is considered credit worthy – EM and Asia debt – will be explored where nominal GDPs tend to compound at a faster rate than debt, and yields can still be found >3.5% on 10yr issues. On this note, our ASEAN analyst Ng Weiwen has lots to say about the M’sia budget – despite what you read in their national papers about it being only mildly expansionary – we are concerned about govt finances (see Macro Data section for analysis). Essentially, while the pre-election pump priming is going to sustain the economy in the face of an external slowdown, fiscal profligacy now enters as another market risk apart from a possible poor mandate for BN. In terms of our ASEAN strategy, we prefer Phillippines (N2E:SGX), Thailand (LG6:SGX), Singapore (ES3:SGX), to Malaysia (election risk) and Indonesia (rupiah risk). Clients can access reports with preferred stock names from the “Country Strategy” list below.
Regional Market Focus
1 October 2012
2 of 17
Reports & Macro Data
REPORTS: -Singapore Sector Reports: Banks, 1 Oct / Transport, 10 Sept / Telcos, 16 May / Property, 28 Aug / REITS, 5 Sept / Thematic, 21 Aug -Country Strategy: Indon, 27 Sept/ Thai, 6 Sept/ S'pore, 3 Sept/ Malaysia, 31 Aug/ China, 23Aug/ HK, 22 June -Global Macro, Asset Strategy: 26 July MACRO DATA: In Malaysia, PM Najib unveiled a slew of populist measures during the 2013 Budget last Friday, which aimed at garnering support from various interest groups (ethnic Malays, youth and low-income voters) prior to the upcoming 13th General Elections. Notably, MYR 9 bn worth of Mass Railway Project will be allocated to Bumiputera firms. The government also projects a lower deficit of 4% of GDP in 2013 (down from ~4.5% deficit this year). However, we reckon that the projected 2013 deficit target of 4% might be a tad ambitious at this juncture. Instead, we opine that the administration needs to overhaul the food and fuel subsidies system and possibly even introduce goods and services tax to curb a ballooning federal budget deficit. While these cash handouts and pre-election pump priming might help bolster domestic demand and mitigate weakness in external demand, we caution that these populist moves might push the government towards fiscal peril. Nonetheless, if BN returns to office, we do not rule out the possibility of the administration taking steps to address the fiscal sustainability. However, in the event that the incumbent Barisan Nasional fail to obtain a strong mandate, the Economic Transformation Program and Government Transformation Program - major pillars of the domestic demand story- may be confronted with headwinds, which will weigh on growth and Malaysia equity market.
In the US, consumption and income growth remained soft. Real consumption rose 0.1% m-m sa in Aug, compared to the 0.4% gain in the preceding month. PCE price index rose 0.4% m-m sa in Aug, largely due to higher energy prices. Real disposable income contracted 0.3% m-m sa in Aug, reversing from a 0.1% gain in the preceding month. The University of Michigan's consumer sentiment was revised down to 78.3 in Sept final print (from 79.2 in the prelim print) but still gained 4.0pts m-m.
In the EZ, consumer price inflation accelerated to 2.7% y-y in Sept (flash estimates), compared to 2.6% in the preceding month. The uptick in inflation was largely due to higher energy prices (+9.2%) as well as Spain's increase in its value added tax (+3%pt to 21%).
