Warrants Highlight

Flat week for equity markets

A week after US Fed came through with another round of asset purchase, the rally in the equity markets toned down as euphoria over "QE3" waned. While the S&P 500 rose 1.9% during the "QE3" week, it ended down 0.4% this past week.

Japanese QE
Following in the footsteps of the US, the Japanese announced additional stimulus last Wednesday to expand their asset purchase program by another 10 trillion Japanese Yen, (about 156 billion Singapore dollars). Both the Hang Seng and the STI Index jumped up after the announcement alongside the Nikkei 225 but failed to add on to their gains, with the HSI only rising 0.5% for the week while the STI inched up 0.3%.

Singapore’s export affected by Europe troubles
On the domestic front, fresh worries over Singapore's economy surfaced on a set of disappointing export numbers that showed a contraction for the first time in six months. Non-oil domestic exports fell 10.6% against expectations of a 4% decline by 15 economists in a poll by Bloomberg, with contributing factors from a weaker electronics sector as well as lowered demand from Europe.

Europe’s consumer confidence at three year low
This was consistent with Friday's numbers that showed Euro-zone's consumer confidence falling to its lowest levels in three years at -25.9, adding nervousness to the region's state of health.
 

Key Macro Data this week
With monetary stimulus initiatives streaming from US, Europe and Japan, many are looking towards China these following weeks for additional clues on the country’s economic growth.

Below are the dates for key macro data released next week.

Mon 24 Sep: Singapore CPI
Tue 25 Sep: HK Exports/Imports, US S&P home price index
Wed 26 Sep: Singapore industrial production, US new home sales
Thu 27 Sep: Eurozone consumer confidence, US GDP, US personal consumption

Quick look at Singapore single stock warrants to leverage on
Investors keen to take a leveraged view over single stocks in Singapore may wish to consider the list of warrants below for each respective single stock underlying.

Singapore Market Wrap

QE3 hype faded...

For those expecting QE3 to kick off a big rally, they were probably disappointed that the STI only rose 0.3% week-on-week (wow) to 3,078.23. The QE3 effect dissipated in the midst of weak PMI numbers and Greece's uncertain fate.

The China A50 Index hit a new 52-week low last Thursday. Over the week, the index fell 4.7% to 6,953.08.

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

CN8000MBeCW130130 (Q7GW) exercise level 8,000.*
CN7000MBePW130130 (Q7HW) exercise level 7,000.*

CapitaLand receives top honours
CapitaLand has received six awards at the prestigious Euromoney Real Estate Awards 2012. It has been named Best Developer, Best Residential as well as Best Mixed-Use Developer in Singapore. It ended up 1.28% ($0.04) to $3.17 on Friday although it was flat week-on-week.

CapitalaMBeCW130204 (Q4HW) exercise level 3.40*
CapitalaMBePW130103 (Q4EW) exercise level 3.00*

IHH Healthcare joining the Straits Times Index (STI)
IHH healthcare Berhad, Asia's largest hospital operator, will be joining the Straits Times Index (STI) from 24 September 2012. Ahead of this, IHH increase 1.56% ($0.02) to close at $1.305 on Friday and flat week-on-week.

IHH MBeCW121031 (Q3GW) exercise level 1.35.*
IHH MBeCW121031 (Q3FW) exercise level 1.20.*

Overnight Market Wrap

Financials led fall in S&P

The S&P gapped up at the opening of its trading session following a Financial Times report on the Spanish economic minister having talks with the commission about a series of restructuring reforms, which will be announced on 27 Sept. This is important since the European Union requires Spain to meet certain conditions before a full bailout can be granted. At this point, the details have yet to be finalized.

Despite the intraday high of 0.5% for the day, the S&P trended lower and finally ended flat for the day. Financials were the weakest sector and fell 0.3% as a group. Friday was also the day where the futures and options contracts expire, a process known as the quadruple witching. In addition, there was a rebalancing on the S&P index. As a result, trading volume for the day was 37% higher than the 3-month daily average, as quoted from Bloomberg.

Overnight Markets

Indices	Last	Change
STI	3078.23	0.5%
HSI	20734.90	0.7%
DJIA	13579.50	-0.1%
S&P 500	1460.15	-0.0%
Nasdaq	3179.96	0.1%
China A50	6953.08	0.0%

Corporate News

Corporate Announcements

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