On Thursday 12 August 2010, 11:01 SGT
Fresh doubts over the durability of the global economic recovery sent a chill through Asian markets Thursday, as shares tumbled and the dollar teetered near 15-year lows against the yen.
The region followed heavy overnight falls in the US and Europe after the Bank of England lowered its growth forecast for this year and investors shunned risk on signs of slowing industrial growth and rising inflation in China.
A sharp widening of the US trade deficit added to the gloom, triggering fears of a double-dip recession.
Shares in Tokyo tumbled 2.02 percent by the break, while Seoul was off 1.01 percent and Sydney slipped 1.42 percent. Hong Kong shares were 1.09 percent down in early trade.
The markets' grim assessment was also coloured by the downbeat view taken by the US Federal Reserve Tuesday, which warned that recovery in the world's largest economy was slowing and opted for further stimulus measures.
"There have been mounting fears over a US economic slowdown," Greg Gibbs, currency strategist at RBS in Sydney, told Dow Jones Newswires.
"The bottom line is that there are still plenty of reasons to be fearful for the state of the global economy and financial system," he said.
The region followed Wall Street's 2.5 percent dive overnight as data showing the US trade gap had widened sharply in June -- to the highest level in 20 months on the back of rising imports -- rekindled fears of a second-dip recession.
After hitting a 15-year low against the Japanese currency, the dollar struggled to lift itself beyond the psychological 85 yen level Thursday.
Having plunged to 84.73 yen overnight as market players sought a safe-haven, the greenback was changing hands at 84.97 yen in Tokyo morning trade.
The euro fetched 1.2867 dollars, unchanged from New York where the single European currency tumbled below the sensitive 1.30-dollar level. Against the Japanese unit, the euro fell to 109.40 from 109.73.
"The yen has attracted money amid concerns over the US and European economies," said Hideaki Inoue, dealer at Mitsubishi UFJ Trust and Banking.
The strong yen poses a threat to the export sector driving Japan's own fragile economic rebound, with companies facing huge hits to overseas profits when repatriated.
Japanese factory output has slowed recently amid the global uncertainty, while data on Wednesday saw much lower than expected orders for machinery in a sign of cautious capital spending.
Sony was off 3.03 percent, Canon was down 1.12 percent and the world's biggest automaker Toyota slid 1.15 percent.
"China and the US and Europe are three flashpoints around the world that investors are continually nervous about," said CMC Markets analyst David Taylor.
"What we've seen in the last 48 hours is some of those fears of the slowdown in those economies being realised."
Oil prices slipped further in Asian trade. New York's main contract, light sweet crude for delivery in September, shed 81 cents to 77.21 dollars a barrel.
Brent North Sea crude for September delivery retreated 83 cents to 76.81 dollars.
Gold opened slightly higher at 1,199.50-1,200.50 US dollars an ounce on Thursday, up a touch from Wednesday's closing price of 1,198.50-1,199.50 dollars.
burs-dwa/hg
Thursday, August 12, 2010
SingTel Q1 net profit flat; lower than expected - Reuters
SINGAPORE
Wed Aug 11, 2010 6:36pm EDT
SINGAPORE Aug 12 (Reuters) - Singapore Telecommunications (SingTel) (STEL.SI), Southeast Asia's largest telcom firm, reported flat first quarter profit on Thursday, lower than market expectations of a four percent rise.
Operating conditions in Singtel's two core markets -- Singapore and Australia -- have improved thanks to an economic rebound. But a weak performance at Indonesia Telkomsel, in which SingTel owns a 35 percent stake, and other associates limited overall earnings growth.
SingTel, the most valuable firm on the Singapore stock market, earned S$943 million ($693 million) in underlying April-June net profit, versus S$945 million a year ago.
Analysts surveyed by Reuters had forecast an average net profit of S$982 million.
SingTel's revenue climbed 12 percent to S$4.3 billion.
Facing a domestic market of just 5 million people where virtually everyone has a mobile phone, SingTel has bought stakes in mobile operators in high-growth Asian countries such as India, Indonesia and in the bigger Australian market to boost profits.
