the business times

weekend
www.businesstimes.com.sg | SEPTEMBER 15-16, 2012 | S$1.00 | MICA (P) 075/08/2012 |
By Teh Shi Ning
[email protected]
Singapore
T
HE Federal Reserves decision
to pump US$40 billion into
the US economy each month
until sustained jobs growth
kicks in yesterday rallied
Asian equities and currencies, alongside
surges in commodities and gold.
But the latest open-ended round of
quantitative easing (QE3) may at best be a
mixed blessing for Asias economies.
Risks of asset price bubbles forming as
capital flows towards Asias higher yields
plus the effect of currency appreciation on
export competitiveness may work against
any boost to demand QE3 can offer Asian
exports, observers say.
In fact, Hong Kongs central bank yester-
day tightened mortgage lending to deter
speculative and investment demand after
warning that the Feds monetary stimulus
risks overheating asset markets there,
Bloomberg News reported. Hong Kongs
home prices have now surpassed October
1997s peak.
Asian stocks, which have been rising in
anticipation of the Federal Open Market
Committees (FOMC) meeting, yesterday
advanced a seventh straight day. The
FOMC met lofty expectations by stating
that it would buy US$40 billion in agency
mortgage-backed securities every month
for as long as it takes to revive the jobs
market, and keep the interest rate close to
zero for longer, until mid-2015.
The Straits Times Index rose 1.33 per
cent, or 40.28 points, to a one-month high
of 3,070.42, led by gains in commodities-
linked stocks. Commodities-related stocks
also pushed Jakartas Composite Index up
2.1 per cent to a record high while Thai-
lands SET Composite Index rose 1.45 per
cent to a 16-year high.
Elsewhere in Asia, Hong Kongs Hang
Seng Index gained 2.9 per cent to 20,629.78,
its highest level since May, while South
Koreas Kospi jumped 2.9 per cent and
Tokyos Nikkei 225 rose 1.8 per cent. Main-
land Chinas Shanghai Composite Index
and the Shenzhen Composite Index posted
smaller gains of 0.6 and 0.1 per cent respec-
tively.
This is due more to the fact that
short-term liquidity flows are seeking to
hide from a potential debasement of the
USD than anything else, said Kelvin Tay,
chief investment officer for Southern
Asia-Pacific at UBS Wealth Management.
Most of the Asian currencies also rose
against the US dollar yesterday, boosted by
expectations that funds will flow to Asia.
With QE3, Mr Tay thinks Asias capital
markets are likely to break out of the range
in which they have been rocking back and
forth not falling below the base provided
by Asias strong fundamentals but unable
to surpass recent highs due to slower corpo-
rate earnings too.
He now expects Asia ex-Japan to gradu-
ally trade back up to its 10-year historical
average of 12 times forward price-earnings
ratio, potentially 12 per cent above current
levels.
Bank of Singapore chief economist Rich-
ard Jerram says the latest Fed action needs
to be seen as part of a broader, renewed
injection of global liquidity. The European
Central Bank has committed to potentially
unlimited purchases of short-term Europe-
an debt, while China and Japan are also set
to loosen policy before the end of the year.
This will intensify the search for re-
turns that has been boosting the prices of
risk assets, despite the undoubted prob-
lems facing the world economy, he said.
Standard &Poors gauge of 24 commodi-
ties rose a seventh day its longest rally
since 2010 to reach its highest level in five
months. Gold and platinum prices climbed
to six-month highs, while copper reached
its highest since May and other base metals
also jumped.
Hopes that the aggressive stimulus
would boost global demand for oil also sent
oil prices rising. Brent crude climbed above
US$117 a barrel by 8pm yesterday, while
US crude hit a four-month high of
US$100.42 before sliding to US$99.78 a bar-
rel.
Continued on next page >>
F
OR the third time
since the global fi-
nancial crisis, the
magicians at the US
Federal Reserve
have pledged to conjure billions
of dollars out of thin air, this
time US$40 billion a month, in a
policy described as QE3.
The trick is supposed to
kick-start the chronically weak
American economy. Whether it
will succeed is moot a 50/50
chance at best but it will have
ripple effects on the rest of the
world, not all of them pleasant.
QE3 is different from its two
earlier variants in three impor-
tant respects. One, it is explicitly
tied to what happens in the US
job market; the Fed is acting on
a lesser known part of its man-
date, which is to maximise em-
ployment. Second, unlike previ-
ous QEs, it is not one-off; the
Fed has pledged to persist with
QE3 until it succeeds in reduc-
ing unemployment in a sustain-
able way. Third, as a means of
reducing unemployment, QE3
relies heavily on stimulating the
US housing market; the US$40
billion per month that it will
spend will go mainly toward the
purchase of mortgage-backed
securities.
The Feds linking of mone-
tary policy to unemployment
(rather than to the more conven-
tional variables such as nominal
GDP growth or inflation) is unu-
sual. It is clearly not interested
in growth for its own sake
which can be jobless growth
as we have seen before. And US
inflation (currently 1.7 per cent)
is already close to the Feds pre-
viously stated target of 2 per
cent, so linking policy to infla-
tion would not produce much
of a stimulus unless it raises
the inflation target, but that
would create other problems.
Besides, US unemployment
is a serious issue. It has been
stuck at 8.1 per cent since the
start of this year. In fact, it
would be even higher 12-15
per cent by some estimates if
it included people who have
stopped looking for work. The
longer unemployment persists,
the greater the danger that even
more people will drop out of the
labour force, which would
erode the productive capacity of
the economy, to some extent
permanently. This is what the
Fed wants to avert.
Continued on Page 4 >>
QE3 could eventually work for America, but
will meanwhile hurt the rest of the world
But the latest round of quantitative easing by US central bank
could be a mixed blessing for the regions economies
Asian stocks,
currencies rally
on Feds move
commentary|
The Feds third
magic trick
| |
WEALTH
Behind structured
notes | 30-31
MOTORING
Citron DS5:
Design drive | L19
GADGETS
Get the 4G
edge | L14
Vikram Khanna
[email protected]
Associate Editor
LIVING
Dream workplaces
L2-5
ARCHITECT
OF THE
NEW CITI
Citigroup CEO
Vikram Pandit
Raffles
Conversation
10-11
By Chuang Peck Ming
[email protected]
Singapore
MORE jobs were created in the
second quarter, more than first
thought, says the latest official re-
port on the labour market re-
leased yesterday. Yet labour pro-
ductivity continued to dip.
Against the rosy employment
picture, labour productivity fell
1.9 per cent over the year in the
second quarter, according to the
Ministry of Manpowers Labour
Market Report for the Second
Quarter.
Labour productivity has been
in free fall since last October, dip-
ping 0.5 per cent in the fourth
quarter of 2011 and 2.3 per cent
in the first quarter of this year.
The poor productivity per-
formance, which was more
broad-based this time, has led
some private-sector economists
to question if the decline is struc-
tural or cyclical.
Which also leads to the larger
question: Whats happening to
the national push for productivi-
ty growth?
Not only did output per work-
er decrease, employees worked
even more hours per week to
achieve lower productivity across
manufacturing, construction and
services, notes Robert Pri-
or-Wandesforde of Credit Suisse.
Workers put in an average
46.4 hours weekly in June only
slightly more than the 46.2 hours
in March but lower than the 46.6
hours in September 2008, before
the last recession, according to
the lastest Labour Market report.
Even the strong job growth is
no consolation for productivitys
poor showing, because Mr Pri-
or-Wandesforde thinks its not
likely to last. In fact, he suggests
there may be a tradeoff between
the two.
Slowing GDP growth should
prove a drag on the labour mar-
ket and employment creation in
the coming quarters (which
tends to lag GDP growth), Mr
Prior Wandesforde says. If this is
right, then we could see some im-
provement in productivity
growth ahead, suggesting that at
least part of the deterioration in
the second quarter productivity
is cyclical, not structural.
Total employment rose by
31,700 in the April-June period
despite a slowdown in the econo-
my, up from 24,800 in the first
three months and higher than
the earlier official estimate of
29,200.
This brings the overall
number of jobs created in the
first half of 2012 to 58,900, up
from 53,100 over a year ago, ac-
cording to the report.
And unemployment, which
crept up to a seasonally-adjusted
2.1 per cent in March, slipped
back to 2.0 per cent in June.
Layoffs in April-June fell for a
second straight quarter with
2,210 workers made redundant,
down from2,600 in the first quar-
ter and 3,250 in the final quarter
of 2011, the report says.
Citigroups Kit Wei Zheng also
sees the job market easing.
While the bulk of the employ-
ment gains in the second quarter
continued to be in services, he
says the jobs created in the sec-
tor in the past two quarters
16,400 on average were well be-
low the 20,000-30,000 created in
the past.
This may reflect a tigher sup-
ply of foreign workers, but Mr Kit
says the decline is more likely
due to a softening of labour de-
mand, especially in cyclical, high-
ly paid sectors.
Indeed, seasonally adjusted
job vacancies have fallen to
45,600 in the second quarter
from the fourth quarter 2011
peak of 55,400 and the job vacan-
cies to unemployed persons ratio
has fallen to 0.91 the first time
in more than two years it has fall-
en below 1, he notes.
Deb Loveridge, the Asia-Pacif-
ic headof recruitment firmRands-
tad, says employers are already
vigilant in hiring because of glo-
bal economic uncertainties and
slower growthin China and India.
The Manpower Ministrys re-
port itself concludes that a less
optimistic business outlook for
the second half of the year has
moderated hiring expectations in
the third quarter.
<<Continued from Page 1
But the extent to which QE3 will
impact the real US economy and
thus global demand, including
that for Asias exports, is unclear.
Citi analysts say the aggressive-
ness of the latest Fed move is an
implicit acknowledgment of the
diminishing effects of successive
rounds of QE more is nowneed-
ed to achieve the desired impact
on the real economy.
I remain unconvinced that
QE alone will deliver a boost to
US growth and Asian exports,
though it certainly does provide
a backstop and hopefully will
help via positive wealth effects,
said Citi economist Kit Wei
Zheng.
Even if stimulus does stir up
actual growth, OCBC economist
Selena Ling said the main drag
on Asian growth at this juncture
is uncertainty over the Chinese
slowdown as the United States
sub-par growth and the euro-
zone debt crisis are nowrelative-
ly old news.
Still, to the extent that the
stimulus hedges against the US
fiscal cliff and eurozone debt
woes, Asian economies will bene-
fit.
The overall sense is that QE3
is positive for managing
near-term risks, said Mizuho
Corporate Bank economist Vish-
nu Varathan. But he added: The
costs attached have become high-
er, and payback may come later
on.
Policymakers will be chal-
lenged by higher rates of infla-
tion and potential asset bubbles
as another flush of liquidity en-
ters Asias asset markets.
Bank of America Merrill
Lynch economist Chua Hak Bin
said: Hard assets, including
property, will get a lift. Risk of
property bubbles may re-emerge
again depending on how long
the open-ended QE3 lasts.
With commodity prices rising
on higher demand for hard as-
sets, cost-push inflation could
begin to feed through, too. The
overall inflation impact of QE3
on Asia could be greater than
growth, says Dr Chua.
Singapores central bank, due
to review policy in October, will
now face a sharper dilemma.
Economists have been expecting
the Monetary Authority of Singa-
pore to slow the pace at which it
allows the Singapore dollar nomi-
nal effective exchange rate.
Mr Kit thinks QE3 has re-
duced easing odds at the mar-
gin for Singapore, given its im-
pact on imported inflation and
capital inflows. If it should ease
exchange rate policy, the central
bank would have to fight more
aggressively with intervention.
But QE3 remains a marginal
factor on monetary policy com-
pared to the growth-inflation dy-
namics. A technical recession in
Q3 would override QE-related
concerns, he said.
In fact, Barclays economist
Leong Wai Ho thinks that the
higher risks of capital inflows
makes it more likely that the
Monetary Authority of Singapore
will signal a slightly looser poli-
cy setting to reduce the appeal of
SGD assets and also to help the
export sector recovery.
This could be supplemented
by tighter prudential curbs on
property, he added.
Economists question if poor productivity
performance is structural or cyclical
Labour productivity dips despite jobs created
Asian stocks, currencies rally on Feds move
NEWS
Top Stories 2-8
Week in Review 9
Raffles Conversation 10-11
Companies 12-15
From the Desk of 16
Singapore 17-18
World 19-22
Stocks & Stats 23-27
Perspective 28-29
Wealth 30-35
Show Me The Money 33
House Hunt 34
Real Estate 35
LIVING
Design L2-5
Dining L6-8
Style L9
Home & Garden L10-11
Gadgets L14
Health L15
Golf L16-17
Motoring L18-20
STI
3,070.42 (+40.28)
STI FUTURES
3,069.00 (+40.00)
SIMSCI
353.89 (+4.48)
SIMSCI FUTURES
353.90 (+4.90)
STOCKS
Friday Change
KL COMP 1,642.95 +14.55
NIKKEI 225 9,159.39 +164.24
HANG SENG 20,629.78 +582.15
SET 1,276.12 +18.43
JAKARTA 4,257.00 +86.36
MANILA 5,322.47 +81.97
KOSPI 2,007.58 +56.89
SHENZHEN B 581.63 +7.09
MUMBAI IND 18,464.27 +443.11
12.30 EDT Change
DOW 13,580.74 +40.88
NASDAQ 3,186.50 +30.67
PRIME RATES
SINGAPORE 5.38
MALAYSIA 6.55
HONG KONG 5.00
INDONESIA 14.284
TAIWAN 5.036
JAPAN 1.475
KOREA 9.33
BRITAIN 0.50
US 3.25
CANADA 3.00
SWITZERLAND 0.50
INDIA 14.75
Source: Bloomberg
FOREX
US$ S$
US$ (S$ per US$) 1.222
(US$/S$ per ) 1.620 1.978
EURO(US$/S$/) 1.303 1.592
Foreign currency per US$ S$
YEN 77.70 63.60
RM 3.047 2.494
HK$ 7.753 6.347
BAHT 30.77 25.19
RUPIAH 9,507 7,782
RENMINBI 6.319 5.172
INDIAN RUPEE 54.70 44.78
A$ 0.945 0.774
NZ$ 1.198 0.981
MARKETS CONTENTS
On a roll again?
Employment change by sector
Q2 08 Q4 08 Q2 09 Q4 09 Q2 10 Q4 10 Q2 11 Q4 11 Q2 12
-40
-20
0
20
40
60
80
Number (000)
Construction
Services
Total
Manufacturing
Source: MOM
Notes:
(1) Data for the three major sectors do not add up to the total as the latter includes
Agriculture, Fishing, Quarrying, Utilities and Sewerage & Waste Management.
(2) The industries are classified based on SSIC 2010 from 2009 onwards
and SSIC 2005 before 2009.
2 top stories THE BUSINESS TIMES WEEKEND SATURDAY/SUNDAY, SEPTEMBER 15-16, 2012
By Kenneth Lim
[email protected]
Singapore
CHAROEN Sirivadhanabhakdi has always
been the last one standing.
Whether it was Thailands beer war of
the 1990s, an acrimonious split from
Dutch brewer Carlsberg in the 2000s, or
the dissolving of a partnership with Singa-
pore developer CapitaLand in 2011, the
Thai tycoon now leading a battle for Fras-
er &Neave has somehowalways managed
to outlast the field.
But his latest bid for the Singapore con-
glomerate is his biggest battle yet, and
F&Ns share price movement yesterday
did not make it any easier for the man.
F&N shares shot as high as $9 yester-
day before settling at $8.97, up 5 cents on
the day. That is higher than Mr Charoens
offer of $8.88 per share to take F&N pri-
vate.
Mr Charoens offer, made through pri-
vately held TCC Assets, is conditional up-
on TCC Assets and Singapore-listed Thai
Beverage, in which Mr Charoen is a major
shareholder, obtaining at least 50 per cent
of F&Ns shares. The concert parties cur-
rently control about 30.66 per cent of F&N
shares.
Withthe market price of the shares hov-
ering above Mr Charoens offer price,
shareholders of F&N may not be as in-
clined to accept Mr Charoens bid when
they could theoretically get a better price
on the open market.
Mr Charoen may also have difficulty
picking up shares on the open market, be-
cause Singapores takeover rules will force
him to revise his offer upwards if he buys
on the open market above his offer price.
But given his track record, Mr Charoen
is unlikely to let F&N go easily.
After all, this is hardly his first Beer
War. The first one took place in Thailand
in the 1990s.
The Thai government liberalised the
countrys beer industry in 1991 by agree-
ing to license more breweries. In 1993, Mr
Charoen, who by then had already cut his
teeth as a successful liquor producer,
moved into this new market, teaming up
with Carlsberg to sell the Dutch beer in
Thailand. In 1995, Mr Charoens Thai Beer
Co introduced Chang Beer and struck at
the heart of then-leading brand Singha.
There were accusations of foul play
from both sides. According to press re-
ports at that time, Boon Rawd, which
brews Singha, banned its agents fromhan-
dling Carlsberg. And Boon Rawd at that
time accused Thai Beer of forcing vendors
to buy Chang when they also bought the
companys whisky.
But by 1999, according to a paper by a
researcher at Ramkhamheang University
in Bangkok, Chang, through a strategy of
low prices and rural sales, had captured a
57.8 per cent market share, relegating Sing-
ha to second place.
But Mr Charoen did not just beat Sing-
ha. In a partnership gone south, he also
outlasted his previous partner, Carlsberg.
Carlsberg teamed up with Mr Charoen
in 2000 to form a new company to market
both companies beer, with a plan to even-
tually list the joint venture.
Instead, in 2003 Carlsberg pulled out,
saying that it could no longer establish a
constructive cooperation with Chang. Af-
ter a protracted dispute, Carlsberg eventu-
ally paid US$120 million to Mr Charoens
company to get out.
In the property sector, Mr Charoens
TCCLand formed a partnership with Capi-
taLand in 2003 to develop properties in
Thailand. TCC Capital Land pushed out a
number of successful projects, including
its first, the Athenee Residence in Bang-
kok, which set a record price when it was
sold.
But in April 2011, CapitaLand sold its
entire stake in the joint venture to TCC
Land. CapitaLand explained that the
move was part of CapitaLands ongoing
strategy to enhance capital productivity.
ThaiBev itself is also an example of Mr
Charoens resilience. Mr Charoen had ini-
tially wanted to list the beverage group in
Bangkok, but he got stonewalled as the au-
thorities hesitated amid criticism about
listing an alcohol business in a Buddhist
country.
Mr Charoen took the listing to Singa-
pore instead, prompting the president of
the Stock Exchange of Thailand at the
time to resign.
Traders painted a mixed view of inves-
tors inclinations at this time.
A trader said: Some of the veteran in-
vestors, they say, I wont look at it now, Ill
look at it later when theres a better deal.
Its really hard to say whats going to
happen, the trader added, noting that yes-
terdays prices may not give a complete
picture given that volumes were thin.
One remisier at a different firm told BT
that clients had been selling F&N on ex-
pectations of limited upside at current
prices, as well as the risk that the offer
may not go through.
On Wednesday, with speculation of an
offer rife but unconfirmed, Prudentials
funds reduced their combined stake in
F&N to 7.9917 per cent from 8.0263 per
cent for an undisclosed sum, according to
a disclosure announcement on Friday.
Analysts have also said F&N could be
worth more than $9.50 per share.
We believe the offer is not convincing
and runs the risk of being voted down by
the F&N board, CIMB wrote in a note.
F&N yesterday also said it had accept-
ed an unrelated, unsolicited offer of
HK$1.7 billion (S$267 million) for its en-
tire 56.05 per cent stake in Hong Kong-list-
ed Frasers Property (China).
F&N sells stake in
Frasers Property (China), Page 12
A
Lion, a Tiger and an Elephant
walk into a bar.
The bartender, whos got
a red star badge on his
apron, looks at the Tiger and
smiles.
Hey, I know you, the Dutchman says
to the Tiger. How have you been? Say, I
could really use some help around here.
How would you like to come and work for
me?
The Lion interjects.
Woah, not so fast, the Lion says.
That stripey cats still under contract
with me. You want the Tiger, you have to
get past me first.
The Elephant watches the Lion and the
Dutchman as they try to hammer out a
deal. They are getting close to an agree-
ment when the Elephant pipes in and
says, Guys, hold your horses.
Lion, Id like you to work for me in-
stead. Im a pretty big guy, I think I can af-
ford you.
The Elephant then turns to the Dutch-
man.
If the Lion accepts my offer, and you
still want the Tiger, you can talk to me in-
stead, the Elephant says.
The Tiger, meanwhile, is just sitting on
his stool, watching all the jostling and
wishing that they would just get it all over
with so he can finally get his drink, when
all of a sudden an old man bursts through
the doors.
The man looks like he could easily be
over 100 years old, and he smells faintly of
soya beans and chrysanthemum.
There is a long, awkward silence as the
old man looks at all the people in the
room. His face has the saddest, most de-
jected expression ever, mixed with a tinge
of bitterness.
Silence.
Finally, the old man opens his mouth.
So. You guys are having a party, and
nobody invites me, the old man says.
Nobody knows how to respond.
The old man turns around and march-
es back out the door, cursing under his
breath.
The Elephant looks at the Dutchman
and asks, Who in the world was that
guy?
Oh, dont mind him, the Dutchman
says. Thats just Yeo Hiap Seng.
Given his record of gutsy
strategy and aggressiveness,
ThaiBev tycoon unlikely
to let F&N go easily
saturday soapbox |
Its a jungle out there
Battle-worn Charoen fights Beer War II
Kenneth Lim
[email protected]
Correspondent
THE BUSINESS TIMES WEEKEND SATURDAY/SUNDAY, SEPTEMBER 15-16, 2012 top stories 3
By Teh Shi Ning
[email protected]
Singapore
ASIAN currencies surged yesterday on news of the
US Federal Reserves latest round of aggressive
stimulus, which is expected to trigger higher capi-
tal inflows to the region seeking higher yields.
The Singapore dollar surged to its strongest in
more than a year against the US dollar yesterday,
reaching as high as $1.2178 against the greenback
last night. The Sing dollar, which has been one of
the best-performing Asian currencies this year,
had already hit a one-year high earlier in the week
as expectations of a third round of monetary stimu-
lus from the US central bank mounted.
Currency strategists expect Asian currencies to
see appreciation pressure for a while, as additional
liquidity introduced by QE3 flows to Asia.
Riding on investors increased appetite for risk,
Asian currencies yesterday completed their biggest
weekly stride since June, with the Bloomberg-JP-
Morgan Asia Dollar Index rising 0.7 per cent in the
week to 116.73, its largest rise since the end of
June.
Taiwans dollar strengthened close to one per
cent to NT$29.345, while South Koreas won ad-
vanced 1.3 per cent to 1,115.30.
Malaysias ringgit gained as much as 1.6 per
cent to 3.0333 a dollar yesterday, while the Thai
baht gained 0.97 per cent to 30.73. Both hit
four-month highs.
Philippines peso advanced one per cent to
41.405 per dollar, its highest since April 2008. In-
dias rupee gained 1.8 per cent to 54.4150 and Indo-
nesias rupiah rose 0.9 per cent to 9,477.5 against
the US unit.
But the yen retreated slightly from a seventh-
month high against the dollar, after Japans fi-
nance minister Jun Azumi signalled that action
may be taken to weaken the currency as the recent
one-sided advance does not reflect the Japanese
economy.
Roy Teo, ABNAmro Private Bank currency strat-
egist, told Bloomberg that he thinks China and
Singapores central banks will ease monetary poli-
cy soon. Currency strength could impede export
recovery so theres a need to balance that, he said.
But Mizuho Corporate Bank economist Vishnu
Varathan noted that the impact on the Singapore
dollar nominal effective exchange rate (SGD
NEER), which is derived against a basket of curren-
cies belonging to the Republics key trading part-
ners, may be less pronounced if most currencies,
save for the US dollar, also strengthen.
Even so, he thinks stronger Asian currencies are
a mixed blessing.
While the rise in Asian currencies could partly
offset higher commodity prices, it could perversely
accelerate hot flows into the economy, he said.
Yesterday, Bloomberg reported the Philippines
central bank governor Amando Tetango as saying
that the Philippines is ready to adjust policy to
smooth out excessive volatility in financial prices,
including the foreign exchange rate. In July,
prompted by the pesos appreciation, the central
bank tightened rules on capital inflows.
<<Continued from Page 1
The Feds forward guidance
its pledge to persist with easy
money policies until its goal is
achieved, and even after the
economy has started to recover
is an important part of QE3, be-
cause it affects expectations.
When people hear Fed chairman
Ben Bernanke personally pledge
that the Fed Funds rate (current-
ly 0 to 0.25 per cent) will remain
low till at least mid-2015, they
will be less fearful of being hit
with an unexpected rate hike and
more confident about borrowing
to buy a house, or to expand a
business or taking more risks
with their money.
In his press conference on
Thursday, Mr Bernanke indicat-
ed that such signalling, or what
he called our communication
strategy, is also a policy tool that
the Fed intends to use.
The Fed appears to have deter-
mined that the key to getting the
US economy moving and creat-
ing jobs lies in the housing mar-
ket. Why? Because housing and
construction have huge multipli-
er effects on the economy. Also,
as house prices rise, homeown-
ers home equity would improve,
enabling them to feel wealthier
and thus spend more.
Gradually, those with negative
equity (who owe more on their
houses than the houses are
worth) will move into posi-
tive-equity territory and be able
to refinance at cheaper rates,
which would put more money in-
to their pockets. They would also
spend more. And more spending
will lead to more sales and more
jobs. If the Fed can succeed in
kick-starting the housing market
(which has already stopped de-
clining), the chances are that
QE3 will work.
But the Fed chairman was cau-
tious about the policys likely ef-
fectiveness and rightly so. The re-
al booster to demand in the US
economy lies on the fiscal side.
And here, there is a huge cloud,
in the form of the so-called fis-
cal cliff facing the US. This re-
fers to the spending cuts and tax
increases which will kick in auto-
matically next year unless US pol-
iticians are able to reach anagree-
ment to cancel some of these re-
cession-inducing measures. If
they fail to do so, Mr Bernanke &
Cos good work could be in vain.
There are other potential prob-
lems down the road. One is infla-
tion. For the US, it is not on the
horizon as yet (the Fed says it will
remain under 2 per cent till
2015), but if the US economy
starts to recover, it could easily re-
surface. The Fed might then find
itself in a dilemma. It would have
to either raise rates, hammer the
housing market and abort the re-
covery, or tolerate higher infla-
tion.
But while inflation may not be
a problem in the US, QE3 could
ensure that it becomes a serious
problem for some other coun-
tries, and soon. One of the perni-
cious effects of the Feds money
printing will be a rise in commod-
ity prices. These will feed
through to inflation, especially in
the emerging economies where
food items account for a relative-
ly high proportion of consump-
tion and more expensive rawma-
terials raise production costs.
Asset inflation could increase
as well. While this might be wel-
come in America and Europe, it
will be much less welcome in
Asia including Singapore
where policymakers are already
struggling to cool property mar-
kets.
Whether we like it or not, US
monetary policy affects not only
the US, but also the rest of the
world. But it is not set with the
rest of the world in mind. Eventu-
ally, it might work for America,
which will be good for everyone.
But meanwhile, some countries
could get hurt.
By Anthony Rowley
[email protected]
Tokyo
THE chances of Japan interven-
ing in currency markets early
next week to curb a freshly resur-
gent yen seemed to have risen
sharply yesterday as markets
moved back into turbulence after
US Federal Reserves decision to
undertake a third round of quan-
titative monetary easing (QE3).
Calls from Japanese industrial
lobbies and other sources for
such intervention are reaching
an intense pitch in the run-up to
next Tuesdays meeting of the
Bank of Japan (BoJ) Policy Board,
strengthened by evidence that
slowing exports are pushing Ja-
pans economy back towards re-
cession.
Prime minister Yoshihiko
Nodas government yesterday
downgraded its basic assessment
of the Japanese economy for a
second consecutive month, cit-
ing slower production and weak-
ening private consumption amid
the global economic downturn.
As the yen surged to a sev-
en-month high of around 77 to
the dollar in Tokyo yesterday in
the wake of Fed chairman Ben
Bernankes announcement of fur-
ther monetary easing, the head
of the Japan Automobile Manu-
facturers Association (JAMA) is-
sued an unusually strong protest.
The current foreign ex-
change level, which is far from
the actual ability of the Japanese
economy, goes much beyond the
limits of what companies can do
through efforts to cut costs," said
Akio Toyoda, who is also presi-
dent of Toyota Motors.
Japanese manufacturing is
facing a great crisis again, and if
things remain this way, it could
have a further impact on employ-
ment, he said, suggesting that
the crisis of the yen goes well be-
yond Japans motor industry.
AsianDevelopment Bank pres-
ident Haruhiko Kuroda, who is
tipped to succeed Masaaki
Shirakawa as governor of the BoJ,
made an unusually direct entry
into the fray this week when he
told Japanese media that the Jap-
anese central bank needed to be
more aggressive in its monetary
policy.
The contrast between the
BoJs stance and that of other
leading central banks, including
the US Federal Reserve, the Euro-
pean Central Bank and the Peo-
ples Bank of China, has grown
starker with bold monetary ac-
tions being taken in recent days
in the US, Europe and China.
One of the major causes of
yen appreciation since the glo-
bal financial crisis erupted has
been the failure of the BoJ to ex-
pand its balance sheet at the
same rate that other leading cen-
tral banks have, Tokyo University
professor and former Japanese fi-
nance ministry official Takatoshi
Ito told The Business Times.
Finance Minister Jun Azumi
promised yesterday that Japan
will act decisively to stem the
yens sharp appreciation against
other major currencies if neces-
sary, indicating possible market
interventions. But Mr Ito and oth-
ers argue that the BoJ has to fol-
lowthrough with aggressive mon-
etary easing.
Yesterdays calls for action
came as the Cabinet Office is-
sued a report saying that eco-
nomic recovery (following the
March 2011 earthquake and tsu-
nami) appears to be pausing due
to deceleration of the world econ-
omy.
This marked the first time in
more than three years that the
overall assessment has been
downgraded for the second
month in a row.
Acknowledging the deteriorat-
ing outlook, Mr Azumi told a
press conference in Tokyo that
we are facing some concerns
about the economy. The govern-
ment will consider whether it
needs to make a response from
the fiscal side, he added.
But yen retreats from 7-month
high against US dollar; central
banks of China, Singapore seen
easing monetary policy soon
Sing $, ringgit, baht
jump on US
bond-buying plan
Japan will act
if needed to curb
resurgent yen
The Feds third magic trick
4 top stories THE BUSINESS TIMES WEEKEND SATURDAY/SUNDAY, SEPTEMBER 15-16, 2012
By Nisha Ramchandani
[email protected]
Singapore
RETAIL sales in July slumped 2.9
per cent from the corresponding
month a year ago. Excluding mo-
tor vehicles, retail sales were 0.7
per cent lower.
Seasonally adjusted, retail
sales were up 0.4 per cent from
June, but down 0.8 per cent
month-on-month when motor
vehicle sales were stripped out.
The softening in sales (ex-
cluding motor vehicles), despite
the Great Singapore Sale, sug-
gests weaker tourist arrivals and
that the stronger Singapore dol-
lar may be hurting sales of small
ticket items. Overall, the data is
yet another sign of a weak start to
3Q as continued destocking and
weakening services activity raises
technical recession odds, wrote
Citi economist Kit Wei Zheng.
According to data fromthe De-
partment of Statistics, retail sales
of motor vehicles dropped 9.7
per cent in July 2012 over July
2011 but rose 4.9 per cent
month-on-month seasonally ad-
justed.
Car dealers had previously re-
ported that consumers were hold-
ing off on purchasing cars on ex-
pectations that certificate of enti-
tlement (COE) premiums could
come down after the Land Trans-
port Authority announced it
would slow both the clawback of
COEs and cuts to the vehicle pop-
ulation growth rate.
This likely changed when it
became apparent that the supply
of COEs was still slated to de-
cline, only at a slower rate,
Mr Kit pointed out.
He maintained his view that
the Monetary Authority of Singa-
pore is likely to adopt a slower
rate of incremental tightening
next month through a slight
slope reduction from 2.5 per cent
per annum to 1.5-2 per cent per
annum.
Sales of watches & jewellery
and of recreational goods regis-
tered declines of 4.2 per cent and
3.8 per cent while retailers of
medical goods & toiletries saw an
8.6 per cent rise in sales and re-
tail sales of supermarkets rose 5.5
per cent year-on-year in July.
Meanwhile, sales of food and
beverage services rose 1.6 per
cent year-on-year in July, but de-
creased 1.4 per cent when com-
paring month-on-month (season-
ally adjusted).
While food caterers reported a
6.2 per cent increase in receipts
in July over a year ago, turnover
of restaurants and other eating
places were up 2.8 per cent and
0.9 per cent respectively. Howev-
er, turnover at fast-food outlets
fell 3.8 per cent year-on-year.
Washington
A JUMP in the cost of gasoline
pushed US consumer prices up
in August at the fastest pace in
more than three years, squeezing
spending on other items and
threatening to slow economic
growth.
At the same time, production
at the nations factories, mines
and utilities dropped by 1.2 per
cent, the biggest decline since
March 2009, other data yesterday
showed.
The sour mix of numbers was
tempered by an unexpected in-
crease in consumer sentiment in
early September and signs under-
lying inflation pressures re-
mained contained.
There is a real risk that the ris-
ing cost of food and fuel may well
put additional pressure on house-
hold spending power,said Chris
Williamson, chief economist at
Markit.
The Consumer Price Index in-
creased 0.6 per cent last month,
the first increase in five months
and the biggest gain since June
2009, the Labor Department
said.
Gasoline prices, which also re-
corded their largest increase
since June 2009, accounted for
about 80 per cent of the rise in
consumer inflation last month.
With gasoline costs on the
rise, service stations chalked up
healthy receipts.
The Commerce Department
said sales at gasoline stations
shot up 5.5 per cent, helping fuel
a 0.9 per cent rise in overall retail
sales. It was the biggest gain in re-
tail sales since February.
Sales of automobiles and
building and garden equipment
were also stronger, but elsewhere
sales were weak. A gauge that
tracks the consumer spending
component of the governments
GDP measure actually fell 0.1 per
cent.
Consumers are not in an ex-
pansive mood. Weakening con-
sumption is probable in the
months ahead, said Joseph Tre-
visani, chief market strategist at
Worldwide Markets in Woodcliff
Lake in New Jersey.
The data suggested third-quar-
ter economic growth would be in-
sufficient to cut into high unem-
ployment, which on Thursday
prompted the Federal Reserve to
launch a third round of bond pur-
chases and push its pledge to
hold interest rates near zero
through at least mid-2015 from
late 2014.
While the CPI rose sharply,
the so-called core index, which
strips out volatile and food and
energy costs, edged up just 0.1
per cent, suggesting inflation will
subside once gasoline costs settle
down.
In the 12 months to August
overall consumer prices in-
creased 1.7 per cent, staying be-
low the Feds 2 per cent target,
but advancing from Julys 1.4 per
cent rise.
The retail sales and consum-
er price reports give the Federal
Reserve very little reason to
doubt their decision yesterday to
increase monetary stimulus,
said Kathy Lien, managing direc-
tor of FX at BK Asset Manage-
ment in New York.
Gasoline prices at the pump
rose 28 cents per gallon in Au-
gust. Automobile sales increased
1.3 per cent, the most since Feb-
ruary, after gaining 0.1 per cent
in July.
Other data showed business
inventories rose 0.8 per cent in Ju-
ly, largely due to car dealers
boosting auto stocks.
Excluding gasoline and autos,
retail sales edged up 0.1 per cent
after rising 0.8 per cent the prior
month.
Away from gasoline and au-
tos, sales were mixed, with re-
ceipts at building materials and
garden equipment suppliers ris-
ing 1.0 per cent after increasing
1.2 per cent in July. There were
gains in furniture sales and sales
at restaurants and bars But there
were declines in sales at clothing
stores and at electronics and ap-
pliances shops. Receipts at sport-
ing goods, hobby, book and mu-
sic stores were flat.
Excluding motor vehicles, retail sales
come in just 0.7% lower
Consumption seen
weakening in months
ahead although
price pressures
remain contained
Retail sales in July down 2.9%
latest us data |
Gas prices fuel
surge in inflation
as output shrinks
REUTERS
PUMPED UP
As gasoline prices recorded their largest increase since June 2009, service stations chalked up healthy
receipts. The Commerce Department said sales at gasoline stations shot up 5.5 per cent, helping fuel a 0.9 per
cent rise in overall retail sales. It was the biggest gain in retail sales since February.
THE BUSINESS TIMES WEEKEND SATURDAY/SUNDAY, SEPTEMBER 15-16, 2012 top stories 5
By Nisha Ramchandani
[email protected]
Singapore
WHATEVER you want, whenever
you want it as long as its legal.
This is the promise that the W
Singapore-Sentosa Cove hotel is
making to guests when it official-
ly opens its doors tomorrow.
The hotel, owned by City De-
velopments Ltd (CDL), operates
under the Starwood Hotels &
Resorts Groups W brand, which
is the trendy, stylish sister to
others in the Starwood portfolio,
such as St Regis, Sheraton and
Westin (set to open in Marina
Bay in July 2014).
The W is always in major
cities, said Rosmalia Hardman,
director of sales and marketing,
pointing to upcoming W hotels
in Asian hot spots such as Bang-
kok and Shanghai. Singapore is
a choice destination. Its definite-
ly a city that has the kind of target
audience we are aiming at the
trendy and fashionable, those
who appreciate design and style.
Thats what the W is about.
The hotel is the hospitality
component of the integrated
Quayside Isle which CDL won
the right to develop in a $255
million bid in a public tender
back in 2006.
