Market Views 12 January 2012

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Announcements

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Happy New Year ☺

This year, there will be a series of seminars to help everyone better understand the markets.

Market-Juice Seminar Series will be covered over 6 months with 1 session each month.

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Look out for more details coming soon


Juice

Macro
Spain auctions as much as 5b euros of 2015 and 2016 securities today, with Italy selling as much as 12b euros of bills today and as much as 4.75b euros of bonds in tomorrow.
Comment: Important to note the outcome of the debt sales by Spain and Italy. Note the take-up rate and the yields. We can also take direction from the movement of the EUR/USD pair and also the EU markets when they open for some expectations later

O&M
STX OSV's (MS7) stock price has started peeling away from the broader market in the past week, stoking expectations that its parent STX Europe might soon be selling its 50.75% majority stake in the offshore vessel builder.
Comment: Be careful of this one. If the share sales gets played again, this may cause a very strong sell off again

Property
Over in Choa Chu Kang, CDL has priced The Rainforest EC at about $730 psf on average for buyers on the normal progress payment scheme. The first-day sales result for The Rainforest is similar to the slightly over 150 units CDL sold for its Blossom Residences EC project at Segar Road in July last year. That project was priced at $685 psf on average. Those who opt for the deferred payment scheme (DPS) - which is still available for EC projects - will pay 3% more.
Comment: Property market remains weak but the property developers seemed to have bottomed out after a lousy performance in 2011. Time to look around and fish for possible winners. Keeping and eye on Capitaland (C31) CMA (JS8) and Kepland (K17) to accumulate on dips


Sources: Bloomberg, Reuters, WSJ, The Business Times, Analyst Reports, Company Announcements