BANGKOK (AP)--Most Asian markets fell Tuesday amid anxiety ahead of the U.S. Federal Reserve's decision on interest rates.
Hong Kong still managed to edge up to its fourth straight record close on demand for Chinese bank shares.
In Tokyo, stocks slipped, hurt by a sharp drop in Japan's top drug maker Takeda Pharmaceutical after U.S. authorities requested more data for a drug under development.
The Nikkei average fell 0.28% to 16,651.01 on the Tokyo Stock Exchange. "The market has obviously taken (the Takeda news) very badly," said Junichi Misawa, a fund manager at STB Asset Management.
The market also met some profit-taking following recent gains in the Nikkei, he said. Adding to the drop were sluggish flows from overseas investors because of uncertainty over the Fed's decision on interest rates due Wednesday, said traders at foreign brokerages.
Takeda Pharmaceutical Co., Japan's largest drug maker by market capitalization, tumbled 12%. The U.S. Food and Drug Administration requested more data on the company's TAK-475 cholesterol-lowering drug Monday, delaying the planned submission for a new drug application.
Meanwhile, Hong Kong's Hang Seng Index rose to its fourth record close, as strong gains in mainland markets boosted demand for Chinese banks listed in the territory.
The Hang Seng rose 0.2% to 31,638.2 after briefly hitting an intraday record of 31,968.4. "Hot money continues to enter Hong Kong, taking up stocks with lower risks such as Chinese banks," said Y.K. Chan, a fund manager at Phillip Asset Management.
China Construction Bank led the gains, as it was lifted by continued buying interest after a slew of target price upgrades in response to the bank's better-than-expected earnings in the third quarter.
Shares in the bank rose 6.3%. Bank of Communications rose 1.6% on speculation that banking giant HSBC is still buying up more of the bank's shares from the open market, analysts said.
Property stocks fell, capping the Hang Seng's gains.
Sun Hung Kai Properties fell 5.9%, New World Development dropped 3.1%, Cheung Kong lost 2.7%, and Hang Lung Properties declined 3.5%.
In Tokyo currencies, the U.S. dollar was trading at Y114.46 at 0750 GMT, down from Y114.62 late Monday in New York.
The euro fell to US$1.4406 from US$1.4426. Thailand's main stock index fell 0.9% to 906.66 in line with regional markets and as energy stocks weakened with the fall of oil prices from record levels above US$93 a barrel.
Indonesia's benchmark index fell 0.2% to 2,662.9 in moderate volume.
Malaysia's Kuala Lumpur Composite Index rose 0.1% to a record close of 1,412.8.
Wednesday, October 31, 2007
Monday, October 29, 2007
Fund manager Franklin Templeton launches 38 new funds
SINGAPORE : In response to growing wealth management opportunities, international fund manager Franklin Templeton has expanded its offerings here with the launch of 38 new funds.
This brings the total number of Franklin Templeton funds in Singapore to 58.
The funds are available in multiple currencies for retail investors, including close to 30 funds denominated in Singapore dollars.
"We have expanded our offering of mutual funds in response to the growth of the wealth management industry in Singapore, said Mr Stephen Grundlingh, Franklin Templeton Investments' Singapore country head.
"It has been estimated that over the next 10 years, the wealth management industry in Asia will grow by US$350 billion (S$508 billion) as a result of inter-generational wealth transfer and the younger generation's preference to delegate the management of their investments to discretionary wealth managers."
Mr William Tan, head of sales at Franklin Templeton Investments Singapore, added: "This expanded range of funds enables (investors) to diversify their portfolios by investing in specific asset classes like commodities, and also allows investors to benefit from different investment styles - for instance, a more aggressive investor can pick a growth fund, and might even prefer one focused on Asia."
A sampling of the new funds include the Franklin Asian Flex Cap Fund, which allows investors to tap into large and small cap companies benefiting from rapid growth across Asia, and the Templeton Emerging Markets Smaller Companies Fund targeting small caps that have the potential to grow into blue chips.
<------ Last para most useful to know...
This brings the total number of Franklin Templeton funds in Singapore to 58.
The funds are available in multiple currencies for retail investors, including close to 30 funds denominated in Singapore dollars.
"We have expanded our offering of mutual funds in response to the growth of the wealth management industry in Singapore, said Mr Stephen Grundlingh, Franklin Templeton Investments' Singapore country head.
"It has been estimated that over the next 10 years, the wealth management industry in Asia will grow by US$350 billion (S$508 billion) as a result of inter-generational wealth transfer and the younger generation's preference to delegate the management of their investments to discretionary wealth managers."
Mr William Tan, head of sales at Franklin Templeton Investments Singapore, added: "This expanded range of funds enables (investors) to diversify their portfolios by investing in specific asset classes like commodities, and also allows investors to benefit from different investment styles - for instance, a more aggressive investor can pick a growth fund, and might even prefer one focused on Asia."
A sampling of the new funds include the Franklin Asian Flex Cap Fund, which allows investors to tap into large and small cap companies benefiting from rapid growth across Asia, and the Templeton Emerging Markets Smaller Companies Fund targeting small caps that have the potential to grow into blue chips.
<------ Last para most useful to know...
Saturday, October 27, 2007
Oil price hits record high on Iran tensions, supply concerns
NEW YORK : World oil prices surged to historic highs Friday, breaching 92 dollars for the first time in New York amid rising tension in crude-rich Iran and tightening US energy supplies.
New York's main futures contract, light sweet crude for delivery in December, soared to a record intraday high of 92.22 dollars per barrel before settling at an all-time closing high of 91.86 dollars, up 1.40 dollars on the day.
In London, Brent North Sea crude for December delivery struck an all-time pinnacle of 89.30 dollars per barrel Friday. It later settled at 88.69 dollars, up 1.21 dollars.
Crude futures have rocketed by about 10 dollars in a month and by 30 dollars, or 50 percent, in a year.
"Supply tightness and developments surrounding Iran remain the focus of attention," Sucden analyst Michael Davies said Friday.
The United States on Thursday ratcheted up pressure on Iran over its nuclear drive and alleged backing for terrorism with a raft of new sanctions against the Islamic republic's military and banks.
<----------- Another historic high... US$100 a barrel is definitely a big possibility by end 2007
New York's main futures contract, light sweet crude for delivery in December, soared to a record intraday high of 92.22 dollars per barrel before settling at an all-time closing high of 91.86 dollars, up 1.40 dollars on the day.
In London, Brent North Sea crude for December delivery struck an all-time pinnacle of 89.30 dollars per barrel Friday. It later settled at 88.69 dollars, up 1.21 dollars.
Crude futures have rocketed by about 10 dollars in a month and by 30 dollars, or 50 percent, in a year.
"Supply tightness and developments surrounding Iran remain the focus of attention," Sucden analyst Michael Davies said Friday.
The United States on Thursday ratcheted up pressure on Iran over its nuclear drive and alleged backing for terrorism with a raft of new sanctions against the Islamic republic's military and banks.
<----------- Another historic high... US$100 a barrel is definitely a big possibility by end 2007
Friday, October 26, 2007
AirAsia plans to roll out Kuala Lumpur-S'pore flights by December
MALAYSIA : Malaysian budget carrier AirAsia hopes to roll out its Kuala Lumpur-Singapore flights by December.
AirAsia's CEO Tony Fernandez said the carrier plans to charge less than a third of the fares levied by Singapore Airlines (SIA) and Malaysia Airlines (MAS), although he will let market forces determine the final pricing.
Fernadez was responding to the Malaysian government's announcement that it'll let AirAsia operate two flights a day on the lucrative route.
Currently, national carriers SIA and MAS are the only ones allowed to fly between the two cities, charging more than US$200 for a round trip.
Speaking at a news conference, Fernadez said the launch of AirAsia's new service will depend on how soon both countries can iron out a bilateral air agreement.
He said he was thrilled by the development, as the opening up of the route will benefit the budget carrier significantly.
"Of course it's a cash cow. MAS charges 800 ringgit for the 30-minute flight. We only charge 60 ringgit to JB. You work out the sums," said AirAsia's CEO.
Once the ASEAN Open Skies Agreement comes into force in 2009, AirAsia aims to operate at least 20 flights a day to Singapore.
It plans to add another 25 planes to its current fleet of 150. - CNA /ls
<--------- Cool! Flying from Penang or KL to Singapore will be much cheaper by then
AirAsia's CEO Tony Fernandez said the carrier plans to charge less than a third of the fares levied by Singapore Airlines (SIA) and Malaysia Airlines (MAS), although he will let market forces determine the final pricing.
Fernadez was responding to the Malaysian government's announcement that it'll let AirAsia operate two flights a day on the lucrative route.
Currently, national carriers SIA and MAS are the only ones allowed to fly between the two cities, charging more than US$200 for a round trip.
Speaking at a news conference, Fernadez said the launch of AirAsia's new service will depend on how soon both countries can iron out a bilateral air agreement.
He said he was thrilled by the development, as the opening up of the route will benefit the budget carrier significantly.
"Of course it's a cash cow. MAS charges 800 ringgit for the 30-minute flight. We only charge 60 ringgit to JB. You work out the sums," said AirAsia's CEO.
Once the ASEAN Open Skies Agreement comes into force in 2009, AirAsia aims to operate at least 20 flights a day to Singapore.
It plans to add another 25 planes to its current fleet of 150. - CNA /ls
<--------- Cool! Flying from Penang or KL to Singapore will be much cheaper by then
SGX plans to introduce Single Stock Derivatives
SINGAPORE : The Singapore Exchange is planning to introduce Single Stock Derivatives (SSDs) in the first quarter of next year.
SSDs are exchange-listed derivatives on single underlying securities which are listed or quoted on SGX.
They will be the first margin-based exchange traded product in Singapore.
The new product class will allow investors to buy into an underlying stock at an agreed price on the day of trade.
The trade will then be settled at a future date.
The proposed launch is aimed at expanding the current suite of equity derivatives available to investors.
SSDs will pave the way for more varied exchange traded equity derivatives products to be introduced and allow for hedging and arbitraging opportunities.
Its proposed introduction will involve additions and amendments to the SGX Securities Trading Rulebook, as well as the Central Depository Clearing Rulebook.
The exchange is inviting public comments on the proposed amendments to its business rules. - CNA/ms
SSDs are exchange-listed derivatives on single underlying securities which are listed or quoted on SGX.
They will be the first margin-based exchange traded product in Singapore.
The new product class will allow investors to buy into an underlying stock at an agreed price on the day of trade.
The trade will then be settled at a future date.
The proposed launch is aimed at expanding the current suite of equity derivatives available to investors.
SSDs will pave the way for more varied exchange traded equity derivatives products to be introduced and allow for hedging and arbitraging opportunities.
Its proposed introduction will involve additions and amendments to the SGX Securities Trading Rulebook, as well as the Central Depository Clearing Rulebook.
The exchange is inviting public comments on the proposed amendments to its business rules. - CNA/ms
Buffett: Expect more subprime pain
Billionaire investor sees problems in the subprime market affecting consumers for up to 2 years, but expresses confidence in U.S. economy. October 25 2007: 4:19 AM EDT
DAEGU, South Korea (AP) -- American billionaire investor Warren Buffett said Thursday that problems in the U.S. subprime mortgage market will likely weigh on consumers for up to two years, but that the U.S. economy will weather the storm.
The subprime problem "is having an impact," Buffett said on his first visit to South Korea. "It will have more of an impact."
Rising default rates among U.S. mortgage holders with poor credit histories have rattled global credit, stock and currency markets since August and raised concerns about a possible recession in the U.S. economy, a major export market for Asian companies.
"In the next 6 months, one year, two years the problems in the mortgage market can cause a lot of problems with consumers and hurt buying power in the United States," he said at a press conference after arriving earlier in the day from China on his private jet.
However, the U.S. economy has often had to face various difficulties and the present was no exception, Buffett said.
"Overall the economy will make progress," he said.
Buffett came to Daegu, located about 180 miles southwest of Seoul, to inspect Iscar Korea, a subsidiary of Iscar, the Israeli industrial tool manufacturer that his company, Berkshire Hathaway Inc. (Charts, Fortune 500), purchased last year for $4 billion, its first overseas acquisition.
Buffett also expressed pessimism on the U.S. dollar.
"We still are negative on the dollar relative to most major currencies," he said.
The dollar has fallen against the euro, British pound, Japanese yen, Indian rupee and many other Asian and European currencies this year. The euro, for example, has gained 8 percent against the dollar this year.