Shares in SingTel, which is 55 percent owned by state investor Temasek Holdings [TEM.UL], have fallen by 2 percent so far this year, underperforming the broader Singapore market .FTSTI which is up around 2 percent. (Reporting by Harry Suhartono, editing by Dhara Ranasinghe)
Wed Aug 11, 2010 6:36pm EDT
SINGAPORE Aug 12 (Reuters) - Singapore Telecommunications (SingTel) (STEL.SI), Southeast Asia's largest telcom firm, reported flat first quarter profit on Thursday, lower than market expectations of a four percent rise.
Operating conditions in Singtel's two core markets -- Singapore and Australia -- have improved thanks to an economic rebound. But a weak performance at Indonesia Telkomsel, in which SingTel owns a 35 percent stake, and other associates limited overall earnings growth.
SingTel, the most valuable firm on the Singapore stock market, earned S$943 million ($693 million) in underlying April-June net profit, versus S$945 million a year ago.
Analysts surveyed by Reuters had forecast an average net profit of S$982 million.
SingTel's revenue climbed 12 percent to S$4.3 billion.
Facing a domestic market of just 5 million people where virtually everyone has a mobile phone, SingTel has bought stakes in mobile operators in high-growth Asian countries such as India, Indonesia and in the bigger Australian market to boost profits.
Shares in SingTel, which is 55 percent owned by state investor Temasek Holdings [TEM.UL], have fallen by 2 percent so far this year, underperforming the broader Singapore market .FTSTI which is up around 2 percent. (Reporting by Harry Suhartono, editing by Dhara Ranasinghe)
City Developments Profit Rises 18% on Singapore Demand for Homes, Offices
By Shiyin Chen - Aug 12, 2010 11:41 AM GMT+0800
City Developments Ltd., Singapore’s second-largest property company, posted an 18 percent increase in second-quarter profit as the city-state’s economic recovery boosted demand for homes and office space.
Net income for the three months ended June 30 rose to S$164.6 million ($120 million), or 17.2 cents a share, from S$140 million, or 14.7 cents, a year earlier, the company said in a statement to the Singapore stock exchange. Revenue climbed 20 percent to S$941.7 million.
Singapore’s economy expanded 24 percent in the second quarter and growth for the full year may reach as much as 15 percent, according to government estimates. Home prices climbed 5.3 percent during the three months ended June, a fourth consecutive quarterly increase.
“The rapid economic expansion that Singapore is experiencing should help sustain market confidence, and the encouraging showing in residential sales volume during the second quarter is likely to remain in a reasonably buoyant condition over the next few months,” City Developments said in the statement.
City Developments fell 2.2 percent to S$11.66 as of 11:32 a.m. in Singapore trading, falling for a seventh straight day, the longest losing streak since May. The drop trimmed its gain this year to 0.9 percent. The benchmark Straits Times Index has climbed 0.8 percent during the period.
Singapore Measures
Chairman Kwek Leng Beng said in a briefing today he doesn’t expect the Singapore government to take further steps to cool the property markets, noting that local developers have slowed the bidding for land. 2011 may be a better time to market luxury homes, he said.
Revenue from the property development business grew 29 percent to S$444.19 million, the biggest contributor to overall sales. Its hotel operations, rental properties and other business units also reported higher revenue. The company owns a majority stake in Millennium & Copthorne Hotels Plc, an operator of more than 120 properties worldwide that last week reported a 56 percent increase in second-quarter profit.
City Developments said it plans to start sales at two residential projects in Singapore over the next few months amid “continuing healthy demand.” It agreed to sell all the units it owns in Chinatown Point, a commercial building in downtown Singapore, for S$250 million, the developer said.
China Expansion
City Developments also sees “opportunities” in China amid an easing in property prices and sales, according to the statement. It appointed Sherman Kwek as chief executive officer of CDL China Ltd. and will set aside S$300 million in investment funds for expansion in the country.
Prices in 70 major cities across China climbed 10.3 percent in July from a year earlier, the slowest pace in six months, the statistics bureau’s newspaper, China Information News, reported on Aug. 10.
“With the regulatory tightening of China’s property market, the time may be ripe soon for the group to pick up valuable land bank and/or investment properties at the right price,” the company said in the statement.
