Warrants Highlight

Wilmar - Underpriced Relative to Peers?

Singapore Market Wrap

STI on 4-day winning streak

STI rose for the fourth day yesterday, rising 0.5% day-on-day (dod) to 2,855.68. Investors were encouraged by the strong housing data in the US on Tuesday night and the expectations of further stimulus by the Fed.

Call STI 2750MBeCW120831 (QP9W) exercise level 2,750.*
Put STI 2850MBePW120831 (QE9W) exercise level 2,850.*

Palm oil players surged
Malaysian palm oil futures Sep contract crossed the psychological level of RM3,000/t yesterday, rising 3.2% to RM3,014/t. Palm oil names Wilmar (+4.2% dod, $3.70) and Indofood Agri (+3.2% dod, $1.31) saw strong buying orders. Wilmar had its biggest gain in 8 months.

Call warrant Wilmar MBeCW121203 (QP2W) exercise price $4.00.*
Call warrant IndoAgriMBeCW121203 (QR7W) exercise price $1.30.*
Call warrant IndoAgriMBeCW121101 (QD6W) exercise price $1.50.*

Ezion rallies
Ezion has rallied 25.3% from its recent lows of $0.71 on 4th June. Earlier this month, the offshore marine services company secured a contract worth approximately US$86.3mn over a 4 year period to provide a service rig to a Central American national oil major.

Call warrant EzionHldMBeCW121002 (P9CW) exercise price $1.10.*

Overnight Market Wrap

Bernanke decides to "Twist" again

Some investors were disappointed that the Fed did not announce another large scale asset purchasing program (QE3) but decided to extend the "Operation Twist" for another six months. The Fed also revised down 2012 growth projections to between 1.9% and 2.4%. US indices ended mixed, with S&P500 falling 0.2% to 1,355.69.

Similarly, meeting minutes showed that the Bank of England policymakers voted 5-4 against a Quantitative Easing programme to boost Britain's economy. However, the members suggested more stimuli is just around the corner.

Overnight Markets

Indices	Last	Change
STI	2855.68	0.5%
HSI	19518.85	0.5%
DJIA	12824.39	-0.1%
S&P 500	1355.69	-0.2%
Nasdaq	2930.45	0.0%