Singapore Share Market Overview - 08 Jan 2018

MARKET OVERVIEW

- Market rally could take a short pause to digest the sharp gains since start of the year, with only US and China inflation data due this week, although sentiment remains largely supportive.
- Technically, the STI has extended into overbought territory with short-term support at 3,470 and topside resistance at 3,550.

CORPORATE RESULTS
*SPH REIT
- Stable 1QFY18 DPU of 1.34¢ met expectations.
- Gross revenue of $53.5m (+1.7%) and NPI of $42.2m (+1.9%) were buoyed by higher rental income from Paragon and The Clementi Mall.
- While both properties continued to enjoy full occupancy, negative rental reversions were recorded at Paragon (-10.6%) and The Clementi Mall (-9.8%) for new and renewed lease, representing 3.7% of portfolio NLA.
- WALE ast at Nov '17 was 2.1 years, with 13.3% of NLA due for expiry in FY18. 
- Aggregate leverage stayed at 25.4% with average tenor of 1.8 years.
- Trades at an annualised 1QFY18 yield of 5% and 1.14x P/B.

POSITIVE NEWS
*Mapletree Logistics Trust
- Acquiring the remaining 38% stake in HK logistics property, Shatin No 3 for HK$677m.
- The property, with NLA of 39,125 sqm, will be enhanced and re-positioned to generate higher yield and capital value.
- Post-completion, MLT's aggregate leverage is expected to rise to 39% (2QFY18: 33.7%).
- MKE has a Hold with TP of $1.25.

*NetLink Trust
- DBS raised its stake to 27.18% from 26.9% after acquiring 11m shares via the open market at an average price of $0.83.
- Trades at FY18 indicative yield of 5.3% and 1.04x P/B.

*Vard
- Secured a construction contract for one car-and passenger ferry for Boreal for an undisclosed sum.
- Boreal is a leading nationwide public transport provider in Norway.
- The hull will be built by Vard Braila in Romania and slated for delivery in 3Q19.
- Trades at 0.8x P/B.

NEGATIVE NEWS
*TEE Int'l/ TEE Land
- TEE Int'l issued profit warning of 2QFY18 and 1HFY18 loss on impairment losses totalling $8m stemming from the proposed disposal of TEE Land's 31.9% owned Thai associate, Chewathai, as well as unsold units at TEE Land's The Peak @ Cairnhill I.

*Alliance Mineral
- Updated that it has not received a loan advance of A$4.8m from HK-listed Burwill on 31 Dec '17 under a binding term sheet and letter of variation signed in Oct '17.
- Discussions with Burwill are ongoing since mid-Dec '17 over the timing and terms of the loan.
- Does not expect the matter to results in any material impact on its operations.

NEUTRAL NEWS
*BRC Asia
- Proposed private placement of 37m new shares (19.49% existing share capital) to 15 investors at $1.27 apiece.
- Net proceeds of $46.9m earmarked for strategic investments and working capital.

*Hyflux
- Filed a Notice of Arbitration to commence proceedings against Mitsubishi Heavy Industries Environmental & Chemical Engineering in relation to a waste-to-energy plant sub-contract dispute.
- Trades at 0.53x P/B.

*Raffles Education
- To transfer its Hong Kong listing from GEM to the mainboard.

*Vallianz
- Exercised its right to defer distribution for its US$22.5m 4% senior perpetual securities, of which the payment was due on 5 Jan '18.

Singapore SGX Market Analysis of the day -02 Jan 2018

MARKET OVERVIEW
- The market could resume its uptrend on the first trading session of the year on bargain hunting following some profit-taking activity in the last two weeks of 2017.
- Technically, STI looks to be supported at 3,360, with immediate resistance at 3,430.

SECTOR WATCH
*Economy
- Singapore economy grew 3.1% in 4Q17, lifted again by the manufacturing sector (+6.2%).
- This was higher than street estimate of 2.6% but moderated from 5.4% expansion in the preceding quarter.
- MKE is forecasting GDP growth of 2.5% in 2018.

*Banks
- Domestic bank lending climbed 7.1% to $653.7b in Nov (Oct: +6.8%), propped up by business sector (+8.8%, Oct: +9%) and consumer loans (+3.8%, Oct: +3.8%).
- Maybank KE is Neutral on Singapore banks with preference for UOB (Buy, TP $27.10) over DBS (Hold, TP $22.75) and OCBC (Hold, TP $12.00).

POSITIVE NEWS
*SATS
- 49:51 JVCo, Mumbai Cargo Service Center Airport, won a cargo handling concession contract in Chhatrapati Shivaji International Airport in Mumbai, India.
- The concession will commence in Apr '18 and run for 18 years.
- Trades at 23.1x forward P/E.

