DBS Equity Research (Regional) Wired Daily 4 July 2014

kiasutrader

Publish date: Fri, 04 Jul 2014, 02:35 PM

Vallianz - Entering China's vast oil & gas industry

Vallianz Holdings has signed a three-year collaboration agreement with Offshore Oil Engineering Co. (COOEC), the largest offshore engineering and construction company in China. Under the agreement, Vallianz will provide certain offshore support vessels, including submersible launch vessels, to support COOEC's offshore construction activities and operations. The vessels will be made available to COOEC either by charter, or through the award of a project sub-contracted to Vallianz. This collaboration will enable Vallianz to steer into China's vast oil & gas industry.

Polaris has entered into an agreement to acquire 10.59% stake in PT Trikomsel Oke Tbk. Trikomsel is an Indonesian public listed company dealing in retail and distribution of telecommunication and multimedia products. To fund the acquisition, Polaris is issuing 6,521.7m new shares at S$0.023 for each share, representing approximately 189.98% of the existing issued share capital of the company.

World Cup fever combined with an already meandering market took a toll on the total value of securities traded on the Singapore Exchange last month. June's value of $20.5 bn was down a sharp 37% from a year ago and down 12% from May. This translated to a daily average securities value of $978m, a fall of 40% y-o-y and 16% m-o-m. Turnover for exchangetraded funds was also down 57% y-o-y at $2.3bn and lower by 3% m-o-m.

Air traffic volumes in the Asia-Pacific expanded by 7.3% y-o-y in May, outstripping the 6.2% growth seen by the global industry, suggesting that weakness in the Chinese economy which has dogged growth in recent months may be abating. While global air traffic volumes had risen by a stronger 7.6% in April, this was due largely to seasonal factors as Easter fell in the month. Passenger load factor for May was 79% as capacity growth worked out to 5.2%. Growth across the international markets was robust in May, as all the regions reported an increase in passenger traffic. The Middle East registered the biggest growth in international air travel with 13.2%, underpinned by the strongly performing regional economies and demand for premium travel.

In US, Dow hit 17,000, a level US stocks have never seen before, and it comes a mere six months after it crossed 16,000. A strong June job reports drove the optimism in the stock market. The US economy added 288,000 jobs last month, and the unemployment rate fell to 6.1%, down from 6.3% in May, much better than market's expectation. Federal Reserve chair Janet Yellen also commented that the central bank will not use interest rates to pop any potential bubbles in the markets.

Source: DBS

Polaris (5BI)

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