Ascendas REIT 23 January 2015

At current price of $2.57, we are looking at 4.59% dividend yield. Debt to Asset ratio is at 28.87%

Technically, the stock seems to have a new support, settling above $2.50.
You can also notice the uptrend from Oct onwards till this day.
Lookout for retracement for good  entry price, probably around $2.50 – $2.53, slight resistance at around $2.64.

Today it closed at $2.57.

ascendas REIT

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Why the Swiss unpegged the franc

http://www.economist.com/blogs/economist-explains/2015/01/economist-explains-13
IN THE world of central banking, slow and predictable decisions are the aim. So on January 15th, when the Swiss National Bank (SNB) suddenly announced that it would no longer hold the Swiss franc at a fixed exchange rate with the euro, there was panic. The franc soared. On Wednesday one euro was worth 1.2 Swiss francs; at one point on Thursday its value had fallen to just 0.85 francs. A number of hedge funds across the world made big losses. The Swiss stockmarket collapsed. Why did the SNB provoke such chaos?

The SNB introduced the exchange-rate peg in 2011, while financial markets around the world were in turmoil. Investors consider the Swiss franc as a “safe haven” asset, along with American government bonds: buy them and you know your money will not be at risk. Investors like the franc because they think the Swiss government is a safe pair of hands: it runs a balanced budget, for instance. But as investors flocked to the franc, they dramatically pushed up its value. An expensive franc hurts Switzerland because the economy is heavily reliant on selling things abroad: exports of goods and services are worth over 70% of GDP. To bring down the franc’s value, the SNB created new francs and used them to buy euros. Increasing the supply of francs relative to euros on foreign-exchange markets caused the franc’s value to fall (thereby ensuring a euro was worth 1.2 francs). Thanks to this policy, by 2014 the SNB had amassed about $480 billion-worth of foreign currency, a sum equal to about 70% of Swiss GDP.

The SNB suddenly dropped the cap last week for several reasons. First, many Swiss are angry that the SNB has built up such large foreign-exchange reserves. Printing all those francs, they say, will eventually lead to hyperinflation. Those fears are probably unfounded: Swiss inflation is too low, not too high. But it is a hot political issue. In November there was a referendum which, had it passed, would have made it difficult for the SNB to increase its reserves. Second, the SNB risked irritating its critics even more, thanks to something that is happening this Thursday: many expect the European Central Bank to introduce “quantitative easing”. This entails the creation of money to buy the government debt of euro-zone countries. That will push down the value of the euro, which might have required the SNB to print lots more francs to maintain the cap. But there is also a third reason behind the SNB’s decision. During 2014 the euro depreciated against other major currencies. As a result, the franc (being pegged to the euro) has depreciated too: in 2014 it lost about 12% of its value against the dollar and 10% against the rupee (though it appreciated against both currencies following the SNB’s decision). A cheaper franc boosts exports to America and India, which together make up about 20% of Swiss exports. If the Swiss franc is not so overvalued, the SNB argues, then it has no reason to continue trying to weaken it.

The big question now is how much the removal of the cap will hurt the Swiss economy. The stockmarket fell because Swiss companies will now find it more difficult to sell their wares to European customers (high-rolling Europeans are already complaining about the price of this year’s skiing holidays). UBS, a bank, downgraded its forecast for Swiss growth in 2015 from 1.8% to 0.5%. Switzerland will probably remain in deflation. But the SNB should not be lambasted for removing the cap. Rather, it should be criticised for adopting it in the first place. When central banks try to manipulate exchange rates, it almost always ends in tears.

Article from The Economist

Chinese Stocks Plunge Most in Six Years on Lending Curbs

http://www.bloomberg.com/news/2015-01-19/china-s-stock-index-futures-plunge-on-margin-trading-suspensions.html

Chinese equities plunged the most in six years, led by brokerages, after regulatory efforts to rein in record margin lending sparked concern that speculative traders will pull back from the world’s best-performing stock market.

The Shanghai Composite Index sank 7.7 percent to 3,116.35 at the close, its steepest drop since June 2008. Citic Securities Co. (600030) and Haitong Securities Co., the nation’s two biggest listed securities firms, fell by the 10 percent daily limit after they were suspended from loaning money to new equity-trading clients and regulators said brokerages shouldn’t lend to investors with assets below 500,000yuan. About nine stocks dropped for each that rose on the Shanghai gauge, with more than 100 companies retreating by the maximum allowed.

The penalties have raised concern that policy makers are trying to curb a surge in stock purchases using borrowed money, after outstanding margin loans surged to 1.1 trillion yuan ($177 billion) as of Jan. 16 from about 400 billion yuan at the end of June. The Shanghai Composite index (SHCOMP) jumped 67 percent in the past 12 months through last week on record volumes as individual investors piled into the market.

