Warrants Highlight

Olam - Smooth Transition from Old to New

Singapore Market Wrap

STI back to its recent winning ways

After merely a day in the red, the STI bounced back to resume its recent uptrend despite concerns over global economic growth. Singapore, like Hong Kong, traded in a tight range earlier during the trading session and only rallied sharply after the HSI closed for the day. The HSI closed at 19396.36, down 0.2% while the STI closed 1.2% higher at 2964.62.

Markets reacted positively after the HSI closed, mainly driven by news that the EU is speeding up Spanish banks' aid with the aim of using the euro-area bailout funds to recapitalize banks directly instead of putting the debt on the respective governments' books

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

Casino collects levies of S$93mil

In a short span of 6 months, entry levies placed on locals visiting Singapore's only 2 casinos has reached S$93mil. This paints a consistent picture with the annual levy collected for the whole of last year at S$195mil. Currently, Singapore citizens or permanent residents have to pay entrance fee of $100 a day or $2000 a year. The entry levies collected thus far shows that casino visits by the local residents has been rather stable despite signs of a global economic slowdown. The increase in levies collected will contribute to the country's tax revenues which can support Singaporeans in many areas.

Genting closed $1.39, up 0.36% dod.

Call warrant GentingSMBeCW130603 (L0QW) exercise price $1.45.*
Call warrant GentingSMBeCW121105 (QK7W) exercise price $1.50.*
Put warrant GentingSMBePW130103 (QZ2W) exercise price $1.30.*

Keppel wins contract for jackup rig

After market hours, Keppel Corporation announced on the SGX that they have won yet another contract. Together, Keppel Kazakhstan and its partner Teniz Burgylau secured a contract to build a jackup rig worth US$242mil. The rig is scheduled for delivery in 1Q 2015 and the company mentioned that they "look forward to delivering a high quality rig on time and within budget".

KepCorp closed $10.78, up 0.56% dod.

Call warrant KepCorp MBeCW121001 (QF0W) exercise price $10.50.*
Call warrant KepCorp MBeCW121101 (Q0AW) exercise price $11.50.*
Put warrant KepCorp MBePW121203 (Q0IW) exercise price $10.00.*

Overnight Market Wrap

Earnings season disappoints

Finance ministers agreed to make available 30bil euro by the end of the month and aim to eventually move towards direct recapitalization. Together with the good manufacturing data from the UK, the European markets rallied with DAX closing 0.8% up. UK manufacturing rose 1.2% against a forecast decline from Bloomberg survey.

However, US investors failed to continue the rally and the S&P closed 0.8% down. Developments in Europe took a back-seat during the US trading session and all eyes were on earnings reporting. Unfortunately, earnings were disappointing as companies cut forecasts and missed estimates. Among the 10 main industries in the S&P, tech companies were the worst performers, falling 1.2% as a whole. Second biggest processor producers AMD reported an unexpected drop in second quarter sales because of weakness in China and Europe.

US treasury yields fell to 1.50%, compared to the previous day of 1.51%.

Overnight Markets

Indices	Last	Change
STI	2964.62	1.2%
HSI	19396.36	-0.2%
DJIA	12653.12	-0.7%
S&P 500	1341.47	-0.8%
Nasdaq	2902.33	-1.0%
China A50	7639.61	-0.0%

Corporate News

Corporate Announcements

Results announcements:
Thu 19 Jul: Keppel Corp 2Q12
Wed 25 Jul: Biosensors 1Q13, SIA 1Q13
Fri 27 Jul: SGX 4Q12
Thu 2 Aug: SembCorp Marine 2Q12
Tue 7 Aug: UOB 2Q12

Ex-dividend dates:
Mon 6 Aug: SingTel ($0.09 final)