Tag Archive | "Keppel Corp"

Singapore Stocks, Sembcorp Marine, Keppel Corp

Singapore will open lower and it will be a great opportunity to buy quality. Sembcorp

Sembcorp Marine, one of the world’s largest rig-builders, said yesterday that its Jurong Shipyard unit has signed two contracts worth a total of US$427.6 million (S$539 million) to build two jackup rigs for United States offshore driller Noble Corporation.

The rigs are scheduled for delivery in the third quarter of 2013 and the first quarter of 2014, Sembcorp Marine said in a filing to the Singapore Exchange.

Sembcorp Marine said the rigs will be suitable for operations in challenging environments and harsh conditions, including extreme temperature areas such as in the Middle East and in the North Sea. The rigs will be capable of operating in waters of 400 ft and drilling to depths of 30,000 ft.

Singapore’s Keppel Corp , the world’s largest oil rig builder, said on Sunday that Jasper Investments had exercised an option to order a second jackup rig worth $180 million.

The KFELS B Class rig, which will be able to operate in water depths of 400 feet and drill up to 30,000 feet deep, will be delivered in the first half of 2013.

Jasper, a Singapore-based investment firm, owns and operates oil rigs for deep sea drilling which are contracted out to oil and gas companies.

The Singapore the central bank will release its half-yearly monetary review on April 14 and is widely expected to tighten policy further, allowing the local currency to strengthen some more to combat imported inflation.

Separately, the government will release the city-state’s first quarter advance GDP growth estimates on the same day. Both releases are scheduled for 8.00am.

The Monetary Authority of Singapore (MAS) may either sanction a small, immediate jump in the local dollar or signalling it will let the currency rise at a faster pace over time, a poll of economists by Reuters showed.

Inflationary pressures stemming from higher oil prices and a tight job market may prompt the MAS to tighten policy further, despite potential weakness in the global economy arising from problems in Japan and the Middle East, economists said.

However, the MAS is unlikely to act as aggressively as economists had expected back in February when the government raised its 2011 inflation outlook, a move that sparked a rally in the Singapore dollar.

In Singapore the Straits Times Index closed at 3,171.65, up 0.04 per cent, or 1.32 points.

About 1.6 billion shares exchanged hands.

Gainers beat losers 244 to 206.

Adapted from Ebeling Heffernan

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Impact of Japan quake on Singapore stocks limited

Singapore Market Strategy: Impact of Japan quake on Singapore stocks limited
Summary Impact of Japan quake on Singapore stocks limited

Following Japan’s 8.9-magnitude earthquake and the subsequent tsunami, widespread damage has been reported and a nuclear power plant in Fukushima has also encountered radiation leaks. Japan’s Economic and Fiscal Policy Minister Kaoru Yosano said the economic impact will exceed the JPY20t (US$243b) in the damage sustained in the 1995 Kobe earthquake. In this report, we examine its impact on SGX-listed companies.

Amongst the STI constituent stocks under our coverage, SIA’s (BUY, TP:S$17.20) impact is probably larger than the rest. SIA has a high flight capacity exposure (Nagoya, Osaka, Fukuoka and Narita), which could face a risk of poor load factor. While management has yet to disclose the exact capacity exposed in its Japanese routes, we estimate that SIA risks recording low load factor for 15%-18% of its total capacity. For Tiger Airways (BUY, TP:S$1.65), a budget airline, we do not expect any negative impact from the Japan quake as it currently does not operate any flights to Japan. In fact with the catastrophe in Japan, tourists will be deferring their holiday plans there hence there may likely be an increase in travel to other destinations which Tiger services.

The impact is minimal for most of the other sectors.

The Singapore banks are primarily exposed to the ASEAN and HK markets and have minimal exposure to Japan.
As for the oil & gas segment, Keppel Corp (BUY, TP:S$13.94) has a stake in a Japan unit involved in fabrication and supply of specialized steel parts, but this unit’s earnings contribution share to Keppel is insignificant.
The REITS under our coverage have no significant assets in Japan, except for ParkwayLife REIT, which has some exposure in Japan (33% of portfolio value), but most of their properties are located in regions which are relatively less affected by the earthquake, and none are within the evacuation zones of the nuclear plants.
Small impact on commodity counters. Noble (BUY, TP:S$2.58) and Olam (BUY, TP:S$3.70) have little exposure to Japan. Straits Asia Resources (SAR) (NEUTRAL, TP:S$2.49) sells coal to Japan and coal power as an alternative to nuclear could lead to higher coal prices, a positive for SAR.
Negligible impact on telcos. Singtel (NEUTRAL, TP:S$3.00) has the largest proportion of mobile revenue coming from roaming at 20-25% but Japan is not a key contributor in terms of outbound roaming revenue.

adapted from DMG research

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Symbol Bid Ask Spread
EURUSD 1.22350 1.22370 2
GBPUSD 1.38820 1.38850 3
USDCAD 1.24350 1.24380 3
USDJPY 111.060 111.080 2
USDCHF 0.95880 0.95910 3
AUDUSD 0.79920 0.79950 3
NZDUSD 0.73060 0.73110 5
EURGBP 0.88120 0.88150 3
EURCHF 1.17330 1.17360 3
EURJPY 135.890 135.920 3
AUDJPY 88.760 88.810 5
GBPJPY 154.170 154.230 6
XAUUSD 1327.60 1328.00 40
XAGUSD 16.941 16.991 5