MARKET UPDATES :
- THE Singapore Exchange (SGX) is seeking public feedback on proposals to implement a 20 Singapore-cent minimum trading price hurdle for Mainboard companies, and to give the exchange and new independent committees greater disciplinary powers Companies on the Watch List because their shares are below the minimum share price can either consolidate their shares, move to the Catalist board or seek a reverse takeover. The Watch List for Mainboard -listed companies that report three straight years of losses and have market capitalisation of below S$40 million will remain, although SGX is tweaking some aspects of that to make it more consistent with the minimum share price rules.
- DEAL-MAKING activity moderated in the third quarter in Singapore from the relentless pace seen in the first two quarters of the year .The Republic saw mergers and acquisitions (M&A) deals of US$7.7 billion in the third quarter, down from US$29.4 billion in the first quarter and US$24.7 billion in the second, latest data from Thomson Reuters revealed. the total value of deals involving Singaporean companies for the past nine months stood at US$61.7 billion, surpassing the total volume last year of US$41.8 million.
- THE HSBC Trade Confidence Index (TCI) in Singapore decreased slightly from six months ago, dropping five points to 110.Still, it remained above the neutral mark of 100 – indicating further growth in trade flows over the next six months.HSBC said that looking ahead, growth within the export sector is likely to be uneven, as “a number of manufacturing sub-sectors are suffering from a loss of competitiveness”.
- UNITED Overseas Bank (China) on Wednesday said it plans to maintain its double-digit growth – on an annual compounded basis – over the next five years .This comes as it plans to strengthen its cross-border financing offerings as regional businesses link up with China .Over the last 12 months, UOB has increased its branch network by 30 per cent to 16 branches and sub- branches, it said .This includes opening its Shanghai (Pilot) Free Trade Zone (FTZ) sub-branch in June 2014.
- THE number of billionaires in Singapore rose 18 per cent to 32 individuals, but their wealth rose by a relatively modest amount .The latest Wealth-X and UBS Billionaire Census finds that Singapore billionaire’s wealth rose just 1.6 per cent to US$65 billion. This is partly due to their exposure to Asian equity markets which have underperformed, and Singapore’s real estate market which has been on a downtrend .The average net worth of a Singapore billionaire is US$2 billion, and the average age is 62.Globally, 155 new billionaires were minted this year, representing a 7 per cent rise in the billionaire population to 2,325 individuals. Their combined wealth rose 12 per cent to US$7.3 trillion.
- TRIYARDS will be placing up to 29.5 million new shares at 70 Singapore cents each to raise S$19.96 million in net proceeds, the group announced on Wednesday .The company said that it intends to use up to 90 per cent of the proceeds to fund its business expansion, including but not limited to capital expenditure, expansion of markets in relation to the group’s existing business, its product range and acquisitions .The balance will be used for general corporate purposes and working capital .The company had decided at its AGM last December to allot and issue new shares of up to 20 per cent of the company’s issued share capital.
- SINGAPORE shares rebounded on Wednesday following a firmer Wall Street and hopes that the US Federal Reserve will adhere to its dovish stance .The Fed, which will conclude a two-day policy meeting on Thursday (Singapore time), has held the rate close to zero for more than five years, and stocks have surged against that backdrop .Higher interest rates mean that companies and consumers have to pay more to borrow, leaving them with lower profits and less money to spend.
STOCK RECOMMENDATION :
- BUY COMFORTDELGRO LTD ABOVE 2.460 TG 2.500, 2.550, 2.620 SL 2.400