Warrants Highlight

US outshines Europe

Singapore Market Wrap

Regional indices remain sluggish, STI grinds out profitable week

Mixed economic data and concerns over Europe last week continue to weigh on traders' minds, resulting in no clear direction for regional stock markets. Despite the concerns, STI was up 1.6% to close at 3107.87 week-on-week (w.o.w).

STI 3250MBeCW121231 (Q4OW) exercise level 3,250.*
STI 3100MBePW121231 (Q4PW) exercise level 3,100.*

New rounds of property cooling measures
The MAS announced on Friday that mortgages for HDB and private properties can only span 35 years, with lower loan-to-value for those wanting loans longer than 30 years. Borrowers applying for loan tenures more than 30 years or loan periods that stretch beyond the retirement age of 65 years will only be able to borrow 40% of the property's price for someone with outstanding residential property loans, compared to 60% for someone without. This new rule takes effect from 6 October 2012. Prior to this, Capitaland rose 3.8%, closing at $3.3 w.o.w.

CapitalaMB eCW130204 (Q4HW) exercise level 3.40.*
CapitalaMB ePW130103 (Q4EW) exercise level 3.00.*

Olam acquires stake in Acacia Investments for US$35 million
Olam announced on Friday that it has acquired 50% of shares and voting rights in Acacia Investments ("AI") for a total consideration of US$ 35 million. AI is a business group based in the United Arab Emirates with a significant presence in edible oil refining and distribution in East Africa. Olam's Managing Director and Global Head of Palm, Ranveer Chauhan states that AI has developed a strong brand franchise and deep knowledge of the local edible oil refining industry in East Africa, which will complement Olam's strong distribution network. Olam closed down 2.4% to $2 w.o.w.

Olam MB eCW130103 (Q0KW) exercise level 2.20.*
OLAM MB eCW130201 (Q4MW) exercise level 2.00.*

Overnight Market Wrap

Rajoy gives no joy

Friday saw good employment data which drove the S&P higher. The unemployment rate unexpectedly fell to 7.8% as the economy added 114000 jobs. With a better labour situation in the US, spending might increase hence cushioning the economy from a global slowdown.

However, the index erased earlier gains to close marginally lower. The S&P ended down for the first time this week, falling less than 0.1% as compared to the previous day. This came after the Spanish Prime Minister Mariano Rajoy dampened speculations that Spain would be requesting a bailout. He said that his government wants to "meditate" on whether the country needs additional aid, and will ultimately do what is best for the nation.

Next week marks the start of the earnings season with Alcoa Inc kicking off the reporting.

Overnight Markets

Indices	Last	Change
STI	3107.87	0.7%
HSI	21012.40	0.5%
DJIA	13610.20	0.3%
S&P 500	1460.93	-0.0%
Nasdaq	3136.19	-0.4%
China A50	7275.19	1.5%

Corporate News

Corporate Announcements

Olam announced that it has acquired 50% of shares and voting rights in Acacia Investments ("AI") for a total consideration of US$ 35 million. AI is a business group based in the United Arab Emirates with a significant presence in edible oil refining and distribution in East Africa.

Global Logistic Properties Limited ("GLP"), one of the world's largest providers of modern logistics facilities, today announced the sale of 16.7% of the total outstanding equity of GLP Japan Logistics Partners ("GLP-JLP")2 to clients of CBRE Global Multi Manager for JPY7.6 billion (US$98 million). CBRE Global Multi Manager is the private equity indirect investment division of CBRE Global Investors, which is one of the largest institutional real estate investment managers in the world.

Noble announced that the Company has priced priced RM 300 million in principal amount of 4.50 per cent fixed rate notes due 2015 (the "Sukuk Murabahah") to be issued under its Multi-Currency Islamic Medium Term Note Programme.
Its subsidiary, Blackwood Corporation's 2nd project expands South Pentland by more than 50% to 3.6 - 5.0 Bt thermal coal JORC Exploration Target

Sembcorp Marine's subsidiary Jurong Shipyard (JSPL) has signed a Letter of Intent with repeat customer Prosafe AS for the construction of a semi-submersible accommodation rig. The aforementioned transaction is not expected to have any material impact on the net tangible assets or the earnings per share of Sembcorp Marine for the current financial year.

CapitaCommercial Trust and CapitaMall Trust announced a S$34.7 million asset enhancement initiative (AEI) for Raffles City Tower, which comprises of Raffles City Tower, Raffles City Shopping Centre, two hotels - Swissôtel The Stamford and Fairmont Singapore - and Raffles City Convention Centre.

Earnings release dates:
Fri 12 Oct: SPH (4Q12)
Thu 18 Oct: SGX (1Q13)
Thu 18 Oct: Keppel Corp (3Q12)
Fri 19 Oct: CapitaMall Trust (3Q12)
Thu 25 Oct: NOL (3Q12)

Ex-dividend dates:
Tues 9 Oct Ezra (1 Triyard Shares for every 10 Ezra Shares)
Tue 6 Nov: Olam ($0.05)