Warrants Highlight

GLP - jumps 8.8% in past week

Macquarie is pleased to list the following new warrant over GLP this morning:

Macquarie’s Global Logistic Properties warrants

Global Logistics Properties (GLP) first listed on the SGX mainboard in Oct 2010, with an initial public offering price of $1.96. Being a government-linked company as well as the second largest IPO in Singapore, the company garnered a lot of interest from institutions and retailers.

Initial performance did not last
GLP had a stellar start, surging 18.4% to close at $2.32 on 29 Oct 2010, two weeks after its debut. However, interest in the counter quickly dwindled and it trended lower, falling to its lowest levels, a year after its IPO. On 4 Oct 2011, GLP traded at $1.50, down 35.3% from its previous high of $2.32, lagging behind the STI which declined 19.4% for the same period.

+73.3% in less than a year
However, a month after GLP made its low of $1.50, the company announced their 2Q FY2012 results which surprised investors when their financial results beat the consensus by 175%. The company has continued to beat estimates every quarter till date.

From 4 Oct 2011 till yesterday, GLP has rallied 73.3%, outperforming the local bourse which has added 21.5% for the same period.

+8.8% in a week
More recently, GLP has made an increase of 8.8% in the past week (since 10 Sept close). This could be attributed to the company’s expansion plans in China. CEO Mei Ming Zhi is particularly interested in China as he said that “80% of China’s logistic facilities are old and obsolete”. He added that “the company wants to rebalance the portfolio and that it intends to grow faster in China”.

Plans in China boost stock price
GLP announced on 10 Sept 2012 that it will partner Haier to develop a state-of-the-art logistics network for the distribution of household appliances across China. The partnership is expected to expand GLP’s customer base within the home appliance distribution industry and further supply chain optimisation for Haier.

Two days later, Mr Mei Ming Zhi mentioned that he plans to spend 8bil yuan a year to build warehouse space in China and on 13 Sept, GLP ended at an all time high of $2.66.

Separately, Macquarie has also listed new HSI warrants this morning:

Singapore Market Wrap

Slow moving Wednesday for STI

The STI rose 0.3% day-on-day to 3,075.63 yesterday, recovering most of its Tuesday losses. $1.6bn shares were traded as penny stocks activity increased.

Asian indices generally rose yesterday after Japan central bank said it would increase its asset-purchasing fund by JPY10 trillion to a total of JPY 80 trillion. The HSI rallied 1.2% to 9,232.21.

STI 3100MBeCW121031 (Q1AW) exercise level 3,100.*
STI 2950MBePW121031 (Q0ZW) exercise level 2,950.*

HSI20400MBeCW121030 (Q7IW) exercise level 20,400.*
HSI20000MBePW121030 (Q7JW) exercise level 20,000.*

Genting Singapore sells stake
Genting Singapore announced yesterday that it is selling its 4.8% stake in Australia's Echo Entertainment Group after a review by the company to "rationalise its investments portfolio". Earlier this year, Genting raised its stake on Echo for its Sydney Casino, directly competing with Australian billionaire James Packer who is eyeing the same prize. Genting shares rose 1.8% yesterday to close at $1.41.

After the closure of this saga, Genting will need to seek for other avenues to use its billion-dollar war chest which it collected through several rounds of bonds and perpetual issuance.

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

Bumitama near all time high
Palm oil producer, Bumitama Agri, rose 0.4% yesterday to close at $1.135. The company was at its all time high of $1.14 on 19th July. Bumitama was listed in April this year at $0.75 and has risen 51.3% since then. In its quarterly report, the management said that the company is expecting an increase in production volume as more trees enter into their prime producing years.

Call warrant Bumitama MBeCW130103 (Q0VW) exercise price $1.25.*

Overnight Market Wrap

S&P advanced on housing data

The S&P added 0.1% to close at 1461.05, erasing its decline on Tuesday. Investors bought on the back of good housing data.

Purchases of existing houses increased 7.8% in August compared to July, while construction of single-family houses increased 5.5%. These figures that we see are the best since 2010. Fuelling the good news, the median price of houses sold last month was 9.5% higher compared to August 2011.

The low mortgage rates coupled with pent up demand and limited supply have driven up orders and prices of houses in the US. This may signal a recovery in the US housing sector, which is fundamental to the recovery of the economy as a whole.

Overnight Markets

Indices	Last	Change
STI	3075.63	0.3%
HSI	20841.90	1.2%
DJIA	13578.00	0.1%
S&P 500	1461.05	0.1%
Nasdaq	3182.62	0.1%
China A50	7074.54	0.0%

Corporate News

Corporate Announcements

Genting Singapore sold its 4.8% stake in Echo Entertainment Group.

Ex-dividend dates:
Wed 26 Sep: SGX ($0.15)
Tue 6 Nov: Olam ($0.05)