Buffett spoke highly of South Korean stocks, including steelmaker Posco, saying he first became attracted to them years ago because he saw that they were far too undervalued.
He said he feels that currently South Korean stocks in general are valued at prices that "are no higher and probably somewhat less" than stocks in the United States.
Buffett said that Berkshire Hathaway owns the equivalent of 3.4 million shares in Posco.
In March, Buffett said in his annual letter that Berkshire in 2006 bought 3.49 million shares, or 4 percent, of South Korean steelmaker Posco. Berkshire spent $572 million on the Posco shares, which were worth $1.16 billion at the end of 2006.
That would be worth considerably more now as Posco have more than doubled this year.
Merrill takes $7.9B mortgage hit
DAEGU, South Korea (AP) -- American billionaire investor Warren Buffett said Thursday that problems in the U.S. subprime mortgage market will likely weigh on consumers for up to two years, but that the U.S. economy will weather the storm.
The subprime problem "is having an impact," Buffett said on his first visit to South Korea. "It will have more of an impact."
Rising default rates among U.S. mortgage holders with poor credit histories have rattled global credit, stock and currency markets since August and raised concerns about a possible recession in the U.S. economy, a major export market for Asian companies.
"In the next 6 months, one year, two years the problems in the mortgage market can cause a lot of problems with consumers and hurt buying power in the United States," he said at a press conference after arriving earlier in the day from China on his private jet.
However, the U.S. economy has often had to face various difficulties and the present was no exception, Buffett said.
"Overall the economy will make progress," he said.
Buffett came to Daegu, located about 180 miles southwest of Seoul, to inspect Iscar Korea, a subsidiary of Iscar, the Israeli industrial tool manufacturer that his company, Berkshire Hathaway Inc. (Charts, Fortune 500), purchased last year for $4 billion, its first overseas acquisition.
Buffett also expressed pessimism on the U.S. dollar.
"We still are negative on the dollar relative to most major currencies," he said.
The dollar has fallen against the euro, British pound, Japanese yen, Indian rupee and many other Asian and European currencies this year. The euro, for example, has gained 8 percent against the dollar this year.
Buffett spoke highly of South Korean stocks, including steelmaker Posco, saying he first became attracted to them years ago because he saw that they were far too undervalued.
He said he feels that currently South Korean stocks in general are valued at prices that "are no higher and probably somewhat less" than stocks in the United States.
Buffett said that Berkshire Hathaway owns the equivalent of 3.4 million shares in Posco.
In March, Buffett said in his annual letter that Berkshire in 2006 bought 3.49 million shares, or 4 percent, of South Korean steelmaker Posco. Berkshire spent $572 million on the Posco shares, which were worth $1.16 billion at the end of 2006.
That would be worth considerably more now as Posco have more than doubled this year.
Merrill takes $7.9B mortgage hit
Wednesday, October 24, 2007
Wall Street lifted by upbeat company news
NEW YORK : Wall Street shares on Tuesday cheered outperforming earnings reports from Apple and other major companies and corporate deals that eased worries about the health of the US economy.
The Dow Jones Industrial Average jumped 109.26 points (0.81 percent) to 13,676.23 and the tech-heavy Nasdaq composite surged 45.33 points (1.65 percent) to 2,799.26.
The broad-market Standard & Poor's 500 index advanced 13.26 points (0.88 percent) to finish at 1,519.59.
For the second straight day investors drove stocks higher, rebounding from a slump on Friday and shaking off a rout in Asian and European markets on Monday.
Analysts said investors were growing more optimistic that the Federal Reserve will lower interest rates next week to counter economic softening stemming from the crisis in the risky sub-prime mortgage sector, where loans are given to home buyers with patchy credit histories.
In September the Fed slashed its base rate a half point to 4.75 percent, its first rate cut in four years, to ease the housing-related credit crunch.
"Next week's FOMC (Federal Open Market Committee) meeting October 30-31 takes on increased importance as the market anticipates a rate cut," said Al Goldman, a chief market strategist at AG Edwards.
<---------- Another rate cut? Is that good or bad?
The Dow Jones Industrial Average jumped 109.26 points (0.81 percent) to 13,676.23 and the tech-heavy Nasdaq composite surged 45.33 points (1.65 percent) to 2,799.26.
The broad-market Standard & Poor's 500 index advanced 13.26 points (0.88 percent) to finish at 1,519.59.
For the second straight day investors drove stocks higher, rebounding from a slump on Friday and shaking off a rout in Asian and European markets on Monday.
Analysts said investors were growing more optimistic that the Federal Reserve will lower interest rates next week to counter economic softening stemming from the crisis in the risky sub-prime mortgage sector, where loans are given to home buyers with patchy credit histories.
In September the Fed slashed its base rate a half point to 4.75 percent, its first rate cut in four years, to ease the housing-related credit crunch.
"Next week's FOMC (Federal Open Market Committee) meeting October 30-31 takes on increased importance as the market anticipates a rate cut," said Al Goldman, a chief market strategist at AG Edwards.
<---------- Another rate cut? Is that good or bad?
Monday, October 22, 2007
Ascendas REIT (AREIT SP) - Results In Line
A-reit’s 2Q08 results were within expectations.
Revenue and distributable income improving by about 4% sequentially to $80.2m and $46.5m respectively lifted by better rental and occupancy levels, particularly for business parks space. Looking ahead, DPU growth would be underpinned by organic improvement from existing portfolio, new contributions from $98m of new buys and $338m of development projects, to be progressively completed from early 2008.
A-reit is currently trading at FY08 and FY09 yields of 5.9-6.4% and at relatively steep P/book NAV of 1.6x. Maintain Hold recommendation with a fair value price target of $2.66, translating to a potential 11% upside.
<------- Recommendation by DMG
Revenue and distributable income improving by about 4% sequentially to $80.2m and $46.5m respectively lifted by better rental and occupancy levels, particularly for business parks space. Looking ahead, DPU growth would be underpinned by organic improvement from existing portfolio, new contributions from $98m of new buys and $338m of development projects, to be progressively completed from early 2008.
A-reit is currently trading at FY08 and FY09 yields of 5.9-6.4% and at relatively steep P/book NAV of 1.6x. Maintain Hold recommendation with a fair value price target of $2.66, translating to a potential 11% upside.
<------- Recommendation by DMG
Friday, October 19, 2007
Oil price hits record US$89.30 in New York
NEW YORK - New York's main oil futures contract, light sweet crude for delivery in November, hit a record 89.30 dollars in intraday trade Thursday, boosted by geopolitical and supply concerns.
The new high came a day after the benchmark contract had climbed to a record 89.00 dollars in intraday trade, before closing 21 cents lower at 87.40 dollars, breaking a six-session surge.
In London, Brent North Sea crude for December delivery was up 1.47 dollars at 84.60 dollars. The November contract expired Tuesday after striking an all-time high of 84.49 dollars.
Crude futures had finished lower Wednesday on profit-taking after a stronger-than-expected US energy stockpiles report offset geopolitical worries surrounding oil exporters Iraq and Iran.
This week, oil blazed a record-breaking trail as traders seized on simmering tensions along the Turkey-Iraq border.
Prices also won support from the weak US dollar, which makes dollar-priced commodities cheaper for buyers with stronger currencies and therefore lifts crude demand.
The euro hit a record high 1.4310 dollars earlier Thursday. "The issue seems no longer to be whether oil will reach 100 dollars per barrel, but when," said Barclays Capital analyst Kevin Norrish. "
Once the furore has settled down, the oil market as a whole can get on the job of working out whether supply and demand dynamics mean that long-term prices should have two or three digits."
<--------- No comment now..
The new high came a day after the benchmark contract had climbed to a record 89.00 dollars in intraday trade, before closing 21 cents lower at 87.40 dollars, breaking a six-session surge.
In London, Brent North Sea crude for December delivery was up 1.47 dollars at 84.60 dollars. The November contract expired Tuesday after striking an all-time high of 84.49 dollars.
Crude futures had finished lower Wednesday on profit-taking after a stronger-than-expected US energy stockpiles report offset geopolitical worries surrounding oil exporters Iraq and Iran.
This week, oil blazed a record-breaking trail as traders seized on simmering tensions along the Turkey-Iraq border.
Prices also won support from the weak US dollar, which makes dollar-priced commodities cheaper for buyers with stronger currencies and therefore lifts crude demand.
The euro hit a record high 1.4310 dollars earlier Thursday. "The issue seems no longer to be whether oil will reach 100 dollars per barrel, but when," said Barclays Capital analyst Kevin Norrish. "
Once the furore has settled down, the oil market as a whole can get on the job of working out whether supply and demand dynamics mean that long-term prices should have two or three digits."
<--------- No comment now..
Wednesday, October 17, 2007
HDB to build 4,500 new flats over 6 months to meet demand
SINGAPORE: The Housing and Development Board (HDB) will offer about 4,500 new flats over the next six months, under its Build-To-Order Scheme, to meet rising demand for public housing.
It also reported good sales for its stock of surplus flats and is aiming to bring the number down to 2,200 units by year's end, as revealed in the latest HDB annual report on Wednesday.
In the last financial year, HDB received 8,455 bookings for new flats – 7 percent more than the previous year.
Between January and September this year, HDB has offered 2,700 new flats under its Build-To-Order exercises.
Demand looks so good that HDB said it would roll out 4,500 flats, including a small number of five-room flats, in the next six months.
Tay Kim Poh, CEO of HDB, said: "The main focus would still be largely in Punggol and Sengkang. For Punggol, this is part of our plans to build up the catchment so that we can provide more facilities. In Sengkang, there is also land available, and these two towns happen to be very popular towns with flat buyers. In addition to that, we will also be looking at other estates where we have run out of unsold flats."
Three new sites will also be tendered for HDB's Design, Build & Sell Scheme, yielding a further 1,500 units.
Industry players said demand for HDB flats has risen over the last six to nine months, in part due to the rosy economic outlook and an increasing confidence in the value of HDB flats through the government's slew of estate upgrading programmes.
HDB said the take-up rate for new flats has also been strong at 92 percent and 97 percent in its two sales exercises this year.
The good demand, coupled with the conversion of flats into two-room units in Jurong West and Sengkang, has also depleted HDB's stock of unsold flats, which have dropped from over 10,000 units three years ago to just 3,500 now.
And the stock could fall to 2,200 units by the end of the year.
Property agents have welcomed the move to build more new flats, saying increased supply will stabilise prices in the resale market.
David Poh, Director of Strategic Planning & Development, PropNex, said: "I believe the resale prices will continue to climb in the next few quarters for a few reasons. First, demand is going up. Next, the spillover from the en-bloc fever.
"For the fourth quarter this year, it should be in the region of about maybe 5 to 7 percent, and after Q4, it should grow in the region of 3 to 5 percent."
HDB said lower-income families will continue to get help to buy their own homes.
It revealed that its Additional CPF Housing Grant Scheme, introduced last March, has already benefited 3,500 households.
Looking ahead, HDB said upgrading remains a key part of its plans.
It will be extending the lift upgrading programme to 96 percent of HDB blocks that do not have full lift access.
It is also on track to put lifts on every floor for all eligible blocks by 2014.
In its annual report, HDB said it would work on realising the vision to remake the heartlands.
While many of these are long-term plans, it said the changes should come on stream over the next five years, including the rejuvenation of older estates in Queenstown.
<------- More good news for Singapore contractors
It also reported good sales for its stock of surplus flats and is aiming to bring the number down to 2,200 units by year's end, as revealed in the latest HDB annual report on Wednesday.
In the last financial year, HDB received 8,455 bookings for new flats – 7 percent more than the previous year.
Between January and September this year, HDB has offered 2,700 new flats under its Build-To-Order exercises.
Demand looks so good that HDB said it would roll out 4,500 flats, including a small number of five-room flats, in the next six months.
Tay Kim Poh, CEO of HDB, said: "The main focus would still be largely in Punggol and Sengkang. For Punggol, this is part of our plans to build up the catchment so that we can provide more facilities. In Sengkang, there is also land available, and these two towns happen to be very popular towns with flat buyers. In addition to that, we will also be looking at other estates where we have run out of unsold flats."
Three new sites will also be tendered for HDB's Design, Build & Sell Scheme, yielding a further 1,500 units.
Industry players said demand for HDB flats has risen over the last six to nine months, in part due to the rosy economic outlook and an increasing confidence in the value of HDB flats through the government's slew of estate upgrading programmes.