In Thailand, industrial production continued to contract for the third consecutive month by 8.8% y-y, 3mma in August. By contrast, auto production continued to grow at a healthy pace (rising 44.8% y-y, 3mma in Aug). This suggests that manufacturing output ex-autos has been soft. We expect BoT to tread a fine balance. At this juncture, the balance of risks has been tilted towards growth rather than inflation. However, the hurdle for a rate cut is higher now -in spite of sluggish exports as well as industrial production- especially after BoT governor opined that a rate cut could undermine financial stability in view of robust credit expansion. We are expecting monetary policy to be biased towards an accommodative stance in 2H12 and do not rule out the possibility of a 25bps rate cut by the end of this year, especially if growth downside risks outweigh inflation upside risks. In China, HSBC PMI for manufacturing reported a slight increase to 47.9 in Sep, compared to the preliminary reading of 47.8 and the reading of 47.6 in August, indicating a contraction for the 11th consecutive month. A separate survey showed that MNI China business sentiment indicator rose to 51.35 in September, compared to the 50.31 preliminary reading and 47.54 in August. Sub index for new order rose to 52.30, compared to 47.50 in August. Production rose to 49.68 from 44.69 in August. The discrepancy in HSBC PMI and MNI indicator might be a sign that the government’s earlier stimulus is gradually working but the scale is still not enough. Going forward, we expect the government to conduct further loosening such as fiscal stimulus and RRR cut. In South Korea, industrial production fell by 0.7% m-m in August, a third consecutive monthly fall, after the 1.9% m-m fall in July. Shipments fell by 2.9% m-m in August, a faster drop compared to 1.9% m-m in July. Inventory rose by 4.7% m-m, after the 0.1% m-m gain in July. The underperforming readings imply a weak domestic and external demand. The government is holding a benchmark rate at 3.0% and still has scope for further cuts if the economy further deteriorates. In Japan, total store sales rose by 0.2% m-m in August, the first gain in 3 months, compared to July’s 1.9% m-m fall. Retail sales rose by 1.5% m-m, reversing the 1.5% m-m drop in July. CPI fell by 0.4% y-y in August, the same as it was in July, implying the government fails to achieve the target of reversing the decades long deflation, which it announced earlier this year. The central bank unexpectedly expanded its asset-purchasing program two weeks ago, aiming to boost Japan’s economic recovery amid a backdrop of faltering global economy and reverse the trend of strong yen.
Source: Phillip Securities Research Pte Ltd
Regional Market Focus
1 October 2012
3 of 17
Singapore The Singapore Market ended flat at 3,060.3pts (+0.03%) on moderate volume of
1.6bn shares worth S$1.5bn. During an EGM on Friday, the shareholders of Fraser and Neave voted in favour
of Heineken’s offer to acquire their interests in Asia Pacific Breweries (APB). Following completion of this transaction, Heineken would make a mandatory general offer for the rest of APB’s shares.
The Singapore Exchange (SGX) proposed new share allocations in order to raise
retail participation during IPOs. The key proposals would be for a minimum of 5% allocation to the public subscription tranche, which could be increased when the demand for shares in the tranche exceeds prescribed thresholds.
We maintain our view that there is limited upside for the STI, with 3,088 as the
Thailand The benchmark SET index rose to test a key psychological level of 1300 but
failed to break through before it finished the session at 1298.79 points in moderate turnover last Fri.
Last Fri, the SET index rose to test a key barrier of 1300 but failed to break
though. Even though there is potential for a retest of this key resistance level, we think a breakout above this barrier is unlikely for the meantime. Fears of global economic slowdown and European debt crisis also remained causes of concern especially the situation in Spain. Key economic data out of major economies failed to show signs of strong recovery. The Dow industrials fell last Fri on disappointing US economic data. In addition, the approaching third-quarter corporate earnings season should further add more volatility to the market, in our view. Overall we expect Thai stocks will move in a narrow range today and trading may be subdued as several stock markets in Asia including China, Korea and Hong Kong are closed today for National Day holiday.
The short-term strategy is to sell on rallies and buy on dips. We also advise
investors to gradually book profits on rise around resistance levels. Today we peg resistance for the SET index at 1303-1313 and support at 1295-
1287.
Close +/- % +/-SET INDEX 1298.79 12.68 0.99P/E (x) 18.36P/Bv (x) 2.27
3.45Dividend Yield
STOCK EXCH OF THAI INDEX
800
900
1000
1100
1200
1300
1400
9/28 12/28 3/28 6/28 9/28
Source: Bloomberg
Indonesia
Most stocks listed on the Indonesia stock exchange finished higher Friday (28/09), trailing broad advances on Asian markets after Spain announced its budget plan. The Jakarta composite index rose 37.537 points, or 0.89%, to close at 4,262.561. The advance included eight of the 9 major industry groups, led by consumer goods sector that jumped 1.96%. Property, real estate, and construction sector followed suit with 1.73%, and trade and services sector added 1.48%. Blue-chip stocks also rose, with shares of cement producer Semen Gresik (SMGR +3.58%) fared best among the 45 large cap stocks. The LQ45 index climbed 6.530 points, or 0.90%, to close at 731.774. For every stock declining, almost two climbed Friday on the Indonesia Stock Exchange, where 3.379 billion shares worth IDR 3.966 trillion traded on the regular board. Foreign market participants posted net purchases worth IDR 534.13 billion, the largest net buy this week.
