Oct 10, 2014

Market News 10 Oct 2014


  1. SET, BOAML, Phatra Securities completed a roadshow in New York, selling Thailand to an audience of global funds with a combined AUM of USD 4.5 trillion. BoT Governer predicted economic growth of 4.8% in 2015, while pledging the government's commitment to maintaining economic stability, stimulus measures, and reforms. (SET, 9/10/14)
  2. MRT Authority of Thailand will spend the rest of October assessing the qualifications of five consortia bidding to operate the Green Line subway. The Green Line (Mochit-Saphan Mai-Kukot), spans 18.4 km and requires an infrastructure investment of 26 billion baht. The contract is expected to be signed in June 2015, and construction to be completed 3 to 4 years after. (Bangkok Post, 8/10/14)
  3. Thailand's largest pension fund provider, GPF, estimates 200,000 members will opt out, translating to about 40 billion baht in redemptions out of its combined assets of 600 billion baht. GPF year-to-date return is 5%. (Bangkok Post, 10/10/14)
  4. GPF is considering getting Cabinet approval to raise its investment ceiling for foreign equities to 35% from 25%. (Nation, 10/10/14)
  5. DTAC, with the highest frequency bandwidth compared to rivals AIS and TRUE Move, is offering full-speed access for mobile data services with more than a 50% price cut. (Bangkok Post, 10/10/14)
  6. PTT E&P is developing an underwater robot with Kasetsart University, scheduled to be launched in 2017. It is a move to cut operating costs as more than 1 billion baht is spent yearly on service providers are outsourced to check its underwater E&P facilities. (Bangkok Post, 10/10/14)
  1. Yongnam announced sale-and-leaseback of its Malaysian plant in Johor to Axis REIT for RM153.5 million. Market value of the property was RM167.5 million as of 19 March 2014, Yongnam Malaysia will lease for 15 years and pay RM969,313 monthly for the 1st to 3rd year of the lease with subsequent rental increase every 3 years. NTA per share after the sale is 27.66 S cents assuming transaction was effected in end of FY2013. (Yongnam, 7/10/14)
  2. Yongnam secures 3 subcontracts worth S$76.6 million for Thomson-East Coast MRT Line and a project in Hong Kong. They are expected to have a favorable impact on the financial performance for FY14. (Yongnam, 9/10/14)
  3. 80 property developers and REITS listed on the SGX reported a combined S$23.5 billion in borrowings due to be repaid in a year. This comes amid the highest vacancy rate for condominiums since 2006, driving down prices every quarter. Savills expects refinancing to be challenging for developers and REITS as Singapore's economy slows, with expansion cooling to 2.4% in the 2nd quarter from 4.8% in the 1st. (SBR, 10/10/14)
  4. O&M stocks are down about 7.2% in the past month due to fears from cutbacks in offshore O&G spending as oil prices decline. (SBR, 9/10/14)
  5. Around 17000 local firms ceased operations, while 37000 were formed, in 2013, according to the MTI. (SBR, 8/10/14)
  6. Singapore exports are contracting at an alarming pace, according to DBS, as higher inflation and a strengthening SGD reduces Singapore's export competitiveness.  (SBR, 8/10/14)
  7. Singapore's casinos are struggling as VIP volumes declined 10% y-o-y and 1H14 earnings from VIP gamblers were down to S$57 billion from S$63 billion in 1H13. High probability of losing the VIP segment to new casinos in Asia, even as regional HNWI increase. (SBR, 7/10/14)

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