OCBC loans Wilmar US$200m with Peg Interest Rate

Singapore stock market news today is that Wilmar International, an Agri-business player, has inked an arrangement with OCBC bank to peg interest rate on a US$200 million (S$266.7 million) rotating credit office to the borrower's maintainability execution, the organizations said in a joint explanation on Friday, June 8, preceding the market opened. 

OCBC loans Wilmar US$200m with peg interest rate

Financing costs on Wilmar's advance will be decreased on a layered premise if the organization accomplishes its pre-set supportability targets, which are based on ecological, social and administration (ESG) measurements. These objectives will be evaluated yearly by Sustainalytics, a worldwide supplier of ESG research and appraisals. 

At the point when reached by The Business Times, Wilmar was not ready to unveil the objectives and loan costs. Be that as it may, a Wilmar representative said that a portion of the supportability pointers to be utilized as a part of the appraisal incorporate the advance of the organization's biodiversity and ozone-depleting substance diminishment programs, sustainable power source utilize, its opportunity of affiliation strategy and ESG administration. 

The organizations said that the move expands on the dependable financing rules issued by the Association of Banks in Singapore in 2015 that mean to increase present expectations for the capable and practical fund. 

Elaine Lam, head of worldwide corporate managing an account at OCBC Bank, stated: "We anticipate organizing a greater amount of such bespoke financing answers for them, and for our different clients, as we explore the business scene together in a mindful way." 

Wilmar CFO Ho Kiam Kong included: "Maintainability is the best need at Wilmar and we are satisfied to have the capacity to exhibit that dependable business practices will prompt reasonable development and lower financing costs." 

According to Singapore stock research, Both shares are need to be watched as the Wilmar shares completed S$0.01 or 0.3 percent bring down at S$3.27, while OCBC shares finished S$0.04 or 0.3 percent higher at S$12.84 on Thursday.

Straits Times Index (STI) down to 3,526.94 on friday

SINGAPORE

Stock trading in Singapore is on Friday is likely to be unfavorable as the Strait Times Index down 0.3%. The Singapore share market opened lower on 18 May 2018, Friday. Cause of opening lower is the question cast by President Donald Trump that present exchange converses with China would succeed, and remarked that China was "extremely ruined on exchange".

Singapore stocks opened lower on Friday (May 18), with the Straits Times Index shedding 9.82 focuses, or 0.3 for every penny, to 3,526.94 as at 9.01am.

SGX (Singapore Exchange Limited)

This came after US stocks shocked lower overnight after President Donald Trump cast question that present exchange converses with China would succeed, and remarked that China was "extremely ruined on exchange". 

On the Singapore bourse, the field was equitably coordinated, with the same number of gainers as washouts at 49 each. Around 52.9 million offers worth $51 million changed turns in all out.

The most effectively exchanged counters by volume were MDR, which was level at 0.2 penny with 14.1 million offers exchanged; and Hyphens Pharma which was level at 30 pennies with 4.6 million offers exchanged. Hyphens Pharma influenced its introduction on the Catalist to board on Friday.

Other dynamic list stocks included OCBC Bank, which fell 1.7 for every penny to $12.97; and SIA which rose 1.4 for each penny to $11.30 on news that the gathering has swung once again into the dark with a Q4 net benefit of $181.8 million, and is combining SilkAir into its leader transporter.

Final Thoughts- 

The share market was equitably coordinated, with same numbers of gainers as well. OCBC Bank, which fell 1.7 for every penny to $12.97; and SIA which rose 1.4 for each penny to $11.30. 

Singapore Stock Market Analysis of CapitaLand Commercial Trust

• Agreed property value of S$2.1b
• Initial NPI yield of 3.6%
• Dilution from rights issue

Proposing to Acquire Asia Square Tower 2 for S$2,689 Psf on NLA

 

Read More - CapitaLand Commercial Trust could see DPU boost despite initial dilution

CapitaLand Commercial Trust (CCT) recently proposed to acquire Asia Square Tower 2 which excludes the hotel component (AST2) from BlackRock. The agreed property value of S$2,094m translates into S$2,689 psf on NLA and is expected to contribute an initial NPI yield of 3.6%. This is based on a committed occupancy rate of 88.7%, as at 30 Jun 2017. We see potential upside to this NPI yield as we are confident that management would be able to ramp up the occupancy rate of the property amid a recovering office market.