HDB said the take-up rate for new flats has also been strong at 92 percent and 97 percent in its two sales exercises this year.
The good demand, coupled with the conversion of flats into two-room units in Jurong West and Sengkang, has also depleted HDB's stock of unsold flats, which have dropped from over 10,000 units three years ago to just 3,500 now.
And the stock could fall to 2,200 units by the end of the year.
Property agents have welcomed the move to build more new flats, saying increased supply will stabilise prices in the resale market.
David Poh, Director of Strategic Planning & Development, PropNex, said: "I believe the resale prices will continue to climb in the next few quarters for a few reasons. First, demand is going up. Next, the spillover from the en-bloc fever.
"For the fourth quarter this year, it should be in the region of about maybe 5 to 7 percent, and after Q4, it should grow in the region of 3 to 5 percent."
HDB said lower-income families will continue to get help to buy their own homes.
It revealed that its Additional CPF Housing Grant Scheme, introduced last March, has already benefited 3,500 households.
Looking ahead, HDB said upgrading remains a key part of its plans.
It will be extending the lift upgrading programme to 96 percent of HDB blocks that do not have full lift access.
It is also on track to put lifts on every floor for all eligible blocks by 2014.
In its annual report, HDB said it would work on realising the vision to remake the heartlands.
While many of these are long-term plans, it said the changes should come on stream over the next five years, including the rejuvenation of older estates in Queenstown.
<------- More good news for Singapore contractors
Housing woes take bigger toll on economy than expected: Paulson
WASHINGTON : The slump in US real estate is persisting longer than expected, and may lead to over one million foreclosure notices this year for homeowners, Treasury Secretary Henry Paulson said on Tuesday.
"The ongoing housing correction is not ending as quickly as it might have appeared late last year," Paulson said in remarks prepared for delivery in a speech at the Georgetown University Law Centre. "
And it now looks like it will continue to adversely impact out economy, our capital markets and many homeowners for some time yet. Even so, I believe we have a healthy, diversified economy that will continue to grow."
Paulson said home foreclosures are rising sharply, especially on sub-prime loans granted to people with weak credit histories.
"Current trends suggest there will be just over one million foreclosure starts this year - of which 620,000 are sub-prime," he said.
He said it was a "troubling" statistic that two million adjustable-rate loans will be reset to higher rates in the next 18 months, and that it was unclear how many of those might put homeowners in jeopardy of foreclosure.
The troubles in the sector have meant weakness in home construction and turmoil in the financial sector, with the end of the problems not yet in sight, Paulson stated.
"Despite strong economic fundamentals, the housing decline is still unfolding and I view it as the most significant risk to our economy," he said.
"The longer housing prices remain stagnant or fall, the greater the penalty to our future economic growth."
Paulson said efforts are being made in the public and private sectors to help homeowners avert the loss of their properties, but that more needs to be done to avert a future crisis.
<----------- New singer, old song
"The ongoing housing correction is not ending as quickly as it might have appeared late last year," Paulson said in remarks prepared for delivery in a speech at the Georgetown University Law Centre. "
And it now looks like it will continue to adversely impact out economy, our capital markets and many homeowners for some time yet. Even so, I believe we have a healthy, diversified economy that will continue to grow."
Paulson said home foreclosures are rising sharply, especially on sub-prime loans granted to people with weak credit histories.
"Current trends suggest there will be just over one million foreclosure starts this year - of which 620,000 are sub-prime," he said.
He said it was a "troubling" statistic that two million adjustable-rate loans will be reset to higher rates in the next 18 months, and that it was unclear how many of those might put homeowners in jeopardy of foreclosure.
The troubles in the sector have meant weakness in home construction and turmoil in the financial sector, with the end of the problems not yet in sight, Paulson stated.
"Despite strong economic fundamentals, the housing decline is still unfolding and I view it as the most significant risk to our economy," he said.
"The longer housing prices remain stagnant or fall, the greater the penalty to our future economic growth."
Paulson said efforts are being made in the public and private sectors to help homeowners avert the loss of their properties, but that more needs to be done to avert a future crisis.
<----------- New singer, old song
Tuesday, October 16, 2007
Major US banks announce plan to ease credit squeeze
WASHINGTON : Three major US banks announced a plan on Monday to ease the global liquidity squeeze with a massive fund for mortgage securities and short-term corporate loans hurt by tighter credit conditions.
Bank of America, Citigroup, JPMorgan Chase and several other financial institutions said they reached an agreement in principle to create a single "master liquidity enhancement conduit" to buy up troubled debt with adequate collateral.
The amount of the new fund was not immediately disclosed, but the Wall Street Journal reported the banks would pump in as much as US$100 billion. The Financial Times said the amount would be some US$75 billion.
The move prompted by the US Treasury was seen as a major effort by the private banking sector to help restore normal credit conditions after turmoil earlier this year sparked by losses and a lack of confidence in sub-prime mortgage assets.
It was not immediately clear which other institutions would participate in the plan or how it would work, but it is aimed at reopening credit lines for borrowers with good credit who have been hurt by fears about spreading woes from the sub-prime credit crisis.
The plan was facilitated by US Treasury officials in an effort to help unblock credit in the face of a squeeze that had prompted lenders to scale back many types of lending.
The fund is aimed at helping restore normal credit conditions for mortgage securities, but also for short-term corporate loans many firms need to meet payroll and other day-to-day expenses.
The three banks said that refinancing in the asset-backed commercial paper markets "has been difficult despite the high quality collateral underlying many of these securities," and that the new fund would help facilitate refinancing of these loans.
The new consortium may be operational within 90 days, according to the three banks.
<------------- why did DJIA slides more than 100 points today then?
Bank of America, Citigroup, JPMorgan Chase and several other financial institutions said they reached an agreement in principle to create a single "master liquidity enhancement conduit" to buy up troubled debt with adequate collateral.
The amount of the new fund was not immediately disclosed, but the Wall Street Journal reported the banks would pump in as much as US$100 billion. The Financial Times said the amount would be some US$75 billion.
The move prompted by the US Treasury was seen as a major effort by the private banking sector to help restore normal credit conditions after turmoil earlier this year sparked by losses and a lack of confidence in sub-prime mortgage assets.
It was not immediately clear which other institutions would participate in the plan or how it would work, but it is aimed at reopening credit lines for borrowers with good credit who have been hurt by fears about spreading woes from the sub-prime credit crisis.
The plan was facilitated by US Treasury officials in an effort to help unblock credit in the face of a squeeze that had prompted lenders to scale back many types of lending.
The fund is aimed at helping restore normal credit conditions for mortgage securities, but also for short-term corporate loans many firms need to meet payroll and other day-to-day expenses.
The three banks said that refinancing in the asset-backed commercial paper markets "has been difficult despite the high quality collateral underlying many of these securities," and that the new fund would help facilitate refinancing of these loans.
The new consortium may be operational within 90 days, according to the three banks.
<------------- why did DJIA slides more than 100 points today then?
Monday, October 15, 2007
'Black Monday' haunts traders as 20-year anniversary looms
NEW YORK : Recent stock market volatility has stirred up haunting memories for veteran traders who got caught up in the Wall Street crash 20 years ago on October 19 known as "Black Monday."
As the anniversary of that day in 1987 nears, when the Dow Jones Industrial Average stock barometer plunged a dramatic 22.61 percent to 1,738.41 points, traders said modern technology has reduced some risks, but warned that market panics are always a danger.
Uncertainty swept Wall Street on "Black Monday" 1987, for no easily identifiable reason amid a lack of major economic news or other events, triggering a 508-point tumble in the Dow index that wiped out around 560 billion dollars in market worth.
The maelstrom was exacerbated as computer programmes kicked out more and more sell orders as stock prices plummeted, overwhelming some traders ability to fulfil the massive order flows.
"The atmosphere was one of panic. That was a day where we didn't know how bad things could get. The financial system and the equities market were on the verge of collapsing," recalled Art
Hogan, a trader at Jefferies. Hogan, then a rookie 26-year-old trader, was working at the Boston Stock Exchange when the markets imploded.
The 1987 meltdown saw the Dow dive by its biggest margin since it lost 24.39 percent of its value on December 12, 1914 when trading was resumed for the first time since the outbreak of the First World War.
This year's market jitters look fairly tame by comparison.
<---------- Will history repeat? I certainly hope not
As the anniversary of that day in 1987 nears, when the Dow Jones Industrial Average stock barometer plunged a dramatic 22.61 percent to 1,738.41 points, traders said modern technology has reduced some risks, but warned that market panics are always a danger.
Uncertainty swept Wall Street on "Black Monday" 1987, for no easily identifiable reason amid a lack of major economic news or other events, triggering a 508-point tumble in the Dow index that wiped out around 560 billion dollars in market worth.
The maelstrom was exacerbated as computer programmes kicked out more and more sell orders as stock prices plummeted, overwhelming some traders ability to fulfil the massive order flows.
"The atmosphere was one of panic. That was a day where we didn't know how bad things could get. The financial system and the equities market were on the verge of collapsing," recalled Art
Hogan, a trader at Jefferies. Hogan, then a rookie 26-year-old trader, was working at the Boston Stock Exchange when the markets imploded.
The 1987 meltdown saw the Dow dive by its biggest margin since it lost 24.39 percent of its value on December 12, 1914 when trading was resumed for the first time since the outbreak of the First World War.
This year's market jitters look fairly tame by comparison.
<---------- Will history repeat? I certainly hope not
Sunday, October 14, 2007
SNF board refutes shareholders' charges
SNF Corp's directors have come out to challenge allegations by a group of new substantial shareholders that recent events have caused them to lose faith in the company.
BT reported yesterday that a group of shareholders with more than 10 per cent of SNF had demanded the board be axed.
The group is represented by Ariel Singapore Pte Ltd and its executive director Low Shiong Jin, who is also executive director of Singapore-listed companies Oculus and Enzer.
The group sent a special notice to SNF's board, asking members to step down voluntarily by this coming Monday.
It cited as cause for concern the recent departures of the company's founding CEO Ng Hock Ching, its founding executive director Lee Chee Keet and its chief financial officer Teo Thiam Chye.
SNF 'has lost its key personnel responsible for charting the corporate direction and business strategies for the company', it said.But SNF's board - led by chairman and former Member of Parliament John Chen - hit back yesterday.
In a letter to BT, Dr Chen said Mr Ng remains an adviser to the company and 'contributes actively to SNF, until today'. 'A capable and experienced CEO, Tan Puay Chuan, was found to replace Mr Ng,' Dr Chen said.
'Likewise, a replacement was found for Teo Thiam Chye. While there have been changes, there are no disruptions to SNF's business and operations.' He also challenged the shareholders' claim that SNF posted poor results for the half-year ended June 30, 2007.
'SNF recorded a profit of $24,000 in the second quarter of 2007 compared with a loss of $311,000 in the first quarter of 2007,' he said.
'SNF clearly showed an improved performance in the second quarter of 2007.' Dr Chen said the board 'found it incomprehensible' that Ariel and Mr Low would have bought their shares in SNF if they had claimed to have 'lost faith in the incumbent board's ability'.
He also gave a rundown on the board's dealings with the new shareholders. He said Mr Low had asked to meet the board after he and Ariel began accumulating a stake in SNF on Sept 26. They had no interest in SNF before then.
Dr Chen said Mr Low proposed a business deal at an Oct 1 meeting with the board but was unable to provide details or a proper proposal the board required.
A week later, Ariel and Mr Low sent SNF a letter asking for two executive board seats, but didn't give details on their two board nominees, Dr Chen said. The board then met and agreed that it would consider offering one non-executive seat to one of the nominees.
But Mr Low failed to go along with the board's attempts to arrange a meeting, he said. The next thing that happened was that Ariel and Mr Low's special notice arrived on Thursday this week, asking for the board's resignation.
Dr Chen said the board called an urgent meeting that day and dismissed the demand as it felt it could not, in the interest of SNF and all shareholders, allow the new shareholders to take control of the company.
BT reported yesterday that a group of shareholders with more than 10 per cent of SNF had demanded the board be axed.
The group is represented by Ariel Singapore Pte Ltd and its executive director Low Shiong Jin, who is also executive director of Singapore-listed companies Oculus and Enzer.
The group sent a special notice to SNF's board, asking members to step down voluntarily by this coming Monday.
It cited as cause for concern the recent departures of the company's founding CEO Ng Hock Ching, its founding executive director Lee Chee Keet and its chief financial officer Teo Thiam Chye.