“Regulators are concerned that shares have run too hard, too fast,” said Hao Hong, a strategist at Bocom International Holdings Co. in Hong Kong. “They want a measured increase in the stock market. After all, margin financing is one of the reasons for people to be bullish on brokerage stocks, and these stocks have run particularly hard.”

The Shanghai measure advanced 2.8 percent last week, a 10th week of gains that’s the longest winning streak since May 2007, after credit growth expanded and speculation grew the central bank will cut reserve-requirement ratios.

Margin Suspensions

An index of financial companies tumbled by a record on the CSI 300 Index, which tumbled 7.7 percent. The Hang Seng China Enterprises Index (HSCEI) of mainland shares traded in Hong Kong sank 5 percent, while the Hang Seng Index fell 1.5 percent. A gauge of volatility rose to a five-year high in Shanghai.

Citic Securities, Haitong Securities and Guotai Junan Securities Co. (1788) were suspended from lending money and stocks to new clients for three months, the China Securities Regulatory Commission said on its microblog on Jan. 16 after the market closed.

The regulator punished nine other brokerages for offenses including allowing unqualified investors to open margin finance and securities lending accounts, it said. On the same day, the China Banking Regulatory Commission banned banks from lending to companies that borrow to invest in equities, bonds, futures and derivatives. So-called entrusted loans extended by banks increased to about 458 billion yuan in December, the most since data became available in 2012.

Record Plunge

“China is trying to rein in over-bullishness in the stock market as moves have been exaggerated,” Pauline Dan, Hong Kong-based head of Greater China equities at Pictet Asset Management Ltd., said by phone. “Investors will have to wait and see until this volatility settles. They don’t have a fundamental reason to stay long since government policy is driving the market.”

The amount of shares purchased on margin has surged more than tenfold in the past two years to a record 1.1 trillion yuan ($179 billion), or about 3.5 percent of the nation’s market capitalization. The Shanghai and Shenzhen exchanges expanded the number of stocks available for margin trading to 900 from 695 in September.

Minimum Requirement

The CSI 300 financial index tumbled 9.6 percent, the most according to Bloomberg data going back to July 2007. Ping An Insurance Group Co., China Minsheng Banking Corp. and Bank of China Ltd. all fell by the daily limit. Other large-cap stocks also slumped, with PetroChina Co. falling 9.2 percent and Agricultural Bank of China Ltd. dropping 9.9 percent.

Citic said in a stock filing today that it raised the minimum requirement for opening margin lending accounts to 500,000 yuan from 300,000 yuan.

In a margin trade, investors use their own money for just a portion of their stock purchase, borrowing the rest from a broker. The loans are backed by the investors’ equity holdings, meaning that they may be forced to sell when prices fall to repay their debt. Huatai Securities advertised margin lending rates of 8.6 percent on its website today.

Small-cap stocks are among the favorites of margin traders, Yu Liang, an analyst at Deutsche Bank AG, wrote in a Jan. 5 report. Beijing-based Sumavision Technologies Co. (300079), which makes and sells digital TV software and hardware products, has $238 million of shares bought on margin, or 17 percent of its market capitalization, according to the report. Xuzhou Combustion Control Technology Co. has $112 million or 23 percent of the stock’s market value.

Other companies include Shanghai Duolun Industry Co. and Zhejiang Jianfang Group Co., the Deutsche report shows.

Economic Figures

China is scheduled to release data tomorrow that’s forecast to show the economy grew in the fourth quarter at the slowest quarterly pace since 2009.

The nation’s gross domestic product growth probably weakened to 7.2 percent in the October-to-December period, according to the median estimate in a Bloomberg survey. The economy grew 7.3 percent a quarter earlier. Economic expansion may reach 7.3 percent this year, the Xinhua News Agency reported over the weekend, citing central bank adviser Song Guoqing.

China Vanke Co. (000002) and Poly Real Estate Group Co. (600048) both slid 10 percent. The nation’s new-home prices fell in 65 of the 70 cities monitored and were unchanged in four last month, the National Bureau of Statistics said in a statement yesterday. That compares with declines in 67 cities in November.

The Shanghai Composite is the best performer among 93 global indexes tracked by Bloomberg over the past year. The index was valued at 11.9 times 12-month projected earnings last week, the highest level since April 2011, according to data compiled by Bloomberg.

To contact Bloomberg News staff for this story: Zhang Shidong in Shanghai atszhang5@bloomberg.net; Kyoungwha Kim in Hong Kong at kkim19@bloomberg.net

To contact the editors responsible for this story: Michael Patterson atmpatterson10@bloomberg.net Richard Frost

Article from Bloomberg.