Funded by Equity, Debt and Divestment Proceeds

This acquisition yield also compares favourably to the exit NPI yield achieved by CCT for One George Street (3.2%) and Wilkie Edge (3.4%). S$340.1m of the divestment proceeds will be used to partially finance this acquisition (total cost of ~S$2,150.5m), with the remainder to be funded by bank borrowings (S$1,120m) and a rights issue (166 units for every 1,000 existing rights units) to raise net proceeds of S$690.4m.

Read more -  The Secret of Successful Share Investment in Singapore Companies

The rights issue price of S$1.363 comes in at a 17.3% and 19.6% discount to the theoretical exrights price of S$1.648 and last closing price of S$1.695 before the announcement, respectively. We note that AST2 will provide CCT with a number of benefits such as the addition of a premium Grade A property with efficient floor plates at a strategic location at the heart of the Marina Bay area, diversification of tenant base and reasonable agreed property value vis-à-vis comparable Grade A office assets. However, there would be an initial dilution to CCT’s DPU due to the rights issue.

Maintain HOLD

On a pro forma basis, CCT’s aggregate leverage would be ~37.1%. Despite the dilution, we see room for management to boost its DPU once it ramps up occupancy at AST2, coupled with the potential to benefit from an uplift in market spot rents in FY18.

Besides factoring in this transaction in our model, we also recalibrate our assumptions (cost of equity: 6.9%; terminal growth: 1.8%) following a change in analyst coverage. Our FY17 and FY18 DPU forecasts are adjusted by -9.1% and -9.2%, respectively.

More Update:Share trading tips, SGX Stock Picks, Share Market signals for Singapore stock Market

Successful share investment secrets

Share investment is always about timings and winnings. When investors decide to make money, then no winds could stop them. Some stock prices are too high to buy and some are too low, which keeps investors in dilemma of buying or not buying those shares. If you too face this problem, its high time to go for a detailed stock research where you must look for successful share investment decisions regarding Singapore stocks to buy now.

So lets unlock the secret of successful share investment by identifying factors which not only boost profit numbers but also helps in tracking Singapore stock market movements.

Pen Down 2 Successful Share Investment Secrets:

1. If you are investing in net to net stocks, you are at a high risk of losing capitals: 

Its important to understand the risk of investing in net-net stocks. These are the stocks of such Singapore companies, which are facing some problems either in management or in product offerings. Basically, their market capitalization is lower when compared to its market capitalization. So ending up your capital in buying such stocks might be a source of self-suicide.

So successful share investment secrets say: 

“Invest in stocks that have high potential to return your capital and further boost your capital with profits. “

If you still have interest in investing in such net-net stocks, you have two options:

• Diversify capital in net-net stocks and mitigate the risk you are about to take
• Do a thorough stock research with the help of Singapore stock market news and other available data before investing in stock market of Singapore.

Example:

Ace Achieve Infocom Ltd ACE:SP  SINGAPORE

• 1 YR RETURN: -52.94%
• YTD RETURN : -38.46%
• CURRENT P/E RATIO (TTM): 4.27
• EARNINGS PER SHARE: 0.009

2. Check the ROE of the Singapore stock market company you are about to invest in:

The ROE is calculated by dividing net profits whit shareholder’s equity. It tells you the profitability of each dollar of your capital invested in any company registered on Singapore stock market.

So successful share investment secrets say: 

“The higher the ROE of any stock is, the more favourable share market tip it becomes thus returning more profits.“

The second approach to measure ROE could be:

Multiplying asset turnover with net profit margin and asset and then dividing it with equity of the stock.

Example:

Top Glove:

• 1 YR RETURN: 02%
• YTD RETURN : 06%
• DIVIDEND INDICATED GROSS YIELD: 2.66%
• ROE: 19.8%.

Singapore Stock Market Researcher Last Note:

For making any decision regarding share investments, the investors must look upon few things like:

• Share market tips shared from experts of Singapore stock market
• Keep handy information about all the Singapore stock to buy now
• Never ignore any share trading tips because it can help you in maximizing your returns
• Keep a keen eye on every stock prices and its movements
• Singapore stock market news can be a warning alarm for every investor

So hope you are now through with these successful share investment secrets and for more such information and related stocks market tips you can ask for a free trial directly from the Singapore’s top-rated share investment signals providers Multi Management future solutions.

