Showing posts from 2014

Brokers to disclose trading curb details from Dec 31

Singapore brokers will announce and explain decisions to impose trading restrictions beginning Dec 31, the Securities Association of Singapore (SAS) announced on Tuesday.

Matex International eyeing coal assets in proposed reverse takeover deal

Mainboard-listed Matex International, a manufacturer and supplier of speciality chemicals for the textile industry, has entered into a heads of agreement with Australian-listed coal producer, Blackgold International Holdings, in relation to the proposed acquisition of its wholly owned subsidiary, Blackgold Holdings Hong Kong, for a consideration sum of S$475 million.

Investors rush to cash in shares linked to Ling family

Shares of the seven listed firms linked to the family of Ling Jihua fell yesterday as probes into the top aide to former president Hu Jintao prompted investors to cash out amid fears of a further slide.

Market manipulation probe fuels concern for Chinese small caps

An investigation into stock market manipulation in China is spurring concern of further losses for shares of smaller companies after a benchmark gauge plunged by the most in a year.

Memstar in RTO deal with China firm

Memstar Technology - a cash company after selling its membrane manufacturing business to United Envirotech - has entered into a US$420 million reverse takeover deal with the owners of Longmen Group, a China-based developer of unconventional natural gas.

Borrowed scrip summaries add value for investors

SGX’s daily Marking of Sell Orders report commendable; but more can be done to enhance its usefulness

Bargains on offer as mining mergers point to bottoming in coal prices

Given the positive outlook for coal in Asia, those with an appetite for risk and deep pockets may get some bargains among the flurry of asset sales

Borrowing binge inflates risks from bets in surging Chinese stock markets

Number of Chinese stocks bought with loaned money doubles in six months to 881b yuan

AP Strategic buys stake in LionGold’s former gold project

Buyer says acquisition allows it to invest in highly prospective mineral mining business

How to restore confidence and take the local market forward

The Singapore Exchange (SGX) has taken a fair amount of criticism for the way trading has deteriorated over the past year since the penny crash of October 2013, a situation not helped by two high-profile computer glitches in the past five weeks.

Asia-Pacific Strategic Investments buys into LionGold’s former asset

Asia-Pacific Strategic Investments has picked up a stake in LionGold’s former Amayapampa Gold Project in Bolivia.

Normal trading should resume, but what’s ‘normal’?

It’s a worrying situation that encapsulates the new “normal” the local stock market finds itself in.

SGX, 'sorry' isn't good enough; let's have an independent review

Saying "sorry" is not good enough. What we need now is a thorough investigation - maybe even an independent committee formed to review the embarrassing incidents.

Singapore stock market’s malaise runs deep and is multi-fold

It would be somewhat unkind to conclude that this week’s market stoppage - the second in a month and third this year - is simply another dismal chapter for a market in malaise. But there is no denying that something is amiss. The numbers don’t lie.

More than words needed to reassure SGX investors

Singapore Exchange (SGX) chief executive Magnus Bocker came out swinging at an hour- long press conference yesterday, explaining in painstaking detail what happened in the bourse operator’s latest “incident”, what it plans to do next, addressing whether he would step down from his job and apologising for good measure.

SGX must get out of its bizzare state of denial

The apology and explicit acceptance of responsibility from Singapore Exchange (SGX) chief executive Magnus Bocker for Wednesday’s computer system breakdown was the first indication in many months that SGX is willing to concede that things are not at all right with many aspects of its business.

Second market stoppage in a month triggers SGX ‘sorry’ and MAS warning

Software defect prompts SGX to delay market opening by 3-1/2 hours while market mulls the hit to confidence in and reputation of the exchange

CosmoSteel forms alliance with Japanese steel trader Hanwa

Supplier of piping system components to the energy and marine sectors, mainboard-listed CosmoSteel Holdings on Monday announced it has entered into a subscription agreement with Tokyo-listed Japanese steel trader Hanwa to raise S$15.3 million.

Qualified trading reps can provide investment advice

We refer to the article by R Sivanithy, “Reinvent rules for remisiers” (BT, Nov 18).

YuuZoo targets Nigeria in tie-up with Etisalat

Yuuzoo Corporation has signed a deal with Etisalat to bring its social e-commerce model to Nigeria, said YuuZoo on Wednesday evening, shortly after requesting a trading halt.

Sino Construction morphing from building to resource player

Mainboard-listed Sino Construction announced on Friday that operations at its Mongolian mine Baruun Noyon Uul (BNU) will recommence, following what it described as the “successful completion” of its first trial batches of coal.