We expect the Jakarta composite index to decline today, as concerns about
slowing economies dominated market sentiments after weaker manufacturing data from China and Japan. The JCI will likely trade with support at 4,150 and resistance at 4,245.
Close +/- % +/-JCI Index 4262.56 37.54 0.89P/E (x) 19.00P/Bv (x) 2.92
2.09Dividend Yield
JAKARTA COMPOSITE INDEX
3000
3200
3400
3600
3800
4000
4200
4400
9/28 12/28 3/28 6/28 9/28
Source: Bloomberg
Regional Market Focus
1 October 2012
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Sri Lanka Having commenced on a flat note on Monday, market demonstrated gradual
appreciations in terms of indices, stock prices along with turnover levels on latter part of the week to complete the delightful September month on fruitful manner. Participations of retail, Institutional and high net worth segments to the market activities were stunning during the week.
All Share Price Index gained by 61.92 points (1.05%) to close the week at
5,971.99 and Milanka Price Index stood at 5,645.95, soared by 111.64 points (2.02%). S&P SL20 Index also increased by 62.82 points (1.98%) and ended the week at 3,240.98. Weekly turnover exceeded LKR 10Bn for the second time for the month, which was a 39.50% up against the recorded LKR 7.19Bn turnover in previous week. LKR 2.46Bn worth foreign purchases are included for the weekly turnover and the resulted net foreign inflow for the week was LKR 1.41Bn, reflecting 135.86% increase compared to the previous week supporting the currency to reach below LKR 130/- against USD on Thursday after a considerable period. The growth in net foreign inflow clearly indicates the foreigners’ hunt on blue chip counters.
Total traded volume for the week was 333.5Mn shares, 16.35% reduction
compared to the previous week. Total market capitalization stood at LKR 2.27Tn. The market’s PER(X) and PBV(X) stood at 16.17 and 2.12 respectively at the weekly closure. The positive sentiments were further elevated by T-bill yields on Wednesday accounted heavy dip across all three maturities. One year risk free rate of the country dropped by 28 basis points to 13.02.
Close +/- % +/-CSEALL Index 5971.99 22.57 0.38P/E (x) 12.48P/Bv (x) 1.83
2.34
Dividend Yield
SRI LANKA COLOMBO ALL SH
4500
5000
5500
6000
6500
7000
9/28 12/28 3/28 6/28 9/28
Source: Bloomberg
Australia
A flat day on the market on Friday with most of the focus on tomorrow’s Reserve Bank of Australia meeting and whether or not there will be a rate cut.
The ASX has opened flat today and a quiet day is expected as a number of
states have public holidays. The banks have opened in positive territory. International markets were lower on Friday night and the AUD has fallen with
expectation of an interest rate reduction gaining momentum.
Close +/- % +/-S&P/ASX 200 INDEX 4387.02 2.85 0.06P/E (x) 16.66P/Bv (x) 1.75
6.51Dividend Yield
STANDARD & POORS/ ASX 200 INDEX
3800
4000
4200
4400
4600
9/28 12/28 3/28 6/28 9/28
Source: Bloomberg
Hong Kong
Market is closed today. Shares of ZTE Corp <0763.HK>, the world's sixth-largest handsets maker, rose
more than 6 percent to hit a more than two-month intraday high on Friday as smartphone demand in China is forecast by analysts to remain strong.