According to Ms Hardman,
the W expects to see a mix of
both business and leisure travel-
lers when its fully up and run-
ning.
On a weekday, we would pre-
dominantly be a business hotel.
We would be targeting business
clientele here for meetings, con-
ferences. On weekends, we get
into a different mix leisure (trav-
ellers), Singaporeans who enjoy
taking time out from the city,
she added.
Offering 240 rooms, its room
categories range from Wonderful
($388) to Spectacular to Fabu-
lous, while suites are dubbed
Marvelous ($796), WOW and
finally the equivalent of a presi-
dential suite Extreme WOW
($13,000).
We will be fully booked from
the fourth day of our opening
through the end of the month,
not just because of the Formula
One (F1) but with the business
events and conferences that we
have booked, Ms Hardman told
BT in an interview.
The hotel offers some 1,450
square metres in meeting and
event space as it aims to take a
bite from the meetings, incen-
tives, conferences and exhibi-
tions (MICE) pie. In this respect,
it could face some stiff competi-
tion from hotels and MICE ven-
ues in the central business dis-
trict (CBD), though Ms Hardman
said it plans to focus on compa-
nies and business parks located
outside the CBD area, such as
those at Telok Blangah. To date,
it has over 20 events lined up
between now and the end of the
year.
The hotels interior design is a
modern take on the flora and fau-
na found in its island surround-
ings, with WATGhaving been ap-
pointed the architect for the
hotel and the Rockwell Group,
the interior designers.
We intentionally want guests
to not feel like theyre in a hotel.
You come back to a place where
you can relax and thats exactly
what we want to bring to our
guests, Ms Hardman highlight-
ed.
Food and beverage offerings
include Skirt, its modern grill res-
taurant, the indoor Woo bar as
well as an outdoor wet bar in its
swimming pool. In addition, it
has 10 private berthing stations
for boats of up to 12 metres in
length. The W is planning to
work out an arrangement with
the ONE15 Marina Club to ac-
commodate guests who have
bigger boats.
The hotel also offers guests
the services of a W Insider an
amped up version of a concierge
whose job description runs the
gamut frommaking dinner reser-
vations and getting guests into
Singapores hottest nightclubs to
helping plan a wedding proposal.
In short, whatever you want,
whenever you want it.
Twenty-eight-year-old Shee-
na Koo, who has been in the
service line since 2003, has had a
W Insider from Doha showing
her the ropes since she came on-
board in July.
The key to this is personal
network. Its key to be connect-
ed, Ms Koo said, adding that
requests from guests have al-
ready started flooding in.
Adjacent to the W hotel is The
Residences, where over 20 units
of CDLs 228-unit project have
been sold and quite a number
of the remaining units have been
leased out, the developer told BT.
CDL had stopped active mar-
keting activities for the residen-
ces but plans to boost efforts as
the hotel and the Quaysides re-
tail and dining operations come
onstream.
With the opening of the W
Singapore-Sentosa Cove hotel
and the completion of Quayside
Isle, we expect heightened buzz
and interest for The Residences
at W Singapore Sentosa Cove.
The value proposition of the W
lifestyle will be more visible as
residents and tenants are able to
enjoy the fee-based services ex-
tended by the hotel, said a CDL
spokesman, adding that poten-
tial buyers are likely to be both
local and foreigners.
The Quayside Isle will offer up
to 16 waterfront dining concepts
and seven specialty retail outlets
before the end of the year.
CDL categorises the
rooms as Wonderful
to Extreme WOW
(at $13,000 a night)
W goes all out to meet guests demands
EAT AND DRINK IN STYLE
Food and beverage offerings at the W-Sentosa Cove include an outdoor
wet bar in its swimming pool, the indoor Woo bar, and Skirt, the hotels
modern grill restaurant
A BIG WELCOME
The 240-room W-Sentosa Cove hotel expects to see a mix of both business and leisure travellers when its fully up and running. It also aims to take
a bite from the MICE pie with its 1,450 square metres in meeting and event space
6 top stories THE BUSINESS TIMES WEEKEND SATURDAY/SUNDAY, SEPTEMBER 15-16, 2012
From the Management and Staff
Mr Chia Chor Meng BBM
Group Chairman
on being awarded:
Top Entrepreneur
of the year 2012
OVERALL WINNER,
Entrepreneur
of the year 2012
Entrepreneur of the
year for Social
Contributions 2012
THE BUSINESS TIMES WEEKEND SATURDAY/SUNDAY, SEPTEMBER 15-16, 2012 7
By Victoria Ho
[email protected]
Singapore
UNITEDSTATES-BASEDreviews
and listing site, Yelp, has
launched in Singapore.
The site offers itself as a busi-
ness listing for restaurants and
services, and relies heavily on
user-submitted reviews for con-
tent, beyond the basic listing in-
formation.
True to its Silicon Valley roots,
the firm does not plan to have a
sales function or make money in
Singapore just yet, till it has in-
vested enough resources and
time to establish its name here,
according to Yelps vice-presi-
dent of new markets, Miriam
Warren.
Typically, foreign dotcoms
tend to start out in new markets
with sales, keeping the core func-
tions back home. Google, for ex-
ample, started here with a small
temporary space in a hosted of-
fice, with a handful of staff help-
ing it test the waters of search
and online advertising.
The search giants office in
Singapore now manages its sales
operations across South-east
Asia.
Ms Warren said that even
though Yelp has now expanded
to 18 destinations globally Sin-
gapore being the 18th it only
sells ads in the US, the United
Kingdom and Canada.
It makes most of its revenue
via sponsored listings from mer-
chants, and the rest from banner
ads from larger advertisers.
Singapore is Yelps only Asian
destination, and will remain so
in the near term, she said. Be-
sides local sites in North America
and in large European nations, it
has an Australian site.
On the competition here, Ms
Warren said many of the similar
directory sites are focused on res-
taurants. Chief competition,
HungryGoWhere, was recently
acquired by SingTel for $12 mil-
lion and will be subsumed into
the parents lifestyle portal,
inSing.com.
Another early competitor,
buuuk.com, provided a food di-
rectory search with an augment-
ed reality app, but the compa-
nys business model appears to
have changed into offering app
development services.
Ms Warren pointed out that
Yelp has rolled out many popular
features across various sites on-
line into its identity, such as be-
having as a directory, as well as al-
lowing check-ins and dialogue
with other user functions that are
typically found in social network-
ing sites such as Facebook.
The firm hopes that offering a
platter of these services will have
at least one stick with users. Us-
ers are using it to chronicle their
lives, and the community is cen-
tral, Ms Warren said.
Yelp has a community manag-
er in each of its countries, whose
job is to grow communities and
talk to businesses, as well as cre-
ate events for active Yelp users,
she said.
While it wont be opening an
office in Singapore just yet, it is
looking for a Singapore commu-
nity manager. This person will
work from home, she said.
Yelp says it has 30 million re-
views on its sites, and attracts 78
million monthly visitors. Shop-
ping and restaurant-related sub-
missions make up a fifth of these
reviews each, with the rest going
to services, health and travel.
The site was founded in 2004
by two former PayPal employees,
and it went public on the NYSE
in March this year.
According to LinkedIn, it has
800 employees.
Yelp Singapore can be found
at www.yelp.com.sg.
By Ven Sreenivasan
[email protected]
Singapore
CHANGI Airport Groups net
profit soared 64 per cent to
$553.05 million last year, thanks
to robust traffic growth and ris-
ing concessionaire incomes.
Revenue for the year ended
March 2012 came to $1.78 bil-
lion, up 22 per cent from $1.45
billion a year earlier, the compa-
ny said yesterday.
Total expenditure rose to
$1.12 billion from $1.06 billion a
year earlier. The rise was due
largely to higher depreciation
and manpower costs.
A breakdown of income
showed that airport services reve-
nue leapt 33 per cent to $561.42
million.
During the year, Changis pas-
senger traffic rose 12 per cent to
48 million, while freight rose 2.3
per cent to 1.87 million tonnes.
Changi is one of the 10 busiest
international hubs in the world,
handling 100 airlines which fly to
over 220 cities in some 60 coun-
tries. A flight lands or takes off at
Changi every 100 seconds.
Airport concessions and rent-
al income remained the largest
revenue component, at $832.91
million, up 13 per cent from
$738.93 million for FY2010/11.
Changis attraction as a shop-
ping haven remained intact, with
its retail outlets chalking up sales
of some $1.75 billion, up 19 per
cent from a year earlier. About 90
per cent of this came from
air-side shops where passen-
gers browse before or after their
flights.
Revenue from security ser-
vices came to $150.21 million, up
from $115.1 million a year earli-
er, while other income rose to
$234.14 million from$179.07 mil-
lion for FY2010/11.
Changi Airport Group chief ex-
ecutive Lee Seow Hiang said that
breakthroughs were achieved in
both aeronautical and non-aero-
nautical fronts last year, thanks
to record passenger traffic and re-
tail sales.
He added that the airport was
planning for more growth.
Planning ahead for our ca-
pacity needs is a fundamental
part of ensuring Changi Airports
continued growth in the long
term, as we aspire to reach great-
er heights, he said.
To this end, we have started
the planning process for two ma-
jor development projects the
development of Terminal 4 and
the expansion of Terminal 1
both of which will expand
Changis handling capacity and
widen our range of offerings.
Changi Airport Group has
enough funds for the expansion.
It had cash and cash equivalents
of some $2 bi l l i on as at
end-March, compared with
$1.45 billion a year earlier.
But there is a high likelihood
that even before these projects
are completed, plans to build a
third runway and an adjacent
Terminal 5 could get government
go-ahead.
Plans for Changis third run-
way will be unveiled at the end of
this year by the Changi 2036
Steering Committee. The com-
mittee is also devising a compre-
hensive land-use plan to develop
a 1,000-hectare piece of land be-
tween runway 2 and the future
runway 3. This includes a part of
Changi Coast Road and is in addi-
tion to Changi Airport's 1,350 ha.
IN SGX partners Savvis to offer
dual-site hosting (BT, Sept 13),
the impression may have been
given that an IT outsourcing
agreement is involved. Savvis has
clarified that it has entered into
an arrangement with SGX, not
an IT outsourcing agreement,
to provide financial services cli-
ents with enterprise-class IT infra-
structure solutions, low-latency
connectivity access and dual-site
hosting capabilities.
Site lists restaurants
and services, relies a
lot on user reviews
Revenue is up 22% at $1.78b for the year
ended March 2012
Clarification
Food finders, Yelp is here to help
Changi Airport Groups net
profit rises 64% to $553m
Check out more than 500 positions
available in CATS Recruit
Sage is looking for
Software Developers
Barry Callebaut is recruiting a
Supply Chain Manager
Ikea has a position open for a
Regional Leasing Manager
Vifor Pharma has a vacancy
for the position of
Admin Manager
Architects 61 is hiring
Senior Design Architects
MR LEE
Breakthroughs were achieved in
both aeronautical and
non-aeronautical fronts last year
8 top stories THE BUSINESS TIMES WEEKEND SATURDAY/SUNDAY, SEPTEMBER 15-16, 2012
ThaiBev seeks funds to mount
F&N offer: sources
THAI Beverage and parties related
to it are said to have approached
several banks in Singapore to line
up funding for a potential general
offer for Fraser and Neave, which
is in the process of selling its stake
in Asia Pacific Breweries to
Heineken. An escalating battle for
APB may lie ahead if ThaiBev se-
cures enough financing to mount
the takeover in time, and intends
to stop F&N from closing the deal.
Carrefour leaves room for
supermarket sweep
AS French hypermarket Carrefour
says its farewells, it opens the door
for incumbents to extend market
share in an industry already domi-
nated by a select few, as the
French retailer found out. While a
new entrant could help level the
playing field, it would require a ri-
val with sufficient heft and scale to
take on the big boys or a competi-
tor that caters to a niche segment,
industry observers say.
SGX tries to win back
wary retail investors
RETAIL activity in the Singapore
stock market is lagging behind
what is seen in Australia and Hong
Kong, but the Singapore Exchange
is playing catch-up and pulling
out all the stops to do so. Since Ju-
ly last year, it has launched various
initiatives aimed at boosting retail
participation in the equity market.
ThaiBev and partner
exploring F&N offer
THAI Beverage confirmed on Tues-
day that it was working with anoth-
er party to consider an offer for
Fraser and Neave, which is in the
process of selling its stake in Asia
Pacific Breweries to Heineken.
This potentially shifts a fierce bat-
tle for APB to one for F&N itself,
setting the stage for more corpo-
rate manoeuvring involving two of
Singapores most famous compa-
nies.
Growth on track, China story
intact, says Wen
IN a climate of worry, Chinese Pre-
mier Wen Jiabao has put on a
brave face. He said on Tuesday
that the worlds second biggest
economy is well on track to
achieve its 7.5 per cent growth tar-
get this year and theres ample
room to manoeuvre and inject
more money into the system, if
need be.
GDP forecasts lowered
for this year and next
PRIVATE-sector forecasters polled
by the Monetary Authority of Sin-
gapore now hold a dimmer view of
how the economy will fare both
this year and next. But their medi-
an forecast of growth in the third
quarter suggests that Singapore
may cleanly avoid a technical reces-
sion this quarter to the surprise
of some.
Call me, maybe? 4G pins
hopes on iPhone 5
THE fabled iPhone 5 is set to put
some respectable pep in the de-
mand for 4G services here, indus-
try watchers say. Even before the
launch of what might or might not
be Apples latest gizmo, analysts
were predicting robust demand
for the handset, widely expected
to be compatible with the Long
Term Evolution or 4G network in
Singapore.
3 RWS executives
land in the dock
THREE senior executives of RE-
SORTS World Sentosa face a total
of 13 charges of providing false in-
formation to the Casino Regulato-
ry Authority and doctoring
records to hide the fact that incen-
tives were given to gamblers who
renewed their annual entry levies.
Thai tycoon springs
F&N takeover offer
And the battle is on. Thai tycoon
Charoen Sirivadhanabhakdi on
Thursday mounted an $8.8 billion
offer for the near 70 per cent of
Fraser and Neave that he does not
control, spurring the local con-
glomerates share price to a new
high. The move cast fresh uncer-
tainty over F&Ns plan to sell its
stake in Asia Pacific Breweries to
Heineken, though the Thais re-
mained silent on how they will
vote on the deal later this month.
Fed launches aggressive
mortgage debt buying plan
THE Federal Reserve launched an-
other aggressive stimulus pro-
gramme on Thursday, saying it will
buy US$40 billion of mortgage
debt per month and continue to
do so until the outlook for jobs im-
proves substantially. In a signifi-
cant shift in the direction of US
monetary policy, the Fed has tied
its unconventional bond buying di-
rectly to economic conditions, a
move that is likely to be controver-
sial among central bank critics.
US DATA
Sept 18
Q2 current account balance
Sept NAHB Housing Market
Index
Sept 19
Aug housing starts
Aug building permits
Aug existing home sales
Sept 20
Initial jobless claims
Aug leading indicators
CHINA DATA
Sept 18
Aug property prices
EVENTS
Sept 18
Bank of Japan holds Monetary
Policy Meeting
Reserve Bank of Australia
publishes Minutes of Sept 4
Monetary Policy Meeting
Sept 19
ECB Governing Council and
General Council meeting
Sept 20
Bank of Japan publishes
monthly report of recent
economic and financial
developments
US Federal Reserve releases
quarterly flow of funds
accounts
next week |
Sept 17-21
this week | Sept 10-14, 2012
Across
1 Working lunches with a
macabre sort of lawyer
(9-6)
9 Seldom encountered by
British, Italian cheese dish
(7)
10 Mutter curiously about
piano and something to
play (7)
11 Trooper willing to keep
going (7,2)
12 Go round one Italian city
(5)
13 Escape of water from a
lake, unfortunately, by
outskirts of Grasmere (7)
15 A grant secured by the
Olympian (7)
17 Saying name of dog,
perhaps held by lead (7)
19 Significance of less than
wholesome wine (7)
21 Change flag once fellow
leaves (5)
23 Main place for the rest of
the natives? (6-3)
25 In conflict with
commander this month
(7)
26 Put rings round the lines
for plays hero (7)
27 Plays hero overcome?
Not he, if composed
(3,4,2,6)
Down
1 Lose oar at sea in spray (7)
2 A gem of a girl? (5)
3 Built with care abroad to
minimise friction (9)
4 Hazel, for example, one
whos crazy over old
actor (3-4)
5 A country seat? No, I
suspect (7)
6 Chase round a resort (5)
7 Comic-strip character,
perhaps getting petrol on
her overalls initially (9)
8 Train always holding one
up (7)
14 Complete change of
opinion concerning
female expert (5-4)
16 Charm of Arab, say,
connected with Oxford?
(9)
17 Rustic worker after
vegetables (7)
18 Fish lake wearing straw
hat (7)
19 Gradually disappear in
route through mountains
on holiday (4,3)
20 Youngster in Po Delta,
swimming? (7)
22 Piece of music from
wassailer on doorstep (5)
24 Little time in Indonesian
island for a British-style
type of curry (5)
YESTERDAYS SOLUTION
Across: 1 Fair of face, 9 Lure, 10
Contestant, 11 Hallow, 12 Obelisk,
15 Usurper, 16 Tense, 17 Foci, 18
Once, 19 Aches, 21 Unlatch, 22
Reaches, 24 Twenty, 27 Lead the
way, 28 Nick, 29 Centralise.
Down: 2 Amok, 3 Retail, 4 Fascist, 5
Amah, 6 Enthuse, 7 Pull a punch, 8
Key workers, 12 Off-putting, 13 Ex-
cellency, 14 Ketch, 15 Usher, 19
Acrylic, 20 Senator, 23 Cereal, 25
Darn, 26 Pass.
Telegraph Group Limited, London
CRYPTIC CROSSWORD
SATURDAY with Ludwig
I tried to pre-order the iPhone 5 online
but someone jumped the queue !
REUTERS
MR CHAROEN
The Thai tycoon has mounted an $8.8 billion offer for the near 70 per
cent of Fraser and Neave that he does not control
THE BUSINESS TIMES WEEKEND SATURDAY/SUNDAY, SEPTEMBER 15-16, 2012 week in review 9
O
N E o f t h e
strengths of
Vikram Pandit
as a banker is
that he isnt
afraid to be bor-
ing. That was
the verdict of
veteran NewYork Times financial column-
ist Joe Nocera, when comparing the chief
executive of Citigroup with some of his
more flamboyant peers.
Mr Pandit, who took the helm at Citi in
December 2007, when the bank was
careening towards disaster after a decade
of reckless risk-taking, cuts a striking con-
trast with the larger-than-life bankers who
have regularly made the headlines, such
as Bob Diamond formerly of Barclays
and Jamie Dimon of JP Morgan. He is
even further removed from his predeces-
sor at Citi, Charles Chuck Prince, who in-
famously declared, in 2007, when the fi-
nancial crisis was gathering pace: As long
as the music is playing, youve got to get
up and dance. And were still dancing.
Under Mr Pandit, Citigroup stopped
the dancing and focused on picking up
the pieces of the wreckage left behind af-
ter an indiscriminate lending and trading
binge.
Crisis or no crisis, we had to change
our strategy, he says, in our conversation
at Citis offices in Asia Square.
The Citigroup he inherited was the ulti-
mate financial supermarket. It had a huge
investment bank, owned insurance busi-
nesses, was involved in private equity and
had accumulated a vast portfolio of mort-
gages and mortgage-backed securities, in-
cluding the sub-prime variety.
The supermarket approach to me did
not represent who we truly were as an in-
stitution, says Mr Pandit. Because our
heritage goes back to us being a core
bank. And so, we refocused the institution
onour core strengths. It wasnt a newstrat-
egy, it was the strategy we had from the
start.
Our core strengths were the basics of
banking and connecting the world to our
clients, he explains. When weve done
that historically, weve thrived. And when-
ever weve strayed away from that, we had
to put it right.
When he took over at Citi which in
2008 had to be bailed out by the US gov-
ernment to the tune of US$45 billion Mr
Pandit mounted a massive clean-up and
slim-down operation. Were smaller than
we were: 260,000 people compared with
375,000, he points out. Weve sold 60
businesses and US$600 billion worth of as-
sets. Were also a lot simpler as an organi-
sation: we have two basic business units,
one is institutional banking and the other
is consumer banking. We are also safer.
Our capital today is five times what it was
during the crisis. Weve completely over-
hauled our risk management. And were
stronger. Now we can take our resources
and core strengths and deploy them
where they should be deployed. So, were
smaller, simpler, safer and stronger.
For good measure, Mr Pandit took a to-
ken salary of US$1 per year for 2009 and
2010 (although a plan to pay him a pack-
age of US$15 million for 2011 was rejected
by Citi shareholders in April this year).
But spring-cleaning and becoming
leaner was only one part of Citis transfor-
mation. What is not seen from the out-
side, says the CEO, is the shift in how
were managing the institution internally.
The biggest part of the change at Citi is the
cultural transformation.
This basically comes down to our peo-
ple asking three questions before they do
anything for a client: is it right for the cli-
ent, does it add any economic value and is
it systemically responsible? The answer
must be yes to all three before we do that
transaction or provide that service.
An affable 55 year-old, Indian-born Mr
Pandit is the first Asian-American to be-
come Citis CEO. He has an informal yet
business-like manner. In Singapore, he
strolled around the office, speaking with
staff and admiring the art. He is not averse
to small-talk, taking a moment to marvel
at the Gardens by the Bay, where Citi had
held a function the previous evening to
commemorate its 200th anniversary. I
think itll get even better as the trees ma-
ture, he suggests.
Banking has not been his only profes-
sion. After taking two degrees in electrical
engineering, he earned a Phd in Finance.
He then taught economics at Columbia
University in New York. In 1983, he joined
the investment bank, Morgan Stanley,
where he stayed for two decades, rising to
become chief operating officer of the
firms Institutional Securities and Invest-
ment Banking group. After that, he ran a
hedge fund called Old Lane LP, which was
bought over by Citigroup when he be-
came CEO.
Old-fashioned banker
It may seem ironic that having spent most
of his career in the higher-risk realms of fi-
nance such as investment banking and
hedge-fund management, he should, with
such apparent ease, re-invent himself as
an old-fashioned banker.
I was fortunate to have a lot of experi-
ences in my life, he explains. I got a Phd
in Economics and Finance, so money and
banking is not new to me. I spent most of
my career serving clients, even when I was
inthe investment banking business and to-
ward the end of it, running the institution-
al business at Morgan Stanley. The two
key imprints I tried to leave behind were,
one, serve your clients and two, manage
your risks correctly, because you can only
serve your clients well if youre a strong in-
stitution.
I also developed experience in select-
ing people, making sure we trained peo-
ple correctly and building a culture
around prudent behaviour and client cen-
tricity in short, the ability to pick a team,
pull it together and have it execute in the
right way.
His experience in the capital markets
was important, he adds, because it en-
abled me to clarify what we were good at
from the eyes of the investor, the eyes of
the client, and also allowed me to get a
firmgrasp on what we had on our balance
sheet.
When it comes to banking regulation,
Mr Pandit almost alone among CEOs of
mega-banks is a supporter, if not an en-
thusiast. He has given his backing to the
Consumer Financial Protection Bureau,
which is a key part of the Dodd-Frank leg-
islation to tighten financial regulation in-
troduced in the United States in 2010, be-
cause he believes consumers should have
more control and more choice.
He also supports, in principle, the Vol-
cker Rule, which seeks to stop commercial
banks from engaging in proprietary trad-
ing. Conceptually, it is completely in line
with our thinking, he says. At the most
basic level, its about making your capital
work for your clients rather than for your-
self.
He elaborates: Ideas such as lets buy
this company, lets sell that company, lets
split up the other company these are all
driven by the proprietary trading mentali-
ty. There may be businesses
where they work, but for the
banking industry, it is of para-
mount importance that we
stick to operating the busi-
ness and serving clients.
The question then be-
comes: how do you serve cli-
ents? Clients dont think in
product terms, they think in
terms of their needs, in terms
of solutions and services they
want. So you cannot be an in-
stitution that sells only mort-
gages, or only some capital
market products. Core bank-
ing must be able to not only
make loans and provide ser-
vices, but also access markets
for clients. So, on the retail
side, you need to have depos-
it taking and checking ac-
count capabilities, plus the
ability to offer loans, mortgag-
es and credit cards. You also
need to provide wealth management ser-
vices for which you need to be in the
markets. On the institutional side, its
about providing operating cash manage-
ment and custody accounts. Its also
about providing working capital and ways
for clients to manage their interest rate
risk, credit risk and forex risk. Those are
core services. And when you go back and
look at Citi even in the days of Walter
Wriston, it had all those capabilities in
place.
His only issue with the Volcker Rule in
practice is that it doesnt define proprie-
tary trading clearly enough, especially in
the context of market-making. Its easy to
define proprietary trading when all people
are doing is sitting behind glass walls and
trading bonds for the banks own account,
without regard to whether theres a client
on the other side, he points out. But
when a bank takes on a bond with a view
to market-making to benefit a client, it is
questionable whether that can be legiti-
mately classified as proprietary trading.
Also, although a supporter of regula-
tion, Mr Pandit believes that too much of
the discourse on the subject focuses on
the wrong questions. A lot of the discus-
sion we see in the press seems to be about
what products banks should be allowed to
sell, he says, adding that size isnt the key
issue either. But there is little discussion
that takes account of the fact that the com-
panies that have had problems include
monoline companies, small banks and
large banks. Really, the discussion needs
to be about the software of running a fi-
nancial institution. Two key parts of the
software: one is the culture of the organisa-
tion, and the second is supervision. Get-
ting the supervision right involves not on-
ly monitoring an institutions safety and
soundness but also asking questions
about its culture. Whats needed is a con-
tinual dialogue with regulators, a continu-
al sharing of information and learning
from each other.
Mr Pandit has politely disagreed with
the widely publicised suggestion by two
former CEOs of Citigroup, Sandy Weill
and John Reed, that the bank should be
broken up. He argues that there is no
need for this, because in terms of its struc-
ture, Citi is already on its way back to
where it was before its merger with the
Travellers Group in 1998, a merger that
was orchestrated by Messrs Weill and
Reed. (The little red umbrella that Citi
adopted from Travellers and used on its
corporate logo has also gone).
But if the bank is not to be broken up
and in the absence of legislation limiting
bank size, how is Mr Pandit addressing
the too-big-to-fail problem the idea
that over-large financial institutions could
pose systemic risks as indeed they (in-
cluding Citi) did, during the global finan-
cial crisis?
He explains that Citi has submitted
plans to regulators which address what it
would do if something big goes wrong
how it would recapitalise or wind down
the company in an orderly way. That
should end too-big-to fail, he says.
Each of us (large banks) has submitted
such a plan. The result is that the authori-
ties would have a roadmap to deal with a
troubled financial institution so that they
dont have to rely on taxpayer equity to
come in and recapitalise the company.
And what is Mr Pandits own roadmap
for Citis future?
It will be driven by the evolving trends
in the global economy, he explains. And it
will be increasingly weighted in favour of
emerging markets, which currently ac-
count for about one half of Citis revenues.
In the future, the world will be more inter-
twined than it ever has been. And the
emerging market consumer will be a more
prominent consumer.
Not only will emerging markets grow
faster than developed markets, but they
will also interact more with each other.
There will be a lot more EM-EM trade
than before. There will also be a lot more
f i nanci al centres. It wi l l be a
point-to-point world. For example, Sau
Paulo can deal direct with Singapore, un-
like the old days when you had to go via
New York or London. Intra-EM flows are
going to be very large.
Together with more globalisation,
there will be more urbanisation, which is
another trend Citi will ride. In our con-
sumer business, we are focused on 150 ur-
ban centres in the world. They account for
about 50 per cent of global GDP.
And then there is a third trend that Citi
is embracing - digitisation, which makes
it all happen, says Mr Pandit.
These are all trends where emerging
markets are going to be at the forefront,
he points out.
And as one of the most globally
spread-out banks in the world, Citi is par-
ticularly well placed to reap the dividends.
For us, its great to have this differentia-
tor, which is that were in 17 countries in
Asia, 24 countries in Latin America, 17
countries in Africa, and many countries in
Eastern Europe. So we can connect EM to
EM, and we can also connect developed
markets to EMs. And thats a very unique
footprint.
As for Singapore, Mr Pandit sees it be-
coming increasingly important as globali-
sation intensifies. Citi and Singapore
have a lot in common, he says. Were
both sitting at the crossroads of globalisa-
tion. We both provide the rails for global
commerce. Both of us work toward pro-
moting global trade and capital flows. We
have about 10,000 people here, were one
of the largest employers, and I can see
that only increasing. To me, Singapore re-
ally does epitomise the new world.
[email protected]
Architect of the
new Citi
VIKRAM PANDIT
Chief Executive, Citigroup since
December 2007
Married, with two children
Born: Nagpur, India, Jan 14, 1957
Education: BS, MS in Electrical
Engineering, Columbia University, New
York;
MBA, Columbia University Business
School;
Phd in Finance, Columbia University
1983: Joined Morgan Stanley & Co
1990: Managing director and head of US
Equity Syndicate, Morgan Stanley & Co
1994: head of Worldwide Institutional
Securities division, Morgan Stanley & Co
2000: president and chief operating
officer of worldwide operations,
Institutional Securities and Investment
banking group, Morgan Stanley & Co
2005: Left Morgan Stanley & Co
March 2006: Launched hedge fund, Old
Lane LLC
Dec 11, 2007: Named CEO of Citigroup
Serves as Board Member, Columbia
University, Columbia Business School
and Indian School of Business;
Director, Institute of International
Finance
2008: Awarded Padma Bhushan (Indias
highest civilian honour) by Government
of India
Citigroup CEO Vikram Pandit talks to Vikram Khanna about
the re-making of Citigroup after the global financial crisis
ARTHUR LEE
The supermarket approach to
me did not represent who we
truly were as an institution.
Because our heritage goes back
to us being a core bank. And so,
we refocused the institution on
our core strengths... Our core
strengths were the basics of
banking and connecting the
world to our clients. When
weve done that historically,
weve thrived. And whenever
weve strayed away from that,
we had to put it right.
10 the raffles conversation THE BUSINESS TIMES WEEKEND SATURDAY/SUNDAY, SEPTEMBER 15-16, 2012 THE BUSINESS TIMES WEEKEND SATURDAY/SUNDAY, SEPTEMBER 15-16, 2012 the raffles conversation 11
By Andrea Soh
[email protected]
Singapore
COMMODITIES stocks on the
Singapore Exchange sprang to
life yesterday, inspired by over-
night news of an aggressive
money-pumping programme by
the US Federal Reserve.
Wilmar International led the
way, surging 8 per cent to finish
at $3.24 its highest in over a
month. More than 57 million
shares were traded, triple the
daily average volume over the
past 15 days.
Yesterdays sparkling perform-
ance in an otherwise bearish year
for the stock was also partly due
to a share buyback its first ever
that it hadannounced on Thurs-
day. Wilmar pumped in some
$22 million to buy back 7.4 mil-
lion shares from the open mar-
ket, representing 0.115 per cent
of outstanding shares, at $3 each.
But, despite the gains, Wilmar
remains the worst-performing
stock on the Straits Times Index
(STI), having fallen 35.2 per cent
so far this year.
Other commodities stocks
also turned in a stellar perform-
ance yesterday.
Noble Group rose 5.5 per cent
to end at $1.35, while Olam and
Golden Agri also increased 5 per
cent to $2.08 and 3 per cent to 69
cents respectively. Golden Agri
topped the markets active list by
volume.
Most other stocks on the STI
also ended higher yesterday,
with the exception of Global
Logistics Properties, which re-
treated 2.63 per cent to $2.59
after a rally to a new high on
Thursday on rumours that the
company planned to list its Ja-
pan assets in an initial public
offering that could raise as much
as US$1.3 billion.
Analysts attributed the surge
in the commodities stocks to the
weakening effect that the third
round of quantitative easing, or
QE3, has on the US dollar, which
holds an inverse relationship
with prices of commodities.
Its pretty much a debasing
of the US dollar, thats probably
the main reason, said DBS Vick-
ers analyst Mervin Song.
The strong correlation be-
tween the global economy and
demand for commodities is also
another reason commodities
stocks are sensitive to changes in
global economic outlook, said
CIMB analyst Ivy Ng.
If theres a slowdown in the
economy, all demand for goods
would be affected and prices of
commodities will come down,
she said.
Conversely, with the global
economy potentially picking up,
commodities companies will be
the first to gain, she said.
However, how long the new
burst of energy in the commodi-
ties stocks will last is anyones
guess.
Said Ms Ng: There are scep-
tics who say that the QE2 wasnt
effective as QE1, so theyre not
sure how effective QE3 would be.
Nevertheless, the conclusion for
the market is that it is positive at
least in the very short term.
By Andrea Soh
[email protected]
Singapore
FRASER and Neave (F&N), the
subject of a takeover bid by Thai
tycoon Charoen Sirivadhanab-
hakdi, yesterday announced the
sale of its stake in Hong Kong-list-
ed subsidiary Frasers Property
(China).
F&N sold its entire 56.05 per
cent stake, or 3.85 billion shares,
in the property and business
park developer for HK$1.654 bil-
lion (S$260 million) in cash to Fa-
mous Commercial, a wholly
owned subsidiary of Shang-
hai-listed Gemdale Corporation
that is engaged in real estate de-
velopment and distribution.
Famous Commercials unso-
licited offer of HK$0.43 per share
represents a premium of about
82.4 per cent over the vol-
ume-weighted average price of
HK$0.236 per share for the 30
days leading up to Sept 11, the
day a joint announcement was
made regarding the potential
sale.
The price was arrived at after
taking into account factors such
as the trading price of Frasers
Property, the net asset value of
the sale shares and other rele-
vant business and market consid-
erations, F&N said in its an-
nouncement.
The move is part of the
groups strategic intent to ration-
alise and consolidate the corpo-
rate and operating structures of
its China business into a single
unlisted business arm, the group
said. F&Ns wholly owned proper-
ty investment holding subsidiary
Frasers Centrepoint Limited
(FCL) currently operates in Chi-
na through Frasers Property and
other private companies.
Said FCLs CEO Lim Ee Seng:
This unsolicited offer gives us
an opportunity to monetise the
groups stake in Frasers Property
at an attractive price.
An earlier attempt in July to
take Frasers Property private had
failed, after independent share-
holders rejected the deal based
on advice from the independent
financial adviser, which called
the terms of the HK$0.28-a-share
offer not fair and reasonable.
Even after the sale, FCL will
still hold substantial real estate in-
vestments in China, including
projects in Shanghai, Beijing,
Chengdu and Suzhou.
Said Mr Lim: China remains
a key growth market for FCL and
the sale proceeds will be reinvest-
ed into new business opportuni-
ties to grow the groups property
interests in China. In fact, we in-
tend to utilise the capital to reju-
venate, rebalance and further di-
versify our China investment
portfolio.
The legal completion of the
sale is expected to occur by the
end of this month.
The transaction is not expect-
ed to have a material effect on
the net asset value per share or
earnings per share of the group
for the current financial year,
F&N said.
By Jasmine Ng
[email protected]
Singapore
ARA Asset Management has re-
ceived the go-ahead fromthe Sin-
gapore Exchange (SGX) to list its
commercial trust, which will be
the first dual-currency initial pub-
lic offering (IPO) here.
The manager of property
trusts backed by billionaire Li
Ka-shing is looking to list Dynas-
ty Real Estate Investment Trust
(Reit) in Singapore to raise about
$800 million, Bloomberg News re-
ported.
In its filing yesterday, ARA
said SGX had granted it an eligi-
bility to list the unit. The pro-
posed authorisation of Dynasty
Reit is currently being reviewed
by the Monetary Authority of Sin-
gapore (MAS) and is subject to its
approval, said ARA.
Dynasty Reit is expected to
provide investors the flexibility to
trade units in either yuan or Sin-
gapore dollars via SGXs dual-cur-
renty platform.
ARA Group CEO John Lim
said Dynasty Reit offered inves-
tors here the exposure to the po-
tential appreciation of the Chi-
nese currency, which has risen
by 28 per cent against its Ameri-
can counterpart between 2005
and 2011.
The offering is expected to
test the markets appetite for
yuan in Singapore, where the
pool of deposits in the currency
is about one-tenth of that in
Hong Kong.
Yuan deposits in Hong Kong
have fallen froma high inNovem-
ber on the back of reduced pros-
pects for the currency's apprecia-
tion.
ARA first announced last
month that it was toying with the
idea of divesting itself of a part of
its private fund, the ARA Asia
Dragon Fund (ADF), into a
yuan-denominated Reit of com-
mercial assets.
The company, which is an af-
filiate of Cheung Kong Group,
had gross investor commitments
of US$941 million (S$1.15 billion)
via its two vehicles, the CIP Fund
and the ADF II.
We are very happy to report
that weve raised close to US$1
billion. In todays market, this is
a remarkable achievement for
the team ... We have close to
US$2 billion in the war chest to
invest in China, Hong Kong, Sin-
gapore and Malaysia, Mr Lim
had said.
The Dynasty Reit is backed by
an initial portfolio of three com-
mercial properties in the cities of
Nanjing, Dalian and Shanghai
with a total gross floor area of
350,475.8 square metres. They
are: Nanjing International Fi-
nance Center, Dalian Tianxing
Roosevelt Center and Shanghai
International Capital Plaza.
ARA, the sponsor of Dynasty
Reit, is one of the largest Reit
managers in Asia (excluding Ja-
pan) in terms of real estate assets
under management.
It currently manages six Reits:
Fortune Reit dual-listed in Singa-
pore and Hong Kong, Suntec Reit
and Cache Logistics Trust listed
in Singapore, Hui Xian Reit and
Prosperity Reit listed in Hong
Kong and AmFIRST Reit listed in
Malaysia.
