Aenith's playground

Aenith ceases blogging until further notice

2011-10-16T01:17:00.001+08:00

Dear readers,

Aenith has been a long running project for a number of years. I am feeling sad to hereby announce Aenith ceases blogging until further notice. I sincerely hope that all of you have enjoyed it or benefitted from it while it lasts. Always remember though, love and light is the only answer for everything(光和爱才是王道).

Wish you all the best,

Author

ungated unguarded Double storey terrace house in TUTA breached 200k in September

2011-09-10T18:23:00.001+08:00

the title says it all

CDL–master dealmaker

2011-09-10T00:47:00.000+08:00

sold freehold hotels to CDL Hospitality Trust for a leasehold of 75 years, after which the ownership will revert back to them

sold 151 Lorong Chuan to Sabana for a 45 years lease although their ownership of the land is 999 years leasehold

Daiman bought part of Menara Landmark site for less than RM100 psf

2011-09-09T00:45:00.000+08:00

cheaper than an apartment.with terms and conditions..of course..

land grab in Johor Bahru CBD is underway

SGX offers algo trading starting from Aug 15, 2011

2011-08-12T15:11:00.002+08:00

For those who holds big caps like Noble, Olam, CapMallsAsia, keep an eye on your stock....

Singapore Exchange to offer new benefits of algo trading

http://blogs.sungard.com/globaltrading/tag/sgx/

Posted: August 10, 2011, 8:11 am

By Nasser Khodri, APAC Managing Director for SunGard’s global trading business

When SGX REACH goes live in the Singapore Exchange (SGX) on August 15, the republic’s trading community can look forward to reaping the benefits associated with advanced trading technologies, such as improved performance, higher execution price, enhanced productivity and added services.

SGX REACH is the exchange’s new software matching engine that will provide remisiers with advanced algorithms so that they can send their orders in at the right time, cover their positions, and ensure their orders are executed.

What’s new in the SGX REACH trading platform? It will offer six new order modalities, including Market Orders and Market to Limit Orders, both with the objective of guaranteed execution.

SunGard, a long-time partner of SGX, on 21 and 22 June hosted a two-day SGX event in Singapore to educate more than 400 brokers and remisiers about SGX REACH – what it is, what it can do for them and how they can use it.

As a software vendor and leading provider of algorithmic trading solutions, SunGard is now all geared up to provide the software that will allow brokers in Singapore to work with the REACH system.

Algorithmic trading is currently widely used in Europe and the US, with many of the traders and brokers there aware of what it is and why it is necessary. In Asia, while many international brokers offer algorithmic trading solutions, local brokers are only now getting onto the algo bandwagon.

It is akin to something of a revolution for them. For example, a dealer at a Chinese broking firm in Hong Kong was all praises for algo trading, saying: “This algo is impressive! Before I used to check the price manually and update the order accordingly. It took a long time and I had to keep my eyes on the screen every second. Now I just leave the algo alone and it’s so much faster.”

The use of algorithmic trading is growing very quickly in Asia. According to research and consulting firm Celent, Singapore’s current usage level of 38% is expected to rise to 50% next year; and Hong Kong’s from 48% to 62%. This compares to a 60% current usage level in the US. Algo trading is proving to be a trend that brokers need to follow, or risk being left behind.

There are four main reasons for brokers to use algorithmic trading. The first is improved productivity. With algo trading, brokers can take more orders using the same level of technology because algorithms can relieve traders of parts of their workload.

Secondly, algos can improve order execution performance and boost the price of execution because they allow brokers to take advantage of the opportunities that arise as a result of issuing their orders at greater speeds; as compared to issuing them at slower speeds, if they were to be working manually.

Thirdly, algos help brokers empower their clients. When a client asks for a VWAP (volume-weighted average price) or a TWAP (time-weighted average price) order, for example, brokers need to be able to fulfill the request. It becomes a question of competitiveness. If the broker doesn’t have what the client wants, the broker will be at a disadvantage.

Lastly, algos are good for handling market specificities, giving brokers the flexibility and customisation ability to meet their clients’ needs.

