Singapore Exchange News

Amni, 16 yrs old, performed at MUIS Tea Reception at the Regent Hotel on 23 July 2011. The event was graced by President SR Nathan. Sorry for the background noise.

Mr. Market is showing displeasure with FSL Trust’s decision to reduce quarterly DPU from 0.95c to 0.1c. Its price has plunged more than 20% from the closing of 30c yesterday to 23c when I last looked.

Assuming an exchange rate of US$1 to S$1.30,…



[[ This is a content summary only. Visit my website for full links, other content, and more! ]]

DC5 vs DC2 vs Ek9 Honda stock Type R battle

On the week, the USD and JPY made substantial losses against most majors amid positive data coming out of the US, suggesting recovery for the world’s biggest economy.  EUR/USD touched a two-week high before a report forecast to show sales of existing U.S. homes rose to the highest in 1&1/2 years.  In Asian trading the EUR/USD peaked at around 1.2983, its highest level since Jan 4.  In addition the euro has risen 2.3% since Jan 13.  Overall the currency market had a very quiet day during Asian session perhaps due to the winding down in readiness for the Lunar new year or that traders are waiting for news as Greece heads into a third day of talks with private creditors on a debt-swap plan.  In summation for the week, we have seen euro recover across the board on the back of short covering, technical retracement and stop losses.  That said market players are still quite comfortable with the thought that EUR/USD remains bearish as a trend due fundamental factors.  However in our opinion and with regards to risk/return ratio, the daily chart seems to indicate that the downward trend may resume on the break of 1.2930.

 
Markets were upbeat yesterday as more European bond auctions saw bond yields decline. Spain sold EUR 6.61 billion of 2016, 2019 and 2022 maturing bonds against a target of EUR 4.5 billion while France sold 2014 notes at a yield of 1.05% which was down from 1.58% in October. As a result, the common currency surged to almost 1.3000 in late Asia before falling on renewed concerns over Greece. It is testing support at 1.2900 mid session in Europe.

In other Greek news, in the country most famous for goats, olives, and tax avoidance, Greek authorities have arrested a 35 year old woman who ran a clothing company between 2006 and 2010 for tax evasion to the tune of EUR 48 million. The Greek Finance Ministry estimates that total unpaid taxes amount to more than EUR 40 billion which would certainly go some way to meet the nation’s mammoth debt obligations.

Continued strength in US economic data saw equity markets continue their strong run in Asia with the MSCI Asia Pacific rising more than 1%. US jobless claims collapsed to their lowest level in four years and better than expected earnings from Bank of America saw that stock rise more than 2% with strong performances from other financials helping the S&P 500 to close higher yesterday. However, stocks in Europe are trading lower by about 0.5% as talks between Greek officials and private creditors entered their third day.

Commodities News

Commodity prices gained overnight as market sentiment continues to improve but are losing ground in European trade. WTI crude fell to below $100.00 as demand for gasoline in the US fell to its lowest levels in 10 years at only 8 million barrels a day. Precious metals eased marginal with gold falling 0.49% to $1,646 while silver lost 0.39% to $30.40. Soft commodities are mixed while copper has fallen from 4 month highs losing 1.2%.

GOLD

GOLD has barely moved from yesterday’s opening levels during the Asian session as it shows strong price consolidation trading in a $1,642 to $1,669 range over the past 24 hours. The better than expected bond auction results in Europe, good economic data in the US and a broad weakening of the USD overnight have help to support the gold price and saw it briefly attempt to break above resistance at $1,667. Gold continues to look very bullish at the moment given the current conditions and all of the stars are starting to align for the next big run up in prices which could see the price test all time highs within the next quarter.  The rise of the EUR this week as aided the move higher on precious metals. The daily charts are showing the RSI pointing higher and we are now witness to the next push higher. Resistance initially resides at $1,662 and higher up at $1,667.  If we can break through these levels convincingly then we should move up to downtrend resistance at $1,690 at first and the up to $1,700/02.

