ValueBuddies.com : Value Investing Forum - Singapore, Hong Kong, U.S.

Update of the bond listings on SGX.

Record year for bond listings on SGX

SINGAPORE (Jan 7): A record $213 billion was raised from bond listings in Singapore last year, as companies sought to diversify their sources of funds and took advantage of low interest rates to borrow from investors.

The amount raised was 21% more than in 2013, according to data released today by the Singapore Exchange.

The total number of bonds listed on SGX as at end-2014 also reached a new high of 521, up from 465 the previous year. In December alone, SGX received 28 new bond listings.

There were a total of 149 bond issuances last year. Almost three-quarters of them were listed on SGX.

Singapore companies that raised funds through the debt market accounted for 26% of the total bonds listed on SGX.
http://www.theedgemarkets.com/sg/article...stings-sgx

SGX continue its effort on derivative markets...

Singapore Exchange and ICAP to develop new Asian currency products

SINGAPORE — Singapore Exchange (SGX) and ICAP’s EBS will together develop a new range of Asian currency products and services, the two companies said today (Jan 14).

EBS, ICAP’s electronic foreign-exchange business, and Singapore Exchange expect the products to strengthen liquidity in both the over-the-counter foreign exchange and futures markets in Asia.

Customers will initially be offered access to Singapore Exchange-listed currency derivatives through the EBS platforms, to be cleared by SGX.

So far, SGX has introduced 11 foreign-exchange futures contracts, including the Indian rupee and Chinese yuan, trading more than $26 billion in aggregate notional value since launch, it said in a statement.

Regulatory reforms around the world are trying to push for the trillions of dollars in over-the-counter derivatives to be centrally cleared to try to reduce the level of risk posed to the financial system.

Singapore is the world’s third-largest foreign-exchange trading centre behind London and New York. REUTERS
http://www.todayonline.com/singapore/sin...y-products

The view on the 1st trading day of reduced lot size. One from perspective of retail investor on higher-priced stocks, while The Edge from perspective of overall market turnover...

From SGX:
“The activity in the Singapore stock market today has been encouraging, suggesting that retail investors have
leveraged the 100-share board lots to access higher-priced stocks. In addition, although it is a holiday in the US
markets today, our turnover grew 4% compared with the same holiday a year earlier.” said Jenny Chiam, Head of
Securities at SGX.
Of the eight Straits Times Index component stocks priced above S$10 each, 70% of the orders were of 1,000
shares and below. This compared with an average of 51% of orders at the minimum 1,000 share lot in October to
December 2014.
http://infopub.sgx.com/FileOpen/20150119...eID=331898

From The Edge:
SINGAPORE (Jan 19): The Singapore market ended with more decliners than gainers as investors took profit after stocks rose for the most part of the day on the back of Wall Street’s advance last Friday.

Some 1.17 billion shares worth $897.2 million changed hands, compared with 1.76 billion shares worth $1.39 billion in the previous session.

The decline suggested retail investors had yet to warm up to the reduction in the standard board trading lot to 100 shares from 1,000 with effect from today.

Decliners outnumbered gainers 239 to 193.

The Straits Times Index managed to eke out a small gain, though, as gains by SingTel ( Financial Dashboard), CapitaLand ( Financial Dashboard) and most Jardine-related stocks offset declines by the three banks.

The STI inched up 0.2% to 3,307.70.
http://www.theedgemarkets.com/sg/article...ore-shares

(19-01-2015, 09:06 PM)CityFarmer Wrote: [ -> ]The view on the 1st trading day of reduced lot size. One from perspective of retail investor on higher-priced stocks, while The Edge from perspective of overall market turnover...

Both parties use 1 data point to make their conclusion, i wonder whether both sides have had training in statistics? At the expense of the mathematics PHDs' horror in their team, of course, someone had to churn out some news so they sound busy and look 'in control' of things.

Public education on investment, should be part of SGX obligations. I reckon SGX has done it well, with its SGX Academy. Retail investors should make fully use of it, to expand their circle of competencies...

