Saturday, November 28, 2009

Dubai Crisis May End in ‘Major’ Default ?

Dubai’s debt woes may worsen to become a “major sovereign default” that roils developing nations and cuts off capital flows to emerging markets, Bank of America Corp. said.

Dubai, which borrowed $80 billion in a four-year construction boom to transform its economy into a tourism and financial hub, suffered the world’s steepest property slump in the recession. Home prices fell 50 percent from their 2008 peak, according to Frankfurt-based Deutsche Bank AG.

Dubai World, the state-owned holding company that’s in talks to renegotiate $26 billion of debt, may sell assets in the United Arab Emirates and abroad to repay its borrowings, a government official said.

Wednesday, November 11, 2009


The stage is set for the country’s and Southeast Asia’s biggest-ever IPO that will raise RM11.2 billion (US$3.3 billion) for its vendors, with the final selling price for Maxis Bhd fixed at RM5 per share for institutions and RM4.75 for retail investors.

Maxis will be automatically included as a component of the KLCI with effect from Nov 20. It would be the largest telco constituent (estimated weightage of 6.1% based on our calculation), raising the overall telecoms sector weightage on the index to 14.5% from 8.8% previously

Maxis in 11th place in index. Based on a investability weighting of 30% and a reference price of RM4.75, Maxis adjusted market cap of RM10,688m will put it just below AMMB's RM11,168m, making it the 11th larget stock on the index, with a weighting of 2.7%.Of course, this weightage will change depending on its share price movement after the listing.

Tuesday, November 10, 2009

XiDeLang fair value at 93 sen (Malaysia)

Research Institute has derived a fair value of 93 sen for sports shoe manufacturer XiDeLang Holdings Ltd, which will be listed on Bursa Malaysia on Wednesday, Nov 11. The issue price is 58 sen.

The research house said on Tuesday, Nov 10 that for comparison purposes, it selected a combination of companies that have similar business division and produce goods related to XiDeLang's portfolio of products.

The company is the brand-owner of the "XiDeLang" brand name, a multiple award winning sports brand name in China. The company designs, develops and produces sports-shoe under the "XiDeLang" brand.

XiDeLang's network spans across 25 provinces and municipalities with approximately 2,300 retail outlets in China. XiDeLang is operating in Jinjiang City, Fujian province, which is China's sports shoe manufacturing capital and one of the world's largest sports shoe manufacturing centres.

Sunday, November 8, 2009

House Passes $1 Trillion U.S. Health-Care Overhaul Legislation

U.S. drugmakers, medical-device companies and insurers are gearing up for another chance to make changes to House-passed legislation overhauling the health-care system when the issue moves to the Senate.

Stock Exchange of Cambodia

Stock Exchange Cambodia is scheduled to open in early of 2010. The draft legislation on corporate bonds is currently under process of finalizing according to Prime Minister Hun Sen.

KRX, which runs South Korea's stock market and has assisted in the development of Vietnam's financial markets, is seeking a 51 percent share of Cambodia's stock market. Before listing on the stock market, enterprises must improve their accounting systems and gain the confidence of citizens by making themselves more transparent.

According to the International Monetary Fund, Cambodia’s finance sector is growing gradually. A number of new banks were established in the country and bank loans and deposits are increasing by around 40 percent.

Cambodia also secured a B+ rating for long-term foreign and local currency government notes from Standard & Poor’s. Standard & Poor’s also awarded a short-term foreign and local currency rating of B. Moody’s assigned a foreign currency notes ceiling of B1, a foreign-currency ceiling for bank deposits of B3, and a local currency notes ceiling and a local currency deposit ceiling of Ba1.

Few Stocks to focus;

i. Telecom Cambodia
ii. Sihanoukville Autonomous Port
iii. Phnom Penh Autonomous water Supply Authority

REXLot Holdings Limited (0555.HK)

The Group's principal activities are operating a lottery business, providing financial services and money lending. Lottery business includes system and games development business and distribution and marketing business. Financial services include securities broking, margin financing and investment trading and holding. Operations are carried out in Hong Kong and the People's Republic of China.Its subsidiaries are principally engaged in the provision of lottery related system, machines and services to the Chinese Lottery market.

The Group is holding a controlling stake in Shenzhen Sinodata Technology Co Ltd (a leading equipment supplier for computer ticket games for Welfare Lottery in China), Guangzhou Latech Technology Co Ltd (which is involved in development and production of sports lottery machines, related operation software system and networks) and Shenzhen Kingsail Software Tech Co Ltd (which is involved in the development and deployment of lottery system for Sports Lottery in China) as well as 50% interest in Beijing Guard Libang Technology Co Ltd (the exclusive supplier of scratch card lottery games and system for Welfare Lottery in China). The Company has also set up a subsidiary REXLot Investment (Shenzhen) Co Ltd to focus on lottery distribution business in China. (HK$0.66)

Friday, November 6, 2009

Unemployment rate hits 10.2%, worst since 1983

The nation's unemployment rate rose above 10% for the first time since 1983 in October, a much worse jump than expected as employers continued to trim jobs from payrolls.

The reading, reported by the government Friday, is a sign of the continued weakness in the labor market even though the economy grew in the third quarter following the longest and deepest downturn since the Great Depression.

The government reported Friday that unemployment rate spiked to 10.2%, up from 9.8% in September. It is the highest that this rate has been since April 1983. Economists had forecast an increase to 9.9%.

Tuesday, November 3, 2009

Golden Agri-Resources Ltd - SGX

GAR’s primary activities include cultivating and harvesting of oil palm trees; processing of fresh fruit bunches into crude palm oil (“CPO”) and palm kernel oil; and refining CPO into value-added products such as cooking oils, margarine and shortening.
The Company operates a total planted area of 383,000 hectares, as well as 32 palm oil processing mills, three refineries and four kernel crushing plants in Indonesia.GAR also operates in China through an integrated deep-sea port, storage, oilseed crushing facilities and refinery facilities in Ningbo and Zhuhai. (S$0.43)