(Source: Reuters)
Close +/- % +/-HSI INDEX 20840.38 78.09 0.38P/E (x) 10.49P/Bv (x) 1.41
3.41Dividend Yield
HANG SENG INDEX
16000
17000
18000
19000
20000
21000
22000
23000
9/28 12/28 3/28 6/28 9/28
Source: Bloomberg
Regional Market Focus
1 October 2012
5 of 17
Singapore
Singapore Banking Sector – Update
Singapore’s total DBU loans outstanding registered y-y growth of 19.2% to S$468.8 billion in Aug 2012. Business loans and Consumer loans reported growth of 22.3% y-y and 15.1% y-y respectively.
M-m, loans growth in Aug 2012 was higher. Total loans grew 2.3%, compared to 1.3% in Jul 2012. Business loans grew 3.0% m-m, while Consumer loans grew by 1.3%.
We are underweight on the Singapore Banking Sector, and maintain our preference for DBS over UOB and OCBC.
Thailand
Home Product Center – Company Update Recommendation: TRADING BUY Previous close: Bt13.30 (27 Sept 2012) Fair value: Bt15.50
We expect 3QCY12 net profit growth of 24.6% y-y and 5.4% q-q.
Net profit in the first nine month of the year would remain at low level but we believe an upbeat 4QCY12 outlook to drive whole year net profit to meet our forecast.
We expect CY13 net profit to slow down but it would still see growth of as high as 26.25 y-y.
Rolling forward to our CY13 valuation, our pre-XD target price arrives at Bt15.50/share and post-XD of Bt13/share. We rate HMPRO shares ‘TRADING BUY’.
We expect KSL’s 4QFY12 results to be softer than 3QFY12 as a result of shrinking sales volumes due to the end of the sugar
year.
Looking ahead into FY13, sales volumes are set to rise thanks to earlier-than-scheduled production startup at its new plant in Loei Province.
For investment in new ventures, the focus will be on businesses relating to existing operations and new downstream businesses. We rate KSL shares a ‘BUY’ with a target price of Bt15.10/ share.
US The United States is "drowning in unemployment," its economy is running at stall speed and inflation is "not a problem," but easier
monetary policy is not the answer, one of the Federal Reserve's most hawkish policymakers said on Friday. "We've had a recovery that is quite disappointing," Dallas Fed President Richard Fisher told a group at the University of Texas at Dallas. But without more certainty on tax policy and regulation, he said, "all the monetary accommodation in the world" will not get businesses hiring again. (Source: Reuters)
The Dollar Index fell by the most since the first quarter of 2011 after the European Central Bank pledged to protect the euro from
unravelling and the Federal Reserve committed to reduce unemployment via open-ended debt buying, which may debase the US currency. (Source: BT Online)
Singapore The government will consider tightening the foreign workforce inflow further in order to push Singapore companies toward higher
productivity business models and away from labour-intensive growth, said Acting Manpower Minister Tan Chuan-Jin yesterday. "We will monitor closely over the next few months and take further measures down the road, if needed," he said in a post on the Ministry of Manpower blog. The government will, however, rein in foreign manpower growth at a pace businesses can adjust to. "If needed, we will tighten foreign workforce controls further. Companies must do their part and transform," said Mr Tan, who started his blog post acknowledging that Singapore companies are concerned about government overtightening. (Source: BT Online)
The Singapore Exchange (SGX) has released a consultation paper aimed at making initial public offerings (IPOs) on the mainboard
more accessible to retail investors. Two key proposals are being made - raising the minimum allotment of public subscription to 5 per cent of IPO invitation shares, and the introduction of a claw-back mechanism that acts to increase the public subscription proportion to between 10 and 20 per cent if demand for the stock is red-hot. In turn, if demand is low for a particular listing, a "reverse claw-back mechanism" is activated so that shares meant for public subscription can be transferred back to the placement tranche. (Source: BT Online)
Trading of both physical and paper oil here remained subdued in Q3, continuing the trend earlier this year, though Singapore's refineries
surprised on the upside by recording higher margins in the July-September period, industry players said. "It was not as bleak or pessimistic as thought for the refining industry here. Thanks to capacity closures of older plants in Europe, as well as some closures in Japan, plus a fire at Amuay, Venezuela's largest refinery, Singapore margins were up in Q3," a trading executive told The Business Times. (Source: BT Online)
Hong Kong Former Communist Party chief of Chongqing, Bo Xilai, has been expelled from the Communist Party of China and his public office,
according to a decision made at a meeting of the Political Bureau of the CPC Central Committee. The meeting also decided to transfer Bo's suspected law violations and relevant clues to judicial organs, the agency said. (Source: http://www.thestandard.com.hk)
Thailand Foreign investors bought a net Bt4,056.82mn of Thai equities last Fri. (Source: Bisnews) The Industrial Estate Authority of Thailand (IEAT) has sought cooperation from the Royal Irrigation Department to siphon water out of
Khlong Bueng Bua in a bid to reduce water levels by 50 cm to relieve water pressure on more than 30-year old flood prevention dyke at Lat Krabang Industrial Estate, adding that it would also push for construction of permanent floodwalls at six industrial estates, which is expected to be completed in May 2013. (Source: Post Today)
Several stock markets in Asia including China, Korea and Hong Kong are closed today. Note that Chinese bourses will be closed for
National Day holiday throughout this week.