Sembcorp Industry 16 January 2015

Haven’t been doing buy idea recently. Let me share with you Sembcorp Ind.

Technically, Sembcorp Ind is trading at it’s support price, $4.10
Stochastic showing oversold, but doesn’t seems like it will move up soon. MACD still not showing bullish signal..
However, it looks like a double bottom formation.
This $4.10 was tested a few times, 14 Jan 2015 16 Dec 2014, 17 Dec 2014. Before that, it was in Jan 2012.

This stock is watch list worthy as we could be bottom fishing at this period.

Sembcorp Ind

If we look at the fundamentals, company has been paying out dividend consistently for the past 5 years.
Maybe, we can be expecting at least 0.15 cents from the past payout pattern. At current price, P/E is at 9.5!

Using this $0.15, we are looking at 3.64% dividend yield based on $4.12 (16 Jan 2015)

If we use 2014’s total dividends, $0.22, we are looking at 5.33% dividend yield.

Having said that, there is no guarantee that they will pay the same amount.

Sembcorp Industries
– Utilities (Seems defensive to me)
– Marine
– Urban Development

Reduction of Minimum Board Lot Size, from 1,000 to 100 shares

From 19 January 2015 onwards, the board lot size for SGX will be reduced from 1,000 shares to 100 shares.

This will allow retailers to access to blue chips such as OCBC and UOB.

Related articles:

http://www.straitstimes.com/news/business/more-business-stories/story/new-sgx-trading-rules-what-you-need-know-20140831

http://www.sgx.com/wps/wcm/connect/sgx_en/home/higlights/news_releases/SGX-to-introduce-reduced-board-lot-size-from-19-January

Global Logistic Properties incorporates four & acquires two new indirect subsidiaries, Companies & Markets – THE BUSINESS TIMES

http://www.businesstimes.com.sg/companies-markets/global-logistic-properties-incorporates-four-acquires-two-new-indirect

13 Jan9:26 PM

MAINBOARD-LISTED Global Logistic Properties (GLP) on Tuesday announced that it has incorporated four and acquired two new indirect subsidiaries.

The six new indirect subsidiaries are mainly involved in distribution facilities and services.

The four indirect subsidiaries incorporated are: GLP Zhuzhou Purun Logistics Facilities with registered capital of 66.6 million yuan (S$14.35 million); Pujian Xixianxinqu Logistics Facilities with US$22.7 million; GLP Nantong NSIP Logistics Facilities with US$60 million; and GLP Foshan Pudan Logistic Service with US$14.5 million.

GLP has also acquired a 65 per cent interest in Beijing Lihao Technology, through its indirect subsidiary, CLH (86), for a consideration of 323.17 million yuan, and the entire interest in Shanghai Kangjiekong Logistics Facilities, through its indirect subsidiary, CLH (103), for a consideration of 88.80 million yuan.

The acquisitions are not expected to have any impact on the net tangible asset value and earnings per share of GLP for the financial year ending Mar 31, 2015.

Before news of the announcement on Tuesday, GLP’s counter closed at S$2.48, unchanged from the previous trading day.

SPH Q1 profit falls 21.9%, Companies & Markets – THE BUSINESS TIMES

http://www.businesstimes.com.sg/companies-markets/sph-q1-profit-falls-219

13 Jan7:01 PM

Singapore Press Holdings’ net profit fell 21.9 per cent in the first quarter, as operating revenue across its newspaper and magazine and other businesses declined.

For the quarter ended Nov 30, SPH recorded a net profit attributable to shareholders of S$69.4 million, down from S$88.8 million a year ago.

Operating revenue tumbled 6.5 per cent to S$307.1 million. Its newspaper and magazine business saw revenue fall 7.9 per cent to S$235.6 million, as advertisement and circulation revenue declined.

Revenue from its other businesses – comprising those in online classified, events and exhibitions, online investor relations and financial portal services, among others – also fell 8.4 per cent to S$20 million. A shift in show dates for certain shows had affected revenue for the exhibition business, though this was partially offset by the local online and classified and radio business.
The property business, including retail assets from the SPH Reit, Paragon and the Clementi Mall, saw revenue edge up to S$51.4 million from S$50.8 million a year ago.

The global macroeconomic outlook remains muted, the firm noted, with concerns over various risks such as rising interest rates, deflationary pressures, geopolitical tensions and a global pandemic outbreak. This, coupled with a tight local labour market, means the domestic economy will post modest growth, SPH added.

The counter closed at S$4.11 on Tuesday, down 2 cents, before the announcement of the results.