Warrants Highlight

Yanlord rallies 14.3% in November

Macquarie’s Yanlord warrants

Communist Party chief Xi Jinping said this week that he will continue to maintain the tightening measures in order to keep the housing prices in check.

Housing sales reached 14,000 in November
Despite the Chinese government’s introduction of curbs on the property sector in China, several Chinese property developers still recorded strong sales for November. 14,000 units were sold in November, close to the peak three months earlier in August. According to the Wall Street Journal, demand is probably aided by government policies which favour first-time home buyers as well as the increased access to funding for investors.

Home prices increased for the 6th consecutive month
In addition, the China Index Academy reported this week that home prices in major cities continued to climb for the sixth consecutive month in November. The average price of new homes in monitored cities moved up 0.26% month on month after a rise of 0.17% was recorded in October.

Property sector upgraded to stable
Moody’s Investors Service also upgraded its outlook for the Chinese property sector to stable from negative. Franco Leung, a Moody’s assistant vice president said that “we expect property sales to grow in single digits in percentage terms over the next 12 months”. Moody’s made the rating change with expectations that the improved sales and access to funding will continue in 2013.

Moody’s believes that the regulatory environment will not change significantly in 2013 and that the government is unlikely to impose further regulatory restrictions to tighten the property markets as the current restrictions have been effective in discouraging speculation. Furthermore, a cutback in property investments will weigh on the already slowing economy and make it harder for the government to attain its target of a 7.5% GDP growth. (China Daily)

Yanlord revenue jumped 253.9%
With the property sector looking up, it came as no surprise that Chinese developer, Yanlord announced third quarter revenue that increased 253.9% as compared to the same period last year. For the month of November, its share price jumped 14.3%. This month, Yanlord continued to add gains, inching towards its year high of $1.465 recorded on 24th February.

Singapore Market Wrap

Mixed STI swings between profit and losses

The STI fluctuated between profits and losses during Thursday before ending 0.1% in the black at 3078.2. European markets led the way in the afternoon session for the STI to recover from the morning session's losses. The drop in the STI came despite Wednesday night's positive comments from US President Obama commenting that a plan for avoiding the "Fiscal Cliff" would be coming soon.

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

Fines on Mobile Operators
Singtel, M1 and Starhub will be imposed with a S$10,000 fine by Singapore's phone regulator, Infocomm Development Authority. This is due to failing to attain at least 99% of nationwide outdoor service coverage in September. Singtel stayed flat at $3.30.

Call SingTelMBeCW130301 (PB6W) exercise price $3.30.*

OCBC comes up with mortgage insurance premiums return plan
OCBC Bank has announced the launch of a mortgage insurance plan that returns all premiums to the customer in the event that no claim has been made at the end of the policy term. In addition, this Mortgage Protector Advantage will return at least 40% of the premiums paid after 7 years into the policy as surrender value. OCBC rose 0.6% to $9.55 for the trading session.

Call OCBC Bk MBeCW130701 (RF8W) exercise price $10.20*

Overnight Market Wrap

S&P rises for a second consecutive day

After falling 6.4% on Wednesday, its largest drop in four years, Apple rebounded last night and gained 1.6%. Led by technology and consumer discretionary shares, the S&P index increased 0.3% to close at 1413.94 at the end of its trading session.

Last night, the index fell initially when the European Central Bank (ECB) forecast that the economy will shrink 0.5% this year and risks to the outlook remain on the downside. "Weak activity is expected to extend into next year," said ECB's President Mario Draghi.

Initial jobless claims came in lower than expected last week and last month's payrolls is expected to rise by 85,000 workers. Official figures will be released tonight.

Overnight Markets

Indices	Last	Change
STI	3078.20	0.1%
HSI	22249.80	-0.1%
DJIA	13074.00	0.3%
S&P 500	1413.94	0.3%
Nasdaq	2989.27	0.5%
China A50	7202.63	-0.0%

Corporate News

Corporate Announcements

Sembmarine's subsidiary, PPL Shipyard has secured two turnkey contracts worth US$434 million in total.

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