Source -The Secret of Successful Share Investment in Singapore Companies

These 5 Singapore-Listed Stocks Fell To Zero

What happens next is usually heartbreak as these investments that promised outstanding returns often end in financial losses rather than profits for investors. 

#1 Blumont Group Ltd
 

What happened: At the height of investors’ interest in natural resources company, Blumont, its shares were trading at over $2.45 apiece in the 3rd quarter of 2013 after surging close to 800% in the space of nine months. Today, its shares are worth approximately $0.001, basically next to nothing (as this is the lowest value shares can trade at).

This spectacular rise and subsequent dip in its share price, along with two other related companies, LionGold Corporation and Asiasons Capital Limited (now Attilan Group Limited), over a three-day period sparked one the worst market runs in the history of the Singapore Exchange, wiping out close to $8 billion off the local exchange.

How it ended: In 2014, the regulators took Malaysian businessman and mastermind of the operation, Soh Chee Wen, his girlfriend, Quah Su Ling, and an associate, Goh Hin Calm, to task in relation to fraud in one of the most serious and complex cases of market manipulation in Singapore.


#2 Linc Energy Ltd

What happened: Linc Energy’s Singapore listing was seen as sort of a coup for SGX as the innovative energy firm, spearheading underground coal gasification technology and with high quality oil and gas assets in North America and Australia, leaving the Australian bourse for Singapore, citing its global appeal and access.

Shortly after its arrival in the Singapore market, the Australian authorities began cracking down on a possible site contamination by the company at its local testing facility which left four employees sick, with suspected gas poisoning.

This resulted in the company being taken to court to bear the cost of cleaning up the lands around its testing facility in Australia.


At the same time, it was hit by the weak oil and gas market which crippled its operations and ability extract its oil reserves.

This resulted in growing debts for the company adding up to over A$320 million.

How it ended: The company is in the process of being liquidated after creditors unanimously voted to put it into administration. This was after the company was unable to raise funds amid the tough oil and gas environment, especially with criminal proceedings looming in the background.

Linc Energy founder, Peter Bond, is now in court, along with four other senior executives fighting charges for failing to comply with the country’s Environmental Protection Act.

Linc Energy’s shares: Linc Energy’s shares were suspended in March 2016. Its liquidators have sold some of its assets, and has filed for a one-year extension to submit a proposal to resume trading with SGX.

This means shareholders will continue to be in limbo until liquidators can realise the full assets of Linc Energy and ultimately disburse the amount.

#3 Swiber Holdings Limited
What happened: During its prime, Swiber was trading at over $6.16 in 2007. The company was performing well and winning new and bigger contracts in the oil and gas industry. It was even listed as “Best under a Billion” in the late 2000s.


By 2016, after weathering a downcycle in the oil and gas industry for over a year, it was left facing hundreds of millions of dollars in debt and weak business prospects. This culminated in the company filing for judicial management.

How it ended: Swiber’s business gradually deteriorated after the slump in the oil and gas markets. In 2015, it posted losses of over US$27 million. By 2016, Swiber became one of the biggest casualties of the oil and gas slump in the Singapore market.

It had also defaulted on bond payments due at the end of that year, which affected many investors in Singapore who had been sold the high-yield bonds.

Swiber’s shares: By the time its shares were suspended from trading in July 2016, it was trading at just $0.109. Its shares are still suspended today, and the management is still working to liquidate its assets.


#4 Saizen Real Estate Investment Trust (REIT)
What happened: Saizen REIT sold off its entire portfolio of Japanese residential properties for $542.8 million to Japan-based Triangle TMK in March 2016. This was at a 3.4% premium to its appraised asset value, and 36.9% above the closing price immediately prior to the announcement.

How it ended: As expected, its shares dipped to under $0.03 per share after selling its assets and distributing most of the proceeds to unitholders in March 2016. The deal effectively rendered Saizen REIT a cash trust.

In the next one year, its share price turned volatile as it seeked new business. In August 2016, it entered into an official agreement with Malaysia’s Sime Darby to explore the possibility of an reverse takeover (RTO) deal to inject its Australian properties into the company.

Saizen REIT’s shares: Saizen REITs share price began a period of see-saw on the back of several announcements regarding the possible RTO deal with Sime Darby.