Banking culture breeds dishonesty

Nine China state-owned firms listed on SGX

SGX’s update comes on the heels of the launch of the Shanghai-Hong Kong stock-trading link

Pressure on coal prices unlikely to ease for now

Analysts cite continuing overcapacity; longer term demand hinges on India and China

Sino Construction turning itself into a global coal resource player

Seizing opportunities in the bear market, Singapore mainboard-listed Sino Construction has been aggressively acquiring coal assets and is now on the hunt for more.

SGX-listed SOEs from China

Shanghai stocks’ domestic agenda key to their appeal

As international investors get new access to the mainland market, its indifference to global events is partly why its equities are so attractive

Cheap Shanghai stocks in demand

Trade skewed heavily towards the northbound flow on the debut of the through train scheme as foreigners pile into railway and liquor plays

Reinvent rules for remisiers

The Securities Investors Association of Singapore (SIAS) has hit one nail on the head with its call to revamp the way that remisiers, or retail trading representatives (TRs), are paid.

Extremes of the China market

The Business Times used the Bloomberg machine to dig up companies trading at extreme financial ratios on the Shanghai Stock Exchange that investors could buy on Monday. Here is what we found.

Exploring China’s stock market

Even non-investors can glean insights from the financial statements of the A-Share “small-caps”. Time to brush up on your Chinese and separate the wheat from the chaff

Why Chinese stocks leave US investors vulnerable

SGX constantly enhancing quality of stock market here

I refer to Jimmy Ho’s letter, “It’s not a ‘quality market’ for investors” (BT, Nov 12). We appreciate Mr Ho’s feedback, but do not agree with his depiction of the Singapore stock market as suffering from a “malaise”.

Shanghai-Hong Kong link leaves a Singapore divide

Some analysts say trading tie-up will put pressure on SGX but most of them think impact may not be pronounced

LionGold bleeds S$20m in delayed Q1 results

The market was once again reminded of the shattered financials of the firms embroiled in last October’s penny stock crash with LionGold releasing its much-delayed first quarter results with an injurious outing, just one day after its counterpart Blumont reported dismal quarterly digits.

Blumont plunges into the red for Q3 in the absence of equity investment gains

Vallianz more than doubles net profit for Q3, confident of prospects

Vallianz Holdings reported on Friday that its net profit more than doubled to US$4.82 million for the third quarter ended Sept 30, 2014, compared to US$2.14 million a year ago. Earnings per share was 0.19 US cent, compared to 0.18 US cent a year ago.

Struggling LionGold gets small respite of good news

A recent scoping study on its gold mine project in Ghana-Konongo Project - owned by Australian-listed Signature Metals - has come up with some “encouraging conclusions” after discovering that the area has “reasonable prospects of economic extraction”.

SMCCA faces hurdle in membership drive

As it looks to boost membership count, association believes some firms afraid to offend SGX

Compact Metal surges on news of exercise of option

October option deal includes chairman selling some shares at eight Singapore cents apiece

SGX needs to engage brokers in bid to revive market

The SGX’s own figures tell a dismal story.

LionGold explains underestimated impairment

Delays in a fund-raising exercise - due to the surprise visit by the Commercial Affairs Department - had caused LionGold Corp to be unable to assess the impairment of the value of an asset in time.

LionGold allays concerns over funding issues flagged by auditor

Ex-Sembmarine finance chief slapped with 39-month jail sentence

Former Sembcorp Marine group finance director Wee Sing Guan pleaded guilty on Wednesday to a host of fraud charges relating to currency bets he took years ago that cost the group US$303 million in losses.

LionGold allays concerns over funding for its operations after audit disclaimer

LionGold, which has failed to get a clean bill of health from auditors PwC for its latest full-year financial results, has sought to assure shareholders that it is able to obtain sufficient funding for its operations.

Blumont now holds 30% deemed stake in Toronto-listed Powertech Uranium Corp

SGX’s Richard Teng leaving to join Abu Dhabi Global Market

Singapore Exchange (SGX) chief regulatory officer Richard Teng has resigned, less than a year after being promoted, to become chief executive of the regulator of Abu Dhabi Global Market (ADGM).

More SGX steps to boost market liquidity

Since early October, the Singapore Exchange (SGX) has been pushing out more initiatives to engage brokers to “give them a reason to start calling their clients”

SGX chief regulatory officer Richard Teng has resigned

LionGold still reeling from stock crash, files late annual report

Board chiefs lament ‘events that altered things considerably’ after FY2013

Independent auditor raises worries about LionGold’s ability to continue as going concern

Instilling market confidence is not just SGX’s job

For much of this year, it has been fashionable to heap blame on Singapore Exchange (SGX) for the local stock market’s twin woes of poor liquidity and low volatility.