SNF 'has lost its key personnel responsible for charting the corporate direction and business strategies for the company', it said.But SNF's board - led by chairman and former Member of Parliament John Chen - hit back yesterday.
In a letter to BT, Dr Chen said Mr Ng remains an adviser to the company and 'contributes actively to SNF, until today'. 'A capable and experienced CEO, Tan Puay Chuan, was found to replace Mr Ng,' Dr Chen said.
'Likewise, a replacement was found for Teo Thiam Chye. While there have been changes, there are no disruptions to SNF's business and operations.' He also challenged the shareholders' claim that SNF posted poor results for the half-year ended June 30, 2007.
'SNF recorded a profit of $24,000 in the second quarter of 2007 compared with a loss of $311,000 in the first quarter of 2007,' he said.
'SNF clearly showed an improved performance in the second quarter of 2007.' Dr Chen said the board 'found it incomprehensible' that Ariel and Mr Low would have bought their shares in SNF if they had claimed to have 'lost faith in the incumbent board's ability'.
He also gave a rundown on the board's dealings with the new shareholders. He said Mr Low had asked to meet the board after he and Ariel began accumulating a stake in SNF on Sept 26. They had no interest in SNF before then.
Dr Chen said Mr Low proposed a business deal at an Oct 1 meeting with the board but was unable to provide details or a proper proposal the board required.
A week later, Ariel and Mr Low sent SNF a letter asking for two executive board seats, but didn't give details on their two board nominees, Dr Chen said. The board then met and agreed that it would consider offering one non-executive seat to one of the nominees.
But Mr Low failed to go along with the board's attempts to arrange a meeting, he said. The next thing that happened was that Ariel and Mr Low's special notice arrived on Thursday this week, asking for the board's resignation.
Dr Chen said the board called an urgent meeting that day and dismissed the demand as it felt it could not, in the interest of SNF and all shareholders, allow the new shareholders to take control of the company.
A story - for viewing pleasure only
Ever heard of the gal who wanted to be cremated with her handphone?
This is a true story of a young college gal who past away last month in Singapore. Her name is Priya. She was hit by a lorry. I don't wanna mention the name of the college.
She had a boy friend by the name of Shankar. He stays in Penang. Both of them were deeply in love with each other.
They used to spend hours talking on the phone. In fact, u can never see her without her handphone. She spends 3/4 of the day talking to Shankar.
Priya's family knows about their close relationship. Shankar is very close with Priya's family. (Just imagine their love) .
She used to joke with her frens, "If I pass away please burn me with my handphone." She also repeated the same thing to her parents.
When she passed away suddenly, the funeral procession could not lift her coffin. I was there. A lot of them tried to do so but still cant , everybody including me, had tried to carry the coffin, the result is still the same.
Eventually, they called their neighbour, a "bomoh" from thailand (Pak Darin), who was a friend of her father. He took a seat and started speaking to himself slowly.
After a few minutes, he said "This girl misses something here". Then her frens told Darin bout her intentions to have her cremated with her phone.
He then opened the coffin and place her phone and SIM card inside the casket. After that they tried to carry the coffin. It could be moved and they carried it into the van easily.
All of us were shocked. (Can u feel the fear. i'm shaking at this moment!)
Priya's parents didnt inform Shankar that Priya had passed away. (Pity Shankar).
After 2 weeks Shankar called Priya's mom. Shankar : "Atte, I'm coming home today. Cook something nice for me. Dont tell Priya that i'm coming home today. i wanna suprise her."
Her mother replied: "You come home first, i wanna tell u something very important." When he got to Singapore, they told him the truth about Priya.
Shankar thinks that they were playing a fool. He was laughing and said "Dont try to fool me. Tell Priya to come out. i have a gift for her. Please stop this nonsense".
Then they show him the original death certificate to him. They gave him proof to make him believe. (Shankar started to sweat).
He said... "Its not true. We spoke yesterday. She still calls me." Shankar was shaking.
Suddenly, shankar's phone rang. "See this is from Priya. See this..." he showed the phone to priya's family.
All of them told him to answer. He talked using the loudspeaker mode. All of them heard her conversation loud and clear.
No cross lines, no humming. It is the actual voice of Priya & there is no way others could use her simcard since it was placed inside the coffin before cremation.
They were so shocked and asked for Pak Darin's help again.
Pak Darin brought his master (Tok Chen) to solve this matter. He & Darin worked for 5 hours.
Then they discovered one thing... M1 has the best coverage. Buy M1 shares.
<--------------- very interesting way to promote a stock.
This is a true story of a young college gal who past away last month in Singapore. Her name is Priya. She was hit by a lorry. I don't wanna mention the name of the college.
She had a boy friend by the name of Shankar. He stays in Penang. Both of them were deeply in love with each other.
They used to spend hours talking on the phone. In fact, u can never see her without her handphone. She spends 3/4 of the day talking to Shankar.
Priya's family knows about their close relationship. Shankar is very close with Priya's family. (Just imagine their love) .
She used to joke with her frens, "If I pass away please burn me with my handphone." She also repeated the same thing to her parents.
When she passed away suddenly, the funeral procession could not lift her coffin. I was there. A lot of them tried to do so but still cant , everybody including me, had tried to carry the coffin, the result is still the same.
Eventually, they called their neighbour, a "bomoh" from thailand (Pak Darin), who was a friend of her father. He took a seat and started speaking to himself slowly.
After a few minutes, he said "This girl misses something here". Then her frens told Darin bout her intentions to have her cremated with her phone.
He then opened the coffin and place her phone and SIM card inside the casket. After that they tried to carry the coffin. It could be moved and they carried it into the van easily.
All of us were shocked. (Can u feel the fear. i'm shaking at this moment!)
Priya's parents didnt inform Shankar that Priya had passed away. (Pity Shankar).
After 2 weeks Shankar called Priya's mom. Shankar : "Atte, I'm coming home today. Cook something nice for me. Dont tell Priya that i'm coming home today. i wanna suprise her."
Her mother replied: "You come home first, i wanna tell u something very important." When he got to Singapore, they told him the truth about Priya.
Shankar thinks that they were playing a fool. He was laughing and said "Dont try to fool me. Tell Priya to come out. i have a gift for her. Please stop this nonsense".
Then they show him the original death certificate to him. They gave him proof to make him believe. (Shankar started to sweat).
He said... "Its not true. We spoke yesterday. She still calls me." Shankar was shaking.
Suddenly, shankar's phone rang. "See this is from Priya. See this..." he showed the phone to priya's family.
All of them told him to answer. He talked using the loudspeaker mode. All of them heard her conversation loud and clear.
No cross lines, no humming. It is the actual voice of Priya & there is no way others could use her simcard since it was placed inside the coffin before cremation.
They were so shocked and asked for Pak Darin's help again.
Pak Darin brought his master (Tok Chen) to solve this matter. He & Darin worked for 5 hours.
Then they discovered one thing... M1 has the best coverage. Buy M1 shares.
<--------------- very interesting way to promote a stock.
Saturday, October 13, 2007
US stocks end higher on GE profit, better retail sales
NEW YORK: US stocks posted solid gains Friday after General Electric's earnings met expectations and as retail sales showed signs of improvement despite housing and mortgage market woes.
Corporate deal-making news also perked up the market as the world's second-largest software firm Oracle announced it was mounting a 6.68-billion-US-dollar takeover for rival business software group BEA Systems.
The Dow Jones Industrial Average closed up 77.96 points (0.56 per cent) at 14,093.08.
Technology stocks rallied as the Nasdaq leapt 33.48 points (1.21 per cent) to 2,805.68. Traders said the Nasdaq got a boost from news that Oracle was bidding for BEA Systems.
The broad-market Standard & Poor's 500 ended up 7.39 points (0.48 per cent) at 1,561.80.
"The major stock averages marched in step to the theme of a bull market and bounced back from yesterday's mild sell-off. Earnings and economic data got the credit for today's gains," said Al Goldman, a chief market strategist at AG Edwards.
Stocks gained ground in morning trading after GE reported a third-quarter profit of 5.54 billion US dollars, lifted in part by the sale of its plastics division to a Saudi Arabian group.
<----------- Are we still in the bull market?
Corporate deal-making news also perked up the market as the world's second-largest software firm Oracle announced it was mounting a 6.68-billion-US-dollar takeover for rival business software group BEA Systems.
The Dow Jones Industrial Average closed up 77.96 points (0.56 per cent) at 14,093.08.
Technology stocks rallied as the Nasdaq leapt 33.48 points (1.21 per cent) to 2,805.68. Traders said the Nasdaq got a boost from news that Oracle was bidding for BEA Systems.
The broad-market Standard & Poor's 500 ended up 7.39 points (0.48 per cent) at 1,561.80.
"The major stock averages marched in step to the theme of a bull market and bounced back from yesterday's mild sell-off. Earnings and economic data got the credit for today's gains," said Al Goldman, a chief market strategist at AG Edwards.
Stocks gained ground in morning trading after GE reported a third-quarter profit of 5.54 billion US dollars, lifted in part by the sale of its plastics division to a Saudi Arabian group.
<----------- Are we still in the bull market?
Friday, October 12, 2007
US retail giant Wal-Mart eyeing Malaysia: official
KUALA LUMPUR : The US retail giant Wal-Mart is keen to open stores in Malaysia, a junior minister said Friday, amid a government drive to lure investment and boost economic growth.
"Wal-Mart has shown interest," said deputy trade minister S. Veerasingam, but he declined to elaborate further amid reports the company had formally applied to enter the Malaysian market.
He added that German company Metro, one of Europe's largest retailers, had applied for permission to set up operations.
Another official said the entry of foreign retail giants would create jobs. "It will not only provide more jobs locally, but will make the retail market more competitive besides injecting foreign investments in the country," said consumer affairs minister Shafie Apdal.
He said foreign retailers were keen to invest in Malaysia due to the strong purchasing power of local consumers.
Malaysia has restricted the entry and expansion of supermarkets over recent years to protect smaller local businesses.
But major foreign retailers including France's Carrefour, Britain's Tesco, Japan's Isetan and IKEA of Sweden are already operating in the country.
Malaysia, with a population of 27 million, expects to post strong economic growth of 6.0 per cent this year, after its economy expanded by 5.9 per cent in 2006.
It is Southeast Asia's third largest economy but has seen foreign direct investment steadily declining. In 2006, it amounted to an estimated $3.9 billion, compared to $5.5 billion in 2001.
<--------------- Wow! that is good news to the Malaysian.. but bad news to GIANT Supermarket
"Wal-Mart has shown interest," said deputy trade minister S. Veerasingam, but he declined to elaborate further amid reports the company had formally applied to enter the Malaysian market.
He added that German company Metro, one of Europe's largest retailers, had applied for permission to set up operations.
Another official said the entry of foreign retail giants would create jobs. "It will not only provide more jobs locally, but will make the retail market more competitive besides injecting foreign investments in the country," said consumer affairs minister Shafie Apdal.
He said foreign retailers were keen to invest in Malaysia due to the strong purchasing power of local consumers.
Malaysia has restricted the entry and expansion of supermarkets over recent years to protect smaller local businesses.
But major foreign retailers including France's Carrefour, Britain's Tesco, Japan's Isetan and IKEA of Sweden are already operating in the country.
Malaysia, with a population of 27 million, expects to post strong economic growth of 6.0 per cent this year, after its economy expanded by 5.9 per cent in 2006.
It is Southeast Asia's third largest economy but has seen foreign direct investment steadily declining. In 2006, it amounted to an estimated $3.9 billion, compared to $5.5 billion in 2001.
<--------------- Wow! that is good news to the Malaysian.. but bad news to GIANT Supermarket
US stocks turn lower after record run
NEW YORK : US stock markets closed lower on Thursday after earlier notching up intra-day record highs as investors opted to cash in some profits, traders said.
The markets saw volatile action as investors were buffeted with some upbeat corporate news as retail titan Wal-Mart Stores., Inc hiked its profit forecasts, but as an industry survey showed home foreclosures still running at high levels.
The Dow Jones Industrial Average slipped 63.57 points (0.45 percent) to close at 14,015.12, after striking an all-time intra-day high of 14,198.10.
The broad-market Standard & Poor's 500 also made a run at a new record but ended 8.06 points (0.52 percent) lower at 1,554.41.
Technology stocks took a battering as the Nasdaq lost a hefty 39.41 points (1.40 percent) to 2,772.20.