On 1 October 2016, its share price plunged to $0.03 after announcing that it could not reach an agreement with Sime Darby on a proposed RTO deal. Just a few days later, on 10 October 2016, it announced it that the RTO agreement with Sime Darby was proceeding with an injection of 20 industrial properties in Australia into the REIT. This caused its share price to rocket to the $0.06 level once again.

On 3 January, it announced that the proposed RTO would be delayed due to “the transaction process taking longer than originally envisaged.” While this did not spook investors, it finally announced on 10 March that the RTO was not feasible – this pushed its share price back down to under the $0.03 level.

Trading in the REIT’s shares was suspended from 16 may 2017 at a price of $0.033, and it has since announced that the company will be liquidated and unitholders will receive $0.03378.


#5 Eratat Lifestyle Limited


What happened: Eratat was getting lots of investor interest with growth story – increasing sales and profit figures as well as healthy cash position. The company was also moving into premium segments of its market to boost profitability. 

Abruptly, on 29 January 2014, trading of Eratat shares was suspended. It emerged that Eratat had defaulted on its bond interest payments, and as a result, the bondholder was going to redeem the bond.

It further emerged that the company’s Audit Committee was unable to get satisfactory answers from the CEO as to why this happened when it had sufficient funds to pay it off. The CEO was subsequently suspended from his duties.

The Audit Committee tried to verify Eratat’s bank balances in China but could not verify this after its bank stated there were “discrepancies” in the statements. After further liaison, the Audit Committee found that instead of the RMB577 million indicated by the CEO in an online transcript, the company had less than RMB74 million. In addition, it also owed previously unreported bank borrowings and trade bills of RMB64 million.

How it ended: On 30 May 2014, the company filed a report with The China Banking Regulatory Commission (CBRC) based Fujian and the Commercial Affairs Division (CAD) in Singapore.

On 18 August 2014, the company released an announcement stating that the CBRC had confirmed that the CEO of Eratat was found to have forged bank documents. Even worse, he had used the bank’s premises to hand forged bank statements to the Audit Committee.

Eratat’s shares: On 28 August, Eratat was placed under judicial management. On 12 Jan 2015, the company announced that it was in talks with a real estate company to transfer its listing status.

It’s Time to Prioritize on the Best Stock Investment Strategy

While trading in Malaysia/ Singapore stock market, usually the investors think that there are advantageous strategies to be followed to get instant success. But in real, there is no flawless system or any strategy to guarantee the success.

Although, there are some stock picking ways that can help you to predict the stock prices for profitable returns. Here are some of the remarkable hot stock pick strategies are shared with you that will help you to generate profits.

Value Investing:

It is one of the oldest methods which are in use by the investors. The traders who follow value investing strategy look for the strong fundamentals for profitable earnings. (The traders who follow value investing strategy, they should look for the strong fundamentals for profitable earnings.)

The value investors always aim for the companies that are undervalued, thus have the probability of increasing the prices of stocks. . In addition to this, value investors have to be confident about the probability as they pick a company that is cheap with undervalued stocks.

Growth Investing:

The investors who follow the growth investing strategy emphasize on future growth of the company instead of focusing on current price. Growth investors pick the stocks which trades highly than its present worth. However, analyzing & finding the best suitable stock may be the difficult part of investing therefore its recommended to get the stock picks Singapore from an expert so that the stock picks provided by them will assist you in choosing suitable stock for your investment.

Portfolio Diversification:

The portfolio diversification is for reducing the beta risk by choosing the lower co-relation stocks.

The lower correlation stocks are beneficial for you in a way that if you lose one investment; you gain another one and thereby investors won’t lose as well as lower down the risk factor.

Qualitative Analysis:

Qualitative analysis is one of the important factors which determine how valuable the company is. The product of the company with their offerings is the main factor to check the quality of any company.

Besides this, what amount of revenue the company is generating revenue is also an important factor which decides for buying a stock.

The Wrap:                                 

While picking a stock from the company you’re trading in, it’s mandatory to look out the other factors which affect performance of a company to check out the qualitative value in which you’re going to invest. For the money making venture, emphasizing on the sales and earnings of the company is the productive method to assess the company’s investment.

Is another financial crisis just around the corner?

IT has been 10 years since the start of the Global Financial Crisis.

 
Psychologically, this is another factor which puts some fear into investors. How can a market sustain its uptrend without a correction once every 10 years?