Entire 56.05% holding in HK-listed firm sold for HK$1.654b to subsidiary of Shanghai-listed Gemdale Corp
Commodity stocks
surge on QE3 news
F&N sells Frasers Property (China) stake
ARAs Dynasty Reit gets IPO green light
MR LIM EE SENG
This unsolicited offer gives us an
opportunity to monetise the
groups stake in Frasers Property
at an attractive price
YEN MENG JIIN
MR JOHN LIM
Dynasty Reit offers investors exposure to the potential appreciation of
the yuan, which has risen 28% against the dollar from 2005 to 2011
12 company news THE BUSINESS TIMES WEEKEND SATURDAY/SUNDAY, SEPTEMBER 15-16, 2012
By Lee Meixian
[email protected]
Singapore
OLAM International has priced a
US$500 million issuance of five-
year senior notes, after an intra-
day book-building exercise resul-
ted in an oversubscribed order
book of US$1.6 billion.
The offering was priced at a
final coupon of 5.75 per cent,
well within initial guidance in
the region of 6 per cent, reflect-
ing the quality and strength of
the order book, said Olam yes-
terday.
The mainboard-listed food
commodities supplier headquar-
tered in Singapore said that the
exercise had attracted diverse
participation with 130 investors
placing orders.
It saw demand from not only
private banking accounts but
also institutional investors such
as fund managers and banks,
which collectively were allocated
30 per cent of the offering.
About 81 per cent of the offer-
ing was allocated to Asian inves-
tors, with the remainder allocat-
ed to European investors.
The senior notes were issued
under the US$2 billion Euro
medium-term note (EMTN)
programme set up by Olam on
July 6.
Olam had established it so
that it may from time to time is-
sue notes to raise proceeds for
working capital purposes and
general corporate purposes, in-
cluding financing capital expendi-
ture and potential acquisition op-
portunities which the group may
pursue in the future.
It added that, following the
establishment of the EMTN pro-
gramme, the company does not
intend to issue further securities
under its existing S$800 million
multicurrency medium term
note programme.
Since then, Olam has issued a
total of US$1.1 billion worth of
notes in three separate issuanc-
es, including this one.
Olam said: This transaction
is in line with Olams long-term
funding strategy of diversifying
its funding sources, and of access-
ing the capital markets in a flexi-
ble and efficient manner.
Commenting on the offering,
Shekhar Anantharaman, Olams
executive director, finance and
business development, said that
he was encouraged by the strong
response and the broad participa-
tion by both institutional inves-
tors and private banks.
This marks one of our largest
USD bond issue to date and our
first issuance in the USD bond
market since August 2010.
We are pleased to have cap-
tured a strong market window
with this benchmark issuance,
which was executed as a swift
drawdown under our EMTN
Programme, he said.
According to Olam, the notes
will be issued at 100 per cent of
their principal amount and in
denominations of US$200,000
and integral multiples of
US$1,000 in excess thereof.
Their 5.75 per cent fixed inter-
est rate per annum will be paya-
ble semi-annually in arrear.
The notes will be issued this
month on Sept 20, and are ex-
pected to mature on Sept 20,
2017.
The joint lead managers and
joint bookrunners for the offer-
ing were Credit Suisse (Singa-
pore) Ltd, HSBC, J.P. Morgan
(S.E.A.) Ltd and UBS AG, Singa-
pore branch.
The company this week also
announced its plans to increase
its sugarcane crushing capacity
at its two Indian sugar refineries
in Maharashtra and Madhya
Pradesh states by 2,000 tonnes to
9,000 tonnes a day in the next
two years.
Olams senior vice-president
and head of strategic investment,
Shankar Ahtreya, told reporters
in New Delhi that India is an
attractive market for them and
the company is continuing to
expand.
He said Indias sugar demand
is likely to increase to 32-35 mil-
lion tonnes by 2020 with the rise
in income and consumption,
and the country could become
an importer as the supply-de-
mand gap is expected to widen.
He added: We have refineries
in Indonesia and Brazil. We are
looking to set up mills in Africa.
This year, Olam also emerged
as the only Singapore firm to
make Forbes Asia Fab 50 list,
which is dominated by Chinese
and Indian firms.
The list recognises top public
firms or best publicly traded
companies in Asia-Pacific
which have shown good results
in a time when global economy
is slowing and growth is deceler-
ating or non-existent.
This is Olams second succes-
sive year making the list, and
despite it recently posting a
fourth-quarter net profit decline
of 14 per cent to $109.5 million,
amid tough trading conditions
hit by increased volatility in com-
modity prices, currencies, equity
and debt markets as well as a
decline in consumer sentiment
and demand.
Still, the company managed
to beat the average estimate of a
bottom line of $90.9 million by
three analysts surveyed by
Bloomberg.
Its revenue was also up by
12.7 per cent at $5.15 billion and
the company noted that the food
category continued to report
strong volume and margin
growth.
Its full-year net profit, which
fell 13.7 per cent to $370.9 mil-
lion, was the companys first fall
in full-year earnings since at least
FY2012, according to Bloomberg.
Yesterday, Olams share price
rose 5.1 per cent to close at $2.08.
By Carine Lee
[email protected]
Singapore
CATALIST-LISTED Tritech Group Limited
has unveiled plans to spin off its limestone
business for a separate listing on the Stock Ex-
change of Hong Kong Limited (SEHK).
The proposed spin-off involves subsidiar-
ies Terratech Resources Pte Ltd and CEP Re-
sources Entity Sdn Bhd, which are in the busi-
ness of quarrying, extraction and production
of dimension stones and other marble-relat-
ed products.
Tritech said the proposed listing will bet-
ter reflect the value of the limestone business
and will hence be beneficial to the company
and its shareholders.
The proposed listing is in its preliminary
stages and the company has appointed some
of the relevant professional parties in respect
of the proposed listing, and will be proceed-
ing with the other preparatory work required,
including the appointment of a technical con-
sultant to prepare a technical report that is
compliant with the applicable rules and re-
quirements under the SEHK listing rules, and
the obtaining of shareholder approvals
and/or regulatory approvals, where neces-
sary.
Tritechs controlling shareholder Tritech
International completed the sale of Terratech
to Tritech in March 2011 for $10.8 million. It
was Tritechs maiden venture into the lime-
stone mining business.
CEP Resources Entity Sdn Bhd is wholly
owned by Terratech, which has exclusive
rights to explore, develop, quarry, extract, re-
move and sell marble and/or other stones for
commercial sale or consumption at the
25.94ha limestone quarry in Malaysia.
The group said then that there is signifi-
cant growth potential in the limestone min-
ing business and the acquisition is expected
to generate new revenue streams for the
group and enhance the groups financial per-
formance in the near future.
Terratech Resources commenced lime-
stone quarrying in January 2012.
While it did not generate any revenue for
the financial year ended May 30, 2012, the
group expects the business to contribute to
its revenue in FY 2013.
Tritech last traded at 26 cents apiece.
Offering priced at a final coupon of 5.75%;
130 investors place orders
Tritech eyes HK listing for limestone business
Olam raises
US$500m via
notes issuance
BLOOMBERG FILE PHOTO
AMONG THE TOPS
This year, Olam has emerged as the only Singapore firm to make Forbes Asia Fab 50 list, which is dominated
by Chinese and Indian firms
THE BUSINESS TIMES WEEKEND SATURDAY/SUNDAY, SEPTEMBER 15-16, 2012 company news 13
Mumbai
INDIAN group Bharti Airtels mobile
phone tower unit has filed for an ini-
tial public offering which sources yes-
terday said could raise nearly US$1
billion in the countrys biggest IPO in
more than two years.
Bharti Infratel is likely to launch
the IPO in January and is offering a
10 per cent stake, according to sourc-
es who declined to be named as the
information is not public yet.
Bharti Airtel, which owns 86 per
cent of the Bharti Infratel unit, said it
had decided not to sell any shares in
the public offering.
Bharti Infratel will issue new
shares, and four other investors in-
cluding investment arms of Singa-
pores Temasek Holdings and Gold-
man Sachs will sell shares in the IPO,
it said.
A Bharti spokesman declined to
comment beyond the statement.
Three quarters of the shares on of-
fer in the IPOwould be newshares is-
sued by Bharti Infratel, said one of
the sources, adding that much of the
IPO proceeds would be invested for
future capital expenditure require-
ments.
Private equity investors, who own
a combined 13 per cent stake in
Bharti Infratel, also include Kohlberg
Kravis Roberts & Co, Macquarie
Group, Citigroup, Investment Corpo-
ration of Dubai and AIF Capital.
Their individual stakes are not
known. Bharti said in the statement
that Compassvale Investments,
which is an arm of Temasek, GS Stra-
tegic Investments, Anadale Ltd and
Nomura Asia Investment (IB) Pte Ltd
would participate in the IPO.
Shares in Bharti Airtel closed 0.6
per cent higher at 255.10 rupees,
while the benchmark index rose 2.5
per cent.
Bharti Infratels IPO would be the
biggest since state-run Coal India
raised US$3.5 billion in an initial pub-
lic offering in 2010.
Indian companies raised US$7.1
billion from share offerings in the
first half of this year, down 4 per cent
fromthe same period in 2011, accord-
ing to Thomson Reuters data. Many
companies have put off their share
sale plans this year due to subdued
markets.
Bharti Infratel, which has more
than 33,000 mobile phone masts, al-
so holds a 42 per cent stake in joint
venture Indus Towers, which is the
worlds biggest telecoms tower com-
pany, with about 110,000 towers.
Tower companies get their reve-
nue from leasing infrastructure to
network operators but they are going
through a tough time in India as a Su-
preme Court order to revoke the re-
gional licences of eight mobile phone
companies in the 15-player market
has weighed on demand.
Bharti has mandated eight banks
for managing the IPO, with Standard
Chartered as its lead banker, sources
said.
Other banks managing the share
sale are Barclays, JPMorgan, Bank of
America Merrill Lynch, HSBC, UBS
and Indias Kotak Mahindra and
Enam Securities. Reuters
By Cai Haoxiang
[email protected]
Singapore
CHINA Sky Chemical Fibre
yesterday took a step to-
wards complying with Sin-
gapore Exchange (SGX) list-
ing requirements by ap-
pointing new manage-
ment.
It appointed a chief ex-
ecutive officer, a financial
controller, two independ-
ent directors and a compa-
ny secretary.
Shares in the belea-
guered Fujian-based textile
manufacturer have been
suspended from trading
since last November after
the company got anSGX di-
rective to appoint a special
auditor to probe its finan-
cial dealings.
China Sky had refused
to comply with the direc-
tive, and SGX in turn re-
fused to lift the companys
share trading suspension.
The two were involved in a
legal spat, but talks are un-
der way to break the im-
passe.
SGXs head of issuer reg-
ulation, Mohamed Nasser
Ismail, called China Skys
latest move a step in the
right direction.
In a statement released
yesterday, he urged the
new board and manage-
ment to ensure full compli-
ance with SGX listing rules
and to appoint the special
auditor.
It is only when inves-
tors have full and complete
information on the state of
affairs of the company (can
they) then make informed
investment decisions, he
said.
China Skys appoint-
ment of new management
resolves some uncertainty
over who is leading the
company, which had been
left in limbo after key man-
agement resigned earlier
this year.
All three of its independ-
ent directors stepped
down in January. CEO
Huang Zhong Xuan re-
signed in February, citing
health reasons. Group fi-
nancial controller Hui San
Wing also quit. Auditors
Deloitte & Touche LLP re-
signed in April.
Earlier reports said that
the company and its direc-
tors, including former di-
rectors, were still being in-
vestigated by the Commer-
cial Affairs Department for
possible offences under
the Securities and Futures
Act.
Yesterday, China Sky
said Ling Yew Kong, 46,
will be its CEO and execu-
tive director. Mr Ling, a pri-
vate equity investor, is
chairman of Moya Asia Ltd
and executive chairman of
Firstlink Investments Cor-
poration Ltd.
Lee Chong Ping, 33, a
former auditor and most re-
cently corporate accounts
manager of PNE Micron
Holdings Ltd, was appoint-
ed financial controller.
William Tan Yew Chee,
44, was appointed non-ex-
ecutive independent direc-
tor. He is chief financial
officer of Sinostar Pec Hold-
ings Ltd. He will chair Chi-
na Skys nominating com-
mittee.
Former China Sky inde-
pendent director Er Kwong
Wah, 66, has been re-ap-
pointed as a non-executive
independent director. He
will chair China Skys audit
committee. Tan Chee How
has been appointed as
joint company secretary.
Former financial controller
Mr Hui is the current com-
pany secretary.
China Skys board now
consists of six members:
non-executive chairman
Cheung Wing Lin, execu-
tive directors Mr Ling and
Song Jian Sheng, non-exec-
utive director Wang Zhi
Wei, and the two independ-
ent directors, Mr Er and Mr
William Tan.
David Gerald, president
of Securities Investors Asso-
ciation of Singapore (Sias),
said he is pleased to note
that the company has gone
in the way the sharehold-
ers expect them to.
Mr Gerald said China
Sky still has to publish its
FY2011 results, the results
for the half-year since, and
hold its annual general
meeting as soon as possi-
ble.
This is on top of the
thorny issue of the spe-
cial audit, he said. Sias is in-
volvedin talks between Chi-
na Sky and SGX on this.
Were working on it,
andthe majority sharehold-
er and PRC directors are
very cooperative. Things
are moving smoothly ... we
are discussing the special
audit, who should be doing
it, what are the terms and
the scope, Mr Gerald said.
It is not easy because
all these things take time.
Move is a step taken by suspended textile manufacturer towards complying with SGX listing requirements
Bhartis tower unit files US$1b IPO
China Sky appoints new management
FILE PHOTO
MR
GERALD
China Sky
has gone
in the way
the share-
holders
expect
them to
ONTHEFASTTRACK
HIGH-FRFQUFNCY MOVFMFN1S A1
1HF FRON1IFR OF HOROIOGY
ONTHEFASTTRACK HIGH-FRFQUFNCY MOVFMFN1S A1 1HF FRON1IFR OF HOROIOGY
14 company news THE BUSINESS TIMES WEEKEND SATURDAY/SUNDAY, SEPTEMBER 15-16, 2012
Koon buys Johor properties
KOON Holdings Ltd said that it had entered
into a share sale agreement with Ang Sin Liu
Construction (Pte) Ltd to acquire the entire
issued share capital of Malaysian companies
Metro Coast Sdn Bhd, Triumph Heights Sdn
Bhd, Unison Progress Sdn Bhd, and Seven
Star Development Sdn Bhd. The considera-
tion for the acquisition is $17 million. The ac-
quired companies own two vacant lands, a
retail unit in Kota Point Shopping Complex
and a property consisting of 10 pieces of va-
cant land. The properties are in Johor. The
company had said that it planned to develop
them for sale as commercial units.
Asti evaluating sale of Dragon Tech
ASTI Holdings Ltd, a major shareholder of
Dragon Group International, said it is evalu-
ating the merits of Dragon Groups proposed
sale of Dragon Technology Distribution
(DTD). The company will make a further an-
nouncement in relation to the disposal in
due course, including the financial effects of
the disposal if approved, it said. Shareholder
approval will also be sought should the need
arise. Electronics company Dragon Group
had announced on Thursday that it had en-
tered into a conditional sale and purchase
agreement to sell its entire stake in whol-
ly-owned subsidiary DTD to InflexionPoint
Technologies for US$19.4 million. Dragon
Group, which expected a net loss of about
US$4.9 million from the disposal, said it
wanted to reduce its liabilities, improve its
gearing and have more working capital to
fund its operations, and expand into other
businesses and investments.
One-time expense hits Neos H1 profit
NEO Groups net profit tumbled 55.3 per
cent to $703,000 in the first half of its FY2013
ended July 31, 2012. It had posted a net prof-
it of $1.57 million in the corresponding peri-
od a year ago. The food caterer attributed its
profit decline to a one-time professional ex-
pense of $830,000 in conjunction with its ini-
tial public offering. The groups revenue
climbed 12 per cent to $18.8 million, from
$16.7 million a year ago, fuelled largely by its
food retail business with the Umisushi
brand
CapitaLand prices US$400m bonds
CAPITALAND yesterday announced that it
has priced US$400 million bonds, due 2022,
at a coupon of 4.076 per cent. This will be is-
sued under the $5 billion Euro Medium
TermNote Programme it established on Aug
3. Over 200 institutional investors participat-
ed in the deal, with many from Hong Kong
and Europe, said CapitaLand. This marks
the first time that CapitaLand is tapping the
USD bond markets. The company said that
this not only provides currency diversifica-
tion, but also broadens its bond investor
base. The proceeds will be used for refinanc-
ing existing borrowings, financing of invest-
ments and general corporate purposes.
E
QUITY markets got
the sugar high they
were craving for af-
ter Ben Bernanke
unveiled a third
round of quantitative easing.
Asian markets yesterday re-
corded one of their biggest sin-
gle-day rallies in recent months
after the Federal Reserve chair-
man announced open-ended
purchases of US$40 billion of
mortgage debt a month, and said
the Fed would hold interest rates
at near zero for the next three
years. The move sparked a sharp
spike in short-covering, especial-
ly in recently beaten-down com-
modity stocks, such as Wilmar,
Olam and Noble.
The Straits Times Index (STI)
surged 40.28 points, or 1.33 per
cent, to close at 3,070.42 its
highest level in five weeks.
Across the region, the Hang
Seng was up 582 points, or 2.9
per cent, at 20,630, while Tokyos
Nikkei 225 gained 164 points, or
1.8 per cent, to 9,159.
Benefiting from the rally was
commodities player Wilmar,
which gained 24 cents to $3.24
amid frenzied short-covering fol-
lowing the recent sell-downs.
The stock was also buoyed by a
company buyback of 7.4 million
shares or 0.115 per cent from the
market.
This does not come as a sur-
prise to us given that manage-
ment had earlier indicated its in-
tention to initiate a share buy-
back programme should the mar-
ket price fall to $3.00/share, said
Deutsche Bank Research. We
view this development positively
as it indicates management is
still confident that Wilmars
long-term fundamentals remain
intact despite the current chal-
lenging operating environment,
particularly in China.
Other active stocks included
beermaker Thai Beverage, whose
owner is orchestrating a $12 bil-
lion takeover of Singapore icon
Fraser & Neave.
ThaiBev gained half a cent to
34.5 cents, while Fraser & Neave
rose 5 cents to $8.97. The compa-
ny whose assets and business
has attracted all the corporate
manoeuvring, Asia Pacific Brew-
eries, was unchanged at $53.
Other stocks which rose sharp-
ly were Noble, Golden Agri and
Olam.
Gul Tech rose 2.2 cents to 18
cents on reports that its control-
ling shareholders the Liemfami-
ly and their property company
Tuan Sing were looking to sell
it. Tuan Sing gained half a cent to
31 cents.
This begs the question: Is this
rally the real thing? Is it sustaina-
ble after the choppy trading ses-
sions of recent months?
Indeed, sugar highs may not
last. That said, DBS Vickers
seems to believe that the Feds
latest move could be the
much-needed spark to ignite a
moribund market.
Ben Bernankes bazooka is
better than thought, DBS Vick-
ers said in a report yesterday.
For the STI, the positive central
banks actions in September
mean that the pull-back from
3,090 in early August has likely
ended at the early September
low at 2,980. Immediate support
is at 3,030. STI should gradually
work itself higher towards 3,200
in Q4. In the immediate term, the
two STI level to look at are 3,050
and 3,075. As risk-on trade re-
turns, STI may underperform re-
gional indices because the STI
had rode on the resilience and
yield theme in recent months
amid the uncertainties. Even so,
opportunities can be found
among the cyclical stocks here.
In short, the market will re-
main volatile, with an upward bi-
as.
Business briefing |
stocks |
Bernankes QE3 gives
markets shot in arm
CapMallsAsia 1.650 +0.020
CapitaLand 3.180 +0.030
CapitaMall 1.990 +0.010
CityDev 11.400 +0.220
ComfortDelGro 1.650 -
DBS Grp 14.710 +0.100
F&N 8.970 +0.050
GLP 2.590 -0.070
Genting SP 1.380 +0.010
Golden Agri 0.690 +0.020
HK Land 6.100 +0.130
JMH 54.500 +1.120
JSH 32.650 +0.120
Jardine C&C 48.690 +1.310
Keppel Corp 11.320 +0.130
NOL 1.160 +0.025
Noble Grp 1.350 +0.070
OCBC Bk 9.350 +0.080
Olam 2.080 +0.100
SGX 7.040 +0.160
SIA 10.590 +0.130
SIA Engg 4.190 +0.030
SPH 4.040 +0.030
ST Engg 3.490 +0.040
SembCorp Ind 5.660 +0.160
SembMar 5.080 +0.090
SingTel 3.330 -
Star Hub 3.720 +0.030
UOB 19.700 +0.300
Wilmar 3.240 +0.240
STI STOCKS
Stock name Close Change Stock name Close Change
TOP 20 ACTIVES
VOL CLOSE +/- %
Golden Agri 182,598 69 2.0 3.0
Contel 151,165 3.6 1.7 89.5
Noble Grp 134,056 135 7.0 5.5
Ntegrator 68,231 3.7 0.5 15.6
Thai Beverage 63,897 34.5 0.5 1.5
Wilmar 57,281 324 24.0 8.0
ChinaTaisan 53,276 4.4 0.7 18.9
HPHTrust US$ 43,977 71.5 0.0 0.0
AdvanceSCT 42,272 1.6 0.2 14.3
Xpress 38,979 3.8 0.1 2.7
GSHCorp 37,726 10.2 0.1 1.0
Genting SP 34,588 138 1.0 0.7
Gul Tech 34,447 18 2.2 13.9
Artivision 33,804 25 3.5 16.3
GMGGlobal 31,662 12.7 0.3 2.4
Equation 30,642 1.4 0.1 7.7
Olam 28,626 208 10.0 5.1
Yangzijiang 28,384 101.5 1.5 1.5
Lee KimTah 24,638 78 5.5 7.6
GLP 23,717 259 -7.0 -2.6
Top percentage movers at
www.businesstimes.com.sg
TOP GAINERS
BY CENTS
CLOSE UP %
GLD 10US$ 17206 539.9 2.6
DBXT Nifty 10US$ 10307 382.3 3.1
DBXT MSKorea 10US$ 5886 283.4 4.1
DBXT MSUSA 10US$ 3550 166.1 4.0
DBXT STGLDv100 10US$ 2867 149.0 4.4
JMH 5450 136.8 2.1
Jardine C&C 4869 131.0 2.8
DBXT MSAsExJp 10US$ 3141 111.2 3.0
DBXT MSEurope 10US$ 4638 101.4 1.8
DBXT MSJAP 10US$ 3625 96.5 2.2
TOP LOSERS
BY CENTS
CLOSEDOWN %
DBXT S&P Short 10US$ 3463 -73.3 -1.7
DBXT iBoxxUSTr 5US$ 20855 -42.8 -0.2
WBL Corp 337 -11.0 -3.2
GLP 259 -7.0 -2.6
M1 269 -4.0 -1.5
OCBC Bk MBeCW121001 21 -4.0 -16.0
IS ASIA HYG100S$D 1332 -3.0 -0.2
Transit 27 -3.0 -10.0
SGX RBeCW121217A 11 -2.6 -19.1
CapitaMall.ES.1209 198.5 -2.5 -1.2
In the Matter Of
The Companies Act, Cap. 50
And
In The Matter Of
YES! YOUR EYEWEAR SPECIALISTS
PTE LTD
UEN 199606201D
NOTICE OF CREDITORS MEETING
PURSUANT TO SECTION 296 OF
THE COMPANIES ACT, CAP. 50
NOTICE IS HEREBY GIVEN that pursuant to
Section 296 of the Companies Act, Cap. 50,
a meeting of the creditors of the abovenamed
company will be held at 37 Lorong 23
Geylang, #09-04 Yu Li Industrial Building,
Singapore 388371 on the 2nd day of October
2012 at 2.30 p.m. for the purposes of:
(a) receiving a statement of the Companys
affairs together with a list of creditors and
the estimated amounts of their claims;
(b) conrming the appointment of Liquidator;
(c) appointing a committee of inspection of
not more than 5 members, if thought t;
(d) resolving that the books, accounts and
documents of the Company and those of
the liquidator may be disposed of upon
the dissolution of the Company pursuant
to Section 320(3) of the Companies Act,
Cap. 50; and
(e) any other business.
Dated this 15th day of September 2012
By order of the Board
TEO KIM MEN
Director
Indeed, sugar
highs may not
last. That said,
DBS Vickers
seems to believe
that the Feds
latest move
could be the
much-needed
spark to ignite
a moribund
market.
Ven Sreenivasan
[email protected]
Senior
Correspondent
THE BUSINESS TIMES WEEKEND SATURDAY/SUNDAY, SEPTEMBER 15-16, 2012 company news 15
from the
desk of
Paul Salnikow
CEO
The Executive Centre
T
HE traditional
rules of working in
a physical office
from 9am to 5pm
have changed and
a growing number
of business profes-
sionals are no long-
er required to work within a set time or at
a fixed location.
The convergence of technological ad-
vancement and the information age has
provided mobile professionals with the
ability to conduct business virtually from
almost any place in the world they desire
or happen to be.
Data can be accessed anytime, any-
where by checking e-mails or logging into
a secure corporate VPNvia Wi-Fi froma lo-
cal cafe. Given the trend towards a more
online workplace, the notion of paying
for office space full-time has itself become
old-fashioned.
Singapore and Hong Kong are seeing
an increasing demand for virtual offices
with a flood of small-and-medium sized
enterprises from Europe looking for new
business opportunities in Asia as a result
of the sluggish European economy.
The agility of the virtual office opens a
new realm of possibilities for businesses
in Europe seeking to grow their business-
es in Asia. About half of the queries we re-
ceive are from SMEs based in Europe.
Without long-termcontractual commit-
ments and free from the high costs and
constraints of traditional real estate, the
virtual office provides businesses with a
gateway to growth virtually across all
Asian markets with minimal risk.
The virtual office industry has grown
significantly over the years as a multitude
of businesses froma range of industries re-
alise the advantages of deploying virtual
workplace solutions.
Virtual office is an ideal alternative solu-
tion for businesses of all sizes who want to
run their operations or to test a market
without setting up a physical presence. It
provides a combination of off-site live
communication and address services that
allows users to reduce traditional office
set up costs, keep overhead expenses,
such as payroll, insurance and rent, to a
minimum, while maintaining business
professionalism with a business address.
At The Executive Centre, our virtual of-
fice revenue grew by 130 per cent across
its network in the past five years. The
number of virtual office clients has also in-
creasedby 130 per cent over the same peri-
od. The top 10 industries currently using
the companys virtual office solutions in
the Asia-Pacific are finance and invest-
ment, legal, consulting, technology, real es-
tate, biotech & medical, advertising & me-
dia, retail, online merchants, and engineer-
ing.
Anytime, anywhere
Todays mobile professionals require not
only the ability to work anytime, any-
where but also need a prestigious busi-
ness address, excellent service support,
technology and tools to project the profes-
sional image that successful businesses re-
quire. In the next two years, we expect an
increase of 20 per cent in our virtual office
business in Indonesia, which registered
8.5 per cent economic growth and 18 per
cent rise in foreign direct investment last
year. The most demand comes from the
professional consultancy and technology
industries, and Asian and European coun-
tries.
The Executive Centres network of
more than 45 centres in 18 cities located
in first-class office buildings, such as The
Exchange Square (Hong Kong), Ocean Fi-
nancial Centre (Singapore), Shanghai IFC
and Taipei 101 provide virtual office cli-
ents with prestigious business addresses
for use on their business cards, letter-
heads, collaterals and business registra-
tions.
Our virtual office clients are Inter-
net-savvy, work predominantly online
and travel frequently. Apart from provid-
ing professional and personalised secretar-
ial services including phone answering
and mail forwarding, we also make our
state-of-the-art meeting and conference
rooms, video conferencing facilities, hot
desks and business lounges available for
them to access as and when required.
With the virtual office phenomenon be-
coming globalised, the virtual office trend
will grow aggressively over the next five
years. As the modern, mobile workforce
continues to seek out more efficient, tech-
nological solutions to its business needs,
the significance of the virtual office will
continue to grow.
They provide market access with minimal risk, without
long-term contractual commitments and are free
from high costs, constraints of traditional real estate
Rising demand for
virtual offices in Asia
Virtual office is an ideal alternative solution for
businesses of all sizes who want to run their
operations or to test a market without setting up
a physical presence. It provides a combination of
off-site live communication and address services
that allows users to reduce traditional office set
up costs, keep overhead expenses to a minimum,
while maintaining business professionalism with a
business address.
16 from the desk of THE BUSINESS TIMES WEEKEND SATURDAY/SUNDAY, SEPTEMBER 15-16, 2012
THE chairman of Singapore Press Hold-
ings and Keppel Corporation, Lee Boon
Yang, was awarded an honorary doctorate
degree in veterinary science by the Univer-
sity of Queensland yesterday.
The award was given in recognition of
Dr Lees distinguished career, years of
service to Singapore and his contributions
to the University of Queensland, where he
first enrolled as a Colombo Plan scholar in
veterinary science in 1965.
After spending 12 years as a veteri-
narian, Dr Lee entered politics. He served
six consecutive terms as a member of par-
liament and held numerous ministerial
portfolios.
At a ceremony held in Singapore, Dr
Lee said he was deeply touched at being
conferred the degree. He said he hoped
the award would serve as an encourage-
ment to alumni from the University of
Queensland to venture beyond their
profession to devote time and effort for
the betterment of society.
By Malminderjit Singh
[email protected]
SINGAPORES next generation stands to
have a better life because of the countrys
strong fundamentals and by virtue of
being in the growth region of Asia, Prime
Minister Lee Hsien Loong said.
Responding to a straw poll on a televi-
sion forum to discuss Singapores future,
which saw 70 per cent of the 50 partici-
pants indicate that the next generation of
Singaporeans will have a life better than
theirs, Mr Lee said the potential for the
next generation to do better is enormous.
You are starting from a so much
better base. We have built Singapore as
strong, resources are there, you are
well-educated and I think the future
bodes well for the whole of Asia and we
are in the right place in the world. If you
were in some other part of the world, I
think you may have a tough time but I
think here in Asia I think we would have
an exciting and good time.
He cautioned, however, that Singapore-
ans should not take things for granted as
nothing was going to be effortless.
The Channel NewsAsia forum, titled A
Conversation With PM Lee, also involved
Education Minister Heng Swee Keat and
Members of Parliament Indranee Rajah
and Intan Azura Mokhtar.
Mr Lee acknowledged that there was a
need to define what the country is aiming
for, because even though consensus build-
ing will not be easy, a shared purpose will
be useful.
We never arrive, you see. We are al-
ways on a journey. If you have arrived,
you fall off the bicycle. We have to keep on
moving and aiming for something which
is in front of you, which is worthwhile,
said Mr Lee.
There will be many dreams and many
aspirations among Singaporeans, there
has to be a certain shared purpose and
identity. We are all Singaporeans, that is
something which distinguishes us, so we
recognise one another, we feel together.
He highlighted that although different
Singaporeans have different things that
they may like to do, such as teach, be in a
social enterprise, get involved in the arts
or music, or build a business, the special
thing about Singapore is that it gives every-
one the chance to fulfil their aspirations.
Among the other topics discussed at
the forum were pre-school education,
Singapores low fertility rates and the
graciousness of Singaporeans.
Participants at the forum included
Singaporeans from diverse backgrounds,
including entrepreneurs, civil society,
grassroots leaders and students.
By Nisha Ramchandani
[email protected]
SOME 16,000 administrative, ancillary
and support staff in the public healthcare
sector will see their base pay bumped up
by 4 to 10 per cent fromthis month, follow-
ing a review of healthcare staff salaries.
The wage increases are aimed at re-
taining high-performing staff in our pub-
lic healthcare institutions and motivating
themin their commitment towards pursu-
ing continuous improvements in health-
care service delivery for the benefit of our
patients, said Health Minister Gan Kim
Yong at Khoo Teck Puat Hospital yester-
day.
He was speaking at the launch of the
Healthcare Cluster Tripartite Workgroup,
whichwas formed to help boost productiv-
ity in the sector.
The tripartite partners in the work-
group include the Ministry of Health, the
six public healthcare clusters Alexandra
Health, Eastern Health Alliance, Jurong
Health Services, National Healthcare
Group, National University Hospital and
SingHealth Services and the National
Trades Union Congress (NTUC) health-
care cluster of unions.
The NTUCs Healthcare Cluster of Un-
ions comprises the Healthcare Services
Employees Union, the Amalgamated Un-
ion of Public Employees, the Amalgamat-
ed Union of Statutory Board Employees,
and the Singapore Manual & Mercantile
Workers Union.
Aside from the salary increases, a pro-
gressive wage model has also been estab-
lished, aimed at helping lower wage work-
ers secure sustainable salary increments
through productivity, training and job re-
design initiatives.
The Tripartite Workgroup will especial-
ly focus on three main groups health at-
tendants, healthcare assistants and pa-
tient service associates. It is targeting to
have at least 2,000 workers earn base wage
increases of between 10 and 20 per cent
from 2012 to end-2014.
But he cautions that Singaporeans should not take things for granted
Lee Boon Yang awarded honorary
doctorate by University of Queensland
A strong Spore promises better
life for next generation: PM Lee
Pay rises of
4-10% for
admin, support
staff in public
healthcare
FILE PHOTO
PM LEE
He says although different Singaporeans
have different things that they may like to
do, such as teach, be in a social enterprise,
get involved in the arts or music, or build a
business, the special thing about Singapore
is that it gives everyone the chance to fulfil
their aspirations
THE BUSINESS TIMES WEEKEND SATURDAY/SUNDAY, SEPTEMBER 15-16, 2012 singapore news 17
By Zeinab Yusuf Saiwalla
[email protected]
CAPITALAND has expanded its
learning institute CapitaLand
Institute of Management and
Business (CLIMB), which pro-
vides training resources for staff
to Shanghai.
Its first overseas learning insti-
tute outside Singapore, CLIMB
China will enable staff there to
participate in courses conducted
by the groups senior manage-
ment and external lecturers in
major Chinese cities such as
Beijing, Shanghai, Guangzhou
and Chengdu.
The expansion of CLIMB to
China, one of the Groups core
markets, is part of our ongoing
effort to inculcate CapitaLands
core values, equip our staff with
the right knowledge, skills and
attitude, and to develop business
leaders to shape the future. This
training and development capa-
bility will also augment our rigor-
ous process inleadership localisa-
tion, said Liew Mun Leong, pre-
sident and chief executive officer
of CapitaLand Group.
CapitaLand owns more than
120 projects in China with assets
worth around $13.7 billion. This
amounts to approximately 41 per
cent of the groups total assets.
Together with the launch of
CLIMB China, the property deve-
loper signed a memorandum of
understanding between the learn-
ing institute and Tongji Univer-
sitys School of Economics and
Management. The partnership
will allow CapitaLand staff to
benefit from real estate courses
conducted by renowned scholars
and practitioners from the pres-
tigious university.
With the establishment of
CLIMB China, more than 6,000
CapitaLand staff based in China
will have opportunities to im-
prove themselves and enhance
their work performance through
greater access to various interna-
tional and localised pro-
grammes.
CLIMB China will be offering
localised versions of courses
currently available at the Singa-
pore Sentosa campus. They
include the CapitaLand Immer-
sion Programme, Fundamentals
of Real Estate, Strengthening
Core Values and Personal Effec-
tiveness.
CLIMB was established in
Singapore in 2006 and has since
offered more than 300 classes to
the groups staff.
By Mindy Tan
[email protected]
WHILE the government will not
roll back its foreign manpower
policies, additional support has
been extended to help construc-
tion companies cope.
This was the key message in
Deputy Prime Minister and Min-
ister for Finance Tharman Shan-
mugaratnams speech at the Sin-
gapore Contractors Association
Limiteds (SCAL) 75th annual din-
ner last night.
I have to emphasise there
will be no U-turn in our foreign
manpower policies . . . Our objec-
tive is long term, said Mr Thar-
man. Some companies will do
better than others; that is part
and parcel of industry restructur-
ing. It's the most practical and
fairest strategy to achieve objec-
tives collectively.
This was in response to an ap-
peal by SCAL for the government
to consider easing its foreign
manpower restrictions.
Said SCAL president Ho Nyok
Yong: The restrictions on em-
ployment of foreign manpower
are too severe and unbearable on
the construction industry, to the
extent that some small contrac-
tors are thinking of ceasing their
operations. We thus appeal to
the authorities to empathise with
the predicament faced by the in-
dustry and to consider reviewing
the changes.
Mr Tharman said that, despite
the pain, the issues have to be
tackled now, or five years from
now, we will be arguing about
the same issues, and we will be in
the same place; we cant afford
that anymore.
To that end, enhancements
were made to existing funding
schemes, such as the Building In-
formation Modelling fund, where
firms will receive greater support
through the removal of the
per-project funding cap, and a
doubling of the total per-firm
funding cap to $220,000 and
$440,000 respectively, for sin-
gle-discipline and multi-disci-
pline firms respectively.
SCAL and BCA have also iden-
tified additional equipment that
will now be eligible for the Pro-
ductivity and Innovation Credit
scheme; details will be released
at a later date.
On the manpower front, the
value of BCAs full-time scholar-
ships were raised from $14,000 to
$18,000 per year to attract young
local talent to the sector. BCA al-
so targets to offer 150 scholar-
ships and sponsorships per year
for degree courses, compared
with the 55 handed out in 2011.