A look inside the richest club in China

Singapore-listed Sino Grandness rejects claims made by short seller

Mainboard-listed Sino Grandness Food Industry Group on Thursday refuted claims made about the company’s health in a report that was circulated on the internet.

Share traders calling it a day as market volume dries up

Average net commission on the decline, slumping to about S$1,000 from around S$6,000 to S$8,000 a decade ago

SGX: Market is stronger, even if not more active

CEO Magnus Bocker and head of sales and clients Chew Sutat point to integrity of the market and the ease of raising capital

Sino Grandness rejects negative report

Mainboard-listed Sino Grandness Food Industry Group, a food-and-beverage company based in Shenzhen, China, issued a business update on Thursday to counter a Sept 4 report containing negative statements on the sales and financial position of the group.

Trading China Sky: What’s holding it up?

It has been nearly three long years since trading in the shares of China Sky Chemical Fibres was suspended. But the company’s shareholders continue to suffer from their inability to deal in its stock despite pleas by the company to restore trading.

Chinese developers’ Hong Kong back-door listing units fall out of favour

Mainland developers’ plans to float themselves in the city dim hopes for massive asset injections

Vallianz Holdings expands geographical footprint

View from watchtower as the pennies fall

SGX’s head of surveillance regulation talks about one of the most exciting days of his 14-year career and what keeps him motivated at the Exchange

Paid research: should SGX bother?

It is 15 months since the Singapore Exchange’s (SGX) most recent research initiative known as SERI ended in June last year. According to the exchange’s website, it is still “reviewing all options to enhance the level and type of research coverage for its listed companies”.

Ex-Airocean director’s conviction set aside

Ong Chow Hong, one of four former directors of Airocean Group who were charged and convicted over what was then deemed a misleading statement by the company, has had his five-year conviction overturned.

Sell-down presents good chance to buy Valuetronics, says AmFraser

Valuetronics shares tumbled on Wednesday on worries that the company could lose its LED lighting business as a major customer, a Dutch conglomerate, announced its intention to restructure its own lighting business division.

Noble receives US$3.36b in payments

Noble Group, which on Wednesday said it has received US$3.36 billion due to it, has had its ratings affirmed at BBB- by Fitch Ratings.

SMCCA submits response to SGX on proposed regulatory changes

The response focuses on two proposed regulatory changes - the Minimum Trading Price of 20 cents and the Enforcement Frameworks that MAS and SGX first proposed in February this year.

Largest capitalised stocks with Singapore focus

Emerging markets to diverge as U.S. thrives, China slows, Europe lags

Investors are rethinking their exposure to emerging markets, focusing on countries likely to weather lean times with manufacturing exports to the United States while avoiding those that have thrived on sending commodities to a now slowing China.

Valuetronics hit by earnings worries?

The stock of electronics company Valuetronics Holdings on Tuesday collapsed six cents, or 15.8 per cent, to 32 Singapore cents on heavy volume of 26.3 million shares, an apparent casualty of concerns over its future earnings.

Chinese A-share sell off by major shareholders bodes ill for recovery

Major shareholders in more than 500 A-share companies have sold 37.4 billion yuan of shares since September 1

Court of Appeal upholds asset freeze order in Singapore penny stock collapse

The Court of Appeal has upheld an order to freeze the assets of six individuals and two companies with exposure to the three listed companies in Singapore, which shook the stock market there last year.


Largest stocks in SGX with significant China exposure

There are more than 30 stocks listed on SGX with a market capitalisation above S$250 million that reported more than half their revenue or assets in China in the last financial year.


4 Things To Do During Downtrends

1) Raise cash
2) Keep positions light
3) Keep a watch list
4) Protect your confidence

Joe Fahmy

UniFiber auditor, directors differ on going-concern issue

Aa issue over the going-concern status of forestry and pulp firm United Fiber System (UniFiber), as well as its failure to provide for default interest, led the company’s auditor to refrain from expressing an opinion on its consolidated financial statements for the six months ended June 30, 2014.

Ezion takes a hit; Nomura says market worries misplaced

Shares in offshore oil and gas stock Ezion Holdings plunged nine cents or 5.4 per cent to S$1.575, bringing its loss over the past three weeks to almost 18 per cent and taking it closer to its 52-year low of S$1.52.

Beijing seeks entry into UK, Singapore markets

Beijing is in talks with Singapore and Britain to let mainland investors buy equities in these markets, a move seen as the next stage of China’s opening up of the capital account and globalising the yuan as the Shanghai-Hong Kong stock connect scheme readies to start.