To contact the reporter on this story: Shiyin Chen in Singapore at schen37@bloomberg.net
City Developments Ltd., Singapore’s second-largest property company, posted an 18 percent increase in second-quarter profit as the city-state’s economic recovery boosted demand for homes and office space.
Net income for the three months ended June 30 rose to S$164.6 million ($120 million), or 17.2 cents a share, from S$140 million, or 14.7 cents, a year earlier, the company said in a statement to the Singapore stock exchange. Revenue climbed 20 percent to S$941.7 million.
Singapore’s economy expanded 24 percent in the second quarter and growth for the full year may reach as much as 15 percent, according to government estimates. Home prices climbed 5.3 percent during the three months ended June, a fourth consecutive quarterly increase.
“The rapid economic expansion that Singapore is experiencing should help sustain market confidence, and the encouraging showing in residential sales volume during the second quarter is likely to remain in a reasonably buoyant condition over the next few months,” City Developments said in the statement.
City Developments fell 2.2 percent to S$11.66 as of 11:32 a.m. in Singapore trading, falling for a seventh straight day, the longest losing streak since May. The drop trimmed its gain this year to 0.9 percent. The benchmark Straits Times Index has climbed 0.8 percent during the period.
Singapore Measures
Chairman Kwek Leng Beng said in a briefing today he doesn’t expect the Singapore government to take further steps to cool the property markets, noting that local developers have slowed the bidding for land. 2011 may be a better time to market luxury homes, he said.
Revenue from the property development business grew 29 percent to S$444.19 million, the biggest contributor to overall sales. Its hotel operations, rental properties and other business units also reported higher revenue. The company owns a majority stake in Millennium & Copthorne Hotels Plc, an operator of more than 120 properties worldwide that last week reported a 56 percent increase in second-quarter profit.
City Developments said it plans to start sales at two residential projects in Singapore over the next few months amid “continuing healthy demand.” It agreed to sell all the units it owns in Chinatown Point, a commercial building in downtown Singapore, for S$250 million, the developer said.
China Expansion
City Developments also sees “opportunities” in China amid an easing in property prices and sales, according to the statement. It appointed Sherman Kwek as chief executive officer of CDL China Ltd. and will set aside S$300 million in investment funds for expansion in the country.
Prices in 70 major cities across China climbed 10.3 percent in July from a year earlier, the slowest pace in six months, the statistics bureau’s newspaper, China Information News, reported on Aug. 10.
“With the regulatory tightening of China’s property market, the time may be ripe soon for the group to pick up valuable land bank and/or investment properties at the right price,” the company said in the statement.
To contact the reporter on this story: Shiyin Chen in Singapore at schen37@bloomberg.net
CityDev - OCBC Investment Research(Morning Call)
City Developments Ltd: Buoyed by property development
City Developments Ltd (CDL) reported a 19.6% YoY and 25.5% QoQ
increase in 2Q10 revenue to S$941.7m. CDL enjoyed contributions from
projects including the Cliveden, One Shenton, The Arte, Tribeca, Livia,
and The Gale. PATMI of S$164.6m was up 17.6% YoY and 18.1% QoQ.
Property development was the star performer, contributing more than 50%
to CDL's profit before tax for the quarter. CDL's hotel operations were the
second key profit contributor, boosted by the recovery in the hospitality
sector. Its results were also uplifted by the recognition of a gain on disposal
of The Office Chamber in 2Q10. CDL has enjoyed strong pre-sales at projects
including Hundred Trees (396 units), Volari at Balmoral (85 units) and 386
Thomson (157 units). Profits from these sales have yet to be recognized.
Contributions from such projects should underpin earnings in the coming
quarters, even as CDL plans new launches. We will be attending an analyst
briefing later this morning. With a change in analyst coverage, we are placing
our previous HOLD rating and S$11.16 fair value UNDER REVIEW. (Meenal
Kumar)
City Developments Ltd (CDL) reported a 19.6% YoY and 25.5% QoQ
increase in 2Q10 revenue to S$941.7m. CDL enjoyed contributions from
projects including the Cliveden, One Shenton, The Arte, Tribeca, Livia,
and The Gale. PATMI of S$164.6m was up 17.6% YoY and 18.1% QoQ.
