Warrants Highlight

Could STI Cross 3,000 This Week?

Singapore Market Wrap

Singapore GDP disappoints

Singapore's economy showed a contraction as GDP fell an annualized 1.1% in Q2, missing the median of 14 estimates for a 0.6% gain in a Bloomberg News survey. Similarly, retail sales showing a decrease of 2.7% month-on-month (mom) also missed estimates of a 0.8% decrease month-on-month (mom).

Despite a contraction in GDP, the STI index was one of the strongest Asian bourses this week, increasing 0.6% wow. In contrast, the HSI was lacklustre and decreased 3.6% wow. On the day Singapore's GDP surprised on the downside, China reported GDP that managed to meet estimates. China's GDP increased 1.8% quarter-on-quarter and Asian markets followed up with a short spike. Most Asian indices ended positive for the day.

Call STI 2950MBeCW120831 (QE8W) exercise level 2,950.*
Call STI 3200MBeCW130328 (Q0QW) exercise level 3,200.*
Put STI 2850MBePW120831 (QE9W) exercise level 2,850.*
Put STI 2700MBePW130328 (Q0RW) exercise level 2,700.*

Consecutive good news reported from Ezra
Ezra reported their third quarter financial results last week, making profits after tax of USD22.4mil. This more than doubles their profit after tax third quarter results in 2011 and surpassed analysts estimates.

At the same time, Ezra announced that they won a few contracts. The fabrication arm of Ezra had clinched a new US$77mil order for a specialized offshore unit, strengthening its position in the Southeast Asian offshore engineering and fabrication market. Ezra's offshore support services division had also been awarded new charters for both platform supply vessels and anchor, handling, towing and supply vessets. The contracts have a total value of approximately US$87mil, with a tenure of about two years.

Ezra closed at $1.055, down 5.8% wow.

Call warrant Ezra MBeCW121101 (QD8W) exercise price $1.10.*

SGX to offer Nifty Options
The SGX reported on Friday that they will be offering Nifty Options from 16th July 2012 onwards, which will increase investors' access to the Indian economy. SGX is currently the world's biggest offshore market for Asian equity derivatives, accounting for approximately 25% Nifty futures trading globally.

Mr Michael Syn, head of derivatives at SGX said "Investors coming to SGX will find in the Nifty Options, together with the Nifty futures and Indian ETFs, a convenient and easy way to invest in the Indian economy and mange their risks".

SGX closed at $6.50, up 0.2% wow.

Call warrant SGX MB eCW120904 (P9HW) exercise price $6.50.*
Call warrant SGX MB eCW121203 (Q0LW) exercise price $7.50.*
Put warrant SGX MB ePW121203 (Q0BW) exercise price $ 6.00.*

Overnight Market Wrap

Dow Jones Industrial Average finally breaks losing streak

The Dow Jones Industrial Average climbed steadily throughout Friday, rising 1.62% to 12777.09. The S&P 500 index posted similar gains, closing 1.65% higher at 1356.78. JP Morgan Chief Executive Officer, Jamie Dimon, gave investors hope after his comment that the bank remained likely to report record earnings despite the $4.4 billion trading loss by its chief investment officer. This quarter the company reported earnings of $1.21 per share, well above analysts estimates of $0.70 and JP Morgan closed 6% up on Friday.

Investors brushed aside the disappointing consumer sentiment report that came in at 72.0, a tad lower than estimates of 73.5. Corporate earnings this week continue to surprise on the upside, with four out of six S&P 500 companies that reported results beating analysts' expectations.

US 10-year treasury yield was at 1.488% on Friday.

Overnight Markets

Indices	Last	Change
STI	2995.56	0.8%
HSI	19092.63	0.3%
DJIA	12777.09	1.6%
S&P 500	1356.78	1.6%
Nasdaq	2908.47	1.5%
China A50	7737.70	0.5%

Corporate News

Corporate Announcements

Introduction:
Noble Group has appointed Nicholas Brewer and William Cronin as its Co-Chief Operating Officer.

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

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