This is in addition to the
$400,000 SCAL has donated to
the Nanyang Technological Uni-
versity to establish the SCAL
Scholarship Fund, to be awarded
to civil engineering degree stu-
dents.
There will also be higher fund-
ing support for local PMEs (pro-
fessionals, managers, and execu-
tives), from the current 50 per
cent to 70 per cent. We target to
support up to 4,000 PMEs in the
sector by 2015, said Mr Thar-
man.
It is hoped that these schemes
will helpthe industry hit BCAs re-
vised productivity improvement
target of at least 20-30 per cent
by 2020, over the original target
of 20-25 per cent when the Con-
struction Productivity Roadmap
was launched in 2011.
BCA will be strengthening the
Buildability Framework to focus
on industry-wide standardisa-
tion, and require projects with
complex designs to be more buil-
dable and constructable, said
Mr Tharman. One of the key tech-
nologies that the authority is
pushing for is the adoption of dry-
walls. BCA targets to at least dou-
ble the adoption rate of dry walls
in Singapore by 2015.
A WEEK after arriving in
Singapore, one of the two giant
pandas on loan from China
celebrated his fifth birthday
yesterday with a special cake
made of ice, carrots, apples and
high-fibre biscuits.
Kai Kai, the male in the pair,
was born on Sept 14, 2007. He
and female panda Jia Jia are
being quarantined at the den
block in River Safari. His 5kg
cake was frozen overnight and
had the pandas initials KK5
on top, arranged with biscuits.
The giant pandas, a symbol
of the close friendship and
strong ties between Singapore
and China, are on loan to
Singapore for 10 years.
CapitaLand among worlds
top sustainable companies
CAPITALAND Limited has
been added to the Dow Jones
Sustainability World Index (DJ-
SI World) 2012/2013. This
means CapitaLand now ranks
among the top 340 sustainable
companies globally. The group
has also been listed in the Dow
Jones Sustainability Asia Pacif-
ic Index as one of the top 154
sustainable companies in the
region. CapitaLand is among
the 20 real estate companies
listed in DJSI World.
Omni appoints CTC its
exclusive distributor in UAE
SINGAPORE-BASED tyre com-
pany Omni United said it has
appointed the Central Trading
Company as its exclusive distrib-
utor in the United Arab Emir-
ates. Founded in 1957, Central
Trading Company is among the
core companies of the Al Rosta-
mani Group, one of the largest
and oldest business conglomer-
ates in the UAE. Omni is repre-
sented in more than 50 coun-
tries around the world, with the
US being its largest market.
Consultancy to promote
Vector products in Japan
VECTOR Scorecard (VSC) has
appointed Pacific Cross-Bor-
der, a Japanese consultancy
firmbased inSingapore, to pro-
mote VSCs range of artificial
intelligence scorecards and
customised solution services
in Japan. The appointment en-
tails the coverage of cities such
as Tokyo, Osaka, Hiroshima,
Fukuoka and Niigata, where
there is a concentration of con-
sulting firms supporting major
corporations, government
agencies and SMEs.
Singapore roundup |
Tharman says objective is long term, in response to appeal from SCAL to consider easing restrictions
No U-turn in foreign manpower policy
Happy birthday, Kai Kai
CapitaLands learning institute
CLIMB expands to China
WILDLIFE RESERVES SINGAPORE
BIRTHDAY BOY
The panda celebrating his fifth birthday yesterday with a cake made of
ice, carrots, apples and high-fibre biscuits
18 singapore news THE BUSINESS TIMES WEEKEND SATURDAY/SUNDAY, SEPTEMBER 15-16, 2012
Washington
US FEDERAL Reserve Chairman
Ben Bernanke warned on Thurs-
day that the Fed does not have
the means to offset the shock
from the fiscal cliff plan for se-
vere budget cuts and tax hikes
scheduled for Jan 1.
If the fiscal cliff isnt ad-
dressed, as Ive said, I dont think
our tools are strong enough to off-
set the effects of a major fiscal
shock, so wed have to think
about what to do in that contin-
gency, he told a press confer-
ence. I think its really impor-
tant for the fiscal policymakers to
work together and try to find a so-
lution for that, he added.
At the meeting of the Feds
policy board over the past two
days, Mr Bernanke said, there
was considerable discussion of
uncertainty, including policy un-
certainty, fiscal policy uncertain-
ty and the implications of that for
hiring and investment deci-
sions.
A lot of firms are waiting to
see whether that problem will be
resolved, and if so, I think it is a
concern. It is something thats af-
fecting behaviour now.
US politicians agreed a year
ago on the fiscal cliff austerity
plan in a poison-pill political
deal that was never intended to
be followed through on.
The lawrequires sudden dras-
tic spending cuts and tax increas-
es from the beginning of 2013,
which the Congressional Budget
Office has warned will send the
country into recession and force
unemployment much higher.
The original intention was to
put pressure on Republicans and
Democrats to come together and
reach a deal on a less austere
planfor cutting the countrys defi-
cit by the end of this year.
But since then both parties
have remained far apart, and no
progress has been seen or is ex-
pectedbefore the Nov 6 presiden-
tial and congressional elections.
AFP
Washington
THE US federal budget deficit
increased by US$191 billion in
August and has topped US$1 tril-
lion for the fourth straight year.
The deficit for the first 11
months of the 2012 budget year
totalled US$1.16 trillion, the
Treasury Department said on
Thursday. Thats 6 per cent less
than the US$1.23 trillion in the
same period last year. The fiscal
year ends on Sept 30.
One reason for the improve-
ment: Income tax receipts are up
as the economy improves slowly.
Still, the report highlights a
political vulnerability for Presi-
dent Barack Obama: He will seek
re-election after running trillion-
dollar deficits each year in office.
Republican presidential candi-
date Mitt Romney has criticised
Mr Obama for failing to cut the
deficit in half, as Mr Obama
pledged to do in early 2009.
The White House in July fore-
cast that the budget gap will total
US$1.2 trillion this year, down
from US$1.3 trillion last year.
Next year, the administration
expects the deficit to fall just
short of US$1 trillion, at US$991
billion.
This years gap is equal to
about 7.4 per cent of the US eco-
nomy, down from 8.2 per cent in
2011.
Much of the debate in Wash-
ington during Mr Obamas presi-
dency has centred on taxes,
spending and budget cuts. Mr
Obama and many Democrats
want to allowtax breaks to expire
only for wealthier Americans. Re-
publicans want them to expire
for everybody and also would cut
popular social programmes.
Republicans control the
House, while Democrats have a
slim majority in the Senate. That
could change inJanuary if Repub-
licans are able to flip a few
Senate seats. But Republicans
still would lack the 60 votes nee-
ded to push legislation through
the Senate.
Economists are increasingly
worried that the gridlock will
push the economy over a fiscal
cliff at the end of the year.
Thats when the tax cuts would
expire if no action is taken. Deep
spending cuts would take effect
automatically if Congress is un-
able to reach a compromise.
If people are paying more
taxes while the government
spends less, that could push the
nation back into recession, eco-
nomists say.
The automatic spending re-
ductions are opposed by both
parties. The reductions would
slash the defence budget, a priori-
ty for both sides, and would hit
social programmes that many
Democrats support.
Mr Obama is pushing to let
tax cuts approved in 2001 and
2003 expire for couples making
more than US$250,000. That
would generate more than
US$700 billion over 10 years. He
also wants to set a 30 per cent tax
rate on taxpayers making more
than US$1 million. That would
add US$47 billion to government
revenue over 10 years.
Republicans say the tax in-
creases would stifle the econo-
mic recovery by leaving business-
es with less money for hiring and
investing. They want deeper cuts
in government programmes.
Mr Romney has promised to
cut spending to narrowthe budg-
et gap. He would cap spending at
20 per cent of gross domestic
product (GDP), a measure of the
nations overall economic out-
put. Spending currently equals
about 24 per cent of GDP.
Mr Romney also says he
would save money by closing
loopholes that benefit wealthier
Americans. He has refused to
specify which tax rules he would
change.
To narrow the deficit while
cutting tax rates, independent an-
alysts say, Mr Romney would
have to eliminate popular deduc-
tions such as those for mortgage
interest and charitable contribu-
tions.
Mr Romney wants to cut the
federal workforce by 10 per cent.
AP
New York
THE economist credited with
helping to encourage the Federal
Reserve in taking a new, bold ap-
proach to monetary policy on
Thursday says the latest plan to
buy bonds will prove more effec-
tive than past efforts to boost the
US economic recovery.
Taking a page from the aca-
demic paper presented to the
central bankers conference in
Jackson Hole, Wyoming, in late
August by Michael Woodford,
the US central bank on Thursday
said it would continue to buy fi-
nancial assets until there is asub-
stantial improvement in the la-
bour market. The Fed also said it
would keep interest rates very
low, well after the economic re-
covery strengthens.
At a press conference in Wash-
ington DC, Fed chairman Ben
Bernanke cited Prof Woodfords
research and called him a friend
as he explained the conditions at-
tached to the Feds third round
of bond buying, known as quanti-
tative easing, or QE3.
The Columbia University pro-
fessor one of the foremost
thinkers on how economies can
escape from the threat of defla-
tion welcomed the Feds new
approach in an interview with
Reuters and predicted it would
help stabilise financial markets
no matter what news good or
bad is on the horizon.
The uncertainty about how
things might be unfolding next is
one of the biggest obstacles to
the economy improving, so how
you affect perceptions is really
critical at this point to what
theyre trying to do, he said.
Unlike the Feds first two
rounds of quantitative easing, in
which it bought about US$2.3 tril-
lion worth of securities over
time, Prof Woodford argued that
the latest plan would not give the
impression that the central bank
has grown more pessimistic
about the economy.
The newstrategy assures indi-
viduals, businesses and investors
that it is committed to act, and
then to shut down its unconven-
tional policy actions when the
time is right, Prof Woodford said.
Theyre making bad news
less destabilising in one direc-
tion, and making really good
news less destabilising in the oth-
er direction, he added.
On the other hand, the first
two rounds of Fed bond purchas-
es as well as the Feds series of
conditional pledges to keep inter-
est rates low until a future date
the latest of which is mid-2015
could be interpreted as reason
to wait and delay future spend-
ing, Prof Woodford said.
Mr Bernanke cited Prof Wood-
fords recent paper on monetary
policy options when interest
rates are near zero. The paper ar-
gued the best way to defeat stub-
born economic weakness is to
keep monetary policy very stimu-
lative for longer than would be
advisable under typical rate-set-
ting rules which weigh both
growth and inflation.
Prof Woodford, for his part,
was quick to credit another re-
spected economist who has
pushed to tie Fed policy even
more explicitly to specific eco-
nomic yardsticks: Chicago Fed
president Charles Evans.
Mr Evans, one of the most do-
vish of Fed policymakers, has for
a year advocated that the central
bank promise to keep an easy
money stance until either the job-
less rate falls to 7.0 per cent or in-
flation rises to 3.0 per cent. US
unemployment is now 8.1 per
cent and inflation is below the
Feds 2.0 per cent target. Reuters
But at US$1.16t for first 11 months of
FY2012, its 6% less than that in same period
last year, thanks to more income tax receipts
New strategy shows
Fed not pessimistic
about the economy
Fed doesnt have tools to
offset Jan 1 budget cuts
US budget deficit
tops US$1t for
fourth straight year
QE3 surer than previous plans, says economist
BLOOMBERG
MR BERNANKE
Fed chief says its really important for the fiscal policymakers to work
together and try to find a solution for the fiscal cliff plan for severe
budget cuts and tax hikes scheduled for Jan 1
THE BUSINESS TIMES WEEKEND SATURDAY/SUNDAY, SEPTEMBER 15-16, 2012 world 19
New Delhi
INDIA ended a ban on local airlines selling stakes to over-
seas carriers, opening a new possible source of funding
for Kingfisher Airlines and other operators struggling to
turn rising travel demand into profits.
The cabinet yesterday approved the proposal to allow
investments by foreign carriers, Indias Civil Aviation Min-
ister Ajit Singh said in a telephone interview. He didnt
elaborate.
Kingfisher and other carriers jumped in Mumbai trad-
ing ahead of the announcement, which had been held up
for months by political deadlock that has also hindered
efforts to let overseas retailers open local shops. The air-
lines are seeking funds after years of industrywide losses
caused by price wars and high fuel costs.
Relevant investments can come through this, said
Nikhil Vora, Mumbai-based managing director at IDFC
Securities Ltd. There may be near-term challenges in
the aviation sector, but Indias population and economic
growth offer potential over a period of time.
Non-airline investors from overseas are already al-
lowed to hold as much as 49 per cent in local carriers. In-
dia has been planning the policy change on investment
by airlines for more than three years as industrywide loss-
es hinder companies efforts to raise funds for expansion.
The ending of more-than-a-decade-old investment
ban may also signal an easing of tensions in Prime Minis-
ter Manmohan Singhs coalition government. The leader
of coalition partner party Trinamool Congress, Mamata
Banerjee, has led political opposition to opening up
Asias third-largest economy.
Amid the gridlock, Indias economic growth potential
may have fallen to as low as 6 per cent a year, below the
Reserve Bank of Indias 7.5 per cent estimate, according
to JPMorgan Chase & Co. Foreign direct investment fell
67 per cent to US$4.43 billion in the three months ended
June from a year earlier, government data show.
The nations airlines have lost money because of high
fuel costs and a price war even as rising disposable in-
comes boost travel.
Domestic passenger numbers rose 17 per cent in 2011
to 61 million, based on Directorate General of Civil Avia-
tion data. Carriers in the country will need 1,450 new air-
craft worth US$175 billion through 2031, according to
Boeing Co.
Kingfisher, which has posted at least five straight annu-
al losses, jumped 7.5 per cent to 10.80 rupees, the highest
since July 10, at close of Mumbai trading. SpiceJet gained
4.4 per cent while Jet Airways rose 2.1 per cent.
Kingfisher, controlled by billionaire Vijay Mallya, is
seeking funds to maintain services after a cash shortage
prompted it to slash two-third of services and ground
planes. Some potential investments depend on the
change in foreign ownership rules, chief executive Sanjay
Aggarwal said on March 20.
The carrier, based in Bangalore, has pledged assets
ranging from its brand to office furniture for loans of 64
billion rupees (S$1.4 billion). Its market share has
slumped to sixth fromsecond after cutting flights and los-
ing passengers amid disruptions caused by delays in pay-
ing salaries and fuel bills.
Jet Airways, Indias biggest carrier, has also been plan-
ning to raise funds through a rights offer for more than
two years. The carrier and Kingfisher plunged more than
65 per cent in 2011. Jet said last month that it plans to sell
and lease back some planes to pare debt by about
US$400 million.
Jet and SpiceJet, Indias only listed discount carrier,
both posted profits in the three months ended June 30 af-
ter five straight quarters of losses. State-owned Air India
has been losing money for at least five years.
India in February allowed carriers to directly import
jet fuel to help them avoid paying local taxes. Buying the
fuel from overseas may help airlines cut their biggest ex-
pense as they would no longer have to pay fuel taxes im-
posed by state governments that average 24 per cent.
In November, chiefs of Indian carriers met Prime Min-
ister Singh as they sought the governments assistance to
stem losses. The nations airlines will probably lose
US$1.4 billion in the year ending March, compared with
US$2 billion a year earlier.
In the federal budget for the year started April 1, the
government allowed airlines to borrow overseas for their
working capital requirements.
Indian carriers debt may have reached close to US$20
billion in the year ended March 31, based on a December
report by the aviation ministry. Working capital loans
and dues to airport operators and fuel companies ac-
count for half of this amount, according to the report.
Bloomberg
New Delhi
INDIA yesterday opened its super-
market sector to foreign chains after
months of dithering, pushing ahead
with the boldest reforms yet in Prime
Minister Manmohan Singhs govern-
ment as it tries to revive the coun-
trys tottering economic growth.
The move allows global firms
such as Wal-Mart Stores to set up
shop with a local partner and sell di-
rectly to consumers for the first time,
which supporters say could trans-
form Indias US$450 billion retail
market and tame inflation.
Mr Singhs government ignored
calls from political parties for a
U-turn on a hike to heavily subsi-
dised fuel prices announced on
Thursday, and also approved a policy
to allow more foreign investment in
airlines as well as selling off stakes in
major state-run industries.
Indias inability in the past
months to push through major re-
forms and ease its subsidy burden as
growth slowed sharply has put it in
danger of becoming the first of the
big Brics emerging economies to
see its credit rating downgraded to
junk.
Prime Minister Singh was credit-
ed as the economist who opened up
Indias economy in the 1990s, but
since taking office eight years ago he
has repeatedly put off or rolled back
difficult economic decisions.
Mr Singh will need resolve and
the support of powerful Congress par-
ty boss Sonia Gandhi if he is to mus-
ter the will to fight off a wave of pro-
tests from both political allies and
the opposition over reforms seen as
costing jobs and raising prices.
The supermarket policy was first
announced last year but a political
backlashforced the Congress-led gov-
ernment to put the measure on hold.
Reuters
Shares of loss-making Kingfisher and
other airlines rise after govt ends the
decade-long investment ban
Foreign airlines can buy into Indian carriers
Supermarket sector also thrown open
REUTERS
SKY CLEARS
Lifting the investment ban will help Kingfisher which has posted at least five straight annual losses and is looking for funds
20 world THE BUSINESS TIMES WEEKEND SATURDAY/SUNDAY, SEPTEMBER 15-16, 2012
By Anthony Rowley
[email protected]
Tokyo
WEAKNESS in recent indicators suggests that economic
recovery in Asia could be delayed and the pick-up in
activity will be more gradual than had been anticipated,
International Monetary Fund (IMF) deputy managing
director Naoyuki Shinohara said in Tokyo yesterday.
Economic growth in emerging Asia (excluding
Japan) has slowed from almost 10 per cent two years
ago to an expected level of around 6.5 per cent, he
noted. And recent data points to continued subdued
growth with no clear signs of a rebound yet.
Chinas growth has come down a bit below 8 per
cent on an annualised basis in Q2 as a result of past
policy efforts to slow the economy and spillover effects
from Europe, Mr Shinohara told a seminar.
Recent high-frequency indicators have been mixed
but still point to some softening of the (Chinese) econo-
my, the former vice-finance minister for international
affairs of Japan said.
We project a gradual pick-up (in China) into next
year due to policy easing seen since the beginning of the
summer and as the external environment improves, he
added.
Separately, Toyoo Gyohten, also a former vice-
finance minister for international affairs, said in Tokyo
that Chinas economy would grow by around 7.5 per
cent in 2012, and that inflation could return as a
threat there given recent stimulus measures.
Spillover from the eurozone crisis has caused a
marked slowdown in Asias exports and a decline in net
capital flows to the region, Mr Shinohara observed.
It is important for European policymakers to conti-
nue working towards full banking and fiscal union, he
stressed. At the same time, they need to implement
necessary structural reforms to revive economic
growth.
The most immediate risk facing Asia is that of
heightened spillovers from a further escalation of the
euro-area crisis, the IMF official said.
Asias economic linkages with Europe imply that
such spillover could be considerable, especially if a gen-
eralised flight away fromrisk was also to occur, he said.
Another risk is the so-called fiscal cliff, which re-
fers to a major forthcoming fiscal tightening implied by
existing budget law in the United States. Asia could
suffer significantly through its trade channel with the
US, he warned.
Mr Shinohara noted that while Asias economic and
financial fundamentals are stronger nowthan they were
at the time of the global financial crisis, its greater inter-
connectedness with the rest of the world has created
new vulnerabilities.
For instance, foreign participation in government
bond markets has increased rapidly, such as in Indone-
sia and Malaysia. This benefits domestic financial condi-
tions but also increases exposure to risks from a sudden
shift in investor sentiment, he said.
Spillover from eurozone crisis causes
marked slowdown in exports, it says
IMF sees
continued
subdued
growth in
Asia ex-Japan
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BONUS
2
0
1
2
S
E
P
T
E
M
B
E
R
S
E
R
I
E
S
We project a gradual pick-up (in
China) into next year due to policy
easing seen since the beginning of the
summer and as the external
environment improves
IMF deputy managing director Naoyuki Shinohara
BLOOMBERG FILE PHOTO
THE BUSINESS TIMES WEEKEND SATURDAY/SUNDAY, SEPTEMBER 15-16, 2012 world 21
Washington
EXECUTIVES from Chinas top
makers of telecommunications
gear denied putting hidden spy
code into their equipment at a
rare public hearing of the US
House of Representatives Intelli-
gence Committee on Thursday.
The officials from Huawei
Technologies and ZTE Corp, re-
jecting fears that their expansion
in the US poses a security risk,
said they operated independent-
ly of the Chinese government.
The congressional panel is
wrapping up a nearly year-long
investigation into whether the
companies equipment provides
an opportunity for greater for-
eignespionage and threatens crit-
ical US infrastructure.
We have heard reports about
backdoors or unexplained bea-
coning from the equipment sold
by both companies, committee
chairman Mike Rogers, a Michi-
gan Republican, said in his open-
ing statement.
The committees report could
be followed with proposed mea-
sures to exclude their products
fromthe US market if they are de-
termined to be security threats.
The companies, for their part,
say they are frustrated by the ob-
stacles such allegations pose to
their US business.
Huawei has not and will not
jeopardise our global commer-
cial success nor the integrity of
our customers networks for any
third party, government or other-
wise, senior vice-president
Charles Ding said in written testi-
mony.
Huawei and ZTE are fighting
an uphill battle for inroads into
the United States, stymied by
mounting government concerns
about economic espionage attrib-
uted to Beijing.
ZTE saidUS sales of infrastruc-
ture equipment accounted for
less than US$30 million in reve-
nue last year, compared with a
combined total of US$14 billion
by two Western competitors.
Shenzhen-based Huawei,
which is owned by its employees,
is the worlds second-biggest tele-
communications gear maker af-
ter Swedens Ericsson. ZTE ranks
fifth.
Mr Ding and Zhu Jinyun,
ZTEs senior vice-president for
North America and Europe, un-
der oath to the committee, de-
nied putting any back-door chan-
nels into their equipment.
Each further vowed that their
companies never would bow to a
hypothetical Chinese govern-
ment request to exploit their
products for espionage.
What they have been calling
back doors are actually software
bugs, Mr Zhu said through anin-
terpreter. Such glitches are not
unlike those that require regular
software patches from compa-
nies like Microsoft, Google and
Apple, he said.
The committee plans to pub-
lish classified and unclassified
versions of a final report that will
shed more light on the security
concerns, Mr Rogers said.
Candidly, we have gotten
very poor responses to written
requests for documents put to
the companies in June, Mr Rog-
ers told reporters.
He and the committees top
Democrat, C A Ruppersberger of
Maryland, have asked for details
about the companies links to
Chinese authorities, their inner
workings and pricing strategies
for US customers among other
things.
When they dont answer
those, it just raises more suspi-
cions, said Mr Rogers, a former
FBI agent.
Both Huaweis Mr Ding and
ZTEs Mr Zhu agreed at the hear-
ing to send their lists of Commu-
nist Party committee members,
something the intelligence panel
said they had previously de-
clined to do.
Mr Ding complained that Hua-
weis business efforts in the Unit-
ed States had been hindered by
unsubstantiated, non-specific
security concerns.
He said Huawei has been in
touch with US foreign invest-
ment authorities and may again
try to make a merger or acquisi-
tion in the United States. Securi-
ty concerns of the Committee on
Foreign Investment in the Unit-
ed States an interagency group
led by the Treasury Department
had sunk several previous such
efforts. Reuters
Seoul
SOUTH Korea saw its debt rating