At a more advanced level, algorithms can help traders attempt to be one of the first to enter the market when it opens by sending orders at a millisecond precision. They can help traders profit from tiny discrepancies and market open volatility and also help them automatically handle the force key rule, a specificity of the Singapore Exchange.

Have you ever lost an opportunity because you were too slow? Do you sometimes feel overwhelmed when constantly monitoring prices? Have you ever wished to have peace of mind during the trading day?

If your answer to any one of these questions is yes, can you afford not to have algo trading on your side?

Financial Cycles article by IMF

2011-06-10T19:36:00.000+08:00

IMF identified 480 financial cycles from 1960 - 2010
Click for the pdf

Pertama holdings[Harvey Norman]trading halted

2011-06-10T19:27:00.000+08:00

Article below assumed that the trading halted is due to the buyout offer

The price offered to minority shareholders[the 13%] will the the premium offered + 5-day volume weighted average share price before trading halted.

Lets make an assumption
premium = 10-20%
5-day volume weighted average share price = guess its around 0.56-0.57(too lazy to do the maths)

the thereotical exit price based on above assumption will be around 0.616 to 0.684..close to the price[$0.65] Harvey Norman bought out a shareholder who own a huge block of shares.

Pertama holdings[Harvey Norman]may be privatized

2011-06-06T01:33:00.001+08:00

A flurry of activities recently by the Holding Company in Australia to consolidate its shareholdings cheered its shareprice.

A privatization is in the cards, because

1) The holding company and family trust controls almost 70% after bought out 17% from a key shareholder for $0.65 a piece. Plus around 9% by FMR LLC, the public shareholding is less than 13%. The company will also need to buyout the 40 % shareholder in Harvey Norman Ossia from Ossia International Ltd.

2)Pertama Holdings’s profits recovered in 2010 after the financial crisis. Profits even increased last quarter despite having opened a new outlet in 1 Mont Kiara which costed between RM5-10 million.

3)Harvey Norman Holdings has bought out some associates’ interest in Australia. It has also bought out 30% share in a company in Malaysia from a shareholder.

CapitaMalls Asia converts China development fund to an income fund, increase fund size, expand due date

2011-05-26T14:47:00.000+08:00

This action is akind to the BBs telling you that either
1)the asset is not ready to be injected yet, because the asset prices has not peaked
2)they are stretched in China to improve their malls' NPI and ROI, so they want you to wait a little longer and they will compensate you with dividend at the mean time

This will surely affect the asset injection pipeline into CapitaRetail China Trust.

Thomson Medical Centre Pt 2

2011-05-26T14:34:00.001+08:00

I foresee a medical cluster at Stulang Laut, JB which consists of
Thomson Medical Centre(birth delivery, post natal), and
TMC Life Sciences(fertility consultation) in the spirit of one shop station(一站式/一条龙 in Mandarin) where usually the producer would capture the upstream and downstream profits by being involved in both.

prices will be about 20-40% lower compared to when it is done in Singapore
why Stulang Laut, why not Kempas Baru or Impian Emas or Bukit Indah?
My opinion is that it is likely that there would be only one stop for the MRT extension from Singapore to Malaysia by the Singapore side. Putting it in Stulang Laut will enable it to capture the patient from Indonesia and beyond besides Singapore. Also, it will be nearer to Singapore compared to the other medical centres. e.g. Columbia, KPJ and other upcoming specialist medical centres.

NLA efficiency

2011-05-21T01:29:00.001+08:00

NLA efficiency is the ratio between NLA(net lettable area) and GFA(gross floor area). The more efficient it is, the more packed the mall/building is, unless the management/developer is smart enough to deflect some of it thru creative use of round/honeycomb/dome shape structure or water fountain or some other attractions.

Frasers Commercial Trust

2011-05-20T23:26:00.001+08:00

Frasers Commercial Trust disposed its AWPF fund at below book value, the buyer is National Nominees Ltd, who is the real buyers hidden behind this nominee company?

Thomson Medical Centre

2011-05-14T01:45:00.001+08:00

After Peter Lim bought out Thomson Medical Centre, it turns out he has plan to bring Thomson Medical Centre into JB,

[S'pore billionaire plans Johor medical centre
Sun, Apr 17, 2011
AsiaOne

SINGAPORE - Singaporean billionaire Peter Lim is currently working on bringing Thomson Medical Centre across the causeway and into Johor.

