Opportunities
KepCorp's (BN4, $10.90) Q2 profit shrinks 33.4% to $346.8m. Interim dividend of 20.8c/share comprising 10c cash plus 10.8c K-Reit units.
Comments: Results In-line. CEO announced challenges ahead, his own retirement and succession by current CFO. Various analysts maintain their BUY rating with target price around $13.00. Penetration into drillship market seen positive.
Ezion Holdings (5ME, $2.30) announced yesterday that it has received a letter of intent (LOI), with a value of up to US$82.1m over 5 years, to provide a service rig to a national oil firm in South-east Asia.
Comments: Positive. However take note that stock surged ahead before the announcement was made late in the trading session yesterday.
CNA (5GC, $0.137) proposed placement of 60,000,000 new shares at $0.1208/share. These were placed to 7 private investors.
Comments: Stock price has surged almost 50% this morning.
Commentary
Again, there is nothing much to say on the front of smart money.
Smart money is seen buying into US bond market again but at a relatively slow pace. Demand in USD may suggest non-US buyers. Flows show inflow into Japan and Korea, markets which I have been suggesting we look into as well. The inflows into these markets look sustainable in the next half of the year.
HK and Singapore markets remain not so interesting.
Singapore market continues to be dominated by small caps. Short-term punting and trading by “interested parties” makes it difficult to participate without substantial risk.
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