boosted for a third time in less
than three weeks as Standard &
Poors (S&P) joined its top two ri-
vals in identifying waning nation-
al security risks for Asias
fourth-largest economy.
The sovereign rating was up-
graded one step to A+, the
fifth-highest, by S&P, on a par
with Chile and one level below
China, Japan, Taiwan and Saudi
Arabia. Fitch Ratings has South
Korea at AA- and Moodys Inves-
tors Service at Aa3, both the com-
panies fourth-highest level, after
their upgrades.
South Korean stocks outper-
formed Asian peers and the won
rose after the decision, which re-
flects a receding danger of insta-
bility in North Korea, according
to S&P. South Koreas economy
has also demonstrated resilience
in face of a global slowdown,
with the central bank on Thurs-
day forgoing an interest-rate cut
a day after a report showed a
climb in payrolls.
Korea is apparently doing
well on fiscal soundness and eco-
nomic resilience, when many oth-
ers are suffering rating cuts, said
Park Sang Hyun, chief economist
at HI Investment & Securities Co.
in Seoul. The rating upgrade
should increase foreign inves-
tors appetite for Korean assets.
South Korean policymakers
face pressure to add stimulus as
Europes debt crisis curbs ex-
ports, while weighing signs of re-
silience such as unemployment
at an eight-month low. The Fi-
nance Ministry announced 5.9
trillion won (S$6.5 billion) of
spending and tax relief this week
while resisting calls for a budget
increase.
The Bank of Korea unexpect-
edly held borrowing costs at 3
per cent on Thursday as it opted
to preserve policy room in the
event of a deeper slowdown. The
central bank instead said it will
boost by 1.5 trillion won its spe-
cial loan programme to help
small business owners refinance
debt at a lower interest rate.
Bloomberg
They tell House panel
hearing that spying
charges hinder
their business in US
Huawei, ZTE deny threat to US security
South Korea gets debt rating
upgrade from Standard & Poors
AP
JUST BUSINESS
Mr Ding of Huawei (left) and ZTEs Mr Zhu denied putting any back-door channels into their equipment. The
companies would never bow to a Beijing request if any to exploit their products for espionage, they added.
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22 world THE BUSINESS TIMES WEEKEND SATURDAY/SUNDAY, SEPTEMBER 15-16, 2012
15.5 11.4 8Telecom 13.5 - - - - 13.5 15 66.8 0.4 3.2 64.7
6 3 A-Sonic 3.5 +0.2 184 3.6 3.3 3.3 3.4 - 3.7 - 25.1
- - AAT 2 halt - - - - - - - 1.6 14.4
98 51 ABR Hldgs 61.5 +1 35 62 61.5 61.5 62 3.1 3.3 9.9 123.5
12.9 8 AEI Corp 12.1 +0.3 136 12.1 12 12.1 12.3 0.1 8.3 201.7 27
11 3.6 AEM 8.4 +0.1 2099 8.4 8.3 8.3 8.5 - - 5.5 37.9
145 92.5 AIMSAMPIReit 140 +1 327 140 138.5 139.5 140 - 6 13.4 624.3
19 14 AP Oil 16.3 -0.1 184 16.3 16.3 16.3 16.6 5.1 3.1 6.4 26.8
161.5 101.5 ARA 159.5 +8.5 1172 161 152.5 159.5 160 1.9 3.1 18 1225.5
4.9 2.4 ASJ Hldgs 4.8 - - - - 4 5 - - - 13.1
68.5 42 ASL Marine 63cd +0.5 265 63.5 62.5 62.5 63.5 4.4 2.8 8.2 265.9
8.6 4.8 ASTI 6.6 -0.1 1848 6.7 6.4 6.6 6.7 2.1 4.5 10.5 45
108 43 Abterra 74 unch 800 75 74 70 75 - - - 181.5
4.4 2.6 Ace Achieve 2.8cd - - - - 2.9 3.2 - - 6.2 18.3
7.5 3.3 Achieva 5 +0.5 990 5 5 4.6 5 - - 71.4 26.2
19.4 12.4 Action Asia 15 - - - - 14.4 17 7.2 - 5.2 60
11.9 5 AddvalTech 8.7 unch 8993 8.9 8.7 8.7 8.9 - - 96.7 101.9
13.5 5.5 Adv Integrated 8 +1.7 1 8 8 6.5 8 2.6 4.5 7.9 52.7
4.8 1.3 AdvanceSCT 1.6 +0.2 42272 1.7 1.4 1.5 1.6 - - 17.8 18.1
20.5 11.6 Advanced Hldgs 19.6 +0.1 174 19.6 19.5 19.6 20.5 2.3 3.1 15.8 60.9
5.1 3 AlliedTech 3.8 - - - - 3.6 5 - - - 23.1
44 26.5 Amara Hldgs 38 +0.5 179 38.5 38 38.5 39 10.2 1.6 7.5 219.2
2.5 1.2 Amplefield 1.2 unch 1 1.2 1.2 1.2 1.9 - - - 8.3
78.5 48.5 Amtek 60.5cd +1.5 1851 61 59.5 60 60.5 1.7 7.4 7.7 329.3
10.5 4.1 Anchun 4.5 - - - - 4.3 4.7 - - 75 22.7
9.5 6 AnnAik 7.9 +0.6 350 7.9 7.8 7.3 8 2.2 3.8 12 19.7
42 18 AnwellTech 23.5 -0.5 33 23.5 20 20.5 23.5 - - - 73.2
35 21.5 Armstrong 29 +1.5 2168 29 27 28.5 29 2.7 2.1 17.8 151.4
92 86 AscendasHT 91 -0.5 3400 92 91 91 91.5 - - - 730.7
86.5 67 AscendasIndT 79.5 +0.5 397 79.5 78.5 79 79.5 - 7.5 13.3 648.8
242 181.5 Ascendasreit 237 +2 6383 239 236 237 238 1 5.7 17.5 5593.7
126 90.5 AscottREIT 125 +3 1672 125.5 122.5 124.5 125 1 8.6 14.7 1413.9
27.5 18.9 Asia Ent 23 - - - - 21 23.5 2.5 4.6 8.8 79.7
6.7 2 Asia Fashion 3.4 +0.4 1 3.4 3.4 1.5 3.2 - - 1.4 18.7
5310 2495 Asia Pac Brew 5300 unch 69 5302 5300 5300 5302 1.3 1.9 40.1 13685.3
13.5 7 AsiaPower 7.9 - - - - 7.6 8.5 - - 17.6 36.8
65 16 Asiasons 64 +0.5 18008 65 64 64 64.5 - - 56.6 602.3
16 5 Asiasons WFG 13.2 - - - - 12.8 14.2 - - 94.3 23.7
42.1 14.6 Aspial 40.5cd -0.5 887 41 40.5 40.5 41 3.8 2.8 8.1 602.2
100 50 Auric Pac 93.5 +5.5 390 94.5 88.5 93.5 95 2.3 3.2 13.7 117.5
42.5 28.5 AusGroup 40.5cd +0.5 6262 41 40 40.5 41 6.3 2.5 6.4 194.5
19.1 2.5 Aussino 13.1 +0.2 15339 13.4 13 13.1 13.2 - - - 39.7
13 6.8 Avi-Tech 7.5 +0.1 239 7.5 7.5 7.5 8.8 - - - 26.3
30 14 Avic 20.5 - - - - 20 21 - - - 58.5
7.8 3.6 Azeus 7.8 unch 105 7.8 7 7 7.8 1 7.2 13.9 23.4
11.8 8 Aztech 9.9 -0.1 53 10 9.8 9.9 10.1 - - - 50.9
519 319 B Sembawang 517 +3 187 519 514 517 518 3.9 3.5 7.3 1338.5
26 19.8 BBR Hldgs 21.5 -1 116 22 21.5 21.5 22.5 8.2 3.7 3.3 66.3
23.5 18 BH Global 18.8 -0.1 390 18.8 18.6 18.6 18.8 3.8 3.7 7 90.2
- - BMT 540cd - - - - - - 2.5 0.8 45 47.3
14.5 10.6 BRC Asia 13.4 +0.3 895 13.4 13.3 13.3 13.4 1.8 4.5 7 114.8
36 23 Baker Tech 33 unch 1856 33.5 32.5 32.5 33 1.1 3 30 231.1
18.5 9.6 Ban Leong 17 - - - - 15.1 18.6 0.4 5.9 45.9 19.9
82 50 BanyanTree 60 +2 281 61.5 59 60 60.5 - - 300 456.8
18.6 11.5 Beng Kuang 11.5 -0.5 131 12 11.5 11.6 12 4.2 1.7 13.7 57.7
13.3 7.1 Berger Int 8 - - - - 7.5 8.9 - - 5.6 8.3
3.6 2.3 BerlianLaju 2.7 susp - - - - - - - - 311.9
20.5 13.5 Best World 18.5 - - - - 16.6 18.5 0.2 3.2 142.3 38.2
170 109 Biosensors 124 +1.5 8407 124.5 123.5 123.5 124 - - 4.1 2137.3
9.2 1.7 Blumont 9 unch 5040 9 8.8 8.8 9 - - 26.5 152.3
59 49.5 Boardroom 55.5cd - - - - 55 56 1.4 5.4 13.5 102.2
104 85.5 Bonvests 102 unch 104 103 102 101 102 7 1.5 9.7 410.2
100 77.5 Boustead Sp 97.5 +1.5 186 98 96 97 97.5 2.2 5.1 8.9 505
59.5 45.5 BreadTalk 54 -1 336 55.5 54 54 55.5 2.8 2.8 13.1 152.2
50.5 25 Broadway 36 +0.5 3297 36.5 35.5 35.5 36 - 4.2 - 149.9
27.5 13 Brothers 25.5 susp - - - - - 1.5 1.6 42.5 76
117.5 86.5 Bumitama 113.5 +1.5 12131 117.5 113.5 113 113.5 - - 17.5 1994.8
28 12.4 Bund Center Inv 18.5 +0.8 670 18.6 17.6 18.3 18.5 - - 19.1 562.8
16.8 10.6 C&G EP 11.7 - - - - 11.1 11.6 9.9 0.6 17 113.8
209 134.5 CDL HTrust 198.5 +0.5 1777 202 198.5 198.5 200 - 5.6 18 1920.5
10.1 7.3 CDW 9.6cd +0.1 680 9.6 9.5 9.5 9.6 1.4 9.5 7.9 48.6
5.2 0.2 CEFC Intl 4.6 unch 1923 4.8 4.6 4.5 4.7 - - - 162.3
12.2 8.8 CEI Contract 10.6 - - - - 10.4 11.5 1.4 6.8 10.5 37.3
50.5 34 CH Offshore 46 +0.5 1138 46 45 45.5 46 1.3 10.3 7.6 324.3
23 11.3 CJFertilizer 11.8 unch 41 11.8 11.8 10.8 11.9 - - 2.2 42.5
73.5 55.5 CMPacific 73 +0.5 52 73 72 72.5 73 1.4 7.5 10 524.3
1310 650 CMProp HK1310 - - - - 1310 - - - 12.3 4239.8
18 8.1 CNA 9.9 +0.9 30 9.9 9.9 9.5 9.9 - - 7.7 26.7
14 9 CSC Hldgs 10.1 unch 877 10.2 10.1 10 10.2 3.6 1.7 16.6 124.3
98 64.5 CSE Global 90xd -1.5 1174 91.5 89.5 90 90.5 2.7 2.2 16.8 464.5
132 85 CWT 125 unch 844 127 124.5 125 126 3.8 2 13 750.4
117.5 93.5 Cache 117 +1 672 117 116 116.5 117 1.3 7 14.2 820.7
5.2 1.5 Cacola 2.2 - - - - 2.1 3.2 - 4.5 - 8
64 42.5 Cambridge Ind Trust 63.5 +0.5 1998 64 63 63.5 64 - 6.7 15 767.2
173 112.5 * CapMallsAsia 165 +2 13240 165.5 164.5 164.5 165 3.9 1.8 14.1 6410.4
144.5 94 CapitaComm 141 +1.5 8085 141 139.5 140.5 141 - 5.3 18.8 4005.5
322 219 * CapitaLand 318 +3 22153 322 318 318 319 3.1 2.5 12.8 13578.6
207 161.5 * CapitaMall 199 +1 8952 201 198 198.5 199 1.3 4.7 21.2 6631.2
151 111 CapitaRChina 143.5 -0.5 1047 145 143.5 143.5 144 1 6.1 16.5 990.8
14 9.8 Casa Hldgs 12 +0.3 31 12 11.7 11.7 13 3.2 8.3 3.7 25.2
- - Celestial 17 susp - - - - - - - - 108.2
24 16 Centurion 18.9 -0.1 147 19 18.7 18.5 19.3 - - - 142.9
659 453 CerebosPac 656 +1 8 656 655 655 657 1.3 3.8 20.7 2081.8
44 36 Challenger 39 - - - - 35.5 40 2.1 5.6 8.6 134.6
8 5 Changtian 5.3 unch 393 5.3 5.3 5.3 5.5 - - 5 35
48 32.5 Chem Ind 36 - - - - 36.5 44 3.5 2.8 10.2 27.3
49.5 18.5 Chemoil Energy US35 unch 539 36 35 35 36 - - 9.7 452.4
23.5 16.5 CheungWoh 18.3 +0.2 2 18.3 18.3 17.3 20 0.2 7.7 83.2 57.3
4 1.5 China Bearing 1.8 -0.5 35 1.8 1.8 1.8 2.4 - - - 4.1
27 6.4 China Dairy 10 -0.1 18 10 10 10 - - - - 44
13.6 7.9 China Env 9.4 - - - - 8 9.2 10.4 2.2 4.4 60.1
27.5 18.8 China Farm 27 - - - - 26 27 - - 10.3 65.3
2.2 1.3 China Great 1.7 - - - - 1.5 1.7 - - - 2.9
4.5 1.1 China Haida 1.7 - - - - 1.7 2.2 - - 7.4 4.3
- - China Hongxing 11.5 susp - - - - - 4.7 3.6 11.7 322
7.3 3.1 China Intl 4 - - - - 3.8 4.8 - - - 36.3
- - China Milk 24 susp - - - - - 18.5 - 2.1 177.3
7.4 3.1 China Mining 3.3 - - - - 3 4.5 - - - 32.3
8.6 3.7 China Paper 3.8 unch 1862 3.9 3.8 3.8 3.9 4.6 - 2.1 34.5
4.9 2 China Powerpl 3.5 - - - - 3.5 4.5 - - - 14.9
10.3 7.5 China Sky 10.2 susp - - - - - - - 4.3 89.2
- - China Sun 5.5 susp - - - - - 9.4 25.5 0.8 44.6
39.5 24 China XLX 30 unch 162 30.5 30 30 30.5 4.9 2.5 8.1 300
4.4 1.8 ChinaACorp 2.3 unch 3079 2.4 2.1 2.2 2.4 - - - 96.1
12 3.8 ChinaAElec 4 unch 107 4 4 4 5.9 - - - 27.3
133.5 83 ChinaAOil 99 +2 71 99 98 98.5 99 5.7 2 8.6 715.6
30.5 21 ChinaAniH 25 +0.5 1859 25 24 24.5 25 2.7 2.5 8.7 397.8
9.3 4.5 ChinaEnergy 5.2 unch 261 5.5 5.2 5.2 5.5 - - - 65.2
2.5 0.9 ChinaEnvRes 1 susp - - - - - - - - 12.8
23.5 3.7 ChinaEssen 4 unch 93 4 4 4 4.4 - - - 15.6
6.3 2.8 ChinaFibreT 3.3 unch 241 4 3 3.1 3.3 - - 10 14.8
130 74.5 ChinaFish 77.5 +1.5 987 78 76.5 77.5 78 2.9 5.8 5.8 793
10 4.2 ChinaFlex Pack 5.1 -0.2 25 5.1 5 5.1 5.6 - - 18.9 24
- - ChinaGaoxian 19 susp - - - - - - - - 387.6
4.5 1.7 ChinaHongc 2.7 +1 90 3.5 2.7 2.7 3.3 - - - 7.2
11.5 6 ChinaJishan 8 +1 4 8 8 7.1 9.9 - 4.1 - 24.1
9.5 6 ChinaKangda 6.1 - - - - 6.2 7 - - 10.5 27
7.6 2.6 ChinaKunda 3.5 - - - - 3.2 4.5 - - - 12.3
117.5 53 ChinaMinzhong 74.5 unch 9156 76.5 74.5 74 74.5 - - 3.1 415.3
8.9 4.9 ChinaNTown 5.3 +0.1 5543 5.3 5.1 5.2 5.3 - - - 238.3
5.5 2.8 ChinaOilFld 3.4 +0.2 146 3.4 3.2 3.2 3.7 - - - 24.8
14 9 ChinaPrtP 13 - - - - 13 13.5 - - 100 15.9
6.6 3.7 ChinaSports 3.7 - - - - 3.6 4.1 - - 3.6 35.6
27.5 23 ChinaSsine 24 -0.5 5 24.5 24 24 25 3.8 4.2 6.3 118
12.7 3.4 ChinaTaisan 4.4 +0.7 53276 4.6 3.6 4.3 4.4 - - 3.3 49.6
30 30 ChinaVision 2K HK$ HK30 - - - - 25 - - - - 218.8
13 5 ChinaYuanb 5.3 -0.3 20 5.3 5.3 5.3 6 - - 0.1 34.7
11 3 Chinasing 3.5 - - - - 3.6 5.5 - - - 4.2
53 32 Chip EngSeng 47.5 +0.5 1929 48 47 47.5 48 4.7 8.4 2.5 317.1
13 6.8 Chosen Hldgs 12.5cd +1.4 1 12.5 12.5 11.1 12.5 0.6 5.3 30.5 35.9
26 19.5 ChuanHup 25 unch 48 25 25 25 25.5 6.1 4 4.1 272.2
1202 850 * CityDev 1140 +22 1440 1150 1129 1140 1141 4.9 1.6 13.2 10366
119 102 CityDev NCCPS 111 - - - - 111 113.5 - - - -
42.5 31 CitySpring 42.5 unch 394 42.5 42 42 42.5 - 8.3 - 645.5
27 18.2 Cityneon 18.2 - - - - 16.3 - 0.4 1.3 26 16.1
123.5 48 Civmec 117 unch 4368 119.5 117 117 117.5 10.1 0.5 19.3 586.2
12 8.9 Cogent 10.9 -0.1 847 11 10.6 10.9 11.3 - - 10.9 52.2
90 61.5 CombWill 100 67 - - - - 63 67 - - 3.2 22
171.5 130 * ComfortDelGro 165 unch 2973 166.5 165 165 165.5 1.9 3.6 14.6 3459
0.9 0.3 Compact 0.4 -0.1 83 0.4 0.4 0.4 0.6 - - 5.7 18.7
25 16.9 Consciencefood 17.6 +0.1 53 17.6 17.6 17.6 17.8 - - 3.8 69.7
42.5 1.7 Contel 3.6 +1.7 151165 3.8 1.9 3.6 3.7 - - 0.9 19.1
79.5 42.5 Cordlife 55.5cd +1.5 6658 56 54.5 55 55.5 1.5 6.8 13.8 129.1
75 38 Cortina 72 - - - - 70 75 3.7 4.9 5.6 119.2
131.5 82.5 Cosco Corp 100 +1.5 10645 100.5 99.5 99.5 100 2.1 3 16 2239.2
25 11.5 Cosmosteel 17 +0.5 65 17 16.5 16.5 17 2 5.9 8.3 44.9
31.5 17 Cougar 27 unch 67 27 27 26.5 27.5 1.3 9.3 7.9 30.6
11 5.9 Courage Marine 6.3 +0.1 299 6.3 6 6 6.3 - - - 66.7
7.2 0.7 CreativMast 1.1 susp - - - - - - - - 2.6
505 213 Creative Tech 320 +10 20 320 310 312 320 - 1.6 - 223.7
11266 10430 DBS Bk 4.7% NCPS 100 10780 +52 4 10780 10720 10745 10780 - - - -
1499 1081 * DBS Grp 1471 +10 5062 1476 1468 1469 1471 2.3 3.8 11.3 35816.6
32.5 20.5 DMX Tech 22.5 +0.5 1833 22.5 22 22 22.5 7 1.3 10.7 261.9
1200 790 DairyFarm US1105 -2 108 1106 1100 1105 1111 1.9 1.9 30.8 14923.7
6.9 1.6 Dapai 2.1 +0.1 649 2.1 1.6 1.7 2.1 - 61.9 - 20.8
7.5 5 Darco 5.8 susp - - - - - - - 4.6 16
23.5 18.2 Datapulse 20 -0.5 85 20.5 19.9 20 20.5 1 9 11 119.9
13 2.9 Debao 7.5xd -0.4 50 7.5 7.5 7.1 8.2 2.2 6.3 7.4 84.4
51.5 40 Del Monte 49.5 +1.5 61 49.5 49.5 49 50 - 3.8 15 535.5
39 20 DelongH 31 -2 196 32.5 30.5 31 31.5 - - - 170.5
59 41 DesignStudio 50 - - - - 40.5 50 2.4 5 8.4 130.1
10 5.5 Devotion 6.9 - - - - 6.8 7.5 4.9 7.2 2.8 13.7
0.5 0.1 Digiland 0.2 -0.1 2300 0.2 0.2 0.2 0.3 - - - 20.5
11.6 2.9 DragonGp 9.5 -0.1 1394 9.6 9.2 9.4 9.5 - - 24.4 26.6
49.5 20.5 Dukang 25.5 +1.5 2436 25.5 24 24.5 25.5 - - 4.7 203.6
18.6 11.1 Dutech 13.5 - - - - 12.3 15 2.2 7.4 6.5 48.1
57.5 36 Dyna-Mac 54.5 +0.5 9018 55.5 54.5 54 54.5 1.2 0.9 90.8 490.7
11.9 8 Dynamic 10 - - - - 9.4 10 1 12.5 8.3 21
61.5 42 ECS Hldgs 47.5 - - - - 48 49 4.9 4.6 4.4 173.8
18.3 10.2 Eastern Hldgs 17 - - - - 16 18 - - - 51
4.3 2.5 EastgateTech 3.5 - - - - 3.4 3.6 - - 10.3 41.9
13.4 7.5 EcoWise 7.8 +0.1 100 7.8 7.8 7.7 7.8 - - 111.4 72.1
310 213 Elec & Eltek US233 +1 34 235 233 233 235 0.7 11.6 8.5 437.3
55 25.5 Elite KSB 54 +1 118 54 53 53.5 54 4.3 2.8 8.4 73.2
12.2 6.7 Ellipsiz 8.9cd +0.4 1794 9 8.5 8.8 8.9 2.5 1.8 21.7 49.2
90.5 71 EnGro Corp 90.5 +1.5 15 90.5 88 89 91 3.8 3.3 8 107.3
13.6 8.6 Enviro-Hub 9.8 -1.6 216 10.9 9.8 9.6 9.9 1.3 3.1 25.1 87
- - Enviro-Hub R333 0.5 - - - - - - - - - -
20 7.5 Eratat 8.2 +0.3 478 8.2 7.9 8.1 8.2 - 6.3 1.2 38.9
35 19.9 Etika 21 +0.5 89 21 20.5 20.5 21 1.8 5.7 9.5 112.6
79.5 58 Eu Yan Sang 65.5cd unch 297 66.5 65.5 65 65.5 1.9 3.1 17.7 289.9
4.1 1.6 Eucon 2.2 unch 1517 2.8 2.1 2.1 2.3 - - - 12.5
3.5 1 Europtron 1.8 unch 2050 1.8 1.8 1.8 1.9 - - - 12.3
8.1 3.8 Excelpoint 5.8 +0.5 20 5.8 5.8 5.4 5.8 3.8 13.8 4.8 29.6
128 37 EzionHldg 126 unch 7220 128 126 126 127 105.9 0.1 11.9 1072.9
133.5 75 Ezra 116 +1 12215 118 116 116 116.5 - - 19.5 1134.4
900 532 * F&N 897 +5 7141 900 894 896 897 3.4 2 14.4 12806.1
4.6 0.8 FDS Netw 1.1 -0.1 129 1.1 1.1 1.1 1.2 - - - 2.1
244 118 FEOrchard 229 +1 363 231 227 228 229 3.8 3.9 6.6 863.7
37 27 FJ Benjamin 34cd unch 987 34.5 34 33.5 34 2.4 2.9 13.9 193.4
34 11.9 FSL Trust 12.3 +0.1 2176 12.3 12.2 12.2 12.3 - 30 3.2 80.5
22.5 8 Fabchem China 20 - - - - 20 20.5 9.7 5 3.9 46.8
32 16.6 FalconEne 25.5 +2.5 12270 26 23 25 25.5 - - 49 207.6
100.5 95 Far East HTrust 98.5 +0.5 7342 99 98.5 98.5 99 - - - 1579.8
7.6 3.1 Federal Int 4.5 +0.1 2030 4.6 4.4 4.5 4.6 - - - 41.2
- - FibreChem 10.5 susp - - - - - 5.6 15.9 0.9 93.6
- - FibreChem NCPS 11 susp - - - - - - - - -
103 73 First REIT 102.5 unch 813 103 101 102 102.5 1.3 6.8 14.6 647.3
223 114 FirstRes 217 +9 2344 219 210 216 217 4.9 1.6 12.5 3437.4
11.2 4.1 Fischer 8.6 - - - - 8.8 10 - 7 - 23.5
45 29 Food Empire 43.5 +0.5 13 43.5 43 43.5 45 3.4 2.4 11.8 230.3
20 16 Food Junc 16.5 - - - - 16.6 18.5 2.7 1.5 25.4 21.4
13.2 4.9 Foreland 5.2 +0.1 1023 5.3 5.2 5.2 5.3 6.5 15.8 0.9 95.8
604 319 Fortune Reit HK584 +2 1523 604 582 583 584 1 4.4 22.2 9900.8
28.5 13 Fragrance 28.5cd +1.5 16294 28.5 27 28 28.5 2.5 5.6 16.8 1915.2
118 73 Frasers Comm 116.5 +1 564 117 115.5 116 116.5 - 4.8 20.8 749.9
105.5 92.5 Frasers CommCPPU 500 101.5 unch 51 101.5 101.5 101.5 102.5 - 5.4 - 347.6
184 141 FrasersCT 179 -1 1305 181 178.5 179 180 - 4.6 21.5 1729.3
7.7 5.2 FreightLinks 6.9 +0.5 23101 7 6.7 6.9 7 3.1 6.5 4.8 158.8
30.5 19 Frencken 20.5 unch 975 20.5 20.5 20 20.5 3 3 11.2 77.1
10.1 5.3 Fu Yu Corp 6.8 unch 204 6.8 6.2 6.5 6.8 - - 11.7 49.8
12.5 7.5 Full Apex 8 +0.2 22 8 8 8 10 - - 8.3 70.7
14.4 8 Fung Choi 13 unch 550 14 12.6 12.8 13.5 14.7 1.2 5.4 94.3
9.5 4 Fuxing 4 - - - - 4.1 4.4 0.5 5 40 35
43 28.8 G Invacom 41 susp - - - - - 3.6 1.4 4.9 77.3
30 30 G Invacom 50 30 susp - - - - - - - - -
85 64.5 GK Goh 73 -0.5 82 74 73 73 74 3.6 6.8 4.1 244.7
271 149.5 * GLP 259 -7 23717 266 254 258 259 - - 8.8 11905.5
24.5 11 GMG Global 12.7 +0.3 31662 12.8 12.5 12.7 12.8 4.4 1.7 9.5 974.8
108 95 GP Bat 98.5 +0.5 15 98.5 98 98.5 100 2.4 2.5 16.6 108.2
30.5 23.5 GP Hotels 24.5cd unch 6748 25 24.5 24.5 25 - - 6 257.7
52.5 34.5 GP Ind 40.5cd +0.5 100 40.5 40.5 40 41 0.4 6.2 39.3 233.7
26 16.5 GRP Ltd 23 -0.5 79 23.5 23 22.5 23 1.5 4.3 7.9 32.1
15.8 0.3 GSH Corp 10.2 +0.1 37726 10.3 10.1 10.2 10.3 - - - 460.8
35 23 Gallant 29.5 +0.5 2494 30 29 29 29.5 - - 86.8 711.7
16.1 8.1 GblYellowPgs 9.8 +0.6 351 9.9 9.5 9.8 9.9 4.2 2 12.7 54.3
3.7 0.7 Gems TV 3.2cd unch 2997 3.3 3.2 3.2 3.3 0.1 29.7 35.6 33.1
180 122 * Genting SP 138 +1 34588 139 137.5 138 138.5 8.4 0.7 16.4 16847.6
25 17.6 Global Palm 19.6 +0.2 85 19.9 19.3 19.5 19.8 17.7 1 5.5 80.9
1.9 0.3 Global Tech 0.4 -0.1 258 0.4 0.4 0.4 1 - - - 20.5
7.4 4.9 Global Test 6.4 unch 159 6.4 6.4 6.4 6.5 - - - 67.2
15.6 13 GlobalInv 14.1 +0.5 4153 14.2 13.7 14.1 14.2 1.5 10.6 6.2 116.4
- - GlobalMaster US$ S US- - - - - - - - - - -
80.5 55 * Golden Agri 69 +2 182598 69 67.5 68.5 69 7.4 2.7 5.3 8857.9
127 81 Golden Ocean 88.5 - - - - 90 - - 7.3 3.7 404.4
198 126 Goodpack 183.5 - - - - 182 185 2.3 2.7 15.9 915
35 15.1 GrandBanks 31 +1 10 31 31 31 31 - - - 29.8
1530 1190 Great Eastern 1445 +17 103 1448 1431 1444 1445 - 2.6 17.8 6839.5
Transaction date: Sep 14
52-wks Last Vol Day Last Quote Div GrYld Net M Cap
High Low Company Sale +/- (000) High Low Buyer Seller Cvr % P/E $mil
52-wks Last Vol Day Last Quote Div GrYld Net M Cap
High Low Company Sale +/- (000) High Low Buyer Seller Cvr % P/E $mil
THE BUSINESS TIMES WEEKEND SATURDAY/SUNDAY, SEPTEMBER 15-16, 2012 sgx 23
18.8 7.5 Great Group 9.5 +2 5 9.5 9.5 7.5 8.7 - - 2.3 25.2
1.8 1.6 GuangzhaoIFB 1.6 susp - - - - - - - 5.5 11.5
18.5 5 Gul Tech 18 +2.2 34447 18.5 16 17.9 18 - - 8.1 167.6
205 148 GuocoLand Ltd 180cd +3 236 182 179 180 180.5 0.7 2.8 31.6 2129.8
70.5 54.5 GuocoLeisure 61.5cd +0.5 1381 62 61 61.5 62 3.6 3.3 8.2 841.4
69.5 41.5 GuthrieGTS 61.5 +1 533 61.5 60.5 60.5 61.5 4 8.9 2.8 662.9
85 67 H Grand Central 82 +2 89 82 81 81 82 1.3 6.1 15.7 441.6
266 196 H Royal 258 -1 25 260 257 258 259 1.4 1.9 36.8 216.7
11.6 7.5 HG Metal 8.3 unch 420 8.3 8.3 8.2 8.4 - 7.2 4.7 90.7
669 417 * HK Land US610 +13 3016 622 605 608 610 14.2 2.6 2.7 14318.4
220 140 HL Asia 172 +2 601 172.5 170.5 172 172.5 2.8 4.7 7.7 658.1
254 207 HL Fin 245 unch 187 247 244 245 247 1.9 4.9 10.8 1081.7
8.5 2 HL Global 5.5 unch 20 5.6 5.5 5.5 7 - - - 53
3.6 1.2 HLH Grp 2.9 +0.1 5216 2.9 2.8 2.8 2.9 - - 290 114.8
23.5 13.5 HLN Tech 19.1 -0.4 31 19.5 19 19.1 23 - - 28.1 29.7
98.5 85.5 HPH Trust S$D 88 -0.5 4585 90 87.5 87.5 88 - - 102.3 -
81 55 HPH Trust US$ US71.5 unch 43977 73.5 71.5 71 71.5 - 2.4 14.7 6226.9
44.5 26 HTL Intl 32.5 +0.5 402 33 32 32 33 0.7 7.7 17.9 135.4
24 15 Hai Leck 16.5 - - - - 16.4 18.5 - - 18.3 53.6
5.3 3.1 HanKore 3.5 +0.1 3844 3.5 3.4 3.4 3.5 - - 5.8 145.7
37 16.1 Hanwell 28 +0.5 294 28 27.5 28 28.5 0.4 3.6 66.7 159.4
659 505 Haw Par Corp 659 +4 392 659 655 659 660 2 3 16.2 1375.3
12.2 8.3 Health Mgt Intl 11.4 +0.1 5 11.4 11.3 11.3 11.4 - - - 65.8
50 30 Heeton 47 +1 405 48 46 46.5 47.5 8.8 2.8 4.1 105.2
28.5 14 Hengxin 14.2 -0.7 50 14.2 14.2 14 14.9 - - 2.6 55.1
25.5 18.2 Hersing Corp 22.5 - - - - 22.5 23 1.2 4.4 12.4 143.9
105 49 Hi-P Intl 100 +0.5 1377 101 100 99.5 100 2.3 2.4 18.9 887.2
69 38 Hiap Hoe 63.5 +2.5 5272 65 61 63 63.5 20.2 0.8 6.3 304.4
37.5 23 HiapSeng Engg 31.5 +1 876 31.5 30.5 31 31.5 0.7 4.8 22.3 95.7
43 27 Hisaka 28 unch 427 29.5 28 28 30 1.7 3.6 7.6 53.9
145 97.5 Ho Bee 144 +2.5 1344 145 142 144 144.5 7.2 2.8 5.1 1064.1
28 21 HockLianSeng 24 unch 67 24.5 24 24 24.5 3 8.3 3.9 122.4
28 14 Hoe Leong 18 unch 6 18 18 18 19 3.8 11.1 2.4 52.1
55.4 31.7 Hong Fok 51 unch 1026 51.5 51 51 51.5 - - 2.9 403.6
- - Hongwei 18.5 susp - - - - - - - 3.1 45.3
6.5 3.6 Hor Kew 5.2 unch 22 5.2 4.7 4.9 5.2 1.9 4.8 10.8 40.6
293 165 Hotel Prop 289 +2 803 291 287 288 289 2.8 1.7 20.7 1463
15.2 11.7 Hotung 13.8 +0.1 736 13.9 13.8 13.8 13.9 1 8 12.3 175.4
148 101 Hour Glass 142 +2 14 142 141 142 143.5 3.9 4.2 6.1 333.7
27 8.7 Hu An 13.5 unch 295 13.5 13.4 13.4 13.6 5.9 5.2 2.9 116.3
13.5 5 Huan Hsin 5.1 +0.1 300 5.3 5.1 5 5.1 - - - 20.4
23 16 HupSteel 19.1cd +0.1 23 19.1 18.5 19.1 19.2 1.2 5.2 16.6 119.8
47 28 Hwa Hong 35.5 unch 163 36 35.5 35.5 36 * 9.9 107.6 232
169.5 101.5 Hyflux 141 +1 1868 142.5 140.5 140.5 141 1.1 2 32.8 1216.7
10900 10300 Hyflux 6% CPS 10 10780 +20 0 10780 10752 10760 10780 - - - -
44.5 29.5 IFS Capital 38 -1.5 2 38 38 38 39 2.6 4.6 8.3 57.1
132 118 IHH Healthcare 130 +5.5 10540 132 129 130 130.5 - - 46.3 10472
21 8.7 IPC Corp 14.9 -0.1 12945 15.1 14.9 14.9 15 2.8 1.7 25.7 127.1
3 0.8 IPCO Intl 2 +0.1 8269 2 1.9 1.9 2 - - 13.3 44.2
15 10.8 ISDN Hldgs 11.8 +0.6 387 11.8 11.2 11.2 11.8 5.6 4.2 4.2 35.6
17.2 6 ITech Grp 12.8 - - - - 11.9 12.7 - - 3.5 17.1
- - Inch Kenneth - susp - - - - - - - - -
19.7 9.3 Indiabulls 9.3 -1.2 242 10 9.3 9.3 10.4 - - 37.2 343.8
169.5 114 IndoAgri 143.5 +6.5 12203 145 138.5 143 143.5 - 0.2 9.9 2077.6
14.1 4.4 Informatics 9.1 +0.2 16517 9.2 8.9 9 9.1 - - 43.3 131.1
5.4 0.6 Inno-Pac 4.6 -0.1 9621 4.8 4.6 4.6 4.8 - - 30.7 139.7
55 32 InnoTek 33 +1 946 33.5 32 32.5 33 * 15.2 137.5 81.4
9.7 5 Innovalues 7.7 -0.1 61 9.7 7.7 7.2 8.5 - - - 24.5
70.5 15 Intraco 65 +1 395 65 64.5 64.5 65 - - - 64.2
- - Inv Bev Biz EURO S EU- - - - - - - - - - -
490 310 Isetan 454 +10 80 455 450 450 455 4 2.2 15.2 187.3
42 28.5 JB Foods 30.5cd +1.5 9467 31 29.5 30.5 31 - - 5.8 122
26.5 13.5 JES 14.8 +0.4 2562 14.9 14.4 14.8 14.9 - - 13.1 172.6
5660 4206 * JMH US5450 +112 260 5455 5348 5450 5456 4.2 2.3 5.7 36382.5
3575 2370 * JSH US3265 +12 239 3314 3254 3265 3287 15.6 0.7 5.1 36571.3
10 6.6 Jacks Intl 7.9 - - - - 6.9 9.9 1.9 5.1 10.3 11.9
19.6 6.8 Jackspeed 16.2 - - - - 16.3 17.5 - - 17.2 40.7
8.2 4.5 Jadason 4.8 -0.2 528 4.8 4.7 4.8 4.9 * 10.4 480 34.9
5179 3572 * Jardine C&C 4869 +131 318 4875 4751 4865 4870 6.5 3.3 12.9 17144.9
8.2 5.2 Jasper 6.3 +0.1 1960 6.3 6.3 6.3 6.4 - - - 263.3
61.5 42 Jaya Hldgs 56.5 +1.5 350 56.5 55 55 56.5 - - 7.8 435.1
- - Jets Technics 0.3 susp - - - - - - - - 0.7
6.6 2.7 JiutianC 5.2 +0.2 2570 5.4 5 5 5.4 - - - 86.1
2.8 1 Joyas 2.3 - - - - 1.9 2.3 - - 12.1 7.4
18 13.5 Juken Tech 17.8 unch 80 17.8 17.8 17.8 17.9 - 2 14.4 44.6
102.5 85.5 K-Green Trust 101 +0.5 357 101 100 100.5 101 0.3 7.7 39.8 636.1
116 80 K-Reit 115.5 +1.5 2019 116 114.5 115.5 116 1 7 16.3 3032.4
13.6 7.5 K1Ventures 13.1cd +0.1 2175 13.3 12.9 13.1 13.3 1.1 3.8 23.8 283.7
110 67.5 KS Energy 78 +4 267 79 74.5 77.5 78.5 - - - 329.6
24 18.2 KSH 24 +0.5 1185 24 23.5 24 24.5 5.3 6.3 5 93
20.5 12.7 KTL Global 15 -0.2 13 15 15 15 16 - - 75 24.3
- - KXD Digital 1 susp - - - - - - - - 9.4
29 22.5 Karin 29cd +1.5 52 29 28 28 28.5 2 8 6.2 61.3
42 28 KencanaAgri 34.5 +2.5 709 34.5 32 34 35 13.1 0.6 13.2 396.1
1167 702 * Keppel Corp 1132 +13 3624 1143 1132 1131 1132 2.4 3.8 10.9 20355.4
362 217 Keppel Land 350 +4 2976 351 348 349 350 - 5.7 3.8 5399.7
126 101 Keppel T&T 122 +0.5 316 125 121 121.5 122.5 4.1 2.9 8.5 674.6
182 125 Khong Guan 174 -1 13 174 173 171 176 - - 23.2 44.9
40 18 Kian Ann 38.5cd -0.5 2458 39 38 38.5 39 3.8 3 8.9 168.7
28.5 21.5 Kian Ho 24.5 unch 2 24.5 24.5 24.5 25.5 1.7 4.1 24 57.3
21 13 KingWan 19.8 unch 377 19.9 19.5 19.6 19.9 2.7 7.6 4.9 69.1
21 12 Kingboard 20 +0.9 650 20 19.5 20 20.5 - - 15.2 144.5
76.5 54 Kingsmen 76.5 +1.5 12 76.5 75 75 76.5 2.1 5.2 8.9 148.6
14 6.1 Koda 8 - - - - 8.8 14 - 1.3 - 10.9
24.5 16.2 Koh Bros 21.5 unch 598 22 21 21 21.5 12.1 1.6 5.1 103.1
28.5 19.5 Koon 20.5 +0.5 41 20.5 20 20 20.5 3.1 2.4 4.4 33.7
3.9 1 L-Jacob 3.2 +0.1 304 3.2 3.1 3.2 3.3 - - - 22.7
16.7 13 LC Dev 15.2 +0.1 1215 15.3 15 15.2 15.3 7.1 3.3 2.1 158.2
1.2 0.5 LH Grp 0.7 -0.1 90 0.7 0.7 0.7 0.8 1.2 4.3 23.3 27.6
15 7.4 LHT Hldgs 13 +0.1 9 13 13 12.9 14 6.9 3.8 3.8 27.7
49 27.5 LKH 47 +0.5 866 47 47 47 47.5 2.9 8.5 4 347.2
60.5 27 LMA Intl 60 unch 486 60 60 60 60.5 8.6 2.5 15.1 352.7
8.8 4.5 Lafe Corp 7.5 +0.7 35 7.5 7.1 7.2 7.5 3.4 8.7 3.4 87.5
8 0.6 Lankom 6.2 - - - - 4.5 6.2 - - - 5.6
420 222 LantroVis 239cri +11 77 241 228 239 240 0.4 0.4 5.7 49.6
258 217 Lantrovision 10 258cri +33 8 258 226 239 - - - - -
14.5 7 LeaderEnv 7.7 +0.1 21 7.7 7.5 7.5 7.7 2.7 4.2 4 37.9
78 56.5 Lee KimTah 78 +5.5 24638 78 73.5 78 78.5 11.2 1.9 4.6 394.2
24.5 19 Lee Metal 23 unch 323 23 23 23 23.5 2 8.7 5.8 109.1
40 11 Ley Choon 21.5 -0.5 2717 22.5 21.5 21.5 22.5 - - - 106.1
17.3 11 Li Heng 14 unch 95 14 14 14 14.4 - - 8.8 238
43 31 Lian Beng 42cd +0.5 1671 42 41.5 41.5 42 4.9 4.8 4.3 222.5
2 0.3 LifeBrandz 0.9 +0.1 2488 0.9 0.8 0.9 1 - - - 16.5
61 40 Lion TeckC 59.5 +2.5 290 61 57.5 59.5 60.5 21.4 1.7 2.8 93.1
21 15.5 LionAsiapac 17.8 +1 50 17.8 17.8 17.6 18 2.8 2.8 12.5 72.2
130 83.5 LionGold 122 +1.5 20979 124.5 120 122 122.5 - - - 1051.9
45.9 32.5 LippoMalls 43.5 unch 4759 44 43.5 43.5 44 - 8.9 11.3 951.1
38 15.8 Lizhong 18.8 - - - - 17.1 23.5 - - 4.5 44.2
18 5.6 Longcheer 8.4 -0.3 37 8.5 8.3 8.4 9.3 - - - 33.3
7997 7997 Lonza 10 7997 - - - - - - - - 19.4 4232
15 7.5 Lorenzo 9.1 - - - - 8.2 9 - 5.5 - 19.7
2.9 0.9 LottVis 1.8 +0.1 1342 1.8 1.7 1.6 1.8 - - - 31.7
32.5 26.5 Lum Chang 32.5 +0.5 824 32.5 31.5 32 32.5 2.8 6.2 5.8 123.5
40.5 34.5 LungKee 40 - - - - 40 - - - 5.5 252.6
2.5 1.1 Luxking 2.1 - - - - 1.7 2 - - 4.8 5.3
130 70 Luye Pharma 129.5 unch 55 129.5 129.5 129.5 130 - - 20.4 638.1
12.5 6.1 Luzhou 8.1 - - - - 7 8 - - 2.8 32.1
4.3 0.6 M Devt 0.9 unch 920 1 0.9 0.9 1 - - 4.7 14.5
274 235 M1 269 -4 2676 273 267 269 270 1 5.4 14.9 2453.2
1.6 0.3 MDR 1.1 unch 9006 1.1 1 1 1.1 3.3 2.7 7.3 85.1
13.7 5 MFS Tech 11.3 unch 21 11.3 11.3 11.3 11.9 - - - 73.8
11.5 5.5 MI Tech 8.7 +0.7 40 8.7 8.7 8 8.6 7 2.9 5 19.2
179 124 MOIL US142.5 +2.5 290 143 140 142.5 143 1.4 4.2 21 1425.6
192 117 MSC 100 117 - - - - 120 137 - - - 117
87 66 MTQ Corp 86 +1 26 86 85.5 86 87 - 4.7 5.3 84.1
11.2 4.4 MacCookPSF 7.5 - - - - 7.5 7.9 - - 0.9 27.1
59.5 46 MacqIntInfra 53.5 +0.5 2270 53.5 53 53 53.5 1.9 14.9 3.5 766.6
108 58.5 Manhattan Res 62 +0.5 126 62 60.5 61 62 - - - 314
115 79 MapletreeCom 115 unch 2928 115 113.5 114 115 - 4.6 21.8 2150.1