Indonesia The government is projected to only be able to maintain the 2012 current account deficit in the range of 2.2-2.5 percent of the Gross
Domestic Product (GDP), higher than the suggestion from International Monetary Fund (IMF) of two percent in a report published Wednesday. Efforts to reduce the deficit have been a concern of the government and Bank Indonesia. The government and Bank Indonesia have been trying to control current account deficit at below three percent of GDP. Currently, the account deficit reaches 3.1 percent of GDP. To reduce the deficit, the trade balance deficit is reduced through the tightening of dumping policy that will suppress the import of goods. From the balance of services aspect, the government will seek to use national logistics in trading activities and more insurance activities through domestic insurance. Data from Bank Indonesia shows the current account began to deficit in the fourth quarter of 2011 with USD 1.6 billion or 0.7 percent of GDP. In the first quarter of 2012, the deficit increased to USD 3.2 billion or 1.5 percent of GDP, and again increased to USD 6.9 billion or 3.1 percent of GDP in the second quarter. (Source: Indonesia Finance Today)
The Investment Coordinating Board (BKPM) estimates the revision of tax allowance rule in the Minister of Finance Regulation (PMK) No.
144/PMK.011/2012 will encourage regional investment. BKPM, said the regulation will make it easier for investors to set up businesses outside Java. The provision of the tax allowance facility can also affect the prices of goods in other regions which have been more expensive than the prices in the island of Java because of high transportation costs. In addition, the government expects this facility to encourage investments in industries oriented to the development of local resources. In the PMK 144/2012, the industrial sectors which
Regional Market Focus
1 October 2012
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are eligible to receive incentive of tax allowance Income Tax are increased from 38 to 129 sub-sector industries. The incentives provide income tax reduction of up to 30 percent over six years or five percent annually. Data from BKPM shows that in the first half of 2012, investment realization in the Java corridor was the highest with IDR 79.9 trillion (USD 8.30 billion) or 53.9 percent of the total national investment. The Sumatra corridor has an investment of IDR 24.2 trillion or 16.4 percent, Kalimantan IDR 21.4 trillion or 14.5 percent, Sulawesi IDR 9 trillion or 6.1 percent, Maluku-Papua IDR 7 trillion or 4.7percent, and Bali-Nusa Tenggara IDR 6.6 trillion or 4.5 percent. (Source: Indonesia Finance Today)
Sri Lanka Consumer prices in Sri Lanka's capital rose 9.1 percent in the 12-months to September 2012 slowing from 9.5 percent in August, while