Property development was the star performer, contributing more than 50%
to CDL's profit before tax for the quarter. CDL's hotel operations were the
second key profit contributor, boosted by the recovery in the hospitality
sector. Its results were also uplifted by the recognition of a gain on disposal
of The Office Chamber in 2Q10. CDL has enjoyed strong pre-sales at projects
including Hundred Trees (396 units), Volari at Balmoral (85 units) and 386
Thomson (157 units). Profits from these sales have yet to be recognized.
Contributions from such projects should underpin earnings in the coming
quarters, even as CDL plans new launches. We will be attending an analyst
briefing later this morning. With a change in analyst coverage, we are placing
our previous HOLD rating and S$11.16 fair value UNDER REVIEW. (Meenal
Kumar)
SingTel - OCBC Investment Research(Morning Call)
SingTel: 1Q11 Results Mostly In Line
SingTel released its 1Q11 results this morning, with revenue up 11.5% YoY;
but it fell 4.1% QoQ and was also about 3.8% below our estimate, mainly
hit by seasonally lower IT and Engineering revenue from NCS and a weaker
AUD QoQ. Net profit eased 0.2% YoY to S$943.2m; however, it fell 7.1%
QoQ, again due mainly to seasonal factors and lower associate contributions
(down 17.8% YoY and 6.9% QoQ); but it was just 1.6% shy of our forecast,
as overall EBITDA margin was relatively steady at 29.3%, versus 29.9% in
both 1Q10 and 4Q10. Going forward, SingTel maintains its previous guidance
for the rest of FY11, although it continues to caution that its consolidated
operating revenue and operational EBITDA will be impacted by AUD
movements and the earnings contributions from its regional associates will
be affected by regional forex movements as well. We will be listening in to
the analyst briefing later and will have more updates. Until then, we place
our BUY rating and S$3.40 fair value under review. (Carey Wong)
SingTel released its 1Q11 results this morning, with revenue up 11.5% YoY;
but it fell 4.1% QoQ and was also about 3.8% below our estimate, mainly
hit by seasonally lower IT and Engineering revenue from NCS and a weaker
AUD QoQ. Net profit eased 0.2% YoY to S$943.2m; however, it fell 7.1%
QoQ, again due mainly to seasonal factors and lower associate contributions
(down 17.8% YoY and 6.9% QoQ); but it was just 1.6% shy of our forecast,
as overall EBITDA margin was relatively steady at 29.3%, versus 29.9% in
both 1Q10 and 4Q10. Going forward, SingTel maintains its previous guidance
for the rest of FY11, although it continues to caution that its consolidated
operating revenue and operational EBITDA will be impacted by AUD
movements and the earnings contributions from its regional associates will
be affected by regional forex movements as well. We will be listening in to
the analyst briefing later and will have more updates. Until then, we place
our BUY rating and S$3.40 fair value under review. (Carey Wong)
Golden Agr - OCBC Investment Research(Morning Call)
Golden Agri-Resources Ltd: 2Q10 Results Mostly In Line
2Q10 results mostly in line. Golden Agri-Resources (GAR) reported its
2Q10 results yesterday. Revenue climbed 28.4% YoY (+16.3% QoQ) to
US$726.2m (just 3% shy of our forecast, aided mainly by an increase in
the ASP of CPO to US$776/ton versus US$581 in 2Q09). Net profit also
showed a 19.9% rise to US$66.0m, or 8% short of our estimate; but fell
25.4% QoQ due to higher fertilizer cost from increased volume applied in
2Q10.
For the first half, revenue rose 38.1% to US$1350.8m, meeting 48.9% of
our full-year forecast, while net profit jumped 142.7% to US$154.6m, meeting
42.8% of our original FY10 estimate. One reason for the shortfall was due
to higher export taxes paid (US$26m in 1H10 versus US$3m in 1H09). We
understand that GAR also had to incur slightly higher freight costs (US$28m
in 1H10 versus US$17m in 1H09) as it is now shipping to more destinations.