Traders said there was no one event that drove the markets lower in afternoon deal-making, but said it appeared that some investors had wanted to take advantage of the market's gains to net some lucrative profits.
"Following a sharp early rally, the market stumbled badly today. After climbing more than one hundred points to new record highs, the Dow did an about face in the last two hours on profit taking," said Al Goldman, a chief market strategist at AG Edwards.
<----------- Profit taking? Hopefully Asia markets are not relying on US market so much... else it will be a sea of red today.
The markets saw volatile action as investors were buffeted with some upbeat corporate news as retail titan Wal-Mart Stores., Inc hiked its profit forecasts, but as an industry survey showed home foreclosures still running at high levels.
The Dow Jones Industrial Average slipped 63.57 points (0.45 percent) to close at 14,015.12, after striking an all-time intra-day high of 14,198.10.
The broad-market Standard & Poor's 500 also made a run at a new record but ended 8.06 points (0.52 percent) lower at 1,554.41.
Technology stocks took a battering as the Nasdaq lost a hefty 39.41 points (1.40 percent) to 2,772.20.
Traders said there was no one event that drove the markets lower in afternoon deal-making, but said it appeared that some investors had wanted to take advantage of the market's gains to net some lucrative profits.
"Following a sharp early rally, the market stumbled badly today. After climbing more than one hundred points to new record highs, the Dow did an about face in the last two hours on profit taking," said Al Goldman, a chief market strategist at AG Edwards.
<----------- Profit taking? Hopefully Asia markets are not relying on US market so much... else it will be a sea of red today.
Thursday, October 11, 2007
S'pore GDP growth remains strong in Q3, up 9.4% year-on-year
SINGAPORE: Singapore's economy powered to 9.4 per cent growth in the third quarter, within market forecasts, putting it on track to meet the government's full-year targets, the trade ministry said on Wednesday.
Gross domestic product grew 9.4 per cent compared with the same period a year earlier, the ministry said. That followed a revised 8.7 per cent expansion in GDP during the second quarter, it said.
Economists were expecting third-quarter growth of between nine and ten per cent.
On a quarter-on-quarter seasonally adjusted annualised basis, real GDP growth slowed to 6.4 per cent from 14.4 per cent in the second quarter, the trade ministry said.
"The Singapore economy continued to register strong growth in the third quarter of 2007," it said in a press release, adding the economy "is well on track" to meet full-year growth targets.
In August, the government raised its full-year growth target to between 7.0 and 8.0 per cent after better-than-expected second-quarter expansion.
The trade ministry said third-quarter growth in the manufacturing sector reached an estimated 12.3 per cent, up from 8.3 per cent in the preceding quarter. It said manufacturing growth was underpinned by the biomedical sector and transport engineering, which includes oil rigs and ships.
Growth in the construction sector is estimated to have eased to 15.5 per cent compared with 18.8 per cent last quarter, while the services sector expanded an estimated 8.1 per cent, against 8.4 per cent in the second quarter, MTI said.
Action Economics chief economist David Cohen said there was some moderation from the second quarter but year-on-year growth picked up. "It's still a solid growth," he said.
Singapore is undergoing a property and construction boom, with cranes towering over the skyline.
The positive outlook for both the construction and manufacturing sectors could push the city-state's GDP expansion above the government's official targets, to 8.3 per cent for the year, Cohen said.
Despite a recent crisis in the US "sub-prime" mortgage sector and fears of a slowing US economy, Cohen said the third-quarter data reflected continued momentum in Singapore.
<----------- Wish this result will instill confidence to investors and help the stock market to be more bullish..
Gross domestic product grew 9.4 per cent compared with the same period a year earlier, the ministry said. That followed a revised 8.7 per cent expansion in GDP during the second quarter, it said.
Economists were expecting third-quarter growth of between nine and ten per cent.
On a quarter-on-quarter seasonally adjusted annualised basis, real GDP growth slowed to 6.4 per cent from 14.4 per cent in the second quarter, the trade ministry said.
"The Singapore economy continued to register strong growth in the third quarter of 2007," it said in a press release, adding the economy "is well on track" to meet full-year growth targets.
In August, the government raised its full-year growth target to between 7.0 and 8.0 per cent after better-than-expected second-quarter expansion.
The trade ministry said third-quarter growth in the manufacturing sector reached an estimated 12.3 per cent, up from 8.3 per cent in the preceding quarter. It said manufacturing growth was underpinned by the biomedical sector and transport engineering, which includes oil rigs and ships.
Growth in the construction sector is estimated to have eased to 15.5 per cent compared with 18.8 per cent last quarter, while the services sector expanded an estimated 8.1 per cent, against 8.4 per cent in the second quarter, MTI said.
Action Economics chief economist David Cohen said there was some moderation from the second quarter but year-on-year growth picked up. "It's still a solid growth," he said.
Singapore is undergoing a property and construction boom, with cranes towering over the skyline.
The positive outlook for both the construction and manufacturing sectors could push the city-state's GDP expansion above the government's official targets, to 8.3 per cent for the year, Cohen said.
Despite a recent crisis in the US "sub-prime" mortgage sector and fears of a slowing US economy, Cohen said the third-quarter data reflected continued momentum in Singapore.
<----------- Wish this result will instill confidence to investors and help the stock market to be more bullish..
Wednesday, October 10, 2007
First Malaysian astronaut to lift off into space
BAIKONUR, Kazakhstan: Malaysia's first astronaut was to blast off on Wednesday on a space voyage seen as breaking new boundaries for the Asian nation and for space travel by Muslims. Sheikh Muszaphar Shukor was to lift off from the Baikonur cosmodrome at 1322 GMT in a Russian Soyuz rocket headed for the International Space Station (ISS) with Russian cosmonaut Yury Malenchenko and American Peggy Whitson.
He was to spend about nine days on the ISS, arriving at the orbiting station near the end of the holy month of Ramadan and staying there for the Eid festival, when he will treat the long-term crew to festive Malaysian food.
Malaysian officials have described the voyage as a national milestone as their country marks 50 years of independence.
Muszaphar, a 35-year-old doctor who has undergone extensive astronaut training, has said he hopes to inspire Malaysians to further space achievements and that Malaysia should have its own spacecraft by 2020.
He is due to conduct scientific experiments on behalf of Malaysia's Genome Institute, including tests on cancer cells to be transported on the Soyuz.
He has also said he will try to observe the fasting rules of Ramadan and that he hopes to get closer to God and share his experiences with other Muslims.
He is one of very few Muslims who have travelled to space. Malaysian religious authorities have prepared guidelines adapting religious rules to life on the ISS, which circles the Earth 16 times per calendar day, meaning that without adapting the rules he would be obliged to pray 80 times in 24 hours.
<---------- Wow! if he has really pray 80 times in 24 hours, I guess he wouldnt need to conduct any scientific experiements anymore.
Fourth stock QDII fund announced
Updated: 2007-10-09 16:32
The Asia-Pacific predominance fund, managed by China International Fund Management Co Ltd, won approval from the Chinese securities watchdog yesterday, the Shanghai Securities News reported today.
The fund focuses on markets in the Asia-Pacific such as securities markets in Australia, South Korea, Chinese Hong Kong, India, and Singapore, with the exception being Japan. Some 60 to 100 percent of the fund will be invested in stock, and the remainder will go to other short-term financial products, including bonds and foreign exchange.
Following Southern Fund, Huaxia Fund and Harvest Fund, China International Fund will be the fourth stock-oriented qualified domestic institutional investor (QDII), and its fund will be the first regional stock-oriented QDII fund of China.
Industrial and Commercial Bank of China assumes the role of primary agent and trustee of China International Fund's Asia-Pacific predominance fund, which is also available through China Construction Bank, Bank of Communication, and China Merchants Bank.
The minimum subscription amount is 10,000 yuan (US$1,330).
Yang Yifeng, the manager of this Asia-Pacific predominance fund, suggested they expect substantial returns from the world’s most active economic entity and its booming stock markets.
Furthermore, while most of the currencies in this region have appreciated against US dollars over the past couple years, Asia-Pacific is also a best option in minimizing risks related to renminbi appreciation.
Incorporated in May 2004, China International Fund Management Co Ltd is a joint venture between Shanghai International Trust and Investment Co Ltd and JPMorgan Fleming Asset Management Ltd, a part of JPMorgan Chase Group.
Wang Hongbin, the general manager of China International Fund, said the platforms for overseas market investment, transaction, clearing, and accounting are under construction.
<---------- Seems like alot of Chinese funds will be coming to other part of Asia, esp. HK and SG. Good news to the stock markets here.
The Asia-Pacific predominance fund, managed by China International Fund Management Co Ltd, won approval from the Chinese securities watchdog yesterday, the Shanghai Securities News reported today.
The fund focuses on markets in the Asia-Pacific such as securities markets in Australia, South Korea, Chinese Hong Kong, India, and Singapore, with the exception being Japan. Some 60 to 100 percent of the fund will be invested in stock, and the remainder will go to other short-term financial products, including bonds and foreign exchange.
Following Southern Fund, Huaxia Fund and Harvest Fund, China International Fund will be the fourth stock-oriented qualified domestic institutional investor (QDII), and its fund will be the first regional stock-oriented QDII fund of China.
Industrial and Commercial Bank of China assumes the role of primary agent and trustee of China International Fund's Asia-Pacific predominance fund, which is also available through China Construction Bank, Bank of Communication, and China Merchants Bank.
The minimum subscription amount is 10,000 yuan (US$1,330).
Yang Yifeng, the manager of this Asia-Pacific predominance fund, suggested they expect substantial returns from the world’s most active economic entity and its booming stock markets.
Furthermore, while most of the currencies in this region have appreciated against US dollars over the past couple years, Asia-Pacific is also a best option in minimizing risks related to renminbi appreciation.
Incorporated in May 2004, China International Fund Management Co Ltd is a joint venture between Shanghai International Trust and Investment Co Ltd and JPMorgan Fleming Asset Management Ltd, a part of JPMorgan Chase Group.
Wang Hongbin, the general manager of China International Fund, said the platforms for overseas market investment, transaction, clearing, and accounting are under construction.
<---------- Seems like alot of Chinese funds will be coming to other part of Asia, esp. HK and SG. Good news to the stock markets here.
Tuesday, October 9, 2007
26-year-old woman is China's richest person: Forbes
BEIJING - A 26-year-old woman property developer tops this year's Forbes list of the richest people in China, grabbing the number one spot with a net worth of 16 billion dollars, the US magazine said Monday.
That amount also makes Yang Huiyan the richest woman in Asia, according to a statement from Forbes.
All 40 people on Forbes Asia's 2007 China Rich List are billionaires, compared with only 15 last year, it said, attributing the rise to a boom in the nation's stock and property markets.
Their combined net worth is 120 billion dollars, up more than three times from last year's 38 billion dollars, it said.
The list was published as China prepares for the opening next week of the 17th Congress of the Communist Party, where the growing gap between rich and poor is likely to be among the top agenda items.
The nation's rulers are concerned that the widening difference between the haves and have-nots could endanger social cohesion in the world's most populous nation.
Yang, a graduate of Ohio State University, is the daughter of Yeung Kwok Keung, the co-founder of Country Garden Holdings, a property development firm.
Yeung transferred his shareholdings to his daughter in 2005, and she now sits on the company's board as an executive director, Forbes said.
<--------------- Rich daddy, rich daughter... but property line is definitely a gold mine this period.
Sunday, October 7, 2007
US Economic Calender (8/10/2007 to 12/10/2007)
Since it is a US holiday on Monday.. guess it will be a quiet day for the rest of the markets.
New accounting rules may result in property stock trading volatility
SINGAPORE: Listed property developers may experience some volatility in the trading of their shares, if a proposed change to real estate financial reporting standard is implemented.
The International Accounting Standards Board has been consulting the industry on whether developers should book profits when they sell a new property in advance or when the project is completed.
A similar consultation by the local Council on Corporate Disclosure and Governance was done last month.
Property developers in Singapore sell condominiums as they build them.
They receive progressive payments from buyers and report their revenue and profits each quarter.
But if the new real estate financial reporting standard is implemented, developers can only book their profits and revenue at the end of each project rather than progressively.
Assuming it takes 18 months to build a new property from scratch, the developer will record zero profit for this project in the first year and have a spike in revenue and profit at the end of the second quarter in the second year.
Accountants say the change was proposed because the accounting bodies believe properties should be viewed as goods and not services.
