Warrants Highlight

New March HSI listing today

Macquarie is listing new warrants over the HSI this morning.

Investors cheer on better US and China data
The HSI closed at 23601.78, its highest since June 2011. On Friday alone, the index added 1.1%, taking its gain for the week to 1.5%. Its performance followed improved economic data from the two largest economies in the world.

Chinese growth regains some speed
According to the National Bureau of Statistics, China’s gross domestic product rose 7.9% in the fourth quarter from a year ago. In comparison, the median estimate in a Bloomberg survey was 7.8%. This marks the end of seven quarters of slowing growth. Although the Chinese economy had only expanded 7.8% for the whole year, the slowest since 1999, this pick up in the last quarter of 2012 may represent a turn. In addition, industrial production climbed 10.3% and fixed assets gained 20.6%.

US housing activity rises
In US, the housing market continues to show a pickup in activity with housing starts rising 12.1% for the month of December and construction work for new houses rebounded at the fastest pace in more than four years. For the year 2012, construction for houses increased 28.1%, the strongest since 2008.

Risks to economic rebound still remain
Although economic data has been upbeat, there are still risks that the global economy may slump. The European debt crisis and the US fiscal problems are some pending issues which may hold back the recovery of economies around the world.

In fact, these risks prompted the World Bank to downgrade its 2013 GDP forecast for the world economy. It said that “the recovery from the global financial crisis remains fragile...as developed nations continue to hold back worldwide growth. (The Edge)

Key Macro Data this week
Tues 22 Jan: US existing home sales
Wed 23 Jan: US house price index; Eurozone consumer confidence
Thurs 24 Jan: Eurozone PMI; China flash manufacturing PMI; HK trade figures
Fri 25 Jan: US new home sales

Singapore Market Wrap

Market failed to end higher

China announced last Friday that it's 2012 economy expanded by 7.8% year-on-year. 4Q 2012 GDP grew by 7.9% quarter-on-quarter, it's first reversal after seven continuous quarter of lower growth. The STI ended the week 0.2% lower to 3,211.2, making this the second consecutive week of losses as investors wait for further catalyst.

Call STI 3250MBeCW130430 (R5XW) exercise level 3,250.*
Put STI 3100MBePW130430 (R5WW) exercise level 3,100.*

200,000 new houses by 2016
National Development Minister Khaw Boon Wan wrote in a blog stating that 200,000 new properties will be constructed by 2016. This figure consists of 110,000 of public housing, 80,000 private housing as well as 10,000 Executive Condominium. On 11th January, the government came out with the latest cooling measures to further cool the property market. CapitaLand slipped 0.5% down to $3.87 week-on-week.

Call CapitalaMBeCW130704 (R5YW) exercise price $4.00.*
Put CapitalaMBePW130701 (R8IW) exercise price $3.90.*

Mixed week for palm oil stocks
Palm oil counters such as Wilmar, IndoArgi and Bumitama all had a mixed week. Negative news such as Malaysia setting its palm oil tariff at zero, China imposing more rigid rules on imports as well as India introducing a levy on imports, had dominated headlines recently, increasing pressure on the palm oil industry. Wilmar rose 2.8% to $3.68 for the week as IndoArgi and Bumitama dropped 5.9% to $1.275 and 6.4% to $1.02 respectively.

Call Wilmar MBeCW130801 (R9HW) exercise price $4.00.*
Put Wilmar MBePW130903 (R5OW) exercise price $3.40.*

Call IndoAgriMBeCW130603 (RE8W) exercise price $1.45.*

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

Overnight Market Wrap

Dow ends the week on a high

The S&P advanced 0.3% on Friday to close at 1485.98 while the Dow Jones climbed 0.4% to close at 13,649.7, the highest level in five years.

Morgan Stanley reported profits for 4Q compared to a loss for the same period last year and as a result, its shares jumped 7.9% for the day. General Electric also gained 3.5% after orders for industrial equipment increased 2% in the fourth quarter. Intel, however fell 6.3% after the company reported lower sales for the second consecutive year.

According to Bloomberg, the House Republicans said that they plan to vote on a temporary increase in the debt-limit this week. The US markets will be closed today for the Martin Luther King holiday.

Overnight Markets

Indices	Last	Change
STI	3211.22	0.5%
HSI	23601.80	1.1%
DJIA	13649.70	0.4%
S&P 500	1485.98	0.3%
Nasdaq	0.00	-
China A50	8452.08	1.7%

Corporate News

Corporate Announcements

Earnings release dates:
Tue 22 Jan: MapleTree Industrial Trust (3Q13)
Tue 22 Jan: SGX (2Q13)
Tue 22 Jan: Suntec REIT (FY12)
Wed 23 Jan: Keppel Land (FY12)
Wed 23 Jan: CapitaCommercial Trust (FY12)
Thurs 24 Jan: Keppel Corp (FY12)
Wed 30 Jan: SATS (3Q13)
Wed 6 Feb: DBS (FY12)
Wed 6 Feb: GLP (3Q13)
Fri 15 Feb: OCBC (FY12)
Fri 22 Feb: Wilmar (FY12)
Wed 27 Feb: UOB (FY12)
Thurs 28 Feb: Noble (FY12)

Ex-dividend dates:
Mon 21 Jan: AREIT ($0.0362)