*Chip Eng Seng
- Proposed US$19.7m investment for an effective 60% stake in a real estate development project in Ho Chi Minh City, Vietnam.
- The mixed project sited on a land area of 4,829 sqm and located in District 5 is known as Soai Kinh Lam Apartment - Commerce Centre.
- Trades at 17.7x forward P/E.

NEUTRAL NEWS
*CapitaLand
- Divesting interests in six Indian malls and their property manager for 1.6b rupees ($32.7m).
- The transaction is slated to be completed in 1Q18.
- Trades at 33% discount to its RNAV/share of $5.27.

*GP Industries
- Disposing two industrial complexes in Huizhou, China, for Rmb121.3m ($24.8m).
- The assets span 29,186 sqm of build-up area and group expects to reap a net gain of $15.9m.
- Last traded at 18.7x trailing P/E and 1.04x P/B.

*Global Yellow Pages
- Entered into a conditional agreement to subscribe 50.1% stake of FundPlaces for up to $2m.
- FundPlaces leverages on block chain technology to operate an online platform, allowing investors to build a diversified real estate investment portfolio across the world.
- The strategic investment would enable the group to leverage on its platform for its property development projects.
- Last traded at 0.5x P/B.

*Halcyon Agri
- Extended the deadline for its proposed acquisition of four rubber processing factories in West Kalimantan, Indonesia, to 12 Jan.
- If completed, the deal will raise Halcyon's total processing capacity to 1.55m tonnes p.a, propelling it to be the largest crumb rubber producer and exporter in Indonesia.
- Trades at 5.5x trailing P/E.

*Far East Group
- Completed the acquisition and partial leaseback of a property at 51 Ubi Ave 3.
- Group also extended the deadline of the option-to-purchase for its proposed disposal of Third Lok Yang property to 28 Feb from 31 Dec '17.
- Trades at 0.36x P/B.

*Union Gas
- Signed a non-binding MOU to acquire certain assets from Semgas Supply.
- Assets include the business of retail distribution of bottled LPG cylinders and sale of LPG-related accessories to domestic households in Singapore.
- The acquisition will allow the group to expand its retail LPG distribution network and customer base.

Source- https://sgmysharetradeforum.blogspot.com/2018/01/singapore-sgx-market-analysis-of-day-02.html

WIFE’S TINY PORTFOLIO UPDATE – DECEMBER 2017

I thought it’ll be fun to do a quick post on the tiny portfolio that I’ve created for my wife since a reader asked. (Hi Jaslyn!)

For the year 2017, the time-weighted returns (including dividends) as of today is 19.42% when compared to STI at 20.99%.

The current portfolio value is $4,320 with profit & dividends of +$724.4 (+18.93%).

For the year, I was able to give my wife dividends for all four quarters. Both CapitaLand Mall Trust and Frasers Centrepoint Trust go with a standard four-quarter distribution schedule with payout dates falling in Feb, May, Aug and Nov.

Feb 2017 : $57.70

May 2017 : $57.70

Aug 2017 : $57.50

Nov 2017 : $57.50

My wife, as expected, was delighted to receive $230.40 in dividends, compared to the peanuts that she would have gotten if she parked her money in her bank.

It worked! In fact, my wife had even proactively set aside additional sums of money for her personal fund manager (oh, that’s me) to invest on her behalf 🙂

And no, I did not use any of that money yet. The market has indeed run up considerably in this year.... WIFE’S TINY PORTFOLIO UPDATE – DECEMBER 2017

And so, I took the opportunity to share my second simple trick. While waiting for opportunities, park ready-to-deploy-any-time funds in a “high” interest account like the CIMB FastSaver. Even though there isn’t any fish, shrimps are not bad too 😉

Why I Don't Leverage Up In The Stock Market?

Kiasu or Kiasi or his Mind and Money Management?

Short-term trading and long-term investing with his initial capital since Jan 2000 and no more adding of capital since then. It is already accumulated saving since Aug 1977 when he started working after NS. He has thought it very carefully. Enough is enough over the initial few years of investing in the stock market. 

There is no need to inject more saving into his investing capital to try make more money in the stock market. 

Being single household income and in his 40s; by limiting his risk exposure to the stock market is far more important than trying to "make" more money in the stock market.

He has been applying this risk and money management till today. 

His position sizing is limited to maximum 10% of his investing CAPITAL since Jan 2000. In this way; his investment portfolio can grow and diversity; but his risk exposure to any stock is consistent across market cycles.

When he has this sense of enough is Enough; Why leverage up? 

• Capital is enough!.
• Return is enough!
• Why ask more?

Feeling of enough is never the same for many of us.....Why I Don't Leverage Up In The Stock Market?