If the ownership of the goods has not been transferred to the buyer, the developer or seller cannot, theoretically, claim he has sold it.
So, even if he has received partial payment, he should not record it in his books as revenue and profit.
Channel NewsAsia understands that developers have submitted their feedback to the Council on Corporate Disclosure and Governance through the Real Estate Developers Association of Singapore (REDAS).
REDAS declined to comment on the issue.
<-------- if the developer or contractor can only book profit/loss by the end of the project, what about other trades? All contracts secured supposed to be in book value.. aren't they?
The International Accounting Standards Board has been consulting the industry on whether developers should book profits when they sell a new property in advance or when the project is completed.
A similar consultation by the local Council on Corporate Disclosure and Governance was done last month.
Property developers in Singapore sell condominiums as they build them.
They receive progressive payments from buyers and report their revenue and profits each quarter.
But if the new real estate financial reporting standard is implemented, developers can only book their profits and revenue at the end of each project rather than progressively.
Assuming it takes 18 months to build a new property from scratch, the developer will record zero profit for this project in the first year and have a spike in revenue and profit at the end of the second quarter in the second year.
Accountants say the change was proposed because the accounting bodies believe properties should be viewed as goods and not services.
If the ownership of the goods has not been transferred to the buyer, the developer or seller cannot, theoretically, claim he has sold it.
So, even if he has received partial payment, he should not record it in his books as revenue and profit.
Channel NewsAsia understands that developers have submitted their feedback to the Council on Corporate Disclosure and Governance through the Real Estate Developers Association of Singapore (REDAS).
REDAS declined to comment on the issue.
<-------- if the developer or contractor can only book profit/loss by the end of the project, what about other trades? All contracts secured supposed to be in book value.. aren't they?
Saturday, October 6, 2007
Singapore Top grade contractors earning premiums amid property boom
SINGAPORE: It's not just property developers who are riding the current industry boom.
Established construction companies that struggled through the stormy late 90s are now experiencing a robust turnaround, and are commanding price tags which are up to 20 percent higher than their smaller peers.
That's because there are not enough of them to go around in a market awash with developers who want only the best for their projects.
The larger number of projects is an obvious factor, but there is another key reason for the squeeze. A number of contractors had gone bust, and for those still around, most have been down-sized.
Kunalan Sivapuniam, managing partner at Emirates Tarian, said: "Developers are very cautious about quality. We are also faced with discerning buyers who want to pay for quality. So you have to look for quality contractors. If you look at category A or grade one contractors, there are not that many now."
Industry watchers said that going forward, top grade construction firms may command premiums higher than now.
Song Seng Wun, regional economist at CIMB-GK Research, said: "At this juncture, we are at the beginning of the upturn of the construction cycle. I suspect in the coming few years, the construction firms will do quite well."
Developers say higher costs could be passed down to home buyers.
Emirates Tarian's Kunalan Sivapuniam said: "It's hard to say how much of that is going to be passed on. It's a question of whether they are in a hurry to launch the projects, in which case they have to bite the bullet.
"If you have developers that are able to hold on to their projects and launch them over a longer period of time, then they would be able to pass on a lot of this, because the market is rising."
As this demand bulge moves further down the pipe, industry players say related services like interior design and electrical fittings can also look to rosy days ahead.
According to some estimates, the value of construction contracts awarded this year will hit more than S$20 billion. - CNA
<-------------- I agree... singapore construction stocks definitely a good buy for investment at this period
Established construction companies that struggled through the stormy late 90s are now experiencing a robust turnaround, and are commanding price tags which are up to 20 percent higher than their smaller peers.
That's because there are not enough of them to go around in a market awash with developers who want only the best for their projects.
The larger number of projects is an obvious factor, but there is another key reason for the squeeze. A number of contractors had gone bust, and for those still around, most have been down-sized.
Kunalan Sivapuniam, managing partner at Emirates Tarian, said: "Developers are very cautious about quality. We are also faced with discerning buyers who want to pay for quality. So you have to look for quality contractors. If you look at category A or grade one contractors, there are not that many now."
Industry watchers said that going forward, top grade construction firms may command premiums higher than now.
Song Seng Wun, regional economist at CIMB-GK Research, said: "At this juncture, we are at the beginning of the upturn of the construction cycle. I suspect in the coming few years, the construction firms will do quite well."
Developers say higher costs could be passed down to home buyers.
Emirates Tarian's Kunalan Sivapuniam said: "It's hard to say how much of that is going to be passed on. It's a question of whether they are in a hurry to launch the projects, in which case they have to bite the bullet.
"If you have developers that are able to hold on to their projects and launch them over a longer period of time, then they would be able to pass on a lot of this, because the market is rising."
As this demand bulge moves further down the pipe, industry players say related services like interior design and electrical fittings can also look to rosy days ahead.
According to some estimates, the value of construction contracts awarded this year will hit more than S$20 billion. - CNA
<-------------- I agree... singapore construction stocks definitely a good buy for investment at this period
US job growth returns; revision eliminates August drop
WASHINGTON : The US economy generated 110,00 jobs in September, the Labour Department said Friday, as it also revised its report from last month to show gains instead of losses.
The report on nonfarm payrolls, seen as one of the best gauges of economic momentum, suggested the world's biggest economy is holding firm in the face of credit and housing woes.
Significantly, the agency revised up its estimate for August to show a gain of 89,000 jobs, instead of a loss of 4,000 that had stunned analysts and fanned fears about a recession.
The agency said the US unemployment rate edged up to 4.7 percent from 4.6 percent as the number of job seekers increased.
The report would appear to ease fears that the economy made an abrupt turn downward in August amid a credit squeeze linked to fears about the sub-prime housing market.
Yet the average monthly gain for the third quarter was 97,000 jobs a month, down from 126,000 on average in the second quarter and consistent with a cooling economy.
The report last month showing the first drop in overall employment in four years prompted analysts to tear up their economic forecasts and was seen as a factor in the Federal Reserve's decision on September 18 to slash key interest rates by half a percentage point.
It was not immediately clear how the Fed would respond to the latest report, but Robert MacIntosh, chief economist for Eaton Vance, said the revised data suggests the central bank may have erred in easing rates so much.
"It means the Fed probably shouldn't have done what they did, that they should have waited," MacIntosh said.
"Those of us who were sceptical at the time now feel a little redeemed."
<------ Guess it is highly unlikely a fed cut will happen end of this month
The report on nonfarm payrolls, seen as one of the best gauges of economic momentum, suggested the world's biggest economy is holding firm in the face of credit and housing woes.
Significantly, the agency revised up its estimate for August to show a gain of 89,000 jobs, instead of a loss of 4,000 that had stunned analysts and fanned fears about a recession.
The agency said the US unemployment rate edged up to 4.7 percent from 4.6 percent as the number of job seekers increased.
The report would appear to ease fears that the economy made an abrupt turn downward in August amid a credit squeeze linked to fears about the sub-prime housing market.
Yet the average monthly gain for the third quarter was 97,000 jobs a month, down from 126,000 on average in the second quarter and consistent with a cooling economy.
The report last month showing the first drop in overall employment in four years prompted analysts to tear up their economic forecasts and was seen as a factor in the Federal Reserve's decision on September 18 to slash key interest rates by half a percentage point.
It was not immediately clear how the Fed would respond to the latest report, but Robert MacIntosh, chief economist for Eaton Vance, said the revised data suggests the central bank may have erred in easing rates so much.
"It means the Fed probably shouldn't have done what they did, that they should have waited," MacIntosh said.
"Those of us who were sceptical at the time now feel a little redeemed."
<------ Guess it is highly unlikely a fed cut will happen end of this month
Friday, October 5, 2007
Asia Stocks Week Ahead-Earnings seen providing fresh cues
By Ian Chua HONG KONG, Oct 5 (Reuters) - Investors are likely to turn increasingly cautious after having pushed Asian stocks to fresh peaks for a third straight week, but the underlying tone remains firm thanks to diminishing worries about a global credit squeeze.
Markets will take their cues from profit results as major firms such as Samsung Electronics, the world's top memory chip maker, Infosys Technologies , India's No. 2 software services exporter, as well as key U.S. names including aluminium company Alcoa Inc post quarterly results.
Financial markets in mainland China resume trading after a week-long break for the National Day holidays.
Given strong regional economic growth and valuations that are still reasonable, albeit no longer cheap, analysts say the outlook for Asia remains generally positive.
Taiwan, for example, is particularly attractive compared with its Asian and global peers, some market players say.
It is a "market which I continue to think is undervalued and shows the world's highest earnings per share growth this year," said Burkhard Varnholt, chief investment officer at Swiss asset manager Bank Sarasin .
MSCI's measure of Asia Pacific stocks excluding Japan has risen in the past seven weeks, reaching successive record highs in the last three.
It has rallied more than 30 percent from the August low after interest rate cuts by the U.S. Federal Reserve helped soothe fears of a global credit shortage stemming from the U.S. subprime mortgage market crisis.
Early in the week, investors are likely react to any surprises in the influential U.S. jobs report due after Asian markets close on Friday, Oct 5.
<------- It seems from the report that Asian market will continue to move north in the next few weeks.
Markets will take their cues from profit results as major firms such as Samsung Electronics, the world's top memory chip maker, Infosys Technologies , India's No. 2 software services exporter, as well as key U.S. names including aluminium company Alcoa Inc post quarterly results.
Financial markets in mainland China resume trading after a week-long break for the National Day holidays.
Given strong regional economic growth and valuations that are still reasonable, albeit no longer cheap, analysts say the outlook for Asia remains generally positive.
Taiwan, for example, is particularly attractive compared with its Asian and global peers, some market players say.
It is a "market which I continue to think is undervalued and shows the world's highest earnings per share growth this year," said Burkhard Varnholt, chief investment officer at Swiss asset manager Bank Sarasin .
MSCI's measure of Asia Pacific stocks excluding Japan has risen in the past seven weeks, reaching successive record highs in the last three.
It has rallied more than 30 percent from the August low after interest rate cuts by the U.S. Federal Reserve helped soothe fears of a global credit shortage stemming from the U.S. subprime mortgage market crisis.
Early in the week, investors are likely react to any surprises in the influential U.S. jobs report due after Asian markets close on Friday, Oct 5.
<------- It seems from the report that Asian market will continue to move north in the next few weeks.
Jobs: Brace for more weakness
Economists say even if Friday's September jobs report doesn't show another drop in payrolls, the signals are there for a soft labor market going forward.
NEW YORK (CNNMoney.com) -- The big and unexpected job loss in August shook economists and investors, and while the September report due Friday is expected to show a hiring rebound, job seekers should still be nervous.
The Labor Department on Friday will release its closely watched jobs report, the first such reading since the August report showed the first drop in workers on U.S. payrolls in four years.
That job loss set off alarm bells and helped open the door for the Federal Reserve to make its first interest rate cut in four years at its September meeting. Economists and investors will be watching Friday's report closely to see what it means for future fed action.
The job report is important beyond the Fed and interest rates.
Stuart Hoffman, chief economist with PNC Financial Services Group, said that if the September jobs report is again much weaker than expected, especially if it shows another drop in employment, it will be very bad news for the economy.
"I think the chance of a recession is less than a third," Hoffman said. "If we see another drop in employment, especially in the private sector, I'd be surprised if not shocked, and very nervous. I might put the chance of a recession at 50-50. We might be hanging by our fingernails in that case."
Economists surveyed by Briefing.com are forecasting a 100,000 gain in payrolls in September. That's close to their forecast of a month ago that proved to be so wrong.
Even with that gain, the unemployment rate is expected to climb to 4.7 percent from 4.6 percent in August.
It's also possible that the August payroll reading of a loss of 4,000 jobs overall could be revised back into positive territory. August typically is a month that sees some of the largest revisions in the initial readings, said David Wyss, chief economist for Standard & Poor's.
But Wyss and many other economists say they're expecting job growth to be sluggish all the way into next spring or summer. That could mean unemployment rising later this year or early next year past the 5 percent benchmark for the first time since 2005.
"You need about a payroll gain of about 125,000 to 150,000 a month to keep the unemployment rate stable," said Wyss. "That's my feeling, that we'll see the unemployment rate gradually drifting up to above 5 percent, probably peaking out next spring or early summer."
<----------- Wonder has US Stock market already taken this weak signal into account and ansorbed the backlash? Hopefully yes..