Hunting for the truth

Fingers were pointed at Soh Chee Wen when Asiasons, Blumont and LionGold soared last year before collapsing on Oct 4. As the anniversary of the crash approaches, CAD and MAS might be getting closer to discovering what happened.

Note: Some events in this article has been proven to be false. The Edge has acknowledged some of the false information. Blumont Group had commenced legal proceedings against The Edge for libel.

China to again levy coal import tariffs after nearly a decade

China, the world's top coal importer, will levy import tariffs on the commodity after nearly a decade, in its latest bid to prop up ailing domestic miners who have been buffeted by rising costs and tumbling prices.

China coal tariff sends message to cut supply

One year on, closure remains elusive for penny stock saga

Market is still confounded over what had triggered the meltdown and has yet to recover from the assault

The Pounding of the Pennies

New association formed to represent smaller SGX-listed firms

The Small and Middle Capitalisation Companies Association (SMCCA) has 22 founding members, including relatively high-profile firms such as Otto Marine, Q&M Dental Group and Cordlife Group.

Grand Banks Yachts exits SGX watch-list

Luxury boat maker Grand Banks Yachts is off the Singapore Exchange’s (SGX) watch-list from Thursday, marking a turnaround for the hitherto troubled firm which entered the list in 2011.

‘Qualified’ opinion on Magnus Energy’s accounts

Legal wrangling over the ownership of a subsidiary has made it difficult for the auditors of Magnus Energy to determine the accuracy of certain parts of its financial statements.

Astute stock picking or insider trading?

Jury is still out on why SGX stock prices move before M&A deals are made public

A year on, pain still felt in many quarters

Questions also remain as to how $8b was wiped out in such a short time

Fifteen years on, is Sias still relevant?

Fifteen years ago, a minority-investor rights group called the Securities Investors Association of Singapore (Sias) was born out of the cross-border debacle known as the Clob saga.

Rex unit secures deal from national oil firm

Fruition of Rexonic’s commercialisation plans, says Rex chairman

Two Thai firms to invest in Sino Grandness

Mainboard-listed Sino Grandness Food Industry Group announced on Thursday that Thai conglomerates Thoresen Thai Agencies (TTA) and PM Group will take stakes of 9 per cent and 3.77 per cent respectively in the company through a private placement of newly issued shares.

Blumont’s ex-director, James Hong, declared bankrupt

James Hong, assisting probe into penny stock crash, owes bank $3m

Noble shares dive as China Investment Corp cuts its stake

CIC sold 300m shares at S$1.32 each; not known who buyer was

Blumont launches libel suit against The Edge

The Blumont Group has launched a libel suit against the publisher and editor of The Edge Singapore over an article on last October’s penny stock crash. Blumont told the Singapore Exchange (SGX) on Monday that it is seeking damages from The Edge Publishing and editor Benjamin Paul, and an injunction to stop the magazine from publishing similar claims made in the original article.

Mystery day trader makes millions betting on Japanese markets

Japanese day trader plays Tokyo stock market from his bedroom, one of many individuals who have been pushing up local stocks higher

SGX: T+2 is not the end of contra trading

Trading tech vendor says settlement will be devolved to individual broking firms

Sino Construction to bid to take over Australia’s GUF

Mainboard-listed Sino Construction Ltd intends to make an off-market takeover bid to acquire Australian-listed Guildford Coal (GUF).

SGX’s Bocker wants board lots phased out

Singapore Exchange (SGX) chief executive Magnus Bocker has pledged his commitment to eventually do away with board lots, and has spoken up for retail participation and sustainability as he outlined strategies to address lacklustre markets.

Sino Construction to make takeover bid for Australia’s Guildford Coal; plans name change

SGX sees end to Chinese IPO hiatus

Singapore Exchange (SGX) is forecasting an end to a two-year hiatus for Chinese listings after regulators made it easier for companies from Asia’s biggest economy to sell shares in the city-state.

Short sellers target China, this time from the shadows

Short-sellers who profit from stock price declines have resumed targeting Chinese companies after a three-year lull, but many of the researchers who instigate the strategy are now cloaked in anonymity, shielding themselves from angry companies and Beijing’s counter-investigations.

Blumont - Does it already have indirect control over Merlin Diamonds Ltd?

Lum Chang sells LCD Global stake

Vendors of combined 29.5% stake include David Lum and Raymond Lum

A regulatory body separate from SGX?

The Singapore Exchange’s (SGX) plan to boost its disciplinary powers to improve the quality of the market is long overdue - coming as it did after debacles such as the penny-stock collapse last year.