SGX and REITAS partner on REITs education
Singapore Exchange (SGX) and the REIT Association of Singapore (REITAS) have launched an initiative to educate
the public on REITs and stapled trusts.
Delivered through SGX Academy and REITAS, this initiative comprises roadshows and monthly workshops.
Participants will meet REITs managers to learn about the various types of REITs, how they are structured and
managed, with a focus on generating steady income and long-term capital growth for unit holders. This will be
complemented by the launch of online education materials by June 2015. Around 20,000 investors are expected
to benefit from this initiative.
...
http://infopub.sgx.com/FileOpen/20150120...eID=331925

Should I see it as a minus to SGX, especially on its derivative biz? IMO, it shouldn't. The involvement of external clearing houses, will enlarge the cake, and eventually SGX will benefit more...

(vested)

Deutsche Boerse gets green light for Singapore clearing house

FRANKFURT (Jan 21): German stock exchange operator Deutsche Boerse has received regulatory clearance in principle from the Monetary Authority of Singapore to set up a clearing house there.

The new clearing house, Eurex Clearing Asia, is one of the most important elements in the company's strategy to expand in Asia and is expected to begin operating in 2016, one year later than originally envisaged.

Regulators are keen to see clearing houses play a greater role in international financial markets, especially in derivatives trading, by standing between buyers and sellers and stepping in to fill the gap should a payment fail.

Deutsche Boerse aims to offer trading, clearing and other services across the Asian time zone under its new brand Eurex Asia.
...
http://www.theedgemarkets.com/sg/article...ring-house

SGX 2Q result announced today. Analysts seems are optimistic on the result. Let's see...

(vested)

China stock surge seen boosting SGX's profit

SINGAPORE (Jan 21): A world-beating rally in Chinese equities is boosting derivatives revenue at the Singapore Exchange, spurring analysts to predict the first quarterly profit growth for Southeast Asia's biggest bourse in more than a year.

Derivatives volume climbed to an all-time high in the three months ended Dec 31 as trading of FTSE China A-50 futures contracts jumped 183 percent from a year earlier, according to data from the exchange operator.

SGX ( Financial Dashboard) is today expected to report net income of S$87 million for the quarter, according to the average of six analyst estimates compiled by Bloomberg, compared with S$75 million a year ago.
...
http://www.theedgemarkets.com/sg/article...gxs-profit

The survey result is more relevant for SGX, thus post it here for reference

Singapore retail investors less upbeat; more looking abroad for better returns

SINGAPORE (Jan 14): Retail investors in Singapore have become less confident about prospects for the next six months amid growing concerns about the global economy. More of them are also seeking better fortunes in markets outside Singapore.

These are some of the findings of a semi-annual survey released today by JPMorgan Asset Management.

The poll was commissioned by the US investment bank's asset management arm and conducted by market research firm TNS between November and December last year, when a slew of events unravelled that shook financial markets worldwide.

These included the dramatic slide in oil prices, a further slowdown in China’s economy, the collapse of the Russian rouble, and fears of a contagion arising from a potential exit by Greece from the euro zone.

Investor confidence in Singapore, as tracked by the JPMorgan Investor Confidence Index, is now at its lowest since December 2012, according to the survey.

About a third of the respondents expect the global economy to worsen over the next six months. This was an increase of 11 percentage points from June 2014, when the poll was last carried out.

With their more bearish view of the global economy, retail investors have also turned more cautious about the Singapore economy.

Only 37% of those polled, compared with 47% previously, see the local economy improving in the months ahead, while 23% of the respondents, up from 13% six months ago, expect local economic conditions to worsen.

Some 21% of those polled, up from 11% previously, expect the Straits Times Index to fall in the next two quarters.

More of them also believe the Singapore dollar will weaken against the greenback.

Against this backdrop, retail investors are increasingly shying away from investing in Singapore, preferring instead to put their money to work in Asian assets, according to the survey.
...
http://www.theedgemarkets.com/sg/article...er-returns

The actual result is very close to analysts expectation...

(vested)

SGX’s 2Q earnings rise 15.5% to $86.6 million
SINGAPORE (Jan 21): Singapore Exchange reported a 15.5% rise in earnings to $86.6 million, or 8.1 cents per share, in 2Q15 from a year ago, thanks to record revenues from its Derivatives business.

Revenue grew 19% to $195.1 million from $164.6 million.

Derivatives revenue increased 46% from $52.5 million, driven by the continued strong performances of its FTSE China A50 futures and Iron Ore products.

