Warrants Highlight

China A50 - traded volume tripled in October

Yesterday, President Obama was re-elected to win a second term as the President of the world’s largest economy. This made him the only president to be re-elected at the highest unemployment rate since Franklin Roosevelt in 1936.

Macquarie is listing new warrants over China A50 Index this morning.

In the run up towards the US elections, official economic data released showed signs of improvement in the US economy. Coincidentally, China’s manufacturing data released a few days ago showed manufacturing expanding for the first time in three months at 50.2. This set of data was generally more positive than what analysts’ had expected in their estimates provided to Bloomberg’s survey.

Chinese leadership handover in focus next
Today, the Chinese Communist Party will be starting its congress to discuss the party policies as well as promotions and demotions. Vice president Xi Jinping is expected to replace current president Hu Jintao while Vice premier Li Keqiang could replace Wen Jiabao as premier.

The China A50 Index was an underperformer yesterday falling 0.2% when the regional benchmark MSCI Asia Pacific Index gained 0.7%.

China A50 traded volume tripled in October
The Chinese markets have garnered interest with local investors recently. As futures trading in the Chinese mainland is heavily restricted, the SGX offers the FTSE China A50 Index which tracks the largest 50 Chinese A-shares, giving investors exposure to the China market. The traded volume of the China A50 futures more than tripled to 1.1 million contracts last month.

Other new warrants
Together with new China A50 warrants, Macquarie is listing new put warrants over Genting, Wilmar and Sembcorp Marine. Investors with concerns over the ‘fiscal cliff’ and the EU crisis might want to consider a put warrant.

Singapore Market Wrap

Obama re-elected as president gives boost to the STI

Yesterday, the STI rose 0.79% to 3043.27 day-on-day (d.o.d) as Obama was re-elected as the President of the United States. Obama's electoral votes stood at 303 to Presidency-candidate Romney's 206. Financial and property stocks such as DBS, OCBC and Capitaland led the way for STI components by rising 1.59%, 1.21% and 2.65% respectively.

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

Yangzijiang reported stable revenue
Yangzijiang announced that its revenue for 3Q 2012 slipped marginally (1%) to RMB$3.6 billion, with net profit down 14% to 877 million year-on-year (y.o.y). Revenues from shipbuilding fell 4% due to lower vessel delivery whereas revenues from the investment segment jumped 51% y.o.y.Yangzijiang jumped 3.28% to close at $0.945 for the trading session.

Call YangzijiMBeCW121203 (QR1W) exercise price $0.95.*
Put YangzijiMBePW130103 (Q0CW) exercise price $ 0.95.*

UOB Net Profit up
UOB has announced that its 3Q 2012 net earnings rose 35.5% y.o.y to $707 million. Net interest income rose 9.3% y.o.y to S$2.95 billion contributed by higher loans volume whereas fee and commission income improved 13% to S$1.12 billion. UOB rose 0.27% to $18.30 d.o.d prior to the earnings release.

Call UOB MB eCW130103 (MW0W) exercise price $19.397.*
Put UOB MB ePW130104 (Q8CW) exercise price $18.00.*

Overnight Market Wrap

‘Fiscal cliff' and EU crisis take centre stage

The S&P index fell 2.4% to close at 1394.53 last night. Energy, healthcare and banking sectors were among the worst hit.

President Obama's re-election, secures the position of Fed's Chairman, Ben Bernanke and hence protects his stimulus measures. However, concerns over the 'fiscal cliff' arose and President Obama must try to contend with the Republican's demands for tax cuts on all income levels.

In addition, the European Central Bank President Mario Draghi said that the debt crisis is starting to hurt Germany, which is the strongest country in the region. This sent more concerns among investors. The Euro Stoxx 600 fell 1.4% yesterday.

Overnight Markets

Indices	Last	Change
STI	3043.27	0.8%
HSI	22099.80	0.7%
DJIA	12932.70	-2.4%
S&P 500	1394.72	-2.4%
Nasdaq	2938.38	-2.4%
China A50	7281.06	-0.2%

Corporate News

Corporate Announcements

Earnings release dates:
Thurs 8 Nov: Noble (3Q12)
Thurs 8 Nov: UOL (3Q12)
Fri 9 Nov: SembCorp Industries (3Q12)
Fri 9 Nov: OCBC (3Q12)
Fri 9 Nov: Wilmar (3Q12)
Mon 12 Nov: Genting (3Q12)
Mon 12 Nov: ComfortDelGro (3Q12)
Mon 12 Nov: Golden Argi (3Q12)
Wed 14 Nov: GLP (2Q13)
Wed 14 Nov: City Dev (3Q12)
Wed 14 Nov: Midas (3Q12)
Wed 14 Nov: Singtel (2Q12)
Wed 14 Nov: China Minzhong (1Q13)
Wed 14 Nov: Olam (1Q13)
Wed 14 Nov: STX OSV (3Q12)