FX News

EURUSD

On the week, the USD and JPY made substantial losses against most majors amid positive data coming out of the US, suggesting recovery for the world’s biggest economy.  EUR/USD touched a two-week high before a report forecast to show sales of existing U.S. homes rose to the highest in 1&1/2 years.  In Asian trading the EUR/USD peaked at around 1.2983, its highest level since Jan 4.  In addition the euro has risen 2.3% since Jan 13.  Overall the currency market had a very quiet day during Asian session perhaps due to the winding down in readiness for the Lunar new year or that traders are waiting for news as Greece heads into a third day of talks with private creditors on a debt-swap plan.  In summation for the week, we have seen euro recover across the board on the back of short covering, technical retracement and stop losses.  That said market players are still quite comfortable with the thought that EUR/USD remains bearish as a trend due fundamental factors.  However in our opinion and with regards to risk/return ratio, the daily chart seems to indicate that the downward trend may resume on the break of 1.2930.

USDJPY

Again USD/JPY traded within a tight range today during Asian time and early London time 77.04 – 77.31.  However, yesterday the JPY (excluding against the USD) suffered the most against the other currencies.  This may be in part due to the general shift out of low-yield bearing ‘safe’ currencies and back into those assets with income potential.  The interesting thing here is that the JPY fell more against the USD then the traditional commodity currencies like AUD and NZD.  On the technical side, the 30-minute chart shows a very nice flag formation.  Flags and pennants are perhaps the most common of continuation chart patterns.  What this means is that theoretically, USD/JPY should move upwards once consolidation is finalised.  With that expected range may be 77.00 to 77.34 (Jan highest and immediate resistance).  The dollar has fallen 2.3 percent versus the euro since Jan. 13, and the yen has lost 2.5 percent. The declines would be the biggest for both the U.S. and Japanese currencies since the week ended Oct. 14.

AUDUSD

AUD/USD has not been able to benefit in the same way as the other majors mainly Euro over the last couple of days as the talk of M&A activity has decreased and the concerns over the Employment numbers yesterday despite the Full Time Jobs rising 10K the 50K in part time losses causes great concern in December, which historically is a positive. Offers continue to lower as the price tried to follow the majors higher with longer term bears being spoken about as the aggressive sellers at present. The bids and offers are reducing but at the present time the markets looks to be favouring a topside break only because of the bid tone of the Euro. If Euro manages to break above 1.3000 the commodity currencies could see another leg up with AUD possibly back into the 1.0500.  This would end our bearish bias for now as we would have to review again. However, what we favour is a break of the 1.0375 support to lead to a test of 1.0340. If these two levels break the bearish market will be in control once again and parity here we come!

Compass Global Markets

DISCLOSURE AND DISCLAIMER
Compass Global Markets Pty Ltd (“Compass Global Markets”) ACN 144 657 885, Authorised Representative No. 377377, is a Corporate Authorised Representative of Calibre Investments Pty Ltd (Australian Financial Services License No. 337927). Please refer to the Financial Services Guide which is available through our website www.compassmarkets.com for more information regarding the financial services that we offer.
All references to prices, amounts and currency are in Australian dollars unless otherwise noted.
This report is provided for Australian residents only and is not intended for use by residents of any other country.
GENERAL ADVICE WARNING: The advice provided in this report has been prepared without taking into account your particular objectives, financial situation or needs. You should, before acting on the advice, consider the appropriateness of the advice having regard to these matters and, if appropriate, seek independent financial, legal and taxation advice before making any financial investment decision.
This report has been prepared for the general use of Compass Global Markets clients and must not be copied, either in whole or in part, or distributed to any other person. This report and its contents are not intended to be construed as a solicitation to buy or sell any security, product or asset, or to engage in or refrain from engaging in any transaction.
Compass Global Markets does not guarantee the performance of any investment discussed or recommended in this report. This report and the information used within may include estimates and projections which constitute a forward looking statement that express an expectation or belief as to future events, results or returns. No guarantee of future events, results or returns is given or implied by Compass Global Markets. Such statements are made in good faith and based on reasonable assumptions at the time of publication. However, such statements are also subject to risks, uncertainties and other factors which could cause actual results to differ substantially from the estimates and projections contained in this report or otherwise provided by Compass Global Markets.
Any information referencing past performance is not indicative of future performance. All information in this report has been obtained from sources believed to be accurate. Compass Global Markets does not give any representation or warranty as to reliability, accuracy or completeness of information contained in this report and therefore all responsibility is expressly disclaimed, whether due to negligence or otherwise. The information presented and opinions expressed in this report are given as of the date hereof and are subject to change without notice. We hereby disclaim any obligation to inform you of any changes after the date hereof in any matter set forth in this report.
Global Compass Markets, its affiliate and their employees may hold positions in the financial products, or securities or derivatives of, in the companies referred to in this report from time to time.
Analyst Certification: The views or opinions expressed in this report accurately reflect the personal views of the analyst(s) and no part of the remuneration of the analyst(s) was, is, or will be directly or indirectly related to the inclusion of specific recommendations or views in this report. Any views or opinions expressed are the author’s own and may not reflect the views or opinions of Compass Global Markets unless specified otherwise.