140.5 104.5 MapletreeInd 138 -0.5 2683 139 138 138 138.5 1 6.1 16.4 2249
115 80 MapletreeLog 113.5 +0.5 2822 114 112.5 113.5 114 1.6 7.3 13.8 2753.9
43 30 Marco Polo 35 +0.5 242 35.5 34.5 34.5 35 - - 6.9 119.3
- - Maruwa JY- - - - - - - - - - -
6.3 3.5 Matex 3.7 unch 3 3.7 3.7 3.7 4.8 - - - 6.6
15.2 6.7 Meghmani SDS 8 - - - - 8 10 1.2 3.1 22.9 12.3
8.6 3.6 Memstar 6.2 +0.2 4324 6.2 6.1 6.1 6.2 9 0.8 13.5 164.7
11.2 6.8 Memtech 7.1 - - - - 7 7.2 1 1.4 6.1 51.1
66 45.5 Mencast 55 -1 20 55 55 54.5 59 4.5 2.2 9.5 124.3
18.6 11 Mercator 11.5 -0.1 23 11.7 11.5 11.5 11.7 - 1.7 15.3 144
37 22 Mermaid 29.5 +1.5 1482 29.5 29 29 29.5 - - - 231.5
3.8 0.6 Metech Int 1.7 unch 5244 1.8 1.6 1.6 1.8 - - - 28.1
83.5 61 Metro Hldgs 79 +1 1303 79.5 78.5 78.5 79 1.8 7.6 7 656.9
66.5 36.5 Mewah 45 unch 10169 46 44.5 45 45.5 7.2 1.1 12.4 678.2
48 39 Micro-Mechanics 42.5cd unch 36 42.5 42 42.5 48 1 7.1 14 59.1
45 27 Midas 40.5 unch 13634 41.5 40.5 40.5 41 3.2 2.5 12.8 493.1
13.1 5.2 Mirach Energy 6.5 +0.6 21 6.5 5.5 5.5 6.5 - - - 49.5
8.9 4.5 Miyoshi 5.3 -0.1 53 5.5 5.1 5.2 5.5 4.4 5.7 4 22.3
14.5 9.1 MultiChem 13.1 +0.1 2 13.1 12 12 13.4 - - 8.5 47.2
15 8.5 Mun Siong 9.1 +0.1 50 9.1 9.1 9.2 9.3 2.6 6.6 6 37.9
- - Murata 54.5 - - - - - - - - - 130.7
151.5 99.5 * NOL 116 +2.5 19335 116.5 114 115.5 116 - - - 3001.6
155 124.5 NSL 140 +1.5 71 140 139 139 140 2.7 7.1 5.2 523
23 11 Nam Cheong 21.5 unch 13547 22 21.5 21 21.5 10.1 0.9 10.8 416.4
30.5 23 NamLee 30 unch 221 30 30 30 30.5 3.2 5 6.3 71
51.5 33 Nera Tel 46.5 -0.5 1231 48 46.5 46.5 47 0.9 - 12.5 168.3
32 20.5 New Toyo 28 unch 491 28 27.5 28 28.5 2.3 6.9 6.2 123
2.2 0.6 NexGenSCom 0.8 unch 1477 0.8 0.7 0.8 0.9 - - 80 51.3
12.5 3 Nico Steel 6.1 unch 286 6.1 6.1 6.3 - 9 6.6 1.7 6.9
5.2 3 Nippecraft 3.6 unch 5 3.6 3.6 3.6 - - - - 12.7
48 24 Nobel Design 47 -1 40 47 47 46.5 48 8.7 1.1 10.7 80.6
166.5 102 * Noble Grp 135 +7 134056 135.5 131 135 135.5 2.7 1.6 15.3 8833.1
23 15.6 Noel Gifts 22 - - - - 19.5 23 2.1 5.9 7.1 22.5
- - Nomura JY199 - - - - - - - - - 386649.3
15 7.4 Nordic 8.3 - - - - 7.5 8.8 1.8 3 18.9 33.2
27 13.5 Novo Grp 14.6 - - - - 14.3 15.1 - 6.8 - 24.9
965 768 * OCBC Bk 935 +8 3395 938 933 934 935 2.3 3.2 14.2 32174.3
Transaction date: Sep 14
52-wks Last Vol Day Last Quote Div GrYld Net M Cap
High Low Company Sale +/- (000) High Low Buyer Seller Cvr % P/E $mil
52-wks Last Vol Day Last Quote Div GrYld Net M Cap
High Low Company Sale +/- (000) High Low Buyer Seller Cvr % P/E $mil
24 sgx THE BUSINESS TIMES WEEKEND SATURDAY/SUNDAY, SEPTEMBER 15-16, 2012
106 100 OCBC Bk 4.2%NCPS 102 +0.5 10 102 102 102 102.5 - - - 250.7
10449 10130 OCBC Bk 4.5%NCPS 100 10200 unch 1 10220 10200 10190 10216 - - - 510
10800 10310 OCBC Bk 5.1%NCPS 100 10465 unch 4 10465 10455 10455 10465 - - - -
66 51 OKP 54 +1 171 54 53.5 53.5 54 2.9 5.6 6 165.2
142.5 92 OSIM 141.5 +6.5 5277 142.5 136 141.5 142 - 2.1 13.9 1136
266 193.5 OUE 263 +2 1465 266 261 262 263 2.7 4.9 7.7 2581.6
23 10 Ocean Sky 13 - - - - 12.5 13 3.5 6.2 4.6 58.4
14.9 4.9 Oceanus 5.2 +0.2 5545 5.3 5 5.2 5.3 - - - 132.9
276 152.5 * Olam 208cd +10 28626 210 202 208 209 3.9 1.9 13.9 5080.2
59 4.2 OmegaNav 5 +0.5 15 5.9 4.6 5 5.9 - 4381 - 0.8
17.5 11 Ossia Intl 12.5 +0.2 4 12.5 12.5 12.1 12.5 - - 14.4 31.6
17.2 8.3 Otto Marine 8.7 +0.1 9992 8.9 8.7 8.7 8.9 - - - 246.7
5 2.2 Ouhua 2.7 -0.8 40 2.7 2.7 3 3.3 - - - 10.3
12 8.5 PCA Tech 10.1 +0.6 52 11.5 10.1 10.3 11.5 2.6 4.5 8.6 20.5
52 30.5 PCI Ltd 45 -1 319 46 45 45 49 1.9 6.7 7.8 89.5
95 55.5 PEC 68.5cd +2.5 1648 69 66.5 68 68.5 1.8 3.6 15.2 174.8
204 169 PLife REIT 194.5 -0.5 712 197 194 194 194.5 - 4.9 20.3 1175.5
14.5 10.5 PM Data 12.7 +0.3 15 12.7 12.7 12.5 12.7 1.2 7.9 10.3 22
8.2 4.8 PNE Ind 6 - - - - 5.6 7.5 2.4 5 8.3 20.1
42.5 19.5 PSL Hldgs 29.5 +2 13520 29.5 27.5 29 29.5 - - 53.6 114.1
24.8 14.3 Pac Andes 15 +0.2 5084 15.1 14.9 14.9 15 3 7.2 4.8 718.6
15.1 9 Pacific HC 9.3 -0.6 6 9.3 9 9.3 10 - - - 37.6
19 11.2 PacificCentury 17.5 unch 100 17.6 17.5 17.5 17.6 - - 10 541.8
36.5 20 Pan Hong 27.5 - - - - 25 28 5.7 3.6 4.8 142.7
212 168 Pan Pacific 212 +1 20 212 210 211 212 3.3 1.9 16.1 1272
71.5 40.5 Pan United 67.5 unch 445 67.5 67 67 67.5 1.6 5.2 12.3 375.4
158 104.5 Parkson 155cd +1 30 155 154.5 155 156 - 1.9 22.2 1049.8
11.1 5.3 Penguin 7.7 +0.1 1006 7.8 7.7 7.6 7.7 - - 1.9 50.9
78.5 40 People's Food 65.5 +2 141 65.5 63 64.5 65.5 - - 27.8 740.4
59 38.5 PerennialCRT 49 +0.5 3518 49.5 48.5 49 49.5 - 4.8 20.9 551.4
75 38 Pertama 52 susp - - - - - 0.5 4.5 15.4 126.4
280 140 Petra 240 unch 5 240 240 236 240 2.5 2 18.6 1466.8
4 1.2 Pharmesis 1.3 - - - - 1.4 2.5 - - 130 2.6
5.8 0.3 Plastoform 3.5 +0.3 10550 3.6 3.3 3.4 3.5 - - - 47.3
47 38.5 PohTiong Choon 43xd - - - - 40.5 43.5 1.2 4.7 17.2 92.8
24 14.9 Popular 23 +0.5 2241 23.5 22.5 23 23.5 2.8 5.7 6.2 193.5
1202 796 Pru 500US$ US1000 - - - - 1000 - - 3.7 11.4 25478.5
14.5 9 Pteris 12.7 +1.2 4905 13 11.5 12.6 12.7 - - 141.1 59.2
44 33 Q&M Dental 35.5 unch 1435 36 35.5 35.5 36 1.2 3.8 42.3 195.4
80.5 53.5 QAF Ltd 72.5 +1 379 72.5 72 72 72.5 2.3 6.9 6.3 377.2
71 7.3 QianHu 8.6 unch 173 8.6 8.5 8.6 8.9 1.3 7 11.3 39.1
21 5 Qingmei 6 +0.9 22155 6.1 5.2 5.9 6 - - 1.5 40.8
16.8 10.6 RH Energy 15.5 - - - - 14 15.5 2.2 16.1 2.9 44.2
60 39 RH PetroGas 48 +3 38 48 48 43.5 47 - - 57.8 294.9
265 202 Raffles Med 234 unch 917 236 233 234 235 2.7 1.7 24.6 1272.6
53.5 30 RafflesEdu 41 -1.5 8757 44 41 41 41.5 - - - 358.5
50 33 Ramba 40 +1 4753 40.5 39 39.5 40 - - - 97.8
35.5 28.5 Rickmers Trust 33.5 unch 135 33.5 33.5 33 33.5 1 9.1 10.7 141.9
46 36 Riverstone 40.5xd unch 38 41 40 40 40.5 2.1 6 8.1 133.8
80.5 46 Rotary Engg 50.5 +1.5 1388 51 49 50.5 51 1.1 5.9 9.2 286.8
16 4.8 Rowsley 10.2 +0.2 23381 10.4 10 10.1 10.2 - - - 90.8
50 24.7 Roxy-Pacific 49.5 +0.5 299 49.5 49.5 49.5 50 3.9 4 9.5 472.6
16 11.2 Ryobi Kiso 11.5cd -0.2 150 11.5 11.5 11.4 11.7 1.5 2.6 26.1 88
41.5 32 S Chance 41 +0.5 289 41 41 41 41.5 - - 12.2 239
29 20.5 S Reinsurance 24.5 +0.5 81 24.5 24 24 24.5 0.3 4.9 49 151
6 2.4 S i2i 2.8 +0.2 3923 2.8 2.6 2.7 2.8 - - - 150.7
284 207 SATS 265 unch 552 267 264 264 265 0.6 9.8 17.2 2941.8
180 146 SBSTransit 148 -1 47 149 148 148 148.5 2 4.1 12.4 456.8
121 93.5 SC Global 118 +8.5 1600 119 112.5 117.5 118 6.4 1.7 3.7 487.9
735 591 * SGX 704cd +16 4177 705 694 704 705 1 3.8 25.8 7544.4
192 153 SI Fund 192 +4.5 6 192 188 191.5 194 - - - 256
1198 1005 * SIA 1059 +13 950 1059 1050 1055 1059 1.4 1.9 37.4 12706.6
1194 1005 SIA 200 1051 +3 4 1054 1051 1051 1057 0.7 13.3 11.5 -
429 334 * SIA Engg 419 +3 284 419 415 418 419 1.2 5 17.1 4615.9
189 160 SMRT 167 unch 591 168 166.5 166.5 167 1.1 4.5 21.1 2539
11.6 7.7 SP Corp 10.1 unch 79 10.1 9.6 9.3 11.1 - - 14.4 35.5
140.6 111.5 SPAusnet 131 unch 6 131.5 131 131 132 1 7.8 12.8 4354.2
412 361 * SPH 404 +3 3138 404 401 403 404 1 5.9 16.8 6448.7
349 261 * ST Engg 349 +4 2996 349 345 346 349 1.1 4.4 20.2 10728.2
58 31 STATSChP 36.5 +1 3619 37 35.5 36 36.5 - - - 803.8
182 79 STXOSV 164 -0.5 8411 167.5 163.5 164 164.5 - 11 5.5 1935.2
958 159.5 STXPO 100 426 +4 12 426 420 425 432 - 2.2 - 877
112 84.5 Sabana REIT 111 +0.5 2735 112 110.5 110.5 111 1 8.6 11.6 709.9
16.8 12.7 SaizenREIT 16.4 -0.2 3634 16.7 16.4 16.4 16.5 - 7.6 13.2 233.6
28 12.6 Sakae 27 - - - - 25 29 3.9 5.6 7 38.3
274 116 Sakari 187 unch 5375 187.5 187 187 187.5 1.6 7 8.5 2126.2
16.8 9.7 Samko 10.6 +0.1 50 10.6 10.5 10.5 12 - - 20 148.3
- - Samko 100 5.5 - - - - - - - - - -
16.8 13 Samudera 15.7 - - - - 15.5 15.9 9.6 1.9 5.4 84.6
64 25.5 San Teh 29.5 +0.5 274 29.5 29.5 29 29.5 0.9 106.8 1.1 102.5
24.5 11.1 Sapphire 12 unch 201 12 11.6 11.8 12 - - - 97.3
126 40 Sarin 101.5 +7.5 2626 102 95.5 101 101.5 2 4.1 15.1 345.5
3.9 2 Scintronix 2 unch 320 2.1 2 2 2.1 - - - 14.3
31 14.2 See Hup Seng 21 +1.7 2707 21 19.5 20.5 21 3.8 2.4 10.8 92.1
579 321 * SembCorp Ind 566 +16 3217 569 559 566 567 2.7 3 12.5 10127.4
546 305 * SembMar 508 +9 8556 513 505 507 508 1.4 4.9 14.1 10607
17 8.7 Serial Sys 10.5 -0.1 892 10.6 10.4 10.5 10.6 1.8 7.5 7 94.4
28.5 15.9 Seroja 18.4 unch 316 18.4 18.1 18.2 18.4 - - 17.7 71.8
9.6 4.6 ShangTurbo 7.1 -0.3 105 7.5 7.1 7.6 8.4 2.4 0.1 2.8 19.5
20 7.5 ShanghaiAsia 8 +0.4 80 8 7.5 8.1 8.9 - 12.5 2.8 70.6
1890 1350 ShangriLa Asia HK1400cd - - - - 1422 - - 1.4 21.3 43819
52.5 37 Sheng Siong 48 unch 1416 48 47.5 47.5 48 1.1 3.7 21.7 664.1
44 26.5 Silverlake 43.5cd +0.5 481 44 43 43.5 44 1.6 4.4 14.1 934.2
77 45 Sim Lian 76.5 +1.5 830 76.5 75 76 76.5 3.3 9.8 3 708.2
30.5 11 Sin Heng 21 unch 5879 21.5 20.5 21 21.5 2 2.6 10.3 96.5
29 21.5 SinGheeHuat 28cd unch 428 28 28 27.5 28 1.3 7.1 11.2 62.2
40 16.3 Sinarmas 29 +2 736 29 27 28.5 29 10.1 1 9.9 882.2
37 23.5 Sing Hldgs 36.5 +1.5 2982 37 35.5 36 36.5 5.5 2.7 6.6 146.4
166 139 Sing Inv & Fin 154.5 -0.5 30 155 154.5 154.5 155.5 3.2 4.5 6.9 162.4
109.5 92.5 SingPost 109 unch 4727 109.5 108.5 108.5 109 1.2 5.7 14.7 2106.2
362 300 * SingTel 333 unch 21260 336 330 333 334 1 4.7 13.3 53058.4
361 300 SingTel 10 331 -2 68 335 329 331 334 1.6 7.8 13.8 -
360 300 SingTel 100 329 -2 1 334 329 330 - 1.6 7.8 13.7 -
165 140 Singapura Fin 159cd +4 19 159 157.5 157.5 159 1.4 3.8 18.9 126.2
8 4 SinoConst 4.2 -0.3 20 4.2 4.2 4.1 4.2 - - - 28.8
50 32.5 SinoGrandnes 46 -0.5 661 46.5 46 46 46.5 13.7 - 3.9 122
- - SinoTechfib 9 susp - - - - - - - - 83.7
24 9.1 Sinobest 13.5 - - - - 13.5 17.3 - - 64.3 15
20 13 Sinopipe 13 susp - - - - - - - 3.1 33.2
22.5 10 Sinostar 13 +0.8 86 13 12.2 12.5 13 3.5 3.8 7.3 83.2
24.5 8.6 Sinotel Tech 10.3 +0.4 331 10.3 9.9 10 10.3 - - 3.7 43.6
16 9 Sinwa 12 - - - - 12.1 13.8 - - 7.3 40.1
12.4 5.3 Sky Petrol 9.2 +0.3 56 9.2 8.9 8.9 9.3 7.9 5.2 2.4 31.4
68 40.5 SoundGlobal 55.5 -1.5 7780 57 55.5 55.5 56 6.6 1.8 8.4 716
14.6 11.9 SoupRestn 12 +0.1 546 12 11.9 11.9 12 1.5 4.4 15.8 35.8
11 6.3 SouthernPkg 9.9 - - - - 8.6 10.3 6.4 3 5.4 27
23 15 Sp Ship 18.2 -0.1 18 18.3 18.2 18.2 18.7 1.7 5.5 10.3 79.4
20 12 SpWindsor 16.5 - - - - 13.9 15 - - - 20.2
35 19 Spindex 35cd +1 18 35 35 34.5 35.5 3.5 5.1 5.6 40.4
699 531 Spore Land 696 +10 185 699 689 694 698 4 2.9 13.4 2870.8
102 55 Sri Trang 61.5 +1.5 26 62 61 60 70 - - 14.4 787.2
60.5 46 Stamford Land 56.5 +1 1192 56.5 55.5 56 56.5 1.5 7.1 9.1 488.1
33.5 27 StamfordTyres 31.5 unch 240 31.5 30.5 31.5 32 2.8 4.8 7.6 73.9
388 272 * Star Hub 372 +3 1710 373 368 370 372 0.9 5.4 20.2 7201
7.5 1.9 StarPharm 2.8 - - - - 2.8 3.2 - - - 6.6
76 55 Starhill Gbl 74.5 unch 1256 75 74.5 74.5 75 1.1 5.5 18.1 1446.7
23.5 15 Straco 23.5 +1.5 64 23.5 21.5 22 23.5 2.6 3.2 12.3 204.2
348 281 Straits Trdg 303 +8 3 303 303 303 308 3.5 1.3 21.6 1079.9
1.9 0.8 Stratech 1.9 +0.1 3980 1.9 1.8 1.8 1.9 - - - 27.3
0.1 0.1 Stratech R 0.1 - - - - - - - - - -
- - Stratech R333 - - - - - - - - - - -
63.5 27 SunVic 32 +0.5 4390 32.5 31 31.5 32 - - 1.6 193.1
12.5 8.3 Sunmart 11.5 susp - - - - - - 3.4 6.5 46.2
0.5 0.1 Sunmoon 0.2 unch 1027 0.3 0.2 0.2 0.3 - - 20 15.8
14.8 9.1 Sunningdale 12.8 -0.4 2356 13.5 12.6 12.8 12.9 - - - 96.3
31 18 Sunpower 19.1 -0.2 53 19.7 19.1 19.1 19.6 19 1.6 3.4 62.8
2 0.4 Sunray 0.8 susp - - - - - - - - 2.7
17 8.6 Sunright 11.8 +0.3 10 11.8 11.8 12.5 12.8 25.1 1.7 2.4 14.5
14 8.1 Suntar Eco 9 -1 4 9 9 9 10 - - - 28.2
147.5 105 SuntecReit 146 +1.5 7025 146.5 144.5 145.5 146 - 6.8 14.7 3274.6
- - SuntecReit A - - - - - - - - - - -
16 6.1 Sup Pack 13.6 +0.1 597 13.6 13.5 13.5 13.6 1.6 1.1 27.8 50.5
228 129 SuperGroup 206 +4 291 207 203 205 206 1.9 2.8 18.6 1158.8
41 24.5 Superbowl 40.5 +1.5 1104 41 39 40.5 41 9.1 0.6 17.8 132.4
111 15.2 Surface MT 15.2 - - - - 14.6 18 - - - 2.7
30.5 25 Swee Hong 27 unch 7408 27.5 27 27 27.5 5 1.1 15.5 99.5
78.5 46.5 Swiber 63.5 +0.5 4665 64.5 63 63.5 64 - - 7.8 387
15.1 9 SwingMedia 9.5 -0.1 80 9.7 9.5 9.5 9.7 11.4 5.3 4.1 35.1
- - SwingMedia R - - - - - - - - - - -
15 10.5 Synear 14.8 +0.7 1188 14.8 13.9 14.7 14.8 - - 148 203.5
35 20 TA Corp 29 unch 2823 29.5 29 28.5 29 5 4.1 3.8 134.9
195 100 TCT 103 -1 294 103.5 102 102.5 103 - 4.9 1.9 264.6
172.5 112.5 TIH 171.5 +2 307 172.5 169.5 171.5 172 * 7 714.6 401.5
52 23 TPV 25cd - - - - 25.5 27 3.3 8 3.8 586.5
20.5 0.7 TT Intl 13.4 +0.1 9422 13.5 13.4 13.4 13.5 - - - 109.4
21 10.5 TTJ 19.1 -0.1 2 19.1 19.1 19.1 20 6.9 3.1 4.6 66.9
26 14.9 Tai Sin 24.5 unch 1341 25 24.5 24.5 25 2.1 6.1 5.5 102
133 64 Tat Hong 132 +2 3086 133 131.5 131.5 132 5.6 1.9 17.8 668.7
23.5 17.5 Tat Seng 19 -1 20 19 19 18.8 20 2.8 5.3 6.7 29.9
102.5 79.5 TechOil&Gas 96 +0.5 694 97.5 95.5 96 96.5 0.8 - 9.9 217.8
46 30 Techcomp 42.5 - - - - 42.5 43.5 4.5 2.4 9.1 98.8
33 25 Teckwah 31 +0.5 8 31 31 30.5 31.5 3.5 4.8 5.9 72.4
28 19 Tee Intl 24.5cd +0.5 978 24.5 24 24.5 25 2.2 9.6 4.5 90.9
25 20.5 TeleChoice 22.5 +1.5 30 22.5 22 22.5 23 - 7.1 15.5 107.3
2.8 0.4 Teledata 1 unch 485 1 1 1 1.1 - - 20 18.1
11.9 7 TexchemPack 9 +0.3 72 9 8.6 9 9.5 - - 9.9 12.5
38.5 24 Thai Beverage 34.5 +0.5 63897 35 34 34.5 35 0.9 6.2 17.5 8663
13 9.3 ThaiVillage 12.3 - - - - 11.8 12.4 1 6.5 15.2 25.8
5.1 2.3 Thakral 2.9 +0.1 1346 2.9 2.9 2.9 3 1.6 6.9 9.1 75.8
75.5 40 Tianjin Zhong US72 +0.5 80 72 72 71 72 - - 13.8 144
86 60 TigerAir 74 unch 3381 75 74 74 74.5 - - - 607.1
25 17.5 Tiong Seng 21 +0.5 269 21 21 20.5 21 3.5 4.8 5.9 160.9
34.5 17.1 TiongWoon 27 unch 1883 28 26 26.5 27 - 1.5 - 125.4
300 205 Total Access US279 - - - - 273 292 - - 17.7 6606.2
- - Transcu Grp 5 susp - - - - - - - - 140.6
35 27 Transit 27 -3 2 27 27 27 30 1.4 7.4 7.8 18.8
12 9 Transview 10.2 - - - - 10.2 11 2.8 2 17.9 18.3
20.5 14 Travelite 15 - - - - 14 15.5 - - 11.6 13.2
40 23.5 Trek 26 +2 90 26 25.5 24.5 26.5 0.6 2.9 38.2 79.1
24.5 16.1 Tsit Wing 18.5 - - - - 18.5 - 1 4.1 23.4 39.4
32 24 Tuan Sing 31 +0.5 7115 31.5 30.5 30.5 31 - 1 8.9 360
30 13 Tye Soon 22 +0.5 122 22 21 21 22 3 23.5 12.9 57.6
256 170 UE 244 +5 733 245 241 244 245 9.8 6.1 2.5 736.6
78 31 UE E&C 64 +1 1922 66 63.5 64 65 - 9.4 2.6 172.8
- - UE Pref 138 - - - - - - 1035.3 5.4 - 1.2
128 112 UI Securities 114 unch 170 114 114 113.5 114 0.4 4.4 47.7 235.6
280 242 UIC 275 +2 128 277 273 273 275 5.2 1.1 19 3789.8
53 25 UMS 41cd -0.5 332 41.5 41 41 41.5 1.3 7.3 5.1 168.2
2023 1442 * UOB 1970 +30 2247 1975 1957 1970 1971 - 3 13.8 31332.7
10805 10386 UOB 5.05%NCPS 100 10400 unch 5 10430 10400 10400 10425 - - - 1372.8
173.5 147 UOB-KayH 162 unch 468 163 161.5 161.5 162 2 4 12.8 1174
360 306 UOI 356 +1 8 356 356 356 360 2.2 4.2 10.8 217.7
562 380 UOL 560 +20 1588 562 542 560 561 5.8 2.7 6.5 4305.5
46 8.5 UPP 32.5 +0.5 3946 33 32 32.5 33 - 0.3 - 239.2
42.5 28.5 Uni Envtech 34.5 +0.5 967 34.5 34 34 34.5 7.3 0.9 15.8 164.5
28 11.8 Uni-Asia 16.8 +0.2 1594 17.2 16.7 16.7 16.9 - - 36.5 78.9
7.5 2.3 UniFiber 5 +0.2 16021 5.1 4.8 5 5.1 - - - 189.5
7.1 4.4 UniFood 4.6 -0.2 30 4.6 4.6 4.6 4.8 5 1.7 11.2 51.1
4.5 2.4 Unified Comm 3 - - - - 3 4 6 3.3 5 9.6
12.9 8 Union Steel 8.1 +0.1 37 8.1 8.1 8.1 8.3 3.8 3.1 8.5 31.9
3.9 2.6 Unionmet 3 unch 19 3 3 3.1 3.2 - - - 18.4
62.5 46 UtdOAus 50cd unch 168 50 50 49.5 50 - 5.3 4.1 475.7
15 6 VGO Corp 6.1 - - - - 6 6.9 - - 14.9 6.5
26.5 18.6 Valuetronics 19.8 +0.1 1514 21 19.8 19.8 20.5 2.1 13.9 3.4 71.1
890 597 Venture Corp 800 +6 271 804 796 799 800 1 6.9 14 2194.2
6.5 3 VibroPower 5.3 +0.9 40 5.3 4.9 4 5.3 0.4 3.8 75.7 18.3
500 323 Vicom 495 -1 9 496 495 495 496 1.6 3.6 17.2 436.6
7.4 3.2 Vicplas 6.5 - - - - 5.1 7.5 - - 21 29.3
75 24.5 Viz Branz 68.5 -1 637 69.5 68.5 68 68.5 1.4 1.5 14.4 247
360 275 WBL Corp 337 -11 28 346 336 340 343 3.4 3 9.8 910.5
31 25 Wee Hur 29.5 unch 2649 29.5 29 29 29.5 0.9 6.8 16.2 211
17 4.8 Weiye 5.7 +0.3 214 5.7 4.8 5.4 5.7 - - 5.1 111.8
196 147.5 Wheelock 185.5 +1 816 185.5 184.5 185 186 4.1 3.2 7.6 2219.6
15 10 Willas-Array 12.5 - - - - 11.8 13.8 1.5 10.4 6.4 46.6
605 299 * Wilmar 324 +24 57281 324 312 323 324 5.1 1.9 10 20744.8
167 91.5 Wing Tai 165 unch 1309 167 165 165 165.5 4.4 4.2 5.3 1310.1
61 36.5 World Precision 39.5 +0.5 62 40 39.5 39.5 40 3.3 6.8 4.3 158
21.5 12.8 XMH 18.5 +1 20 18.5 18.5 18.2 18.5 2.5 5.4 7.7 74
41.5 26.5 XinRen 28.5 +1 92 28.5 28 28 28.5 3.8 7 3.6 373.5
8.4 2.1 Xpress 3.8 +0.1 38979 3.9 3.7 3.8 3.9 11.3 0.8 11.2 58.8
37 25.5 YHI Intnl 30.5 +0.5 100 30.5 30 30 30.5 3.3 6.4 4.7 178.3
230 100 YHS 187 - - - - 187 195.5 - 0.5 26 1073.6
25.5 12.2 Yamada 13 +0.6 223 13 12.4 12.7 13 - - 1.9 53.4
142 77 Yangzijiang 101.5 +1.5 28384 102.5 101 101.5 102 3.9 5.4 4.8 3809.8
150 68.5 Yanlord 123.5 +2 9075 125.5 123.5 123.5 124 - - 7.9 2388.8
41.5 20 Ying Li 35 +0.5 22103 35.5 34 35 35.5 - - 13.3 755.5
51.8 5.3 Yoma 41.5 +0.5 16729 42 41 41.5 42 2.3 1.2 44.6 400.2
6 2.3 Yong Xin 3.3 - - - - 2.4 3.3 - - - 7
15 8.3 Yongmao 8.3 - - - - 8.3 12.3 - - - 36.8
26.5 22 Yongnam 24 +0.5 1921 24 23.5 23.5 24 5.1 4.2 4.7 302.8
4 1.7 Youyue 2.7 - - - - 2 2.9 - - - 6.4
36 20 Yuexiu Prop 26cd - - - - 21.5 - 7.9 5.5 2.3 3528.9
23 11 Z-Obee Hldgs 12 +0.3 1501 12 11.6 12 12.1 - - 11.8 76.3
24.5 20.5 Zagro 20 23.5 - - - - 22.5 23.5 - - - -
25.7 18.6 Zagro Asia 23.5 unch 3 23.5 23.5 23.5 24 3.8 4.3 7 80.3
18.4 7.2 Ziwo 8 -0.2 70 8 8 7.8 8 - - 1.8 23.9
Transaction date: Sep 14
52-wks Last Vol Day Last Quote Div GrYld Net M Cap
High Low Company Sale +/- (000) High Low Buyer Seller Cvr % P/E $mil
52-wks Last Vol Day Last Quote Div GrYld Net M Cap
High Low Company Sale +/- (000) High Low Buyer Seller Cvr % P/E $mil
THE BUSINESS TIMES WEEKEND SATURDAY/SUNDAY, SEPTEMBER 15-16, 2012 sgx 25
20.5 12.1 t 800 Super 18.3 unch 214 18.3 18.3 18.3 19.5 3.3 5.5 5.5 32.7
4 2.5 t AA Grp 3.1 - - - - 3 3.8 - - - 3
114 20 t APStrategic 22 - - - - 21 26 - - - 15.3
4.6 1.3 t Advanced System 1.9 unch 100 1.9 1.9 1.9 2 - - - 25.2
3.9 1.3 t Adventus 2.2 +0.1 1190 2.2 2.2 2.2 2.3 - - - 17.9
4.5 2.1 t Albedo 2.1 -0.1 300 2.2 2.1 2.1 2.8 - - - 2.9
4.3 1.2 t Annica 2.3 unch 8912 2.4 2.3 2.3 2.4 - - - 14.9
4.7 1.5 t Armarda 2.1 +0.1 10008 2.2 2 2.1 2.2 - - - 27.9
36.5 13.7 t Artivision 25 +3.5 33804 25 21.5 24.5 25 - - - 133.7
6.9 4.3 t Asia Water 5.9 unch 27 5.9 5.9 5 5.7 - - 8.9 298.3
11 2.1 t Asiamedic 8.5 +0.2 3441 8.5 8.4 8.4 8.5 - - - 28.5
4.6 0.5 t AsianMicro 1.7 +0.2 770 1.7 1.6 1.6 1.7 - - - 7.9
8.5 3.5 t Asiatic 7 - - - - 6.9 7.3 - - 53.8 20.7
36.5 24 t Asiatravel 31 +1 1005 31 31 29.5 31 - - - 78.7
39 12 t Atlantic 36 susp - - - - - - - - 4.5
9.6 2.6 t BrightOrient 4.5 -0.5 10 4.5 4.5 4.5 5 - - 19.6 5.6
10 1.8 t CCFH 6.7 -0.1 3960 7 6.7 6.7 6.8 - - - 49.3
21 7.7 t CCM Grp 9.6 - - - - 8.1 11.3 - - - 7
11 7.5 t CFM Hldgs 8.7 - - - - 8.1 10 0.7 8 17.4 9.4
2.5 0.4 t CGI Grp 1.8 - - - - 1.1 1.7 - - - 16.5
66.5 29 t CNMC 39.5 +5 7682 40 35.5 39 39.5 - - - 161
1.6 0.5 t CPH 1.1 -0.1 100 1.1 1.1 1.1 1.2 - - - 11.9
1.4 0.4 t CarrierNet 0.7 - - - - 0.6 0.7 - - 1.5 16.3
57 18.5 t ChasenHldg 22.5 +1 604 22.5 21.5 21.5 22.5 - - 7.3 55.5
39 20 t Chaswood 27 -2.5 112 29.5 27 27 29.5 - - - 61.2
24.5 20 t Chew's Gp 23 - - - - 22.5 24.5 5 1.4 14.4 19.4
1.4 0.6 t China YongS 0.8 -0.1 870 0.8 0.7 0.8 0.9 - - 3.2 13.3
0.8 0.2 t ChinaTitan 0.4 +0.1 400 0.4 0.4 0.4 0.5 - - - 17.7
12 7.5 t Colex Hldgs 10 - - - - 10 11 2.2 5 9.1 13.3
4 3 t CommDesign 3.5 - - - - 3.5 - - - - 3.2
2.1 1.1 t Craft Print 1.6 - - - - 1.4 2.1 - - - 2.7
39 17 t DutyFree 27.5 -0.5 138 29 27.5 27.5 28.5 1.6 - 11 305.4
5.7 2.9 t EMS Ener 3 unch 3684 3.1 2.9 3 3.1 - - 8.3 18
36 13.7 t ES Group 36 +18.5 1 36 36 15.7 31 14.1 0.6 12.8 50.8
1 0.2 t Elektromotive 0.3 +0.1 4225 0.3 0.2 0.2 0.3 - - - 12.6
58 30 t Epicentre 35.5 +1 6 35.5 34.5 35.5 38 0.3 1.7 33.8 33.2
3.2 1.2 t Equation 1.4 +0.1 30642 1.5 1.3 1.4 1.5 - - - 52
2.3 1 t EuNetworks 1.4 +0.1 1385 1.4 1.2 1.3 1.4 - - - 315.7
27 18.9 t Far East Grp 21 - - - - 21 23 0.9 **** 5.1 15.2
26 16.3 t Fuji Offset 20 - - - - 19.1 - 0.9 1.5 76.9 10
25 13.9 t FujianZY 15 +1 26 15.2 15 14.4 15.5 13.1 4.5 1.6 17.3
18.8 11.8 t GKE Corp 14.6 unch 10 14.6 14.6 14.2 14.6 0.4 2.1 132.7 67.7
3.5 1.8 t Giken Sakata 3.3 - - - - 2.7 3.8 - - - 4.3
0.8 0.1 t Goldtron 0.3 unch 18538 0.3 0.2 0.2 0.3 - - - 36.7
0.1 0.1 t Goldtron R 0.1 - - - - - 0.1 - - - -
28 20 t Goodland 26 +0.5 59 26 25 25 26 - 3.8 15.1 50
35 18.8 t HSR 500 22 - - - - 20 22 - - 44.9 21.7
27 19.5 t Hafary 24 - - - - 24.5 25.5 1.3 10.4 9.6 46.7
15 8.8 t Harry's 15 +1 33 15 15 11.6 15 - 1.5 60 14.3
16.4 8.1 t Hartawan 14.4 +0.2 312 14.6 14.4 14.4 14.5 - - - 116.9
10 7.5 t Healthway 8.3 unch 2465 8.4 8.3 8.3 8.4 - - 41.5 185
13.5 8 t Heatec 10.6 - - - - 8.6 10 - - - 12.8
48 20 t Hengyang 22 - - - - 20 21.5 - - 9.7 44.8
16 5.5 t Hiap Tong 10.5 - - - - 10.6 12 2.2 4.8 9.5 26
10.8 7 t Hosen 7.9 - - - - 7.5 8.2 2.9 1.9 18.4 28.2
14.8 4.6 t Hup Soon 10 unch 41 10 10 10 10.2 - - 9.3 36.9
105 26 t IEV 60 +4 13973 61 56.5 60 60.5 - 0.5 19 103.2
7 3.1 t ITE Elec 5 - - - - 4.5 5.2 - - - 6.9
1 0.4 t Infinio 0.5 unch 335 0.5 0.5 0.5 0.6 - - - 8.5
40.8 6.9 t Interra 35 unch 4043 35.5 35 35 35.5 - - 11 155.1
20 17.3 t Interra Res R 19.7 unch 2123 19.8 19.5 19.6 19.7 - - - -
19.8 17.1 t Interra Res R500 19.5 -0.1 45 19.8 19.5 19.5 19.8 - - - -
4.5 2.8 t Intl Press Softcm 3.5 +0.2 111 3.5 3.5 3.5 3.9 - - - 15.4
6.4 2.6 t JEP 3.6 -0.1 1353 3.6 3.5 3.6 3.7 - - - 33.4
36 6.6 t JK Tech 7.5 - - - - 7.5 8.5 - - - 5
34 21 t JapanFood 29 +1 10 29 29 28 33 3.3 3.6 9 33.5
14.5 8.6 t Jason Marine 12 +0.4 85 12 12 12 - - 1.7 9.2 12.7
16 7.5 t Jubilee 13.6 -0.4 1 13.6 13.6 13.1 13.6 - - 123.6 16.8
38 25.5 t Junma 27 +1.5 4 27 27 25 35 - - - 5
1.6 0.8 t KLW Hldgs 1.1 -0.1 3024 1.2 1 1 1.1 - - - 15.6
38.5 27 t Keong Hong 38.5 +0.5 20 38.5 38 38.5 39 4.2 3.6 6.5 61.6
19 9.1 t Kinergy 18.5 +0.1 432 18.5 18.5 18.3 19 5.6 5.4 3.3 23.9
34 20.5 t KitchenCulture 28 - - - - 23.5 28.5 - - 21.5 28
9.5 4 t Koyo 5.9 -0.3 371 6.1 5.8 5.8 6.2 1.5 10.2 6.7 11.3
41.5 24.5 t Kreuz 38.5 +2.5 14119 38.5 37 38 38.5 - - 5.6 214.4
18.5 11 t Lasseters 17 - - - - 15.6 16.8 - - - 43
26.5 17.5 t Latitude Tree 21 - - - - 20 21 17.4 1 6 50.3
1 0.2 t Lereno 0.6 - - - - 0.5 0.7 - - - 17.4
58.5 8.2 t Libra 8.8 - - - - 7.9 9.3 - - 15.4 8.8
4.8 2.8 t Linair 4 - - - - 3.7 5 - - 11.4 14
52 25.5 t LoyzEnergy 49.5 unch 119 49.5 48.5 49 49.5 - - - 210.5
3 1 t Magnus 1.8 unch 21800 1.9 1.8 1.8 1.9 - - - 36.9
25.5 19 t Malacca Trust 20 - - - - 21 23 2.3 2.7 10.8 69.4
14 9 t Mann Seng 10 - - - - 8 - - - 8.6 9
10 4.6 t Mary Chia 5.2 -0.3 47 5.2 4.6 5.5 7.4 - - - 8.5
50 35 t Maxi-Cash 44 +0.5 1191 44 43.5 43.5 44 - - 33.8 130.2
10.5 5.7 t Medi-Flex 9 - - - - 8.4 9.5 - 1.1 40.9 83.6
9.5 4.5 t Medtecs 5.5 +0.3 78 5.5 5 5.2 5.5 - - 10.6 23.9
28 17.2 t Megachem 24 - - - - 23.5 27 3.6 5.4 6.6 32
3.8 1.2 t Metal Comp 2.9 unch 6230 2.9 2.8 2.8 2.9 - - - 10.4
2.9 2.2 t Metal Comp R 2.4 - - - - - - - - - -
10 4.4 t MetaxEngg 6.8 - - - - 6 7 - - - 15.2
8.5 4.8 t Moya Asia 5.9 +0.4 270 5.9 5 5.5 5.9 - 2.5 9.5 37.9
4.4 3.1 t NH Ceramics 3.1 - - - - 3.1 4 - - 18.2 9.5
11.5 6.2 t NatCool 10.9 - - - - 10.2 11.2 - - - 22.4
49 27.5 t Neo Group 32 +2 238 32 30.5 31.5 32.5 - - 8.6 46.1
5.5 2.1 t Net Pac 3.5 unch 20 3.5 3.5 3.4 3.8 1 2.9 35 18.4
1.3 0.6 t New Wave 0.7 -0.2 212 0.9 0.7 0.7 0.9 - - - 10.2
- - t NewLakeside 2 susp - - - - - - - - 8
5.8 1.3 t Ntegrator 3.7 +0.5 68231 3.8 3.3 3.6 3.7 - - 74 19.6
8.5 4.1 t Oakwell Engg 4.8 +0.2 200 4.8 4.6 4.5 4.8 4.7 1 20.9 32.1
39.5 22.5 t OldChangK 37.5 +2.5 239 38 35 37.5 38 3.2 4 7.9 35.9
5 2.5 t Oniontech 2.5 -0.5 100 2.6 2.5 2.5 3.5 - - 20.8 4.2
10.6 6.5 t OrientGrp 10.3 unch 68 10.3 10.3 10.2 10.4 - - - 21.5
43.5 30 t Oxley 40 unch 100 40 40 39.5 40 2 1.2 35.1 595.6
8.1 2.3 t P99 Hldg 5.7 unch 362 5.7 5.7 5.7 5.8 - - - 53.6
4 2 t PNEMicron 2.8 - - - - 2.3 2.9 0.6 7.1 23.3 11.6
11 4.2 t Pan Asian 7.3 - - - - 7.6 9 - - 104.3 13.7
28 17.5 t Plato 19 - - - - 19.5 21 - - 13.1 31.4
6.9 4.3 t Pollux Prop Ltd 5.5 +0.8 1 5.5 5.5 4.7 5.5 - - - 34.2
17.1 11.4 t Progen 14.6 +0.1 299 14.6 14.2 14.5 15 - - 17.4 39.7
7.5 3 t RenewableEne 4.2 unch 188 4.2 4 4.1 4.2 - - - 30.2
0.1 0.1 t RenewableEne R 0.1 - - - - - - - - - -
0.1 0.1 t RenewableEne R250 0.1 - - - - - - - - - -
11 7.1 t Rokko 7.4 -0.1 180 7.4 7.1 7.3 7.5 8.5 3.4 3.5 12.2
29 13.8 t SBI Offsh 16 - - - - 16.1 17.4 1.4 1.3 55.2 19.5
18 8.8 t SG Medical 11.5 - - - - 10.5 11.6 - - - 16.8
14 9.1 t SHC Asia 11.2 - - - - 11.2 12 9.3 1.6 6.7 34
39 10.5 t Santak 38 unch 78 38 36 31.5 37.5 14.8 3.9 5.1 40
11.8 6 t ScorpioE 7.7 - - - - 7.5 9.3 - - - 9.6
26.5 11 t Select Grp 25cd +0.5 128 25 24 24 25 4.3 2 11.5 35.6
33 9.6 t Sincap 14 +1.7 24 14 11.6 13 - - - 29.8 24.6
2.5 0.7 t SingXpress 1.5 +0.1 810 1.5 1.5 1.4 1.5 - - - 73
11 4.2 t Sitra 9 - - - - 4.9 8.5 - - - 17.8
36.5 4.5 t Sky One 32 +1.5 16849 32 31 31.5 32 - - 16.3 100.1
15 10.3 t Smartflex 13.5 unch 1 13.5 13.5 11.5 15.5 2 4.8 6.4 11.1
9.8 3.2 t SoonLian 6 +1 10 6 6 5.1 9 - - 10.5 6.5
9 3.5 t St James 4.5 -0.2 55 4.5 4.4 4.2 4.5 - - - 14.5
38 9.4 t Starland 9.9 +0.1 15 9.9 9.9 8.9 10.2 - - 8 14.3
5.6 2.3 t SunlightGrp 3.3 - - - - 3 3.3 - - - 8.6
28.5 18.4 t Swissco Hldg 20 unch 223 20 20 20 20.5 6.3 1.5 10.5 90.5
35.5 24 t Sysma 25 - - - - 24.5 26.5 - - 3.6 23.8
7.2 5 t TMC Edu 6.8 +0.3 50 6.8 6.8 6.8 8 - - - 11.4
14 7.8 t TSH 8.3 - - - - 8.2 9.5 - - - 20
18.8 12.2 t Teho 18.8 - - - - 15.9 20 2.5 4.3 9.4 21.7
1.3 0.7 t TopGlobal 1 -0.1 2838 1.1 1 1 1.1 - - 6.7 112.2
32 23 t Tritech 26 unch 75 26 26 26 26.5 1.6 1.9 30.6 75.9
22.5 15 t TungLok 19.5 - - - - 18.5 27.5 - - - 27.3
6.6 2.6 t Vallianz Hldgs 3.9 +0.2 6506 3.9 3.7 3.8 3.9 - - 43.3 50.1
1.1 0.4 t Vashion 0.5 susp - - - - - - - 10 13.1
14.2 9.2 t Viking 11.4 unch 160 11.4 11.2 11.2 11.3 3.5 1.8 11.2 68.7
3.9 0.4 t WE Hldgs 1.5 +0.2 3579 1.5 1.4 1.5 1.6 - - - 7.7
13.5 9.1 t Westminster 11.5 - - - - 10.5 11.6 6.9 - 4.4 32.2
0.7 0.1 t YHM 0.3 unch 200 0.3 0.3 0.3 0.4 - - - 8.7
156 134 t ZhongminBH 155 unch 32 155.5 155 155 156 - - 93.9 304.3
securities trading scoreboard
MAIN CATL TOTAL
Up Down Unch Up Down Unch Up Down Unch
Multi Ind 14 1 2 0 0 0 14 1 2
Manufacturing 94 33 38 11 9 10 105 42 48
Commerce 37 14 18 6 1 3 43 15 21
Tpt/Stor/Comms 20 8 12 2 0 2 22 8 14
Finance 18 4 7 1 0 0 19 4 7
Construction 19 4 8 2 1 1 21 5 9
Properties 32 12 6 3 0 1 35 12 7
Hotels/Rsts 9 1 2 3 0 0 12 1 2
Services 53 11 17 14 6 8 67 17 25
Elect/Gas/Water 0 0 2 0 0 0 0 0 2
Agriculture 8 0 0 0 0 0 8 0 0
Mining/Quarry 0 0 1 2 1 2 2 1 3
BLW 99 31 5 4 1 2 103 32 7
REIT 10 0 2 0 0 0 10 0 2
TOTAL 413 119 120 48 19 29 461 138 149
GLOBALQUOTE 0 0 0 0 0 0 2 1 0
Active counters with no volume for today are not included.
