Any More Steam in This Rally?

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SGX Stocks and Warrants

Any More Steam in This Rally?

kimeng

Publish date: Tue, 03 Jul 2012, 09:53 AM

Warrants Highlight

Any More Steam in This Rally?

Macquarie is pleased to list the following new put warrants this morning

Code	Name	Type	Expiry	Exercise Price
QZ6W	NobleGrpMBePW130103	Put	03-Jan-13	1.10
QZ5W	BiosensoMBePW130103	Put	03-Jan-13	1.10
QZ7W	SakariMBePW130103	Put	03-Jan-13	1.30

Many Singapore stocks rebounded in June, with the STI rising 3.8% last month, compared to a 6.9% tumble in May. Now that the European summit has concluded, analysts are questioning when the next adrenaline injection will come or whether the rally can sustain itself. Overnight, the US markets ended mixed after the strong rally on Friday.

Investors who continue to be bearish on the markets could consider leveraging their view with put warrants. Put warrants allow investors to potentially earn a profit when the underlying falls. Unlike call warrants, put warrant prices will tend to move in the opposite direction to the underlying, increasing in value as the underlying falls and decreasing in value as the underlying rises.

Biosensors, Sakari, Noble
Last month, Biosensors, Sakari and Noble underperformed the STI month-on-month (MoM). Biosensors was the worst performer, falling 7.3% MoM to $1.135, near its 52-week low.

Indonesian coal miner, Sakari Resources (-5.5% MoM, $1.3) retreated due to the uncertainty of the country’s coal mining industry. The government is mulling a restriction in coal exports or an additional tax change.

Noble shares were range bound within $1.06 and $1.16 last month. The Gas & Power business contributes around 70% of Noble's revenue.

Singapore Market Wrap

Asia applauds EU summit agreements

The Straits Times Index (STI) was off to a good start, opening higher on the good outcome from the EU summit as well as encouraging economic data from China. China's Manufacturing PMI was reported at 50.2, beating estimates of 49.9. Fortunately, despite a mid morning sell-off, the STI made a U-turn and closed up for the day, although Hong Kong was closed.

STI closed 2,910.59, up 1.1% dod.

Call STI 2950MBeCW120831 (QE8W) exercise level 2,950.*
Put STI 2850MBePW120831 (QE9W) exercise level 2,850.*

Kepcorp wins 2 contracts amounting to US$70mil
Just recently, Keppel Corporation Offshore and Marine (Keppel O&M) in the US announced that they have secured a contract to repair and upgrade a semisubmersible rig from Transocean.

Separately, Keppel's O&M shipyard in Azerbaijan has also won a contract to build a floating dock for Baku Shipyard.

Kepcorp closed at 10.62, up 3.3% dod.

Call warrant KepCorp MBeCW121001 (QF0W) exercise price $10.50.*
Put warrant KepCorp MBePW121101 (QR5W) exercise price $9.00.*

Property demand still evident
Yesterday, URA released preliminary estimates for private residential properly ending 2nd Quarter 2012. The overall private residential property price index rose to 206.8, up 0.4% compared to the previous quarter. This rise is backed by an increase in housing/bridging loans in the past few months. As of the end of May, total loans to businesses in regards to building/construction increased to 71.4b, up from 70.0b in March.

Southeast Asia's biggest developer, Capitaland, closed at 2.72, up 0.7% dod.
Yanlord closed at 1.25, up 2.0% dod.

Call warrant CapitalaMBeCW120903 (P0ZW) exercise price $2.582.*
Call warrant CapitalaMBeCW120904 (QC5W) exercise price $2.979.*
Put warrant CapitalaMBePW121203 (QR6W) exercise price $2.60.*

Call warrant Yanlord MBeCW121204 (QY2W) exercise price $1.20.*

Overnight Market Wrap

US heading for contraction

It was a pretty flat day for the US yesterday as investors looked to manufacturing figures in Europe and the US. S&P closed marginally up at 0.25% while Dow closed flat at -0.07%.

Initially, US indices were tracking the European indices, moving steadily higher upon better than estimated factory output in the Eurozone. The Eurozone Manufacturing PMI was at 45.1, beating survey of 44.8. The positive sentiments were despite unemployment rates inching higher at 11.1%.

However, this quickly dwindled as unexpectedly weak manufacturing data in the US was reported. ISM fell below 50, at 49.7 - an ISM figure below 50 signals a contraction. Gains on US treasuries and the dollar were seen on news of weak manufacturing. When the US markets closed, US treasuries ended at 1.59%.

Overnight Markets

Indices	Last	Change
STI	2910.59	1.1%
HSI	19441.46	2.2%
DJIA	12871.39	-0.1%
S&P 500	1365.51	0.3%
Nasdaq	2951.23	0.6%
China A50	7797.20	-0.1%

Corporate News

Corporate Announcements

Results announcements:
Thu 19 Jul: Keppel Corp 2Q12
Fri 27 Jul: SGX 4Q12

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