NEW YORK (CNNMoney.com) -- The big and unexpected job loss in August shook economists and investors, and while the September report due Friday is expected to show a hiring rebound, job seekers should still be nervous.
The Labor Department on Friday will release its closely watched jobs report, the first such reading since the August report showed the first drop in workers on U.S. payrolls in four years.
That job loss set off alarm bells and helped open the door for the Federal Reserve to make its first interest rate cut in four years at its September meeting. Economists and investors will be watching Friday's report closely to see what it means for future fed action.
The job report is important beyond the Fed and interest rates.
Stuart Hoffman, chief economist with PNC Financial Services Group, said that if the September jobs report is again much weaker than expected, especially if it shows another drop in employment, it will be very bad news for the economy.
"I think the chance of a recession is less than a third," Hoffman said. "If we see another drop in employment, especially in the private sector, I'd be surprised if not shocked, and very nervous. I might put the chance of a recession at 50-50. We might be hanging by our fingernails in that case."
Economists surveyed by Briefing.com are forecasting a 100,000 gain in payrolls in September. That's close to their forecast of a month ago that proved to be so wrong.
Even with that gain, the unemployment rate is expected to climb to 4.7 percent from 4.6 percent in August.
It's also possible that the August payroll reading of a loss of 4,000 jobs overall could be revised back into positive territory. August typically is a month that sees some of the largest revisions in the initial readings, said David Wyss, chief economist for Standard & Poor's.
But Wyss and many other economists say they're expecting job growth to be sluggish all the way into next spring or summer. That could mean unemployment rising later this year or early next year past the 5 percent benchmark for the first time since 2005.
"You need about a payroll gain of about 125,000 to 150,000 a month to keep the unemployment rate stable," said Wyss. "That's my feeling, that we'll see the unemployment rate gradually drifting up to above 5 percent, probably peaking out next spring or early summer."
<----------- Wonder has US Stock market already taken this weak signal into account and ansorbed the backlash? Hopefully yes..
Thursday, October 4, 2007
Wall Street waits for jobs report
NEW YORK (CNNMoney.com) -- U.S. stocks could be on hold Thursday as investors await the closely watched employment report due at the end of the week for clues about the future direction of interest rates.
At 8:23 a.m. ET, futures were narrowly higher, with a comparison to fair value pointing to a flat to slightly positive open for Wall Street.
Former Fed Chairman Alan Greenspan talks with Fortune's Andy Serwer about his biggest economic concern for the U.S.
Traders are anxious ahead of the September jobs report due out Friday. The government report is expected to show a gain of 100,000 jobs after a decline in August, according to economists surveyed by Briefing.com.
The number is likely to play a big factor as the Federal Reserve decides whether or not to keep cutting interest rates. A weak report could give policymakers room to keep lowering rates, while a much stronger report could rattle investors hoping for more cuts from the Fed.
In addition to the rate outlook, investors will be looking to the report for signs of economic weakness. A number that comes in well below expectations could reignite recession fears and overshadow any boost stocks get from the likelihood of more rate cuts.
"I can't see there being that much movement Thursday," said Mark Vitner, senior economist with Wachovia. He said it will take a number close to the consensus forecast on payroll growth Friday to give a lift to markets, while the risks to the market from either a too weak or two strong are likely to keep investors nervous ahead of the report.
<-------- Guess tomorrow will be a cautious day for traders..
At 8:23 a.m. ET, futures were narrowly higher, with a comparison to fair value pointing to a flat to slightly positive open for Wall Street.
Former Fed Chairman Alan Greenspan talks with Fortune's Andy Serwer about his biggest economic concern for the U.S.
Traders are anxious ahead of the September jobs report due out Friday. The government report is expected to show a gain of 100,000 jobs after a decline in August, according to economists surveyed by Briefing.com.
The number is likely to play a big factor as the Federal Reserve decides whether or not to keep cutting interest rates. A weak report could give policymakers room to keep lowering rates, while a much stronger report could rattle investors hoping for more cuts from the Fed.
In addition to the rate outlook, investors will be looking to the report for signs of economic weakness. A number that comes in well below expectations could reignite recession fears and overshadow any boost stocks get from the likelihood of more rate cuts.
"I can't see there being that much movement Thursday," said Mark Vitner, senior economist with Wachovia. He said it will take a number close to the consensus forecast on payroll growth Friday to give a lift to markets, while the risks to the market from either a too weak or two strong are likely to keep investors nervous ahead of the report.
<-------- Guess tomorrow will be a cautious day for traders..
Malaysia imposes new ban on Bangladeshi workers
KUALA LUMPUR: Malaysia has imposed a fresh ban on migrant workers from Bangladesh after more than 2,000 of them were abandoned at its main international airport, a report said Thursday.
The cash-strapped workers had to be housed at Kuala Lumpur International Airport's car park without proper food and water after being abandoned by local employers.
"We will not allow any more recruitment of Bangladeshi workers," Radzi Sheikh Ahmad, home affairs minister, was quoted as saying by New Straits Times.
He added that the freeze took effect immediately.
"There have been lots of problems and headaches created by agents and employers of Bangladeshi workers," he said.
This is the third time since 1996 that Malaysia has banned the intake of Bangladeshi workers.
But Talat Mahmud Khan, counsellor for labour at the Bangladesh High Commission in Malaysia, said Dhaka would appeal against the ban.
"We are going to ask the minister to reconsider. We are requesting (Malaysia) to continue the process of genuine applications," he told AFP.
Talat said many of the workers stuck at the airport had already been collected by employers while others had been deported.
Almost 180,000 Bangladeshis are working in Malaysia, he said. They are mainly engaged in the agriculture and service industries.
Malaysia relies heavily on foreign workers, particularly in the construction and farming sectors.
<---------- The workers were innocent... they were just trying to lead a better life. Is the ban going to solve this problem?
The cash-strapped workers had to be housed at Kuala Lumpur International Airport's car park without proper food and water after being abandoned by local employers.
"We will not allow any more recruitment of Bangladeshi workers," Radzi Sheikh Ahmad, home affairs minister, was quoted as saying by New Straits Times.
He added that the freeze took effect immediately.
"There have been lots of problems and headaches created by agents and employers of Bangladeshi workers," he said.
This is the third time since 1996 that Malaysia has banned the intake of Bangladeshi workers.
But Talat Mahmud Khan, counsellor for labour at the Bangladesh High Commission in Malaysia, said Dhaka would appeal against the ban.
"We are going to ask the minister to reconsider. We are requesting (Malaysia) to continue the process of genuine applications," he told AFP.
Talat said many of the workers stuck at the airport had already been collected by employers while others had been deported.
Almost 180,000 Bangladeshis are working in Malaysia, he said. They are mainly engaged in the agriculture and service industries.
Malaysia relies heavily on foreign workers, particularly in the construction and farming sectors.
<---------- The workers were innocent... they were just trying to lead a better life. Is the ban going to solve this problem?
Wall Street's weak Wednesday
Investors step back from the recent advance, mull private employment and services sector reports ahead of Friday's jobs report.
NEW YORK (CNNMoney.com) -- Stock declined Wednesday, as investors retreated after the recent run up and ahead of the September jobs report, due Friday.
The Dow Jones industrial average lost 0.6 percent, falling for a second session after ending at an all-time high of 14,087.55 on Monday. The tech-fueled Nasdaq composite and the broader S&P 500 index both declined as well.
Stocks had drifted lower throughout the morning as investors mulled mostly in-line readings on the services sector of the economy, and private sector employment, ahead of Friday's big jobs report.
But in the afternoon, stock losses accelerated a bit, with technology, commodity and material stocks leading the pull back.
Treasury prices dipped, lifting the corresponding yields. Oil and gold prices declined.
Investors will likely take their cue Thursday morning from the weekly jobless claims report and the August factory orders report.
<----------- This coming friday US unemployment data will be critical to the US market. But then, it may also be a trigger for another interest rate cut.
NEW YORK (CNNMoney.com) -- Stock declined Wednesday, as investors retreated after the recent run up and ahead of the September jobs report, due Friday.
The Dow Jones industrial average lost 0.6 percent, falling for a second session after ending at an all-time high of 14,087.55 on Monday. The tech-fueled Nasdaq composite and the broader S&P 500 index both declined as well.
Stocks had drifted lower throughout the morning as investors mulled mostly in-line readings on the services sector of the economy, and private sector employment, ahead of Friday's big jobs report.
But in the afternoon, stock losses accelerated a bit, with technology, commodity and material stocks leading the pull back.
Treasury prices dipped, lifting the corresponding yields. Oil and gold prices declined.
Investors will likely take their cue Thursday morning from the weekly jobless claims report and the August factory orders report.
<----------- This coming friday US unemployment data will be critical to the US market. But then, it may also be a trigger for another interest rate cut.
Wednesday, October 3, 2007
Asian markets hit by profit taking after record high
MARKET sentiment was badly spooked by a strong wave of programme selling by hedge funds in late afternoon trading, which forced several Asian markets to relinquish the fresh highs conquered earlier on Wednesday.
In particular, China stocks in Hong Kong and Singapore were badly bruised by the selldown. The benchmark Straits Times Index here fell 39.21 points, or 1 per cent, to 3754.62, after hitting an intraday record high of 3851.88, while Hong Kong's Hang Seng Index was down an eye-popping 719.81 points, or 2.5 per cent, to 27,479.94.
But the very volatile market conditions bolstered overall market volume to 3.31 billion shares worth $3.69 billion. On the scoreboard, there were 684 losers and 234 gainers.
"Going by the way the selling across the region is co-ordinated, it is obvious that hedge funds are at work, taking profits on the recent big gains on China stocks. At 2.30, STI and Hang Seng were in top form, only to collapse almost simultaneously at around 3.30," noted a remisier on Wednesday.
Big blue-chip losers here included DBS Group Holdings which lost 30 cents to $22.20 and property giant City Developments which fell 60 cents to $16.30. But bucking the trend was Singapore Exchange which closed at a record $15.20, after advancing 80 cents.
On the broad market, China plays were the big losers, as they succumbed to a second day of profit-taking, after racking up spectacular gains recently. The PrimePartners China Index closed 11.4 points, or 3.7 per cent, down at 298.5. Among the losers were punters' favourites such as Sino-Environment lost 28 cents to $3.64, while frozen dumpling maker Synear Food fell 16 cents to $2.15.
Looking ahead, Morgan Stanley Research noted in a report on Wedneswday that Asia-Pacific markets have become unattractive after the sharp run-up last month.
It said: "The 12-month forward price-earnings ratio of 16.6 times is at a 13.1 per cent premium to the MSCI World Index and a 9.6 per cent premium to the US S&P 500 shares. ..Further upside most likely requires strong liquidity conditions, substantial fund inflow from both foreign and domestic investors and euphoric investor sentiment."
<---------- Hope tomorrow is a better day, not another sea of red
In particular, China stocks in Hong Kong and Singapore were badly bruised by the selldown. The benchmark Straits Times Index here fell 39.21 points, or 1 per cent, to 3754.62, after hitting an intraday record high of 3851.88, while Hong Kong's Hang Seng Index was down an eye-popping 719.81 points, or 2.5 per cent, to 27,479.94.
But the very volatile market conditions bolstered overall market volume to 3.31 billion shares worth $3.69 billion. On the scoreboard, there were 684 losers and 234 gainers.
"Going by the way the selling across the region is co-ordinated, it is obvious that hedge funds are at work, taking profits on the recent big gains on China stocks. At 2.30, STI and Hang Seng were in top form, only to collapse almost simultaneously at around 3.30," noted a remisier on Wednesday.
Big blue-chip losers here included DBS Group Holdings which lost 30 cents to $22.20 and property giant City Developments which fell 60 cents to $16.30. But bucking the trend was Singapore Exchange which closed at a record $15.20, after advancing 80 cents.
On the broad market, China plays were the big losers, as they succumbed to a second day of profit-taking, after racking up spectacular gains recently. The PrimePartners China Index closed 11.4 points, or 3.7 per cent, down at 298.5. Among the losers were punters' favourites such as Sino-Environment lost 28 cents to $3.64, while frozen dumpling maker Synear Food fell 16 cents to $2.15.
Looking ahead, Morgan Stanley Research noted in a report on Wedneswday that Asia-Pacific markets have become unattractive after the sharp run-up last month.
It said: "The 12-month forward price-earnings ratio of 16.6 times is at a 13.1 per cent premium to the MSCI World Index and a 9.6 per cent premium to the US S&P 500 shares. ..Further upside most likely requires strong liquidity conditions, substantial fund inflow from both foreign and domestic investors and euphoric investor sentiment."
