Warrants Highlight

Singapore Market Wrap

News galore as the STI got its first weekly gain in November

The week started with Fed Chairman Ben Bernanke stating that 2013 might be a "very good year" for the US should the "fiscal cliff" issue be quickly dealt with. Despite this positive statement, news from the Euro zone was a letdown with the International Monetary Fund (IMF) failing to reach a consensus with regards to the Greek debt as well as budget issues that occurred during the European Unions summit. Regarding Asia, IMF's top official indicated that Asia has stabilized and the IMF projected that growth to pick up in 2013. In addition, the preliminary reading of China's PMI by HSBC signalled an expansion, the first in 13 months.

The bulls seemed to have gained the upper hand for the week despite the mix of bullish and bearish news, with the STI climbing 1.5% to 2,989.28 week-on-week (w.o.w), its first weekly gain of the month.

Call STI 3100MBeCW130228 (RF9W) exercise level 3,100.*
Put STI 2950MBePW130228 (RG0W) exercise level 2,950.*

Olam ended the week suing Muddy Waters
Olam fell 5.7% to $1.655 w.o.w when Muddy Waters, a US-based short-selling firm, attacked Olam's accounting practices. Muddy Waters rose to fame when it issued a report that Chinese company Sino-Forest had fraudulently exaggerated its timber assets value, causing Sino-Forest's shares price to plunge. Not all Muddy Waters' reports were spot on though, with some of it's targeted companies' share prices bouncing back strongly after Muddy Waters had issued negative reports on them. Olam ended the week by filing a claim in the Singapore High Court against Muddy Waters for slander, libel and/or malicious falsehood.

Call Olam MB eCW121203 (QP0W) exercise price $1.70.*

Jolly good week for property counters
Property stocks had a good run with Capitaland raising 3.6% to $3.41 and Yanlord climbing 3.1% to $1.34 on a weekly basis. Yanlord, a high-end property developer in China, as well as Capitaland, were boosted when China's preliminary PMI results from HSBC rose to 50.4 from 49.5, with a value above 50 indicating an expansion. This news came shortly after China's statistics bureau reported that new home prices rose in more cities during October compared to September.

Call CapitalaMBeCW130204 (Q4HW) exercise price $3.40.*
Put CapitalaMBePW130702 (R0JW) exercise price $3.10.*

Call Yanlord MBeCW130201 (Q4QW) exercise price $1.40.*

Overnight Market Wrap

S&P continues rally on shortened session

Last Friday was Black Friday and the US equity markets traded half a session. The S&P added 1.3% for the day, with trading volumes three quarters of the 30-day average.

Black Friday usually marks the start of the holiday session where retailers are expected to experience increased revenue during this period. According to Bloomberg, a measure of retailers in the S&P jumped 1.1% for the day.

In Europe, the German business confidence rose for the first time in eight months to 101.4. This was unexpected as economists expected a drop to 99.5. The EuroStoxx 600 gained 0.6% on Friday.

Overnight Markets

Indices	Last	Change
STI	2989.28	0.1%
HSI	21914.00	0.8%
DJIA	13009.70	1.4%
S&P 500	1409.15	1.3%
Nasdaq	2966.85	1.4%
China A50	7036.22	0.9%

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Ex-dividend dates:
Fri 7 Dec: SPH ($0.17)