Malaysia’s CPO Exports To Reach RM85b
According to Plantation Industries and Commodities Minister Tan Sri Bernard Dompok, Malaysia is expected to post record high palm oil exports this year, possibly touching RM85 billion as palm oil prices are likely to go on trading at strong levels. The prices are likely to remain firm as Brent crude oil prices advance on rising geo-political tension in the Middle East and as uncertain weather conditions boost soybean oil prices. The palm oil industry charted strong growth last year, posting an expansion of RM20 billion to RM80 billion from 2010’s RM60 billion. Currently, the Malaysian Palm Oil Board (MPOB) has helped these smallholders improve their productivity by establishing 11 cooperatives which will facilitate more efficient resource-sharing. MPOB had stationed enforcement officers at 186 underperforming mills to ensure only ripe fruit bunches from planters are accepted, thereby raising the national oil extraction rate.

Significance: MPOB notes that the replanting of unproductive trees with high yielding hybrids among independent smallholders has achieved around 80% of its initial target. Also, as more trees mature, particularly in Sarawak, this year’s palm oil output could rise by another 2% to 19.33 million to benefit from the strong palm prices.

DiGi.Com Posts RM1.25b For FY11
DiGi.Com (DiGi) reported RM1.25 billion net profit for the year ended 31 Dec-11, up 6% from RM1.2 billion in the previous year on the back of a 10% jump in revenue to RM6 billion from RM5.4 billion. For 4Q11, DiGi’s net profit increased 18.7% to RM394.2 million while revenue increased 8.1% to RM1.6 billion. DiGi attributed the revenue growth to an enlarged customer base of 9.9 million with 303,000 new customers in 4Q11, higher voice traffic and data usage, and increased take-up of bundled offerings of smartphones and devices. DiGi’s full year capital expenditure was RM610 million, spent on accelerating site roll-outs and increasing capacity to ensure that DiGi was able to capture growth opportunities, particularly data growth going into 2012. For 2012, DiGi is guiding for capital expenditure of around RM700 million to RM750 million.

Significance: DiGi’s mobile Internet continue to gain good traction with the rising mobile data usage driven by new data-light and tablet plans, an attractive device portfolio, and reenergised and expanded customer touch-points.

Malaysia Building Society Aims For RM8b In Sales From Retail Financing
Malaysia Building Society (MBS) targets its total sales coming from retail financing to grow to RM8 billion this year, with the launch of its new personal financing products. Chief executive officer Datuk Ahmad Zaini Othman is optimistic on the targets as the company is said to have more interesting products to be introduced this year. He added that currently, retail financing contributed about 75% of the total portfolio of MBS while the remaining 25% is contributed by corporate and wholesale. With the introduction of the hire purchase financing in February, the retail contribution would likely increase to 80%.

Significance: MBS’ target of RM8 billion could be within reach as total sales for personal financing products in 2011 was RM6.6 billion, surpassing its initial target of RM6.5 billion. Furthermore, retail assets has been growing in leaps from RM300 million as at end of 2009, to RM8 billion as at end of last year.

This time Max Keiser and co-host, Stacy Herbert, talk about accounting tweaks and super cycles. In the second half of the show, Max talks to Michael ‘Woody’ O’Brien about the gold standard and silver. RT on Facebook: www.facebook.com RT on Twitter: twitter.com

A DPU of 2.17c has been announced. This is a little less than my estimate of 2.2c. This is probably due to the fact that no rentals were collected for the property of 1 Tuas Avenue 4 in the months of November and December 2011. The manager is in…



[[ This is a content summary only. Visit my website for full links, other content, and more! ]]

PM on how foreigners can integrate into Singapore society.

In his interview with Seth Mydans, of the New York Times, MM Lee expresses his concern for the younger Singaporeans today, taking the country’s present condition as a natural state of affairs.