“We saw a record quarter for our Derivatives business while Securities trading grew slightly. Derivatives revenue (including EMC revenue) was a record $76.4 million following a 52% increase in volumes to 40.0 million contracts... Volume of the A50 futures increased 183% to a record 17.4 million contracts for the quarter while Iron Ore volumes grew more than five times to 1.2 million contracts," said CEO Magnus Bocker in a filing.

Securities revenue declined 1% to $51.7 million due to a 4% drop in average clearing fee daily even as average traded value and total traded value increased 4% and 3% to $1.04 billion and $65.7 billion respectively.

Listing revenue increased 29% due to an increase in the number of listings and revised listings fees. A total of 14 new listings raised $0.7 billion in the quarter, compared with nine new listings raising $1.4 billion a year earlier. Secondary equity funds raised increased 58% to $1.9 billion.

“The outlook for the global economy remains uncertain with continued volatility. Against this backdrop, we expect the demand for Asian trading and clearing services to grow. We therefore remain committed to our long- term growth strategy. We have accelerated capital investments in our Derivatives and Fixed Income businesses. These are in addition to on-going investments including a new generation post trade system for our Securities business,” added Bocker.

SGX has declared an interim dividend per share of 4 cents, unchanged.

The stock closed 1.5% higher at $7.90.
http://www.theedgemarkets.com/sg/article...66-million

(21-01-2015, 09:12 AM)CityFarmer Wrote: [ -> ]SGX 2Q result announced today. Analysts seems are optimistic on the result. Let's see...

(vested)

China stock surge seen boosting SGX's profit

SINGAPORE (Jan 21): A world-beating rally in Chinese equities is boosting derivatives revenue at the Singapore Exchange, spurring analysts to predict the first quarterly profit growth for Southeast Asia's biggest bourse in more than a year.

Derivatives volume climbed to an all-time high in the three months ended Dec 31 as trading of FTSE China A-50 futures contracts jumped 183 percent from a year earlier, according to data from the exchange operator.

SGX ( Financial Dashboard) is today expected to report net income of S$87 million for the quarter, according to the average of six analyst estimates compiled by Bloomberg, compared with S$75 million a year ago.
...
http://www.theedgemarkets.com/sg/article...gxs-profit

The analyst view, after the recent 2Q report...

(vested)

SGX kept at ‘hold’ by CIMB with higher target price of $8.08

SINGAPORE (Jan 22): CIMB ( Financial Dashboard) is maintaining its “hold” call on Singapore Exchange with a higher target price of $8.08.

In a Jan 21 report, the research house believes all the positives are priced in at this level even though the company’s outlook is good and momentum is encouraging.

SGX achieved a 2QFY15 net profit of $86.6 million, up 11.7% qoq and 15.5% yoy. This is its strongest in five quarters.

While its securities average daily traded value (ADVT) remained weak and flat with recent quarters, earnings were lifted by a surge in traded volumes of the China A50 futures in Dec after the launch of the Shanghai-Hong Kong Stock Connect.

Derivatives now account for 39% of total revenue, while securities have become less of a driver at 26% of total revenue.

2QFY15’s results also featured a $1 million net profit contribution from its acquisition of Energy Market Company Limited (EMC), which added electricity futures to its growing suite of derivatives products.

Meanwhile, SGX has also revised its technology-related capex guidance for FY15 to $70-75 million from $50-55 million previously.

The funds will be used to invest in a new derivatives clearing platform, which will increase its capacity to handle orders and enable investors to trade certain products such as the China A50 futures 24 hours a day; and a bond-trading platform which will be available to the market in 3QCY15.

Operating expense guidance was also revised to $360-370 million from $330-340 million previously.

Half the increase is in anticipation of higher variable costs, in line with higher traded volumes, with the other half is to account for expenses associated with EMC.

CIMB views this as a positive sign of management’s confidence in stronger derivatives volumes in 2H.

While the outlook is promising for the derivatives segment, CIMB believes the positives have been priced in at this point. SGX is trading at its historical mean P/E of 22x.

“We see little reason to chase the stock at these levels, hence our Hold call,” said CIMB.

SGX ended 1.1% lower at $7.81 yesterday.
http://www.theedgemarkets.com/sg/article...-price-808