BT SHARE INFORMATION SERVICE For week beginning Sep 10
SUBSTANTIAL SHAREHOLDER/DIRECTOR TRANSACTIONS
Substantial Buy No of Price SHAREHOLDING
Trans Shareholder/ Sell Shares Per Before After
Stock Date Director Conv '000 Shr $ ('000) % ('000) %
Substantial Buy No of Price SHAREHOLDING
Trans Shareholder/ Sell Shares Per Before After
Stock Date Director Conv '000 Shr $ ('000) % ('000) %
securities trading turnover
TURNOVER (000) VALUE (000)
MAIN CATL TOTAL MAIN CATL TOTAL
Multi Ind 27,358 - 27,358 81,389 - 81,389
Manufacturing 673,547 81,035 754,582 472,761 1,549 474,310
Commerce 288,404 12,102 300,506 312,084 472 312,557
Tpt/Stor/Comms 180,354 17,394 197,748 220,114 5,391 225,505
Finance 35,922 1,191 37,113 188,575 524 189,099
Construction 102,236 3,357 105,593 32,993 80 33,073
Properties 202,175 175 202,350 293,800 56 293,857
Hotels/Rsts 10,890 281 11,171 7,195 83 7,278
Services 273,351 177,477 450,828 139,130 25,713 164,844
Elect/Gas/Water 400 - 400 174 - 174
Agriculture 229,778 - 229,778 148,243 - 148,243
Mining/Quarry 5,375 13,918 19,293 10,058 4,833 14,891
BLW 238,286 25,016 263,302 22,569 50 22,620
REIT 45,732 - 45,732 68,072 - 68,072
TOTAL 2,313,808 331,946 2,645,754 1,997,157 38,751 2,035,912
GLOBALQUOTE - - 4,301 - - 1,746
Sing & foreign $ stocks. Value calculated using Monday's exchange rates.
SC Global 13-Sep-12 Chong Sae Peng Buy 4688 1.05 670 0.16 5358 1.29
Sakari Resources 13-Sep-12 PTT Mining , PTT Public Co *Buy 7975 na 514679 45.27 522654 45.97
Loyz Energy 13-Sep-12 Yip Chee Meng Sell 175 0.50 175 0.06 0 0.00
Raffles Education 13-Sep-12 Oei Hong Leong Buy 8688 na 41552 4.86 50240 5.88
Raffles Education 13-Sep-12 Oei Hong Leong *Buy 101 na 10974 1.28 11075 1.30
Raffles Education 12-Sep-12 Oei Hong Leong Buy 11552 0.33 30000 3.51 41552 4.86
Poh Tiong Choon 12-Sep-12 Poh Khim Hong *Sell 350 0.43 51779 24.08 51429 23.92
Poh Tiong Choon 12-Sep-12 Poh Choon Ann *Sell 350 0.43 51779 24.08 51429 23.92
Poh Tiong Choon 12-Sep-12 Poh Sin Choon Pte Ltd *Sell 350 na 3779 1.76 3429 1.59
Poh Tiong Choon 12-Sep-12 Poh Choon Ann Pte Ltd *Sell 350 na 3779 1.76 3429 1.59
San Teh 12-Sep-12 Gui Kim Young *Buy 220 0.30 780 0.23 1000 0.29
Perrenial China Trust 12-Sep-12 Pua Seck Guan *Buy 100 0.49 47387 4.21 47487 4.22
Perrenial China Trust 12-Sep-12 Kuok Khoon Hong *Buy 100 0.49 193589 17.20 193689 17.21
HLN Tech 12-Sep-12 Wa Kok Liang Buy 11 na 21419 14.25 21430 14.26
Tianjin Zhong Xin 12-Sep-12 Pure Heart Value Inv'ment Buy 90 na 18686 9.34 18776 9.39
Mencast Hldgs 11-Sep-12 Gay Chee Cheong Buy 200 0.55 14110 6.24 14310 6.33
Mencast Hldgs 11-Sep-12 Ni Wei Ming *Buy 200 na 20110 8.89 20310 8.99
Mencast Hldgs 11-Sep-12 Chua Siok Lan *Buy 200 na 14210 6.28 14410 6.38
San Teh 11-Sep-12 Gui Kim Young *Buy 50 0.30 730 0.21 780 0.23
Perrenial China Trust 11-Sep-12 Pua Seck Guan *Buy 610 0.48 46777 4.16 47387 4.21
Perrenial China Trust 11-Sep-12 Kuok Khoon Hong *Buy 610 0.48 192979 17.15 193589 17.20
8Telecom Int'l 11-Sep-12 Ye Tianyun Buy 35 0.13 12132 2.62 12167 2.63
Cogent Hldgs 11-Sep-12 Tan Yeow Khoon *Buy 256 0.11 8627 1.80 8883 1.86
Sri Trang Agro-Industry 11-Sep-12 Prasit Panidkul Sell 200 0.59 7816 0.61 7616 0.60
Pacific Healthcare Hldgs10-Sep-12 William Chong *Buy 100 0.10 48902 12.00 49002 12.01
Pacific Healthcare Hldgs10-Sep-12 Pacific Investments Buy 100 na 31080 7.62 31180 7.64
Perrenial China Trust 10-Sep-12 Pua Seck Guan *Buy 250 0.48 46527 4.14 46777 4.16
Perrenial China Trust 10-Sep-12 Kuok Khoon Hong *Buy 250 0.48 192729 17.13 192979 17.15
Contel Corp 10-Sep-12 Joanne Ng Sell 18884 na 32850 6.12 13966 2.60
Serial System 7-Sep-12 Goh Bak Heng Buy 3300 0.11 314421 35.11 317721 35.48
Wee Hur 7-Sep-12 Goh Yeo Hwa Buy 1010 0.28 0 0.00 1010 0.14
Cogent Hldgs 7-Sep-12 Tan Yeow Khoon *Buy 650 0.11 7977 1.67 8627 1.80
Perrenial China Trust 7-Sep-12 Pua Seck Guan *Buy 700 0.48 45827 4.07 46527 4.14
Perrenial China Trust 7-Sep-12 Kuok Khoon Hong *Buy 700 0.48 192029 17.07 192729 17.13
Oxley Holdings 7-Sep-12 Ching Chiat Kwong Buy 96 0.38 174408 11.71 174504 11.72
Luye Pharma Group 7-Sep-12 Liu Dian Bo *Buy 11700 1.30 456428 92.63 468128 95.00
Luye Pharma Group 7-Sep-12 AsiaPharm Holdings *Buy 11700 1.30 456428 92.63 468128 95.00
Luye Pharma Group 7-Sep-12 Luye Pharma Hldgs Ltd *Buy 11700 na 456428 92.63 468128 95.00
Luye Pharma Group 7-Sep-12 Luye Pharma Int'l Co Ltd *Buy 11700 na 456428 92.63 468128 95.00
Luye Pharma Group 7-Sep-12 Luye Pharma Investment Co Buy 11700 na 456428 92.63 468128 95.00
8Telecom Int'l 7-Sep-12 Ye Tianyun Buy 56 0.13 12076 2.61 12132 2.62
Giken Sakata 7-Sep-12 Tan Kay Guan Buy 200 0.03 330 0.25 530 0.40
Pacific Healthcare Hldgs7-Sep-12 William Chong *Buy 100 0.10 48732 11.94 48902 11.99
Pacific Healthcare Hldgs7-Sep-12 Pacific Investments Buy 170 na 30910 7.58 31080 7.62
Perrenial China Trust 6-Sep-12 Pua Seck Guan *Buy 700 0.48 45127 4.01 45827 4.07
Perrenial China Trust 6-Sep-12 Kuok Khoon Hong *Buy 700 0.48 191329 17.00 192029 17.07
Oxley Holdings 6-Sep-12 Low See Ching Buy 300 0.38 110085 7.39 110385 7.41
8Telecom Int'l 6-Sep-12 Ye Tianyun Buy 105 0.14 11971 2.59 12076 2.61
Hanwell Hldgs 6-Sep-12 Goi Seng Hui Buy 1532 na 77393 13.92 78925 14.20
Jaya Hldgs 6-Sep-12 Orchard Cap Partners (HK) *Buy 5603 na 120203 15.58 125806 16.30
Sakari Resources 6-Sep-12 "PTT Mining , PTT Public Co" Buy 78095 na 125562 11.04 203657 19.91
Jaya Hldgs 6-Sep-12 "Octavian Advisors, LP" Buy 5422 na 38860 5.05 33438 4.34
Perrenial China Trust 6-Sep-12 Pua Seck Guan *Buy 700 0.48 45127 4.01 45827 40.73
Perrenial China Trust 6-Sep-12 Kuok Khoon Hong *Buy 700 0.48 191329 17.00 192029 17.07
* Deemed Interest; IP: Investment Purposes ; SA: Share Allotment; ST: Share Transfer; B/R: Bonus/Rights Issues ;
OE: Option Exercise ; PL: Placement Shares Compiled by BT
STOCK PRICES LEGEND:
* Straits Times Index Stocks; s Catalist Non Sponsored; t Catalist; N Net or Tax-exempted
dividend; ct Conditional Trdg; xd ex-dividend cd cum dividend; cri cum right issue cbi cum
bonus issue;
xri ex-right issue; xbi ex-bonus issue xall ex-all; cdxa cum dividend ex-all co cum offer cdca
cum dividend cum all ce cum entitlement
NOTES: All shares quoted are traded in lots of 1,000 shares each unless otherwise specified;
Currency traded S$ unless otherwise specified
P/E ratio Reflects last consolidated annual results and adjustments due to subsequent capital
changes. P/Es of foreign counters are adjusted for currency changes.
Div Cov is EPS/Div per share.
Gr Yld % is Gr Div Per Share/share price.
Net P/E is Share Price/EPS.
SGX CATALIST
52-wks Last Vol Day Last Quote Div GrYld Net M Cap
High Low Company Sale +/- (000) High Low Buyer Seller Cvr % P/E $mil
52-wks Last Vol Day Last Quote Div GrYld Net M Cap
High Low Company Sale +/- (000) High Low Buyer Seller Cvr % P/E $mil
26 sgx THE BUSINESS TIMES WEEKEND SATURDAY/SUNDAY, SEPTEMBER 15-16, 2012
chicago bot Sep 13
SOYBEANS (5,000 bu min; USc/60 lb bushels)
Close Previous High/Low
Sep 12 1743.501740.751744.251731.00
Nov 12 1747.251745.751750.001732.75
Jan 13 1748.001744.501750.001732.25
Mar 13 1705.001693.751706.001681.25
SOYBEAN/OIL (60,000 lbs; USc/lb)
Close Previous High/Low
Sep 12 56.46 55.91 56.30 55.90
Oct 12 56.60 56.07 56.69 55.92
Dec 12 57.01 56.48 57.10 56.32
Jan 13 57.23 56.71 57.31 56.57
WHEAT (5,000 bu min; USc/60 lb bushels)
Close Previous High/Low
Sep 12 879.00 867.00 876.25 870.25
Dec 12 902.00 890.00 905.00 885.75
Mar 13 914.75 902.75 917.25 898.50
May 13 911.25 900.25 913.50 896.50
Source: Bloomberg
morgan stanley capital intl indices
In local curr In S$ In US$
% dy % yr % dy % yr % dy % yr
Sep 13 Index Change Change Change Change Change Change
World Preliminary 919.2 0.1 10.8 0.2 5.8 0.1 11.5
EAFE Preliminary 731.9 0.0 7.3 0.2 2.9 0.1 8.4
Europe Preliminary 1115.1 -0.1 8.6 0.1 4.4 0.0 10.0
Pacific 533.6 0.1 5.3 0.5 0.3 0.4 5.7
Far East 575.2 0.3 4.6 0.8 -0.9 0.7 4.4
EM Far East 533.7 0.0 5.5 0.0 1.2 -0.1 6.7
Australia 882.5 -0.5 7.3 -0.4 3.8 -0.5 9.3
Austria Preliminary 409.2 -0.9 6.9 -0.7 0.9 -0.7 6.3
Belgium Preliminary 738.0 -0.3 29.2 -0.1 21.9 -0.1 28.5
Canada Preliminary 1537.5 0.1 2.5 0.2 1.5 0.2 7.0
Denmark Preliminary 4357.9 -0.9 24.9 -0.6 17.5 -0.7 23.9
* Finland Preliminary 381.6 0.0 1.4 0.2 -4.3 0.1 0.8
France Preliminary 1222.8 -1.1 11.5 -0.9 5.2 -0.9 10.8
Germany Preliminary 673.5 -0.5 19.6 -0.2 12.8 -0.3 18.9
Greece Preliminary 146.4 -4.1 -13.8 -3.9 -18.7 -3.9 -14.3
Hong Kong 11343. 0.0 13.9 0.1 8.3 0.0 14.1
India 697.9 0.0 16.8 -0.3 6.2 -0.4 11.9
Indonesia 5000.0 -0.2 5.0 -0.3 -5.6 -0.3 -0.6
Ireland Preliminary 121.1 0.4 1.3 0.6 -4.4 0.5 0.7
Israel Preliminary 248.5 -0.8 -1.8 -1.0 -9.9 -1.1 -5.1
Italy Preliminary 602.6 -0.9 7.7 -0.7 1.6 -0.8 7.0
Japan 457.2 0.3 2.5 0.9 -3.4 0.9 1.8
Korea 562.6 -0.1 8.3 -0.2 4.9 -0.2 10.6
* Malaysia 579.2 1.1 3.5 0.9 1.1 0.8 6.5
Netherlands Preliminary 889.8 -0.5 10.9 -0.3 4.7 -0.4 10.3
* New Zealand 94.2 -0.2 11.0 0.6 11.2 0.5 17.2
Norway Preliminary 2370.5 0.3 9.8 0.1 7.8 0.0 13.6
Pakistan 355.9 0.2 25.5 0.2 13.2 0.1 19.3
* Philippines 854.5 0.5 19.4 0.2 19.0 0.1 25.4
Portugal Preliminary 103.5 -0.4 -5.5 -0.2 -10.8 -0.3 -6.0
Singapore 1627.8 0.1 15.9 0.1 15.8 0.0 22.0
Singapore Free 350.0 0.1 15.9 0.1 15.8 0.0 22.0
Spain Preliminary 712.1 -0.9 -6.7 -0.7 -12.0 -0.8 -7.3
Sweden Preliminary 8197.6 0.0 9.3 -0.6 7.4 -0.7 13.2
Switzerland Preliminary 849.9 0.3 9.6 0.3 3.6 0.2 9.1
* Taiwan 269.4 0.1 6.0 0.1 2.6 0.0 8.1
* Thailand 476.3 -0.2 17.1 -0.4 13.1 -0.5 19.2
UK Preliminary 1724.1 0.6 4.5 0.8 2.9 0.8 8.4
USA Preliminary 1372.8 0.1 14.4 0.2 8.6 0.1 14.4
Copyright 1991 Morgan Stanley Capital International
GOVERNMENT SECURITIES Sep 14
TREASURY BILLS
Period Issue Maturity Yesterday's Day's
code Bid High Low
3-Month BQ12136S 13-Dec-12 0.26 - -
6-Month BS12104T 07-Mar-13 0.26 - -
1-Year BY12100T 02-May-13 0.26 - -
GOVERNMENT BONDS
Period Issue Coupon Maturity Close Day's
code rate (%) Bid High Low
2-Year N212100H 0.25 01-Feb-14 99.99 100.04 100.04
5-Year N710100Z 2.375 01-Apr-17 108.71 108.85 108.80
10-Year NY07100X 3.125 01-Sep-22 114.83 115.60 114.75
15-Year NZ07100S 3.500 01-Mar-27 117.84 118.90 117.75
20-Year NZ10100F 2.875 01-Sep-30 109.48 111.25 109.15
30-Year NA12100N 2.750 01-Apr-42 104.22 104.60 104.50
Note: Based on latest issue Source: Monetary Authority of Singapore
oil Sep 13
CRUDE
US$/barrel (FOB origin) Close Change
Brent blend (1-Mth F) 115.86 0.34
WTI (Near Mth) 97.91 1.08
Dubai (1-Mth F) 112.92 -0.17
Tapis blend 118.92 -0.19
Minas 115.07 -0.19
PRODUCT
US$/barrel (FOB S'pore) Close Change
Naphtha 108.44 -2.06
Jet Kerosene 135.24 -0.24
US$/barrel
OpecOil Basket Price 113.36 unch
US$/tonne
Naphtha (CFR Japan) 996.00 -18.50
Gas Oil EEC (CIF 1009.00 -2.50
cargoes NWE)
Source: Thomson Reuters
metals Sep 14
GOLD (US$/oz) Sep 13 Sep 14
Hong Kong 1736.001777.00
- -
Sep 12 Sep 13
London 1730.711733.11
1731.481733.88
Source: Thomson Reuters
SILVER Selling Buying
Passbook 1 oz 42.63 41.98
Source: UOB
PLATINUM / Lon (US$/oz) Sep 13
Close Previous
PM Fix 1659.001644.00
AM Fix 1647.001636.00
Source: LPPM
PLATINUM / NYMEX (US$/oz) Sep 13
Last Prev High/Low
Sep12 1678.5 1648.6 -/-
Oct12 1679.5 1649.6 1691.4/1639.0
Source: Bloomberg
palm oil Sep 14
KLCE PALM FUTURES (RM/MT)
Delivery Opening Sett Av Vol Open
Month Range Price Price High Low Done Position
Sep 12 - - 2794.0 - - - - 924
Oct 12 2869.0 - 2855.0 - 2876.0 2842.0 779 5852
Nov 12 2937.0 - 2912.0 - 2945.0 2905.0 14938 47573
Dec 12 2980.0 - 2955.0 - 2993.0 2952.0 10007 40747
Source: Bursa Malaysia
liffe Sep 13
COCOA (/tonne)
Close Prev High/Low
Sep 12 1677 1675 1686/1675
Dec 12 1688 1391 1712/1680
Mar 13 1671 1680 1697/1666
May 13 1676 1686 1702/1671
COFFEE (US$/tonne)
Close Prev High/Low
Sep 12 2059 2050 2080/2070
Nov 12 2082 2073 2091/2066
Jan 13 2095 2088 2101/2081
Mar 13 2107 2102 2112/2097
SUGAR (US tonne)
White Close Prev High/Low
Oct 12 569.2 557.9 571.2/559.1
Dec 12 562.9 561.1 565.9/560.2
Mar 13 558.9 557.3 561.7/555.6
May 13 561.9 560.2 564.2/559.1
Source: Bloomberg
foreign currency
note rates Sep 14
Singapore dollars to one unit of
foreign currency:
Currencies Sell Buy
Aust dollar 1.320 1.258
Can dollar 1.294 1.233
Euro 1.628 1.551
Sterling pound 2.016 1.939
NZ dollar 1.047 0.998
US dollar 1.242 1.195
Local dollars to 100 units of
foreign currency:
Currencies Sell Buy
Chi renminbi 20.099 18.962
Danish kroner 22.290 20.264
HK dollar 16.168 15.399
Indian rupee 2.354 2.121
Japanese yen 1.606 1.545
Malaysian ringgit 40.801 39.232
Nor kroner 22.400 20.364
Philippines peso 3.156 2.844
Saudi riyal 33.896 31.679
Swedish krona 19.439 17.672
Swiss franc 133.452 128.320
Thai baht 4.114 3.845
N Taiwan dollar 4.375 4.051
Indonesian rupiah 0.014 0.012
Korean won 0.115 0.105
Source: United Overseas Bank Limited Co.
STOCK MARKETS
interbank currency rates Sep 14
Against S$ Against US$
Currencies Bid Offer Bid Offer
S$/US$ to one unit of foreign currency:
Australian dollar 1.2920 1.2928 1.0577 1.0582
Canadian dollar 1.2649 1.2657 1.0361 1.0355
Euro 1.5912 1.5919 1.3027 1.3030
NZ dollar 1.0191 1.0195 0.8343 0.8345
Sterling pound 1.9781 1.9787 1.6194 1.6196
US dollar 1.2215 1.2217 - -
S$/US$ to 100 units of foreign currency:
Chinese renminbi 19.3303 19.3365 15.8250 15.8275
Danish krone 21.3422 21.3569 17.4721 17.4813
Hongkong dollar 15.75 15.76 12.8971 12.8992
Indian Rupee 2.23 2.23 1.8278 1.8282
Indonesia rupiah 0.0128 0.0129 0.0105 0.0105
Japanese yen 1.5723 1.5731 1.2872 1.2877
Korean won 0.1093 0.1094 0.0895 0.0895
Malaysian ringgit 40.08 40.12 32.8084 32.8407
New Taiwan dollar 4.1532 4.1553 3.4001 3.4012
Norwegian krone 21.4223 21.4318 17.5377 17.5426
Philippine peso 2.9483 2.9510 2.4137 2.4155
Saudi riyal 32.5707 32.5787 26.6645 26.6667
Swedish krona 18.5486 18.5708 15.1851 15.2008
Swiss franc 130.8236 130.9011 107.1008 107.1467
Thai Baht 3.9646 3.9743 3.2457 3.2531
Source: OCBC
london metals Sep 13
Aluminium, 99.7%
purity (US$/tonne) Close Previous
Cash 2101.25 2082.00
3 months 2102.00 2086.00
Copper, Grade A (US$/tonne)
Cash 8059.25 8080.25
3 months 8075.00 8396.00
Lead (US$/tonne)
Cash 2146.50 2110.50
3 months 2157.50 2125.00
Nickel (US$/tonne)
Cash 16703.00 16601.00
3 months 16750.00 16650.00
Tin (US$/tonne)
Cash 20380.00 20815.00
3 months 20350.00 20795.00
Zinc, Special High Grade (US$/tonne)
Cash 2004.50 1987.00
3 months 2036.00 2018.00
Source: Bloomberg
Dow Jones Industrial Average
Source: Bloomberg
YTD change: +10.82%
52-week high: 13,573.33 on Sept 13, 2012
52-week low: 10,404.49 on Oct 4, 2011
(Chart shows Thursdays index closing)
13,500
12,500
11,500
10,500
Oct Dec Feb Apr June Aug
13,539.86
(+206.51)
PE: 13.44
Hang Seng Index
Source: Bloomberg
YTD change: +11.91%
52-week high: 21,760.34 on Feb 20, 2012
52-week low: 16,170.35 on Oct 4, 2011
22,000
20,000
18,000
16,000
Oct Dec Feb Apr June Aug
20,629.78
(+582.15)
PE: 10.15
Nikkei 225
Source: Bloomberg
YTD change: +8.33%
52-week high: 10,255.15 on Mar 27, 2012
52-week low: 8,135.79 on Nov 25, 2011
10,000
9,500
9,000
8,500
8,000
Oct Dec Feb Apr June Aug
9,159.39
(+164.24)
PE: 22.19
Shanghai Stock Exchange Composite
Source: Bloomberg
YTD change: -3.44%
52-week high: 2,536.78 on Nov 4, 2011
52-week low: 2,029.05 on Sept 5, 2012
2,500
2,400
2,300
2,200
2,100
Oct Dec Feb Apr June Aug
2,123.847
(+13.47)
PE: 11.53
For membership please contact: Ivan Han, HP +65 9009 0640 | [email protected]
SMX MARKET UPDATE
As on 13 September 2012
www.smx.com.sg
PRECIOUS METAL
INDIA GOLD (E-GOLD) FUT OCT2012 588.75 572.60 588.50 708
GOLD FUT DEC2012 1744.50 1723.70 1772.20 39

CURRENCY
EUR-USD FUT SEP2012 1.2930 1.2886 1.2992 761

BASE METAL
COPPER FUT DEC2012 8149 8097 8180 21

INDEX
IRON ORE (MBIO) IDX FUT SEP2012 96.00 96.00 99.10 20
IRON ORE (MBIO) IDX FUT OCT2012 97.00 97.00 102.80 10

AGRICULTURE
BLACK PEPPER FUT SEP2012 6500 6500 6500 4
BLACK PEPPER FUT OCT2012 6550 6550 6550 4
PRODUCT CONTRACT HIGH LOW CLOSE VOL (in Lots)
THE SMX BOOT CAMP
Training is conducted on Fridays - 4pm to 6pm.
To REGISTER please visit SMX website: www.smx.com.sg
Straits Times Index
Source: Bloomberg
YTD change: +16.02%
52-week high: 3,088.45 on Aug 14, 2012
52-week low: 2,521.95 on Oct 5, 2011
3,100
2,900
2,700
2,500
Oct Dec Feb Apr June Aug
3,070.42
(+40.28)
PE: 12.33
THE BUSINESS TIMES WEEKEND SATURDAY/SUNDAY, SEPTEMBER 15-16, 2012 sgx 27
W
ITH the smartphone
and tablet revolution,
retailers more than ev-
er, are preparing them-
selves to cater to the
changing demands of
consumers. These cus-
tomers are beginning
to use on-the-go devices for their purchases, blurring the
lines between online and offline retailing.
With companies coming up with mobile transaction
platforms that sidestep the existing banker-merchant re-
lationship, banks are under increased pressure to ensure
that they are not left behind in the mobile revolution.
Safety first
Increasing adoption of mobile devices and emerging mo-
bile payment options also indicate the need to protect fi-
nancial information, which could pose a challenge to the
growth of this market. Not forgetting other complexities
in the mobile payments ecosystem space such as com-
mercialisation, scalability and security.
Retailers are typically hesitant to adopt mobile pay-
ments due to concerns on security and the possibility of
hackers remotely accessing mobile phones and tablets.
Therefore, ease and security that exceeds traditional
modes of payment processing would constitute a strong-
er impetus for retailers.
To do so, high standards for proper payment authenti-
cation and identification technologies need to be imple-
mented to enable full traceability and deter fraud. An ex-
ample would be Swiffs mobile platform, which is embed-
ded with a Multi-Factor Authentication application that
has the ability to track the mobile device, the staff who
authorised the transactions, and identify the location
where the payment was transacted.
This enables the quick identification of any possible
fraudulent use of the credit card, and promises an ex-
tremely high level of security for safe and secure card
transactions.
Collaboration is better
Banks need to leverage their standing in retail banking:
providing relevant products and services and making use
of existing technologies, to enhance its footing in the pay-
ment ecosystem.
Collaboration is the key to bringing about the value of
mobile payments to offer a seamless approach to incor-
porate technology to synchronise existing banking and re-
tail systems. Mobile payments can be delivered through
the cooperation between service providers in the pay-
ment industry, and also industries within the mobile eco-
system.
This form of partnership already exists with frontrun-
ner companies, Capgemini and 4G Secure. Capgemini,
with its global expertise in technology consulting, offers a
strong proposition on the implementation of effective
mobile strategies.
Together with 4GSecure, an innovative player special-
ised in the development of fully patented authenticated
systems and mobile security solutions; banks, telcos and
retailers will be equipped with a framework of secure sys-
tems for mobile payments, thereby increasing their level
of control access to ensure high standards of security for
all mobile transactions made.
Everyone in the mobile payments space has a unique
role to play. Swiff is focused on being a payment enabler,
partnering financial institutions, rather than competing
for merchants.
By partnering banks in this manner, retailers and con-
sumers can associate their mobile POS transaction with a
familiar bank, rather than a new brand that customers
are not familiar with. This will greatly overcome inertia
by consumers when a card is being swiped on someone
elses mobile phone or tablet.
Offering true value
In an increasingly uncertain economic climate, banks
that offer innovative and all-encompassing payments so-
lution to automate retailers and consumers respective ex-
perience in payments will stay ahead.
To do so, banks can progress beyond moving money
to providing loyalty programmes and business analytics,
and work with retailers to enhance the consumers experi-
ence through smart transactions in spending, saving and
even investments through a range of features.
These can include services like digital loyalty and mo-
bile voucher platforms. This will translate to increased
business revenue and even stronger customer loyalty,
opening banks and retailers to a whole newworld of pos-
sibilities.
New business ventures
Mobile payments also open up valuable opportunities
for the millions of unbanked small and micro businesses
around the world. Less developed countries such as Sri
Lanka and Africa can now accept mobile payments in-
stead of cash, which instantly transforms the business re-
turns and the reach for customers.
Through the creation of a new form of mobile bank-
ing and transaction ecosystem, retailers that were previ-
ously unbanked can now tap on the infrastructures pro-
vided by banks and make use of payment platforms to
carry out payment transactions at a low cost.
To embrace the future of payments, the time is now
for banks to invest in technology and be that game
changer by delivering value and building relevant ser-
vices to transform the mobile payments landscape.
The writer is SCCP Payment Services Holdings
Chief Technology Officer
By Antonio L Rappa
B
USINESS is all about timing.
Once I missed an online
post for a golf flight. I was
told that each player who
made it ended up earning a
cool million a piece from their newly
formed company. And their idea? Well
thats their trade secret, no doubt openly
discussed at a local golf course.
My reason? I had to take care of my
sons. Perhaps I should have Facebooked
the golf game players for the next flight?
Yet the bull run in online business deals al-
so brings certain dangers.
One is identity theft. Another is people
stealing your friends identities for nefari-
ous purposes. Anything you put on the
Web, anything you send on e-mail you
can expect to be used for unintended pur-
poses. E-mail ethics and blogging courte-
sy? Hogwash. Neoliberal capitalists are
out there to make money: in any way or
form.
Social networks and blogs also provide
clear channels for articulating business in-
terests. Is there a sense of business ethics
in cyberspace that goes beyond the legal
framework of states?
Trust your own instincts when it
comes to business to business dealings.
Dont leave everything to your personal as-
sistant. Do not underestimate the power
and time that Web hackers devote to trick-
ing you to reveal your personal informa-
tion.
On one hand the Internet promotes
good business contacts and effective busi-
ness deals. On the other hand the neoliber-
al capitalist motif you pay for what you
use may result in throwing good money
after bad: You end up paying for what you
dont deserve.
More than making the World Wide
Web a business haven, neoliberalism
makes a potentially ideal business space
unfair, uneven and costly. Social network-
ing makes good business sense if it works;
but it doesnt work all the time.
Social networking is about distancing
the self, the body, and our money fromre-
alism without disconnecting from it alto-
gether. A social networking account al-
lows for us to remain in contact without
having to actually be physically in touch
with friends and strangers. Social net-
works as business networks have generat-
ed a whole new language and a dazzling
array of applications from B2B opportuni-
ties, online banking, education, cybersecu-
rity, games and musical entertainment.
By connecting virtually without real
connections, we unleash a creative side of
us at least we think for public display
and criticism. The rules and regulations
that permit and prohibit social acts on the
Web allow social networkers to pass
through and fromvirtual gateways that ex-
tend the body and the spirit of creative ex-
pression in ways that are inane, weird,
wired, and fantabulous.
Nothing on these social websites
makes for permanence except change and
modulation. These are business times
that we need to take proper care and exer-
cise good judgement to facilitate control
over finances. If you are a gambler, watch
out for online casino hoaxes. If you play
golf, keep off the online ruff and stay on
the green.
There are three dos and three donts
when joining social networks incybersecu-
rity terms.
Dos
1. Plan the desired outcomes.
2. Do choose the security settings careful-
ly.
3. Never give out personal information
that can be compromised.
What about the donts?
Donts
1. Think before you commit your credit
card numbers.
2. Dont give out your personal contacts
for small benefits or inducements.
3. Dont recommend pay sites to friends
unless you have used them yourself.
Sometimes, the old fashioned phone
call filters the business bad guys from the
good. In the bull run for better business
deals, make sure that your cents count to-
wards the dollars. And to think that I
could have been a million bucks richer, or
poorer.
Antonio L Rappa, PhD, is head of
Management and Security Studies at
the SIM Universitys School of
Business. He is a specialist on Thai
politics and business and teaches
Home Team agency officers at UniSIM.
He is a consultant in Security Studies
and Business Intelligence
To embrace the future of mobile payments, the time is
now for banks to invest in technology and be that game changer.
By Etienne Van den Bogaert
Danger lurks in
social networking
Weathering the
digital storm
STOCK.XCHNG
STOCK.XCHNG
Banks need to
leverage their
standing in
retail banking:
providing
relevant
products and
services and
making use of
existing
technologies,
to enhance its
footing in the
payment
ecosystem.
MOBILE HOTSPOT
Complexities in the mobile
payments ecosystem
space include
commercialisation,
scalability and security
28 perspective THE BUSINESS TIMES WEEKEND SATURDAY/SUNDAY, SEPTEMBER 15-16, 2012 THE BUSINESS TIMES WEEKEND SATURDAY/SUNDAY, SEPTEMBER 15-16, 2012 perspective 29
S
TRUCTURED notes be-
came dirty words in
2008 when Lehman
Brothers collapse ren-
dered more than $500
million worth of retail
notes worthless.
But just when you
thought you had seen the last of such
notes, Societe Generale has launched a
structured note for the retail market. The
note called SGD Equity Magnifier Notes
is the first of a planned $2 billion pro-
gramme.
In line with the guidelines for unlisted
investment instruments, prospective in-
vestors will receive a fairly weighty pack -
a 425-page base prospectus, a pricing
statement and a product highlight sheet
(PHS). The latter is similar to those re-
quired for unit trusts.
Julien Lascar, SG Global Markets direc-
tor (cross-asset solutions), believes the
product is the first to be registered in com-
pliance with new requirements. In the
wake of the 2008 financial crisis and the
outcry against structured products linked
to Lehman, there has been a slew of rules
that have come into force, including those
governing disclosure and fair dealing.
There has been a new regulatory
framework, basically a newbasis for doing
business. SG has been working with local
partners; the base prospectus was regis-
tered two months ago... The new frame-
work is definitely very protective of inves-
tors, he says.
The note is positioned as a yield en-
hancing instrument, tapping into the
hunger among investors for higher yields.
While deposits suffer negative real yields
after inflation, most investors are still re-
luctant to take on equity risk.
Says Mr Lascar: There is a pattern in
Asia of low interest rates. Whether in
Hong Kong, Taiwan or Singapore, we are
more or less in the same environment. A
lot of what we try to do is to provide yield
enhancement. We believe in the story of
yield enhancement with a simple solu-
tion, which shouldn't be just available to
the institutional client.