 
In end-2007, triggered by a collapse in the US housing market it caused the deepest recession in living memory and the near-collapse of the financial system.

 

 
Banks failed, government institutions were bailed out, stock markets crashed and countries had to be propped up financially.
One of the most significant effects of the crisis has been the long and steady fall in bond yields.

 
Japanese, German and UK bond yields remain below 1%, which reflect investors' view on the outlook for interest rates in those regions. US bond yields have climbed above 2% as the Federal Reserve has begun to raise interest rates.

 
However, the knock-on effect of central bank attempts to stimulate economies has sent stock markets charging back. US stocks have risen more than 260% since the crisis' low point in March 2009. UK, European and Asian stocks are all up more than 150% in the same period.

 
Also, the VIX index, also known as the "fear gauge" is now at historically low levels, As governments and central banks intervened to stem the flow of the crisis the VIX subsided.

 
Confidence among investors grew. Schroders says that this indicates that investors see nothing on the horizon that will cause extreme market volatility.
"Low interest rates and the effect of money being pumped into the economy has benefited businesses and therefore the stock markets on which they are listed," says Schroders.

 
Schroders fund manager and multi-manager Joe Le Jéhan says the key to navigating the financial crisis was being alive to the warning signals that were evident across markets in the preceding months.

 
"If we avoid significant losses, we should be in a position to take advantage of cheaper valuations when the opportunity arises, rather than nursing our wounds. We strongly believe that it's this willingness to actively manage risk that allows investors to compound strong returns over the longer term," he said.
Jehan said that during the financial crisis, this meant holding very few economically sensitive equities, avoiding areas like financials and using assets like government bonds to provide some upside as most things fell in value.

 
"While such a concentration on capital protection is vital at the end of all cycles, this cycle has been quite different. So, what we can use to protect portfolios this time may well also differ,"

 
"Government bonds - historically a more obvious safe haven - may not offer the same opportunity this time around. This is why it is worth looking at the few assets that look relatively under-valued and/or have the potential to protect should markets enter another stormy patch.

 
He said that these assets might include cash to help dampen volatility and provide that option to invest at cheaper levels when the buying opportunity returns. The other asset to look at is gold, which also has the ability to make money should equity markets fall. 

 

Read more  -IS THIS TOP FINANCIAL CRISIS OVER 10 YEARS

Good time to DBS buy Now

• Recent drop in share price
• Several positive initiatives
• Raised to BUY

Stock Fell From Recent High of S$22.25

In the past two months, DBS’s share price has dropped from a high of S$22.25 to a low of S$20.38 yesterday. This translates to a decline of 8.4%. In terms of market capitalization, this meant that about S$4.8 billion has been wiped off. During the same period, the STI has dropped about 3.7%, while the FTSE ST Financial Index also fell 3.7%.

DBS has fallen more than its listed peers OCBC and UOB, which declined by 4.1% and 5.6%, respectively. The higher-than average decline in its share price performance could be due to market concern over its oil and gas provisions.

As a recap, for its 2Q17 results, DBS saw impairment charges of about S$304m versus S$180m for UOB and S$169m for OCBC. Recent market jitters over North Korea nuclear test also further added to the cautious tone in the market and share prices generally eased across the board.

Positive Recent Developments

While the recent 2Q17 net earnings came in just slight below market expectations, wealth performed well and accounted for 34% of total Fee & Commission Income. With the strong performance of global and regional markets in 3Q17, we expect fee-based income momentum and strong wealth income to continue into 3Q17. The addition of ANZ will also drive its wealth business in 2018, both in terms of assets under management and revenue.

Recently, DBS has also received in-principle approval to convert its existing India franchise to a wholly-owned subsidiary. This will further deepen its presence in this market. While the operating environment for the Oil & Gas sector is still challenging, the outlook for the local property market has improved recently with more transactions and en-bloc sales.

Upgrade to BUY

Although the share price has come off from the high, the stock has still performed well YTD, up 17.5%. Since our previous report in early August, where we recommended re-entry at lower price level, the current price correction has presented an opportunity to accumulate this stock again.

At current price, and with a dividend yield of 3.2% (based on increased dividend payout this year), we are upgrading DBS to a BUY. Our fair value estimate remains at S$22.50.

More Update: Penny Stocks Recommendations, Stock investment, Share investment, Stock picks & stock market news today