SingPost to reduce stake in GD Express Carrier

JAN 28, 20169:32 AM

SINGAPORE Post (SingPost) has entered into a conditional shares sale agreement with Yamato Asia, a wholly-owned subsidiary of Yamato Holdings Co, to pare its stake in its associate company GD Express Carrier (GDEX) for a total of RM239.1 million (about S$78.4 million).

“The reduction in the stake will free up capital to allow the group to further invest in its eCommerce logistics operations across the region including its eCommerce logistics warehousing capabilities in Malaysia through its regional logistics arm Quantium Solutions,” said SingPost.

Comments: Despite this, it seems like there is alot of selling…

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Dow Jones 20 Jan 2016

Overall, markets still remain volatile this period. Yesterday, we saw Dow Jones fell by more than 500pts by mid session, and managed to recover by 300 pts by closing. DJI closed lower -249.28 pts (-1.56%). Overview of DJI can be found here,

Comment: We are trading at the support range. Technically, this 15,360 range should serve as a support for the market to rebound from here because we saw 2 bounces from this level before.


SingPost appoints special auditor to address concerns over purchase of stakes in 3 firms

SINGAPORE: Singapore Post (SingPost) has appointed PricewaterhouseCoopers (PwC) as special auditor, to address concerns raised about its purchase of stakes in three companies between 2013 and 2015.

SingPost said PwC will review whether SingPost had complied with its constitution, internal policies and procedures in relation to the three acquisitions.

The decision to appoint a special auditor follows local media reports questioning a director’s role in the acquisitions.

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Comments: I still have a positive outlook for e-commerce

M1 Results

Full results from:

“The entry of OTT content providers such as Netflix and Viu, offering a large library of on-demand  content at low monthly subscription, will effectively unbundle content from access. This will further level the playing field,” said Ms Karen Kooi, Chief Executive Officer of M1.

Comments: Looking forward, I think this will be a threat to all the local telcos too. Out of the 3, I still prefer SingTel due to their diversified business.

SembMarine, Keppel in deep water if Brazil client goes bust

Comment: Analysts highlighted the danger of orders cancellation. Seems like this year is crucial for the oil riggers..

Maybank Kim Eng reiterated its negative call on offshore marine. “The prospects of Keppel and SembMarine receiving payments now look increasingly bleak. In our view, the worst-case scenario of almost all rig contracts being eventually terminated may now be a possibility,” analyst Yeak Chee Keong said.

OCBC Investment Research warned that if there is a complete cancellation of all the Sete Brasil rigs, there could be impairments if the vessels are sold to other companies at prices below the original contracted price of about US$800 million (S$1.1 billion) each.

UOB KayHian analyst Nancy Wei said SembMarine could see a huge loss this year from the impact of cancelled Sete Brasil orders and rig value write-downs, but Keppel’s hit could be mitigated by earnings from its property business.

“However, we would have to lower our earnings forecasts in view of a loss of future revenue from the unbuilt rigs,” added Ms Wei.

Macquarie downgraded its call on Keppel to underperform from outperform, in view of further risks if marine orders start getting cancelled, adding that its dividend payout could be in jeopardy.

“Even if rig orders come back in 2018, Keppel will not be at the front of the row as global rig orders dry up through 2017, and especially as jack-ups, a segment that Keppel dominates, may have entered a prolonged downcycle due to heavy oversupply,” Macquarie said.

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12 Jan HSI – Can stay above 20,000?

US market managed to close slightly higher, +53 pts (0.32%). Japan market dropped, but China and Hong Kong seemed to slow down and trying to maintain. However, it seems to me that there is still a higher possibility of downtrend continuation.. seeing from the market movement this period.

HSI breached the 20,000 mark yesterday. A strong close above 20,000 mark would be favourable for a possible trend reversal.