Warrants Highlight

China Market Outperforms

Singapore Market Wrap

A Week of Carnage

With little positive developments from the European crisis, the STI tumbled 3.3% week-on-week (wow) to 2,786.91. QF0W (Keppel Corp), QC6W (DBS), P1VW (OCBC) and P0ZW (CapitaLand) were the most active single stock warrants last week, with more than 18mn warrants changing hands in each:

Call KepCorp MBeCW121001 (QF0W) exercise price $10.50.*
Call DBS MB eCW120904 (QC6W) exercise price $14.00.*
Call OCBC Bk MBeCW120802 (P1VW) exercise price $9.00.*
Call CapitalaMBeCW120903 (P0ZW) exercise price $2.582.*

Commodity stocks in focus
The commodity players have not scored well since the start of the earnings season. Last week, Olam (-16.4% wow, $1.73) tumbled after reporting a 23% year-on-year decline in 3Q net profit to $98.7mn. The management said that the Industrial Raw Materials and Commodity Financial Services are expected to continue to pose a drag to its Q4 earnings.

Other commodity players, Sakari Resources (-9.9% wow, $1.585), Wilmar (-8.5% wow, $3.79) and IndoFood Agri (-8.0% wow, $1.27), were sold down sharply last week.

Call OLAM MB eCW121005 (QF2W) exercise price $2.00.*
Call SakariMBeCW121102 (QE1W) exercise price $1.95.*
Call Wilmar MBeCW121102 (QF1W) exercise price $4.60.*
Call IndoAgriMBeCW121101 (QD6W) exercise price $1.50.*

Sale speculations kept STX OSV afloat
It was a volatile week for STX OSV (8.4% wow, $1.61). It rose more than 14% in the first few days of the week on expectations that its parent company will announce a preferred bidder for its stake within the week. However, STX OSV shares pared some of its gains as there were no official announcements and investors speculated that there could be a delay in the share sale.

Call STXOSV MB eCW120801 (P2VW) exercise price $1.80.*

Overnight Market Wrap

Facebook Hype Ended Marginally Positive

US Stocks fell on Friday, extending the biggest weekly loss since November. The S&P500 fell 4.3% week-on-week to 1,295.22. Facebook shares debuted after Nasdaq's 2-hour technical delay. Its shares rose only 0.6% from its IPO price of US$38.

Over the weekend, G8 leaders met in US Camp David to discuss about the eurozone crisis. The leaders stressed that it is in everyone's interest for Greece to remain in the Euro. On a separate note, Spanish Prime Minister Mariano Rajoy said that the Spanish banks will not need a European rescue package.

Overnight Markets

Indices	Last	Change
STI	2779.10	-1.5%
HSI	18951.85	-1.3%
DJIA	12369.38	-0.6%
S&P 500	1295.22	-0.7%
Nasdaq	2778.79	-1.2%

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