<---------- Hope tomorrow is a better day, not another sea of red
Tuesday, October 2, 2007
Dow Jones Passes 14,000 for Record High
Dow Jones Surges Past 14,000 to Close at Record High As Credit Worries Begin to Subside
NEW YORK (AP) -- Wall Street began the fourth quarter with a huge rally Monday, sending the Dow Jones industrial average to a record close. Stocks were buoyed by a growing belief that the worst of the credit crisis has passed.
The Dow rose 191.92, or 1.38 percent, to 14,087.55, surpassing its closing record of 14,000.41 set in mid-July. The blue chip index rose as high as 14,115.51 to eclipse its previous intraday high of 14,021.95 set July 17.
While the beginning of the new quarter was an incentive for institutional investors to buy, they also seemed to be motivated by a sense that banks and other financial companies generally weathered the recent credit market upheaval. Both Citigroup and Switzerland's UBS AG issued third-quarter profit warnings, but indicated the current period might see a return to normal earnings levels.
Meanwhile, the market was optimistic that new economic data might nudge the Federal Reserve toward another interest rate cut at its Oct. 30-31 meeting. The Institute for Supply Management said the manufacturing sector grew in September at the slowest pace in six months; the trade group said its index of manufacturing activity registered at 52.0 in September, below forecasts for a reading of at least 52.5.
<---------- Cheers!
NEW YORK (AP) -- Wall Street began the fourth quarter with a huge rally Monday, sending the Dow Jones industrial average to a record close. Stocks were buoyed by a growing belief that the worst of the credit crisis has passed.
The Dow rose 191.92, or 1.38 percent, to 14,087.55, surpassing its closing record of 14,000.41 set in mid-July. The blue chip index rose as high as 14,115.51 to eclipse its previous intraday high of 14,021.95 set July 17.
While the beginning of the new quarter was an incentive for institutional investors to buy, they also seemed to be motivated by a sense that banks and other financial companies generally weathered the recent credit market upheaval. Both Citigroup and Switzerland's UBS AG issued third-quarter profit warnings, but indicated the current period might see a return to normal earnings levels.
Meanwhile, the market was optimistic that new economic data might nudge the Federal Reserve toward another interest rate cut at its Oct. 30-31 meeting. The Institute for Supply Management said the manufacturing sector grew in September at the slowest pace in six months; the trade group said its index of manufacturing activity registered at 52.0 in September, below forecasts for a reading of at least 52.5.
<---------- Cheers!
瑞信：建筑业前景看好
地建筑业的营运环境和收入展望乐观，建筑器材供应业者以及专才承办商也备受看好，相信接下来一年到一年半的股价将继续活跃。
瑞信(Credit Suisse)日前发表本地建筑界分析报告指出，我国建筑业的表现与国内生产总值增长的关系一般上会有10个到14个季度的滞后期，这意味着经济增长即使现在走下坡，建筑活动也要等到2010年才会开始放缓下来。
此外，建筑业也跟随新地段出售的市况。近期几个季度的卖地速度显示经济的活力，也反映出建筑业正处于旺市时期。事实上，目前的建筑需求量是强劲到建筑资源已经陷入供不应求的紧张局面。 整体收入展望 仍然继续强劲
尽管市面上对于宏观经济展望的看法有分歧，本地的基础建设情况大致而言是安然无恙，而本地建筑业更可说是从来没有像现在这么稳健。建筑业的整体收入展望仍然继续强劲，其中建筑器材供应业者以及专才承办商最能承受任何收益风险，并在接下来一年到一年半取得强劲的营收表现和毛利率增长。
基于建筑业的乐观展望，瑞信首次给予长运集团(Tiong Woon Corporation)和荣南控股(Yongnam) “表现优于大市”的评级，维持对丰隆亚洲(Hong Leong Asia)的“表现优于大市”评级，对于达丰控股(Tat Hong Holdings)则保持“中性”评级，但却把它的盈利预测调高4％到12％。
长运集团的核心业务为处理量超过1000公吨的重型起重机业，其较高的使用率和强劲的租用率料将推动公司的收入增长。它收购印尼民丹岛占地64公顷的制造围场(fabrication yard)，为它今年初争取到首个合同项目，预料订单将会增加，而毛利率因规模效应和效率提高而好转。
根据折现现金流(DCF)估值，瑞信预测长运的加权平均资金成本(WACC)为10.2％，最终增长率(terminal growth)为3％，因此把它的一年目标价定为1.40元，相等于15倍的下财年底本益比。 荣南控股是本地地下支撑(strutting)以及结构钢铁工程的领导业者。瑞信相信它接下来几个月内能够争取到本地大部分的显著建筑合同。考虑到它的营运规模优势以及业界供应紧张现状，它的盈利可望在现财年和下财年增长两倍。
根据折现现金流估值，瑞信预测荣南的加权平均资金成本为9.9％，最终增长率(terminal growth)为3％，并把它的目标价定为50分，相等于15倍的下财年底本益比。
丰隆亚洲则控制东南亚最庞大的花岗石场(granite quarry)，因此它的建材业务料会成为本地建筑业强劲复苏的最大受益者。它最近争取滨海湾金沙的合同，独家供应对方80万立方米的预制混凝土(ready-mix concrete)。
瑞信预测它的建材业务在现财年将占它总盈利的48％，其营收复合年增长率(CAGR)可达24％，而这个比例还会一直增加到09财年。根据丰隆亚洲所有部分加起来(SOTP)估算，瑞信把丰隆亚洲的目标价定为4.65元。
至于达丰控股，在接下来几年的收益料会受惠于起重机的出租费持续攀高，这是因为本地主要的基本建设、石油与天然气工程计划数量可观，同时达丰在新起重机交货的时间和资本条件方面具备优势。
考虑到以起重机公吨总和来说，达丰继续是全球的领导业者，瑞信如今预测它到10财年的三年期净利复合年增长率为26％。以15倍的下财年本益比计算，它的新目标价为2.35元。
<-------- Time to look at Singapore construction stocks, or perhaps already too late
瑞信(Credit Suisse)日前发表本地建筑界分析报告指出，我国建筑业的表现与国内生产总值增长的关系一般上会有10个到14个季度的滞后期，这意味着经济增长即使现在走下坡，建筑活动也要等到2010年才会开始放缓下来。
此外，建筑业也跟随新地段出售的市况。近期几个季度的卖地速度显示经济的活力，也反映出建筑业正处于旺市时期。事实上，目前的建筑需求量是强劲到建筑资源已经陷入供不应求的紧张局面。 整体收入展望 仍然继续强劲
尽管市面上对于宏观经济展望的看法有分歧，本地的基础建设情况大致而言是安然无恙，而本地建筑业更可说是从来没有像现在这么稳健。建筑业的整体收入展望仍然继续强劲，其中建筑器材供应业者以及专才承办商最能承受任何收益风险，并在接下来一年到一年半取得强劲的营收表现和毛利率增长。
基于建筑业的乐观展望，瑞信首次给予长运集团(Tiong Woon Corporation)和荣南控股(Yongnam) “表现优于大市”的评级，维持对丰隆亚洲(Hong Leong Asia)的“表现优于大市”评级，对于达丰控股(Tat Hong Holdings)则保持“中性”评级，但却把它的盈利预测调高4％到12％。
长运集团的核心业务为处理量超过1000公吨的重型起重机业，其较高的使用率和强劲的租用率料将推动公司的收入增长。它收购印尼民丹岛占地64公顷的制造围场(fabrication yard)，为它今年初争取到首个合同项目，预料订单将会增加，而毛利率因规模效应和效率提高而好转。
根据折现现金流(DCF)估值，瑞信预测长运的加权平均资金成本(WACC)为10.2％，最终增长率(terminal growth)为3％，因此把它的一年目标价定为1.40元，相等于15倍的下财年底本益比。 荣南控股是本地地下支撑(strutting)以及结构钢铁工程的领导业者。瑞信相信它接下来几个月内能够争取到本地大部分的显著建筑合同。考虑到它的营运规模优势以及业界供应紧张现状，它的盈利可望在现财年和下财年增长两倍。
根据折现现金流估值，瑞信预测荣南的加权平均资金成本为9.9％，最终增长率(terminal growth)为3％，并把它的目标价定为50分，相等于15倍的下财年底本益比。
丰隆亚洲则控制东南亚最庞大的花岗石场(granite quarry)，因此它的建材业务料会成为本地建筑业强劲复苏的最大受益者。它最近争取滨海湾金沙的合同，独家供应对方80万立方米的预制混凝土(ready-mix concrete)。
瑞信预测它的建材业务在现财年将占它总盈利的48％，其营收复合年增长率(CAGR)可达24％，而这个比例还会一直增加到09财年。根据丰隆亚洲所有部分加起来(SOTP)估算，瑞信把丰隆亚洲的目标价定为4.65元。
至于达丰控股，在接下来几年的收益料会受惠于起重机的出租费持续攀高，这是因为本地主要的基本建设、石油与天然气工程计划数量可观，同时达丰在新起重机交货的时间和资本条件方面具备优势。
考虑到以起重机公吨总和来说，达丰继续是全球的领导业者，瑞信如今预测它到10财年的三年期净利复合年增长率为26％。以15倍的下财年本益比计算，它的新目标价为2.35元。
<-------- Time to look at Singapore construction stocks, or perhaps already too late
Monday, October 1, 2007
Asia Stocks Week Ahead-Record oil, weak dollar threaten record run
A rally in Asian stocks could run out of steam as mid-October marks the start of company earnings reports across the region, while investors may find it harder to ignore the risks of record oil prices and a weaker dollar.
Strong economic growth at home and the prospects of more U.S. interest rate cuts have spurred on gains in the region, with the broad MSCI Asia ex-Japan stock index hitting a string of records to gain about 12 percent in September, its strongest month in eight years.
Although the rising trend is likely to remain intact -- with the index rebounding some 32 percent since its low in mid-August -- analysts warn caution is slipping in amid signs of a weakening economy in the United States, the region's top export destination.
China, which is becoming another key export destination for the region, is on holiday for the whole week, potentially sapping some momentum in markets such as in Hong Kong and South Korea.
"Relative to what we've seen so far, stock markets should be quiet as we are heading to the earnings reporting season," said Kim Joon-hyun, an analyst at Goodmorning Shinhan Securities in Seoul.
"Record oil prices are still a big concern for stock markets, and a weakening of the dollar is not a positive development for exporters," he added.
The dollar has recently hit record lows against the euro and a basket of currencies, raising worries that continued weakness in the greenback will eat into profits earned abroad by export-dependent Asian companies.
Oil prices , also at record levels, are another concern, even if some resource stocks have so far benefitted, as they have the potential to slow consumer demand in key global markets.
"Investors will really have to tighten their belts and wear helmets because a sharp correction in the short-term is not ruled out," said Gajendra Nagpal, chief executive of Unicon Financial Intermediaries in Bangalore, India.
<------------- Better be cautious when it comes to mid Oct
Strong economic growth at home and the prospects of more U.S. interest rate cuts have spurred on gains in the region, with the broad MSCI Asia ex-Japan stock index hitting a string of records to gain about 12 percent in September, its strongest month in eight years.
Although the rising trend is likely to remain intact -- with the index rebounding some 32 percent since its low in mid-August -- analysts warn caution is slipping in amid signs of a weakening economy in the United States, the region's top export destination.
China, which is becoming another key export destination for the region, is on holiday for the whole week, potentially sapping some momentum in markets such as in Hong Kong and South Korea.
"Relative to what we've seen so far, stock markets should be quiet as we are heading to the earnings reporting season," said Kim Joon-hyun, an analyst at Goodmorning Shinhan Securities in Seoul.
"Record oil prices are still a big concern for stock markets, and a weakening of the dollar is not a positive development for exporters," he added.
The dollar has recently hit record lows against the euro and a basket of currencies, raising worries that continued weakness in the greenback will eat into profits earned abroad by export-dependent Asian companies.
Oil prices , also at record levels, are another concern, even if some resource stocks have so far benefitted, as they have the potential to slow consumer demand in key global markets.
"Investors will really have to tighten their belts and wear helmets because a sharp correction in the short-term is not ruled out," said Gajendra Nagpal, chief executive of Unicon Financial Intermediaries in Bangalore, India.
<------------- Better be cautious when it comes to mid Oct
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