SGX details plans for minimum share price

It also seeks more disciplinary powers and proposes industry-led committees

SGX Link 1

SGX Link 2

Why China’s appetite for coal has likely peaked

A recent report from Greenpeace has found that China’s coal consumption declined in the first half of this year and new Chinese government data suggests that the country’s coal imports have dropped. Estimates indicate that by the end of the year, China’s coal imports could be 8 per cent below 2013 levels.

Wrong to use ‘irrevocable’ when it isn’t

Earlier this year, a listed company here embarked on a non-underwritten rights issue to raise money for investment and working capital and, presumably to enhance the attractiveness of the offer, its announcements on the rights issue highlighted the fact that the company’s substantial shareholder had given an “irrevocable” undertaking to fully subscribe to its portion.

SGX to make adjustments to existing watch-list by March 2015

SGX says it will proceed to set a minimum trading price of 20 cents for mainboard-listed stocks given strong public support for the requirement, in a move aimed at curbing excessive speculation and potential manipulation.

Magnus Energy's MD resigns

Largest offshore services support stocks in Singapore

Cosco signs landmark deal with Vale for giant ore carriers

China Cosco Holdings has signed a landmark deal with Brazilian miner Vale for the transport of iron ore and the purchase of 14 very large ore carriers, which have been barred from entering mainland ports since early 2012.

SFC action hands ex-Citic Pacific directors a get-out-of-jail-free card

A criminal case against Citic Pacific directors who oversaw huge losses would be far harder for the authorities to pursue than civil action

Magnus Energy Chief Sued by Broker Over Stock Rout

Shanghai investors wary of Hong Kong market

Through train fails to impress some mainlanders, who say they are unfamiliar with local regulations and are put off by higher share prices

Eratat seeks details on investigations into unit

Eratat Lifestyle said on Friday that it has requested for more details on the investigations led by the China Banking Regulatory Commission (CBRC), which last month found a forged bank confirmation linked to the company’s subsidiary.

Blumont takes 43% stake in uranium miner

Blumont Group now holds a 43.08 per cent stake in privately held uranium miner Azarga Resources after converting US$19.1 million worth of convertible notes.

Blumont's offer for Genesis extended

Blumont Group on Thursday said that its all-share bid for all of Australia-listed miner Genesis Resources has been extended because it is missing information from Genesis needed to produce a shareholder circular.

US court order brings hope for Chinese firms

US judge’s move to sanction lawyers for their ‘reckless and frivolous’ claims against Pacific Bepure eases concern over securities litigation

Small-cap stocks seen extending rally in Malaysia

Top fund manager says investors are underestimating growth prospects

The joke is on the auditors when it comes to true figures

And the best jokes are the financial figures of many mainland private enterprises, and the fact that some investors actually believe them.

SGX, take a leaf or 2 from other bourses

When looking at ways to enhance disclosures in the Singapore stock market, it is often instructive to study practices in other stock exchanges to see if any can be adopted for the local bourse. One useful suggestion came from a BT reader a fortnight ago.

Fung Choi shares plunge 20% on speculation over accounts integrity

Shares of Fung Choi Media Group took a battering for a second straight session yesterday on speculation over the integrity of its accounts.

LionGold delays Aussie deal to Sept 30

LionGold Corp has delayed a planned acquisition of Australian gold mining and exploration assets for a second time, with the new deadline pushed to the close of Sept 30.

State Council issues guidelines to reform shipping industry

Policy initiative issued by State Council lifts importance of shipping to national strategic level

LionGold, Blumont clarify reports

Gold miner LionGold Corp and Blumont Group have issued clarifications in relation to a story carried by The EdgeSingapore and The Edge Malaysia this week on the penny stock crash which took place last October.

China to launch unified securities account platform from October 1

What do retail investors really want?

The Singapore penny-stock crash of October last year was a painful affair that generated widespread discussion among regulators, stockbrokers and members of the public on what went wrong, how it could have been handled better and how to prevent a recurrence.

Indonesian coal sector set to consolidate

Prices have been soft, and it may take a while for a stable turnaround to come

Caution needed on Sino Construction

Traders wonder if once-sleepy counter can keep up its inexplicable upswing

Taiwan's China Development Financial unit buys Singapore broker AmFraser

Eratat unit forged 577m yuan bank statement: CBRC

Unit’s representatives might have posed as staff of Agricultural Bank of China

Regulators take aim at contra trading, errant listed firms

To boost retail participation, board lot size to be cut to 100 shares by next year

Sino Construction to buy another coal firm