Warrants Highlight

A week of gains for HSI

Macquarie is listing new HSI warrants this morning.

Macquarie’s HSI warrants

Are things looking up for US and China?
Last week, Asian indices did well following the announcement of heartening economic data from the US. The US retail sales, housing starts as well as manufacturing beat estimates, showing signs of a pickup in the world's largest economy. In addition, China industrial production, retail sales and fixed-asset investments grew in the month of September after a seven-quarter slowdown adding to speculation of the nation "bottoming out". The MSCI Asia Pacific index gained 2.3% for the week.

HSI outperforms on Friday
The HSI did not fare too badly either, gaining 2% for the week, rising higher than its sovereign parent, the Shanghai Composite Index which gained 1.1%. On Friday, the HSI outperformed the region, gaining for the seventh day, even as most of the other Asian indices ended in the red. This is the longest winning streak it has posted since 2011. The MSCI Asia Pacific Index lost 0.3% dod while the Shanghai Composite Index fell 0.2% dod.

According to Thomson Reuters StarMine, the Hong Kong market is up 17.8% this year, but it is still trading at a 14% discount to its historic forward 12-month price-to-book value.

Hong Kong Central Bank Intervenes
Over the weekend, the Hong Kong Monetary authority announced that it bought US$603 million at HK7.75 per dollar during New York trading hours. This is the first time since 2009 that the Hong Kong de facto central bank stepped in to prevent the city's currency from strengthening against the US dollar. Previously, policy makers were committed to limiting the currency's decline to HK7.85 per dollar and capping gains at HK$7.75. The HKD fell to HKD7.7501 per USD on Friday, hence making the intervention legitimate.

Singapore Market Wrap

Ending the week with mixed results

The earnings season began with mixed results. Blue chips such as SGX and Keppel Corp are facing declining net profit, whereas the REIT sector continues it's DPU growth. The STI ended 3048.92, a modest 0.24% increase week-on-week (w.o.w).

Call STI 3100MBeCW130131 (PA7W) exercise level 3,100.*
Put STI 2800MBePW130131 (PA8W) exercise level 2,800.*

Wilmar receives approval for partnerships
Wilmar and Archer Daniels Midland Company (ADM) have announced the regulatory approvals completion for their partnerships in global fertilizer, European vegetable oil and global ocean freight. ADM is listed on the New York Stock Exchange, owns a 16% equity stake in Wilmar and have been transforming crops into products that serve vital needs for more than a century. Wilmar rose 1.26% to $3.21 for last week's trading session.

Call Wilmar MBeCW130201 (Q3OW) exercise price $3.50.*
Put Wilmar MBePW130116 (Q5RW) exercise price $3.15.*

Bumitama's acquisition proposal
Bumitama has proposed for the acquisition of 94.8% of PT. Sukses Manunggal Sawitindo (SMS). SMS' primarily business is in plantation and the target acquisition will be used to increase the hectarage of Bumitama's land bank. An independent 3rd party valuer has stated an indicative consideration for the acquisition to be approximately IDR 57 billion (about S$7.26 million). Bumitama stayed flat at $1.035 (w.o.w)

Call Bumitama MBeCW130103 (Q0VW) exercise price $1.25.*
Call Bumitama MBeCW130603 (RD1W) exercise price $1.10.*

Overnight Market Wrap

Merkel excludes Greece, Spain and Ireland

Friday marks the anniversary of Black Monday, where the Dow Jones Index lost 22.6% in a single day. US markets did not do well the very same day 25 years later and the S&P made the largest decline since June. The index fell 1.7%, closing at 1433.19.

With the decline, the S&P closed up 0.3% for the week. The technology sector had the weakest performance after some of the biggest tech companies missed estimates.

In Europe, German chancellor Angela Merkel raised new hurdles for ailing banks to receive aid from the European bailout fund. She mentioned that the direct recapitalization of banks should not be extended to countries who are already receiving aid from the Trioka, ECB, EU and the IMF. This automatically excludes Spain, Greece and Ireland.

Overnight Markets

Indices	Last	Change
STI	3048.92	-0.4%
HSI	21551.80	0.1%
DJIA	13343.50	-1.5%
S&P 500	1433.19	-1.7%
Nasdaq	3005.62	-2.2%
China A50	7397.60	0.0%

Corporate News

Corporate Announcements

Wilmar and Archer Daniels Midland Company (ADM) have announced the regulatory approvals completion for their partnerships in global fertilizer, European vegetable oil and global ocean freight.

Bumitama has proposed for the acquisition of 94.8% of PT. Sukses Manunggal Sawitindo, whose primary business is in plantation. An independent 3rd party valuer has stated an indicative consideration for the acquisition to be approximately IDR 57 billion (about S$7.26 million).

Earnings release dates:
Tues 23 Oct: Mapletree Industrial Trust (2Q13)
Thu 25 Oct: NOL (3Q12)
Thu 25 Oct: CapitaCommercial Trust (3Q12)
Thu 25 Oct: CapitaMalls Asia (3Q12)
Thu 25 Oct: Suntec REIT (3Q12)
Tues 30 Oct: Capitaland (3Q12)
Fri 2 Nov: SIA (2Q12)
Mon 5 Nov: SembCorp Marine (3Q12)
Wed 7 Nov: UOB (3Q12)
Wed 7 Nov: Biosensors (2Q13)
Thurs 8 Nov: Noble (3Q12)
Fri 9 Nov: SembCorp Industries (3Q12)
Fri 9 Nov: OCBC (3Q12)
Fri 9 Nov: Wilmar (3Q12)
Fri 14 Nov: GLP (2Q13)
Fri 14 Nov: City Dev (3Q12)

Ex-dividend dates:
Wed 24 Oct: SGX ($0.04)
Tue 6 Nov: Olam ($0.05)
Fri 7 Dec: SPH ($0.17)