He adds: We hope to continue to regis-
ter products. We see great demand for re-
tail publicly offered products throughout
Asia. We dont have a minimum (required
asset size) for this (first series of notes) as
we dont intend to do just one (series). We
know its a work-in-progress. We expect a
good reception.
So what exactly does this note offer
and how does it differ from structured
products pre-crisis?
First off, the Equity Magnifier Note has
a term of nearly four years to be exact,
three years, 11 months and five business
days. It is designed to pay an interest rate
at four intervals the first is 2 per cent,
about one year from inception in October
2013. The next three payouts will be be-
tween 2014 and 2016, and will be linked to
the performance of a basket of stocks.
The basket comprises familiar blue
chip names Keppel Corp, OCBC, Semb-
Corp Marine, Singtel and Singapore Press
Holdings. An interest rate of between 20
and 30 basis points accrues if any stock
goes up by five per cent on a specific valua-
tion date compared with its initial price.
The most modest assumption is that
none of the stocks appreciate by 5 per
cent on the three calculation dates. You
will then earn just 20 basis points a year in
subsequent years, or a total interest rate at
maturity of 2.6 per cent.
In the most optimistic case, all the
stocks rise by 5 per cent at each valuation
date, and the structure is able to pay 30 ba-
sis points per stock per year. This means
your investment accrues an interest rate
of about 1.5 per cent a year after the first
year, or a total return at maturity of 6.5 per
cent.
Credit event risk
The worst case is that a credit event oc-
curs defined as the inability of SG to pay
both interest and principal, or that SG be-
comes insolvent. You could lose all your
principal, and the literature says this clear-
ly.
There is a distribution fee of 2.5 per
cent taken by the distributor, Citibank, up
front. The PHS states that the issuer and
arranger will not receive a fee or commis-
sion from the sale of the notes. Instead,
they make a profit through the structur-
ing of the notes. This profit is factored in-
to the risk and return on the notes, says
the PHS. Part of the proceeds raised goes
into an options strategy where the invest-
ment bank presumably earns a spread.
How much it stands to earn is not dis-
closed.
The first question an investor is likely
to ask is whether the note offers a good
deal. Interest rates today are at rock bot-
tom, with deposit rates at between 5 and
25 basis points per annum depending on
the amount. The annualised yield on
five-year Singapore government bonds is
just 41 basis points, leaving you wide
open to erosion from inflation.
But it will be a mistake as well to rush
into the first instrument that you think is
relatively safe. In an instrument such as
this with a lock-in of nearly four years, you
will be subject to interest rate risk. Should
rates go up and you decide to switch, pre-
mature exit is likely to subject you to a
loss. SG will publish weekly bid prices in a
website, and you exit at the bid price. Like
any fixed income instrument, a rise in in-
terest rates will cause the notes value to
fall.
Another risk is that there are fixed in-
terest valuation dates when the stock
prices will be calculated against their ini-
tial prices. Any appreciation before or af-
ter those dates will not count. So, even if
the stocks appreciate substantially over
the term of the Note, but not specifically
on those calculation dates, you will not
benefit.
Whether you take a bullish view of the
stocks is arguably not as important as
your expectations of interest rates.
There are quite a number of funds in
the market that target annual income dis-
tributions of between 3 and 6 per cent.
But do your homework. You will have to
ascertain whether the funds are invested
in stocks or bonds, and whether the pay-
out you get is truly income or dividend in
nature, or your own capital.
Of course the notes biggest risk is that
of the creditworthiness of the Paris-listed
issuer SG. SG has a credit rating of A2 by
Moodys and A by S&P. By investing in the
notes you are effectively lending money to
SG. The proceeds will form part of SGs
working capital.
The notes are unsubordinated securi-
ties. It ranks equal to other unsubordinat-
ed notes, and is senior to subordinated
debt, preferred and common stock.
There are also some major changes in
structure compared with pre-crisis struc-
tured products that investors can take
comfort from. One is its relative simplici-
ty. That there is no underlying swap deriv-
ative arrangement, so there is no swap
counterparty risk. But, as mentioned,
there is credit risk arising from SG as issu-
er, and also fromthe distributor and custo-
dian.
The prospectus also states that the issu-
er irrevocably agrees to the jurisdiction
of the Singapore courts should there be
any proceedings or action in connection
with the notes. This is in contrast to
pre-crisis structures where investors have
had to contend with foreign courts for a
share of bankruptcy proceeds.
Citibank is the sole distributor and is
understood to have put in place a training
programme with a test for relationship
managers. Citi Wealth Management head
Shrikant Bhat says the training covers
product features, issuer details and the
new regulatory framework for structured
products.
To sell this fund, RMs have to com-
plete the training programme and pass a
test with a score of 80 per cent at the first
sitting, he says. All RMs selling the note
must also have the mandatory CMFAS cer-
tification and pass internal certifications
on investment products.
While the notes will have the mandato-
ry cooling off period of seven days as re-
quired by regulation, Citi is giving custom-
ers a much longer leeway until seven cal-
endar days after the offer period closes on
Sept 27. This means that those who invest-
ed on the first day of the offer on Aug 27
will effectively have 37 days to reconsider.
Given that this is the first time a retail
note is introduced, we wanted to give cus-
tomers the maximumamount of time pos-
sible to review their investment, he says.
He adds: Customers have generally
been more cautious with structured prod-
ucts. They tend to gravitate towards short
tenure products with structures that are
simple to understand as opposed to long
tenure structures with complex algo-
rithms.
A look at Societe Generales SGD Equity Magnifier Notes for the retail market,
the first of a planned $2 billion programme
Global Premium Hotels
Unrated
DBS Vickers | Sept 14 |
Close: $0.245 |
HOUSEHOLD name in the economy
hotel space. Global Premium Hotels
(GPHL) operates one of Singapores
largest economy/mid-tier hotel chains
under the Fragrance brand and one
hotel under the Parc Sovereign brand
with a total room count of 1,738 as at
June 20, 2012.
Resilient operating model; portfolio
to expand by circa 12 per cent through
development of Tyrwhitt Road site.
GPHLs exposure in the economy seg-
ment in Singapore hospitality sector
has proven itself to be resilient even in
recessionary times.
Looking ahead, apart from optimis-
ing the groups portfolio operational
performance, GPHL continues on anex-
pansion track through the develop-
ment of a new 265-room hotel at Tyr-
whitt Road, which was recently ac-
quired from sponsor, Fragrance Group.
Upon completion in FY14, we estimate
contribution from this new hotel to
grow earnings by circa 15 per cent.
Given GPHLs leading position in
the economy tier segment of the Singa-
pore hotel sector, we derive a fair value
of $0.29, based on a 20 per cent dis-
count to its revalued net asset value of
$0.36. This implies FY14 forecast enter-
prise value (EV) over EBITD of 17x, in
line with hospitality peers.
Earnings upgrade will be a price cata-
lyst. Better-than-expected performance
from its hotel segment in the coming
quarters or acquisitions not factored in
our forecasts are likely to drive profita-
bility and stock price.
Balance sheet is relatively highly
geared. GPHLs net debt to equity ratio
is relatively high at 1.4x, due to acquisi-
tion of its initial portfolio upon listing.
We noted that other metrics, such as in-
terest cover, is comfortable at circa
4-5x.
OSIM International
Buy
OCBC Investment Research |
Sept 14 |
Close: $1.415 |
WE opine that one of OSIMInternation-
als core strengths lies in its ability to
constantly drive its product innovation.
This has allowed the group to enjoy
gross margin expansion (FY10: 65.3 per
cent; FY11: 68.9 per cent; H1 2012: 70.2
per cent) from a more favourable prod-
uct mix, while enhancing its brand pro-
file with its novel new products with
fresh design concepts and better func-
tionality.
During Q3 2012, OSIM launched the
uDivine App massage chair, an im-
proved version from its earlier uDivine
model. This chair enables wireless con-
nectivity to Apple Incs mobile devices;
hence users can listen to ambient mu-
sic while having an array of 13 massage
programmes to choose from.
Although we remain cognisant of
the concerns over the slowdown in Chi-
nas growth engine which could affect
consumers discretionary spending, we
believe that management would contin-
ue to improve its productivity and ra-
tionalise non-performing outlets be-
sides its innovation drive to mitigate
this.
OSIMs entrenched presence and ex-
perience in China would also allow it to
make more efficient and accurate oper-
ational decisions, in our opinion.
Hence, we only make some minor
adjustments to our FY12 estimates (rev-
enue: -1.1 per cent; PATMI: -0.9 per
cent) and also ease both our FY13 reve-
nue and PATMI forecasts by 2.2 per
cent as we input more conservative as-
sumptions.
We highlighted OSIM as a possible
laggard play during our July 27, 2012 re-
port. Since then, its share price has ap-
preciated 13.9 per cent (even after go-
ing ex-dividend), strongly outperform-
ing the STI by 13.1 percentage points.
We still see value in OSIMs current
share price despite our reduced fore-
cast.
The stock trades at 11.3x and 10.3x
FY12 forecast and FY13 forecast PER, re-
spectively, while offering a projected
EPS CAGR of 13.5 per cent from
FY11-13 forecast and return on equity
of 44.1 per cent (FY12 forecast).
Maintain buy, with a revised fair
value estimate of $1.79, versus $1.82 pre-
viously (still based on 14.3x blended
FY12/13 fore cast EPS).
Compiled by Kenneth Lim
Disclaimer: All analyses,
recommendations and other
information herein are published for
general information. Readers should
not rely solely on the information
published and should seek independent
financial advice prior to making any
investment decision. The publisher
accepts no liability for any loss
whatsoever arising from any use of the
information published herein.
Brokers who wish to send in their
reports can email us at
[email protected]
brokers' take
Behind structured notes
STOCK.XCHNG
There are quite a
number of funds in the
market that target
annual income
distributions of between
3 and 6%. But do your
homework. You will
have to ascertain
whether the funds are
invested in stocks or
bonds, and whether the
payout you get is truly
income or dividend in
nature, or your own
capital.
GenevieveCua
[email protected]
Personal Finance
Editor
Wealth 30 | THE BUSINESS TIMES WEEKEND | SATURDAY/SUNDAY SEP 15-16, 2012
wealth 31
investing
New York
I
N June 2008, American Inter-
national Group Inc was des-
perately trying to figure out
what t o do wi t h i t s
US$80 billion in money-los-
ing credit-default swaps,
which were backed by mort-
gages. Then Larry Fink came
calling.
The chief executive officer of Black-
Rock Inc was pitching his firms proprie-
tary software to value the derivatives, says
Robert Willumstad, AIGs then-newly in-
stalled CEO. Mr Willumstad hired Black-
Rock, Bloomberg Markets magazine re-
ports in its October special issue on the 50
Most Influential people in global finance.
Mr Finks team wrapped up their as-
signment that August, advising AIG to
hold the derivatives until the US housing
market improved. Just weeks later, on
Sept 14, LehmanBrothers Holdings Inc de-
clared bankruptcy and the markets
tanked, taking the derivatives and AIG
down with them. When the US govern-
ment bailed out AIGtwo days later, it oust-
ed Mr Willumstad and the Federal Re-
serve Bank of New York stepped in. The
New York Fed needed someone to man-
age AIGs toxic assets. It, too, turned to Mr
Fink.
If a beleaguered government or a giant
corporation is wrestling with a financial
conundrum, BlackRocks Mr Fink will of-
ten be the first one to step in. His client
list includes the governments of Germa-
ny, Greece, Ireland and Sweden as well as
companies such as General Electric Co
and JPMorgan Chase & Co.
Boring model
Fifteen years ago, everybody thought our
business model was boring, Mr Fink, 59,
says of his firms focus on managing mon-
ey for institutions. Wall Street was much
more trendy. Now, with big banks under
increasing scrutiny from regulators, cus-
tomers and shareholders, BlackRocks
business has gotten a lot more interesting.
They built this entity that was incredi-
bly in demand once the credit bubble
popped and there was so much challenge
in valuing assets, says Gregory Fleming, a
former president of Merrill Lynch & Co
who helped BlackRock go public in 1999.
Mr Willumstad says he preferred Black-
Rock to an investment bank. In the midst
of the crisis, most of the banks themselves
were part of the problem, he says.
While Mr Fink has expanded his influ-
ence with such high-profile assignments
as sorting through the wreckage of Bear
Stearns Cos and AIG, the advisory busi-
ness represented only about 6 per cent of
BlackRocks US$9.08 billion in revenue
last year. The company still depends for
the bulk of its profit on its boring model:
the fees it earns frommanaging other peo-
ples money.
Today, BlackRock is the worlds largest
money manager, with assets of US$3.56
trillion as of June 30 about the same size
as Germanys gross domestic product last
year. The companys two biggest business-
es are its actively managed bond and
stock funds and its exchange-traded
funds, which typically hold baskets of se-
curities that track an industry or a market
benchmark.
Being the biggest isnt enough for Mr
Fink, a former First Boston Corp mort-
gage trader who started BlackRock in 1988
with seven colleagues and US$1 billion.
Now he wants to increase the companys
reach with mom-and-pop investors. And
he says individuals should put more of
their retirement money in riskier products
such as hedge funds, real estate and pri-
vate equity.
Pushing equities
People are shying away from equities,
which I happen to think is wrong, says
Mr Fink, who during a July interview wore
a cream-coloured shirt with lady-
bug-shaped cuff links. He had a golden
tan from gardening and hiking in North
Salem, New York, where he and his wife,
Lori, own a house. I dont see how you
make your necessary return earning 1.5
per cent on the 10-year US Treasury bill.
You will not have the pool of savings that
you need to retire.
Not coincidentally, the riskier offerings
are areas where BlackRock is expanding
and where the fees it earns are higher
than those for plain stock and bond
funds.
Opinionated and plain-spoken, Mr
Fink has been taking public stances more
frequently, whether its to admonish US
President Barack Obama to reduce the na-
tional debt or to advocate for more regula-
tion and transparent labelling of ETFs.
Larrys very forthright, says Ken Lang-
one, a co-founder of Home Depot Inc
who served on the board of directors of
the New York Stock Exchange in 2003
with Mr Fink. When you get down to talk-
ing to Larry, you knowexactly where Larry
is. Exactly.
Owning up to mistakes
The son of a shoe salesman and an Eng-
lish professor, Mr Fink says hes a lifelong
Democrat who raised funds for Mr
Obama in 2008 and backs him for re-elec-
tion.
Mr Finks frankness extends to owning
up to his firms mistakes, says Ralph
Schlosstein, a co-founder of BlackRock
who left in 2007 and is now at Evercore
Partners Inc, a boutique investment bank.
When the California Public Employees
Retirement System, the biggest US public
pension fund, took a US$500 million loss
in 2009 for its stake in BlackRocks failed
investment in the Stuyvesant Town-Peter
Cooper Village apartment complex in
New York, Mr Fink apologised personally
to the funds board. If clients dont get
perfection, that upsets him, Mr
Schlosstein says.
So far, Mr Fink hasnt been able to as-
suage customers who are unhappy with
the returns of BlackRocks stock and bond
funds. Investors withdrew US$13.7 billion
more than they deposited in these funds
last year, while smaller rival Pacific Invest-
ment Management Co had net deposits of
US$60 billion. In the three years ended on
June 30, BlackRocks actively managed
mutual funds trailed 54 per cent of their
peers on an annualized basis, according
to Morningstar Inc data.
BlackRock became the worlds largest
manager of ETFs with its purchase in 2009
of Barclays Global Investors Inc, yet its
lead is shrinking. Its US market share de-
clined 1.6 percentage points this year, to
41 per cent as of July 31, while rival Van-
guard Group Inc gained 1.8 points to 18
per cent, according to data from State
Street Global Advisors, the No 2 ETF firm,
with 24 per cent of the market. And Van-
guard attracted US$33.9 billion in the first
seven months of this year, 73 per cent
more than BlackRocks US$19.6 billion.
BlackRocks sheer size has made some
potential customers wary. In April, Spain
decided against hiring the company to car-
ry out stress tests on the countrys banks
because Economy Minister Luis de Guin-
dos feared it would be conflicted.
Dont you think BlackRock wants to
buy assets in Spain? he told Bloomberg
News at the time. If you are going to be
the referee and at the same time you want
to buy assets, theres a very clear conflict
of interest.
Interconnected
BlackRocks head of global rates invest-
ments said in June that the firm was look-
ing for ways to invest in Spanish debt.
However, Mr Fink says there wouldnt
have been any conflict because BlackRock
keeps the management of its client invest-
ments separate from its advisory activi-
ties.
BlackRock is so large and theyre inter-
connected to so many investments; just
by nature its hard for them to be inde-
pendent, says Mark Williams, a former
Federal Reserve Bank examiner who
teaches risk management at Boston Uni-
versity. If they throw themselves into a
consulting role, they increase the chance
of insider conflicts.
Advising clients is BlackRocks fastest-
growing business, with Mr Fink forecast-
ing an increase of 15 to 20 per cent annual-
ly during the next three years.
Mr Fink spends much of his time visit-
ing clients in London, Hong Kong and Du-
bai, pitching his firms proprietary soft-
ware, which is an outgrowth of a program
created in 1994 to help GE sell toxic mort-
gage assets. BlackRock used the same pro-
gram to manage the AIG and Bear Stearns
assets that the Fed had repackaged into
three separate vehicles named Maiden
Lane I, II and III. By July this year, Black-
Rock had raised enough money selling
the debt to investors to repay all US$72.7
billion of the AIG and Bear Stearns bailout
money, plus interest, Mr Fink says.
Could that success, BlackRocks grow-
ing roster of government clients and Mr
Finks increased outspokenness on eco-
nomic policy mean that hes grooming
himself for a role in a second Obama ad-
ministration?
Mr Langone says Mr Fink would make
a great Treasury Secretary to succeed Tim-
othy Geithner, who plans to step down,
because of his judgment, his experience
and his leadership capabilities and his will-
ingness to make tough decisions.
Mr Fink himself demurs. I love my
job, he says. I expect to be here longer
than some people have speculated.
Bloomberg
Now BlackRocks Larry Fink wants to increase his companys reach to mom-and-pop investors
The go-to man for nations in trouble
FILE PHOTO
MR FINK
People are shying away from equities, which I happen to think is wrong, says the CEO of
the worlds largest money manager, with assets of US$3.56 trillion
32 wealth
investing THE BUSINESS TIMES WEEKEND SATURDAY/SUNDAY, SEPTEMBER 15-16, 2012
I
NTEREST rates will continue
to be low for some time to
come, so it seems. On Thurs-
day, at the conclusion of its
Sept 12-13 meeting, the US
Federal Open Market Com-
mittee (FOMC) decided to
add to global liquidity with
another round of quantitative easing.
It said it would: one, extend the for-
ward guidance on the Fed funds rate at
least through mid-2015, with enhanced
commitment to maintain a highly accom-
modative stance . . . for a considerable
time after the economic recovery strength-
ens; two, embark on additional agency
mortgage-backed securities purchases,
at a pace of US$40 billion per month;
and three, commit conditionally and
open-endedly to asset purchases and oth-
er policy tools, in particular progress
on communication policies, until the la-
bour market outlook improves substan-
tially.
The US is not the only country flooding
its economy and the world with liquidity.
China and Japan are expected to followbe-
fore year-end. With financial markets so
interlinked, we will feel the effects of such
easing.
Last week, I wrote about the negative
real interest rate environment that we are
in, with inflation rates higher than the
barely there nominal interest rates.
In such an environment, putting ones
money in any income-yielding instru-
ment that pays higher than the banks and
inflation makes sense. Better still, if one
could borrow, make use of the very cheap
borrowing costs to boost ones return on
equity.
For the record, Im not encouraging
such a move. Investors should carefully
weigh the risks and rewards of such a
course of action themselves based on
their individual circumstance.
But the fact is, in response to the lowin-
terest rate/high-inflation environment,
many have come to the conclusion that it
makes sense for them to take on a little
more risk.
This explains why demand for real es-
tate has remained firm. Ploughing money
into real estate is but one response to ne-
gative real interest rates.
In a recent article, The New York Times
(NYT) quoted the example of a retiree in
Florida, who was so disgusted with the in-
terest he was getting from his deposits
that he and his wife decided to just stuff
their money in the mattress. At least
there we can see the cash when we want,
he was quoted as saying.
NYTs theory is that, with the Western
governments being so indebted, it is in
their interest to keep their borrowing
costs as low, and for as long, as possible.
Over time, interest rates below the in-
flation rate allow governments to refi-
nance, erode or liquidate their debt, ma-
king it easier to live within their budgets
without having to resort to more unpalata-
ble spending cuts or tax increases, it says.
So in effect, wealth is transferred from
savers particularly those who decide to
keep their cash under the pillow to the
borrowers.
In response to my article last week, a
reader wrote in to point out two lesser
thought-about effects of a low/negative in-
terest rate environment in Singapores
context.
He noted that while the data I presen-
ted confirmed his gut feel that there is
no property bubble here, it also showed
no improvement in affordability regard-
less of rising income as property inflation
has eaten up all salary gains.
In fact, the housing affordabili-
ty for the lower-income group
has probably decreased, given
the stagnation in the wages of
the bottom20 per cent of pop-
ulation.
The elephant in the room,
at negative real rates of 3, 4 or 5
per cent, could the monetary
policy here be indirectly one
of the biggest contributors to the
increasing wealth gap and to a
host of other unfavourable de-
velopments? he asks.
Persistent negative real rates
lead to an extreme misallocation
of capital capital flows into pro-
perty and real and financial assets
as people try to escape such finan-
cial repression. The effects of these
capital flows, that is, price increases
in the respective area, mostly benefit
the haves versus the have nots.
They puni sh t he average
earner/pensioner/saver who neither has
the means nor the ability to access capital
growth strategies, and benefit asset-rich
investors and leveraged speculators/
risk-takers, he explains.
Yes, some of these problems can be
tackled by ever more administrative
measures, for example, residential
property curbs.
But as long as the underlying is-
sue of real interest rates being too
lowis not addressed, more adminis-
trative actions only lead to ever
more sophisticated strategies by
those wanting to invest their capital
efficiently. Witness the explosive
increase in industrial property
prices after residential price
curbs were introduced.
As long as the strong pres-
sure of negative real rates is preva-
lent, capital will flow into some-
thing real and create price distor-
tions there. You block access to it via
new rules and regulations, and capital will
in turn flow into something else which re-
quires more rules and regulations and so
on and so forth.
So in summary, an economy growing
at a nominal 2, 3 or even 5 per cent cannot
really thrive evenly, to the benefit of all
with real rates at negative 2, 3 or 5 per
cent over the long run.
The effects of the ongoing misalloca-
tion of capital in such an environment will
eat up (and more) the fruits of that growth
for most, via inflation or simply via the
negative effects (on society overall) of a
sharply growing wealth gap, he reasons.
The question remains: How best to ad-
dress this. Negative interest rates are a his-
torical aberration and cannot last.
Once the situation changes, what with
all the capital stuck in the property and
other assets that were all the rage during
the years of negative real rates? What with
the average earners and savers who are
falling ever further behind in society?
The longer the current extremes per-
sist, the higher the ultimate cost of bring-
ing things in line again, he cautions.
Its been quite obvious for a while now
that tinkering with the exchange rate
alone does not have the desired effect in
an economy where most of the inflatio-
nary pressure (primarily housing cost) is
generated domestically and not through
imports, he argues.
Is the current interest rate policy (or
rather lack thereof) still the right way go-
ing forward? This must be the real topic
worthy of discussion, and please let there
be controversy and a good exchange of ar-
guments, not just the odd statement
along the lines of things are difficult and
complex, but there are no alternatives.
Weighty issues, indeed. Since we are in
the midst of conducting a national conver-
sation, may this be a topic for discussion.
The writer is a CFA charterholder
Persistent negative interest rates can result in an extreme misallocation of capital
The elephant in the room
GREY AREA
Is the current interest
rate policy (or rather
lack thereof) still the
right way going forward?
This must be the real
topic worthy of
discussion, and please let
there be controversy and
a good exchange of
arguments, says a reader
show me the money |
STOCK.XCHNG
Teh Hooi Ling
[email protected]
Senior Correspondent
wealth
33
investing THE BUSINESS TIMES WEEKEND SATURDAY/SUNDAY, SEPTEMBER 15-16, 2012
PROPERTY TRANSACTIONS FOR SELECTED DISTRICTS WITH CONTRACT DATES BETWEEN AUG 15 AND AUG 21, 2012 Househunt
PROJECTNAME/
STREETNAME
PROP
TYPE
CONTRACT
DATE
TENURE BUILT-IN/LAND
AREA*(SQFT)
PRICE
(S$'000)
PSF
(S$)
PROJECTNAME/
STREETNAME
PROP
TYPE
CONTRACT
DATE
TENURE BUILT-IN/LAND
AREA*(SQFT)
PRICE
(S$'000)
PSF
(S$)
*Applies tolandedproperty
Informationis providedby SISV Services PteLtd. SPHgives nowarranty as totheaccuracy of the
informationanddisclaims all liability for any loss or damages that may arisefrom its use.
District 1
NON-LANDED
VOnShenton Apt 17/08/2012 99 721 1594 2211
VOnShenton Apt 17/08/2012 99 474 1022 2156
VOnShenton Apt 17/08/2012 99 7255 13418 1849
VOnShenton Apt 17/08/2012 99 1033 1759 1703
VOnShenton Apt 21/08/2012 99 1152 1984 1722
VOnShenton Apt 21/08/2012 99 1152 1992 1729
VOnShenton Apt 17/08/2012 99 1033 1845 1786
VOnShenton Apt 17/08/2012 99 1033 1838 1779
VOnShenton Apt 17/08/2012 99 1055 2025 1919
VOnShenton Apt 21/08/2012 99 947 1896 2002
VOnShenton Apt 17/08/2012 99 689 1302 1890
VOnShenton Apt 21/08/2012 99 484 1222 2525
VOnShenton Apt 16/08/2012 99 1098 2339 2130
VOnShenton Apt 16/08/2012 99 1033 1893 1833
VOnShenton Apt 15/08/2012 99 484 1301 2688
VOnShenton Apt 16/08/2012 99 1055 2195 2081
VOnShenton Apt 16/08/2012 99 441 1009 2288
District 2
NON-LANDED
EonShenton Apt 16/08/2012 99 538 1225 2278
SpottiswoodeResidences Apt 16/08/2012 FH 797 1588 1992
District 4
NON-LANDED
CaribbeanAt Keppel Bay Apt 15/08/2012 99 1722 3150 1829
TheInterlace Apt 21/08/2012 99 3757 3708 987
TheInterlace Apt 21/08/2012 99 1744 2227 1277
District 5
NON-LANDED
HundredTrees Apt 21/08/2012 956 1475 1659 1125
HundredTrees Apt 17/08/2012 956 807 816 1011
Seahill Apt 16/08/2012 99 1130 1785 1579
TheInfiniti Apt 17/08/2012 FH 1087 1110 1021
TheRochester Apt 15/08/2012 99 1432 1750 1222
VistaPark Apt 15/08/2012 99 926 688 743
District 9
LANDED
EmeraldHill Rd X-Ter 21/08/2012 FH 1612 7400 4591
NON-LANDED
ParcEmily Apt 16/08/2012 FH 1238 2120 1712
TheQuayside Apt 21/08/2012 99 1346 1970 1463
TheRegalia Apt 19/08/2012 FH 1249 1870 1497
TheSuites At Central Apt 15/08/2012 FH 1572 3280 2087
Up@RobertsonQuay Apt 17/08/2012 99 1130 2299 2035
District 10
NON-LANDED
Fairlodge Apt 15/08/2012 FH 1658 1950 1176
OneTreeHill Residence Apt 17/08/2012 FH 1227 2460 2005
Studio3 Apt 16/08/2012 FH 883 1400 1586
District 12
NON-LANDED
NadiaMans Apt 21/08/2012 FH 4747 4200 885
Suites @Topaz Apt 15/08/2012 FH 377 437 1158
TheInterweave Apt 21/08/2012 FH 721 999 1386
TheInterweave Apt 21/08/2012 FH 388 577 1487
TheVerve Apt 16/08/2012 FH 441 500 1134
District 13
NON-LANDED
D'almira Apt 21/08/2012 FH 2056 1750 851
District 14
NON-LANDED
Mill Creek Apt 15/08/2012 FH 1119 1250 1117
Silverscape Apt 16/08/2012 FH 409 498 1218
District 15
NON-LANDED
Elliot At TheEast Coast Apt 16/08/2012 FH 2153 1650 766
NeptuneCourt Apt 15/08/2012 99 1636 1290 789
SycamoreTree Apt 17/08/2012 FH 753 981 1303
SycamoreTree Apt 17/08/2012 FH 753 975 1295
SycamoreTree Apt 15/08/2012 FH 753 940 1248
TheAristo@Amber Apt 15/08/2012 FH 807 1180 1462
TheSeawind Apt 16/08/2012 FH 700 1240 1771
TheWaterside Apt 16/08/2012 FH 2400 3300 1375
District 16
LANDED
BedokGdn 3-Ter 15/08/2012 FH 2661 2734 1027
NON-LANDED
Archipelago Apt 16/08/2012 99 829 944 1139
Archipelago Apt 17/08/2012 99 840 894 1064
Archipelago Apt 15/08/2012 99 980 1216 1241
CostaDel Sol Apt 21/08/2012 99 1227 1650 1345
TheCalypso Apt 15/08/2012 FH 1259 1250 993
District 17
NON-LANDED
AzaleaParkCdo Apt 15/08/2012 999 1313 1005 765
BallotaPark Apt 19/08/2012 FH 990 785 793
ParcOlympia Apt 17/08/2012 99 1163 978 841
ParcOlympia Apt 17/08/2012 99 797 655 822
ParcOlympia Apt 17/08/2012 99 1163 882 759
ParcOlympia Apt 17/08/2012 99 2702 1692 626
ParcOlympia Apt 17/08/2012 99 646 533 824
ParcOlympia Apt 17/08/2012 99 1647 1602 973
ParcOlympia Apt 17/08/2012 99 646 636 984
ParcOlympia Apt 17/08/2012 99 775 630 813
ParcOlympia Apt 17/08/2012 99 861 649 753
ParcOlympia Apt 17/08/2012 99 1023 762 745
ParcOlympia Apt 17/08/2012 99 818 671 820
ParcOlympia Apt 17/08/2012 99 818 722 882
ParcOlympia Apt 17/08/2012 99 1163 965 830
ParcOlympia Apt 17/08/2012 99 495 475 960
ParcOlympia Apt 17/08/2012 99 646 583 902
ParcOlympia Apt 15/08/2012 99 1141 920 806
ParcOlympia Apt 15/08/2012 99 797 702 881
ParcOlympia Apt 15/08/2012 99 797 711 892
District 18
NON-LANDED
DoubleBayResidences Apt 21/08/2012 99 1001 710 709
DoubleBayResidences Apt 21/08/2012 99 1561 1060 679
RippleBay Apt 17/08/2012 99 1313 1211 922
SeaEsta Apt 15/08/2012 99 1141 1031 904
District 19
NON-LANDED
BartleyResidences Apt 16/08/2012 99 463 638 1378
BartleyResidences Apt 16/08/2012 99 797 1015 1274
BartleyResidences Apt 21/08/2012 99 463 678 1464
BartleyResidences Apt 16/08/2012 99 463 659 1423
BartleyResidences Apt 16/08/2012 99 463 653 1410
BartleyResidences Apt 15/08/2012 99 463 678 1464
BartleyResidences Apt 15/08/2012 99 463 648 1400
Bliss @Kovan Apt 17/08/2012 FH 614 836 1361
KensingtonPark Apt 15/08/2012 999 1658 1728 1042
TheMinton Apt 16/08/2012 99 1496 1213 811
ThePromenade@Pelikat Apt 17/08/2012 FH 936 1030 1100
ThePromenade@Pelikat Apt 15/08/2012 FH 936 983 1050
TheQuartz Apt 15/08/2012 99 1066 1075 1008
TheQuartz Apt 15/08/2012 99 1130 1200 1062
TheWaterline Apt 15/08/2012 FH 1991 1700 854
TheWaterline Apt 15/08/2012 FH 517 730 1413
District 20
LANDED
SembawangHills Estate X-Ter 21/08/2012 FH 2039 2150 1054
District 21
NON-LANDED
Regis Mans Apt 16/08/2012 FH 1023 845 826
District 22
NON-LANDED
Caspian Apt 17/08/2012 99 1238 846 683
Caspian Apt 15/08/2012 99 1593 958 601
Lakeholmz Apt 15/08/2012 99 1249 1050 841
District 23
NON-LANDED
TreeHouse Apt 17/08/2012 99 1152 1090 946
District 25
NON-LANDED
Rosewood Apt 15/08/2012 99 1173 900 767
District 27
NON-LANDED
CanberraResidences Apt 21/08/2012 99 1905 1448 760
34 wealth
real estate THE BUSINESS TIMES WEEKEND SATURDAY/SUNDAY, SEPTEMBER 15-16, 2012
Singapore
EVENas analysts debate the outlook for Singapores luxu-
ry condo sector, there has been no dearth of bungalow
transactions. Sentosa Cove, for one, is said to have seen
several deals. They include two properties at Cove Drive
facing the waterway and Tanjong Golf Course.
Both are said to have been sold for $15-plus million.
One fetched $15.3 million, or $2,202 per square foot,
based on 6,947 sq ft of 99-year leasehold land area. It is
said to have been sold by a Singaporean aesthetics doctor
to a Myanmar national. A foreigner, whether a Singapore
permanent resident (PR) or not, is allowed to buy a land-
ed property for own occupation on Sentosa Cove, subject
to the nod of the Land Dealings (Approval) Unit. The oth-
er bungalowthat changed hands on the same road is clos-
er to the Seven Palms Sentosa Cove condo development.
There is also talk that Fragrance Group boss Koh Wee
Meng recently disposed of a seafronting bungalow along
Cove Grove with views of the Southern Islands at around
$24 million or $2,470 psf on land area of 9,725 sq ft. The
bungalows built-up area is said to be around 11,000 sq ft,
spread across two levels and an attic. It features eight bed-
rooms including a spacious master suite, a rooftop jacuz-
zi and a swimming pool. The property was believed to be
Mr Kohs weekend home.
Market watchers note that the sale follows Mr Kohs
purchase last year of a nearby bungalow. The hotel and
property tycoon paid close to $16.8 million or slightly
over $1,720 psf on land area of 9,740 sq ft for that proper-
ty. This was at a loss to the seller, who forked out around
$16.5 million for the land alone in 2008, say sources. The
seller was Tony Chan Chun Chuen of Hong Kong, the
former feng shui consultant to the late tycoon Nina Wang
and who is embroiled in legal problems for allegedly forg-
ing Mrs Wangs will in an attempt to claim her multi-bil-
lion-dollar estate. That bungalow, too, spans two-and-a-
half storeys, including a spacious attic, and boasts eight
bedrooms and a swimming pool.
Samuel Eyo, director, Prestige Homes at Savills Singa-
pore, says asking prices of Sentosa Cove bungalows are
around $2,200 psf for golf course-facing properties and
$2,500 psf and upwards for prime sea-fronting bunga-
lows. At these levels, its mostly foreigners who are acquir-
ing landed homes in the upscale waterfront housing lo-
cale these days. Foreigners, even if they are Singapore
PRs, are finding it difficult to qualify for purchases of
large landed homes on mainland Singapore. Instead,
theyre turning to either luxury penthouses in the prime
Orchard district or landed homes on Sentosa Cove to
match their social and financial standing, notes Mr Eyo.
Its a different story for Singaporeans. At current
price levels, Singaporeans are generally not entering the
landed housing market on Sentosa Cove at the moment
as they have the option of buying large bungalows in
Good Class BungalowAreas and other locations on main-
land Singapore, where foreigners are not allowed to
make a purchase.
Last month, a two-and-a-half storey bungalow at Tu-
dor Close in the Kheam Hock Road/Dunearn Road vi-
cinity changed hands for $10.88 million or $1,995 psf on
its freehold land area of 5,454 sq ft. It has five bedrooms,
a lap pool, lift and wine cellar. Both the seller and buyer
are Singapore citizens. The house is currently leased at a
monthly rental of $20,000 until August 2014.
In the Meyer Road vicinity, a freehold bungalow with
a driveway fronting Broadrick Road fetched $22.2 million
or $1,147 psf. A two-storey property and a swimming
pool are on the site, which has a land area of 19,349 sq ft.
The buyer believed to be a Singaporean hailing from a
family in the construction business is likely to live in the
property.
Both transactions were brokered by RealStar Premier.
The firms managing director, WilliamWong, says the lev-
el of interest in the bungalow market on mainland Singa-
pore is still high as more and more wealthy Singapore-
ans aspire to own a bungalow.
Its getting pricey to acquire a bungalowand theres a
fear among some buyers that it will not be within an af-
fordable range. A boutique prime district bungalow aver-
ages $10 million or more nowadays.
Most owners are pricing their properties above bank
valuation, but some buyers are prepared to match that.
On the whole, the buyer-seller price gap is narrowing, as
a result of which there are a reasonable number of bunga-
low transactions now. We expect this to continue in the
near future, Mr Wong added.
Fragrance boss said to have sold property on Cove Grove for around $24m
Several bungalow deals on
Sentosa Cove recently
MAJOR DEALS
Last month, a two-and-a-half storey bungalow (above) at
Tudor Close, in the Kheam Hock Road/Dunearn Road
vicinity, changed hands for $10.88m while Sentosa Cove
(right) remains a favourite with foreigners
FILE PHOTO
wealth
35
real estate THE BUSINESS TIMES WEEKEND SATURDAY/SUNDAY, SEPTEMBER 15-16, 2012
36 THE BUSINESS TIMES WEEKEND SATURDAY/SUNDAY, SEPTEMBER 15-16, 2012
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