the index fell in absolute terms in the month. The Colombo Consumer Price Index fell absolutely for the second month running to 165.5 points from 165.7 points a month earlier. In August the index fell 1.0 point. The food and beverages sub index (with alcohol excluded due to the current administration's Mat hater thither or anti-alcohol policy) fell 0.3 points to 185 points in the month, while non-foods rose 0.1 percent. The moving average of the index, a lagging indicator averaged across two years continued to rise to 6.5 percent in September from 6.3 percent in August. Sri Lanka's inflation spiked amid a balance of payments crisis triggered by heavy money printing to accommodate state credit taken to finance energy subsidies by the state which sent the rupee plunging to 134 to the US dollar from 110 a year earlier. However after energy prices and interest rates were raised after two billion US dollars of foreign reserves were lost and credit has slowed allowing inflation to moderate. Inflation has also slowed after previous balance of payments crisis as slowing or contracting credit is supported by a gently appreciating exchange rate to bring down prices of traded goods. The rupee has so far appreciated to about 129.50 to the US dollar from lows of 134.00 to the US dollar in mid-2012. (lbo.lk)
Australia A consortium including Korean steel giant POSCO has tried to take advantage of low iron ore prices, lodging a takeover bid for Arrium
(ARI), the company previously known as OneSteel. Arrium has rejected the offer which sought to buy all Arrium shares for 75 cents per share: about 20 cents higher than Arrium's closing price on Friday. POSCO was joined in the bid by commodities trader Noble group, Korean pension funds and several other Korean investors. (Source: Sydney Morning Herald)
Fortescue Metals Group (FMG) says its reached a milestone as it pursues its iron ore production expansion in the Pilbara region of
Western Australia. The miner has processed the first ore through its 25 million tonne per annum Christmas Creek 2 plant, the second ore processing facility at the Christmas Creek iron ore mine. CEO Nev Power says the development puts Fortescue a step closer to reaching its 155 million tonne per annum production target by the end of the first quarter 2013. Mineral Resources Limited’s (MIN) wholly owned subsidiary Crushing Services International has a build, own and operate contract with Fortescue at the Christmas Creek plants and has also welcomed the development. (Source: Finance News Network)
Regional Market Focus
1 October 2012
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Dollar Index +0.23% Gold 1,772.10 -0.38%
Crude oil +0.37% US Treasury 10yr Yield 1.628 -0.01%
DJI -0.36% S&P 500 INDEX 1,440.67 -0.45%
SHCOMP +1.45%
Source: Bloomberg
10000
11000
12000
13000
14000
Sep-11
Nov-11
Jan-1
2
Mar-1
2
May-1
2
Jul-1
2
70
75
80
85
Oct-1
1
Dec-1
1
Feb-1
2
Apr-1
2
Jun-1
2
Aug
-12
1200
1400
1600
1800
2000
Oct-1
1
Dec-11
Feb
-12
Apr-1
2
Jun-1
2
Aug-12
70
80
90
100
110
120
Oct-1
1
Dec-11
Feb
-12
Apr-1
2
Jun-1
2
Aug-12
1.4
1.6
1.8
2
2.2
2.4
2.6
Oct-1
1
Dec-11
Feb
-12
Apr-1
2
Jun-1
2
Aug-12
2000
2300
2600
Oct-1
1
Dec-11
Feb
-12
Apr-1
2
Jun-1
2
Aug-12
1000
1100
1200
1300
1400
1500
Oct-1
1
Dec-11
Feb
-12
Apr-1
2
Jun-1
2
Aug-12
Regional Market Focus
1 October 2012
9 of 17
Source: Bloomberg
World Index
JCI 0.89% 4,262.56
HSI 0.38% 20,840.38
KLCI 0.54% 1,636.66
NIKKEI -0.53% 8,823.08
KOSPI 0.38% 1,996.21
SET 0.99% 1,298.79
SHCOMP 1.45% 2,086.17
SENSEX 0.99% 18,762.74
ASX 0.14% 4,393.20
FTSE 100 -0.65% 5,742.07
DOW -0.36% 13,437.13
S&P 500 -0.45% 1,440.67
NASDAQ -0.65% 3,116.23
COLOMBO 0.38% 5,971.99
STI 0.03% 3,060.34
Regional Market Focus
1 October 2012
10 of 17
Singapore
Top 10 Value Last % Chg Chg Value ('k) Top 10 Volume Last % Chg Chg Volume ('k)