Eyes lower CPO production growth. While total CPO production
(including palm kernel) showed a seasonal 12% pick up from the previous
quarter, overall production was down 13% from the year-ago quarter;
management notes that the trees are still experiencing a biological
slowdown after a peak crop in 2H09. While GAR now expects to see up to
a 5% increase in CPO production this year (vs. 10% guidance previously),
it admits that the increase will mainly come from its increased acreage
and yields could continue to remain relatively low in light of the uncertain
weather conditions.
Likely more cautious 2H10 outlook. Meanwhile, GAR has only managed
to increase its new planting by 5.9k ha, and admits that it may not be able
to achieve its 50k ha target this year, citing adverse weather conditions
and stricter NGO considerations; organic target is now at 20k ha vs. 30k
previously, with the rest from M&A (if any). GAR also expects CPO prices
to ease from current US$780 level as recent spike was due to Russia's
ban on wheat exports. Still, GAR will continue to focus on its downstream
expansion, both in China and Indonesia.
Easing fair value to S$0.655. We are lowering our FY10F earnings by
6.4% due to lower margin assumptions. Additionally, we are also lowering
our valuation peg from 18x FY10F EPS to 16x blended FY10/FY11F EPS
to account for higher market risk aversion. This drops our fair value from
S$0.72 to S$0.655 but we maintain our BUY rating as current balance
sheet strength suggests that GAR is well-equipped to handle any
turbulence.(Carey Wong)
2Q10 results mostly in line. Golden Agri-Resources (GAR) reported its
2Q10 results yesterday. Revenue climbed 28.4% YoY (+16.3% QoQ) to
US$726.2m (just 3% shy of our forecast, aided mainly by an increase in
the ASP of CPO to US$776/ton versus US$581 in 2Q09). Net profit also
showed a 19.9% rise to US$66.0m, or 8% short of our estimate; but fell
25.4% QoQ due to higher fertilizer cost from increased volume applied in
2Q10.
For the first half, revenue rose 38.1% to US$1350.8m, meeting 48.9% of
our full-year forecast, while net profit jumped 142.7% to US$154.6m, meeting
42.8% of our original FY10 estimate. One reason for the shortfall was due
to higher export taxes paid (US$26m in 1H10 versus US$3m in 1H09). We
understand that GAR also had to incur slightly higher freight costs (US$28m
in 1H10 versus US$17m in 1H09) as it is now shipping to more destinations.
Eyes lower CPO production growth. While total CPO production
(including palm kernel) showed a seasonal 12% pick up from the previous
quarter, overall production was down 13% from the year-ago quarter;
management notes that the trees are still experiencing a biological
slowdown after a peak crop in 2H09. While GAR now expects to see up to
a 5% increase in CPO production this year (vs. 10% guidance previously),
it admits that the increase will mainly come from its increased acreage
and yields could continue to remain relatively low in light of the uncertain
weather conditions.
Likely more cautious 2H10 outlook. Meanwhile, GAR has only managed
to increase its new planting by 5.9k ha, and admits that it may not be able
to achieve its 50k ha target this year, citing adverse weather conditions
and stricter NGO considerations; organic target is now at 20k ha vs. 30k
previously, with the rest from M&A (if any). GAR also expects CPO prices
to ease from current US$780 level as recent spike was due to Russia's
ban on wheat exports. Still, GAR will continue to focus on its downstream
expansion, both in China and Indonesia.
Easing fair value to S$0.655. We are lowering our FY10F earnings by
6.4% due to lower margin assumptions. Additionally, we are also lowering
our valuation peg from 18x FY10F EPS to 16x blended FY10/FY11F EPS
to account for higher market risk aversion. This drops our fair value from
S$0.72 to S$0.655 but we maintain our BUY rating as current balance
sheet strength suggests that GAR is well-equipped to handle any
turbulence.(Carey Wong)
Signs of Double Top and 2920 support line today
Market is showing signs of double top. Bad sign together with small caps as top gainers.. $$ flowing somewhere.. definitely not in Singapore BIG counters now. Trade carefully, cut losses if have to. Beware.
Cutting into 2900(Strong Support) is no longer an issue. Just a matter of time.. It is how fast and not how slow.
Cutting into 2900(Strong Support) is no longer an issue. Just a matter of time.. It is how fast and not how slow.
Beware of market today
Last night blood bath from USA is likely going to bring down Asia market. Highly shorting in the morning. Beware.
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