The Straits Times reported that the, The Edge weekly said: Mr Lim who took over the Singapore-listed Thomson Medical private last year, has bought 14ha of land in the southern Malaysian state for the project.

The land, in the Stulang Laut area, about 2km from the Johor Causeway, was bought for a purported RM200 million (S$83 million), it reported.]

NV MULTI

2011-05-14T00:59:00.001+08:00

Guess what happens after the majority shareholder bought out the entire assets?

Its now in Singapore.lol

http://nirvanasg.com/

Outgrow your problem

2011-05-05T03:42:00.001+08:00

“Impossible is something that people try to reason to themselves in order for the status quo to remain the same" by la papillion

In this case, if we apply it to a company

“Impossible is something that company try to reason to itself in order for the profitability/growth to remain the same if not declining"

For example, OLAM, OLAM was a middleman all along, until one day the founder found that it is increasingly under competition in the sense that more and more growers/planters bypassed them and went directly to the buyers. It then launched an ambitious project to go upstream and the rest is history.

a successful AEI, or beginning of a trend

2011-04-30T14:21:00.001+08:00

What does

The Tube in Malaysia

Oxley Biz Hub in Singapore

or a small industrial building floor in Red Hill has in common?

They all have in mind for a young and hip generation SOHO style office.

Read more about the AEI by Mapletree Industrial Trust here (page 15)

http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_50AB8AA4A20F0E8F4825787E00467006/$file/4QFY2010_Results_Presentation_Slides.pdf?openelement

YTL Power

2011-04-30T14:04:00.001+08:00

YTL Power stock prices has been on the decline since the launching of YES 4G. I am struggling to understand its move as the public has been. After reading a blog post in http://goodstockbadstock.blogspot.com/, I found the answer. Basically, YTL Power is hedging for the future. The first generation IPPs contract in Malaysia will expire gradually in the near future(5-15 years if I am not mistaken), the double digit yields enjoyed by them may be reduced to single digits upon renewal of the contracts or may not be renewed). YTL Power is trying to get a new revenue generator which has stable growth(ElectraNet, Wessex Water, Jawa Power, Power Seraya….look at the acquired assets as a group and you shall see some similar features)

Ascendas India Trust

2011-04-30T13:41:00.001+08:00

the temporary dip in DPU is partly due to unwinding of capitalization of loan interest as Ascendas Park Square and Zenith has been completed thus they will have to recognize it in the income statement(Reason for lower DPU given in press is higher electricity tariff and fuel costs, but which other buildings in India can escape from higher electricity tariff and fuel costs?)

Cognitive surplus

2011-04-27T23:40:00.001+08:00

Lots of start-ups are fighting to become the next Wikipedia(for fee version that is). If the theory that I read in a book is true(whereby more people are willing to help for free rather than for a low fee), none of them will achieve a very significant mass comparable to Wikipedia. But, if they focus on a specialized subsection of cognitive surplus combined with a modified B2C business model ala Quirky(www.quirky.com), they may well laugh all the way to the banks.

Cacao

2011-04-21T00:46:00.001+08:00

Back in January, i was guessing how much would a bar of dark chocolate rise in prices. With the input of the prices of the recent transactions in cocoa futures + the cocoa weightage in a bar of dark chocolate, I made a wild guess that prices would rise around 5-10%. True enough, I went to the supermarket recently and found out that the new batch of dark chocolates cost 7.77% more than the last batch, doesn't matter whether they are of 30% or 70% purity.

Mah Sing

2011-04-21T00:39:00.001+08:00

Mah Sing saw something in Johore and thus the recent action.

Have you seen it

Here’s a clue

Watch the share price of Crescendo Corp

AMFirst REIT

2011-03-22T13:57:00.000+08:00

AMFirst REIT has given a really mild hint that they expect to outperform in the next financial year and beyond by saying that they expect that they will be able to cover any charges/losses caused by the preliminary discharge with additional revenues expected in the future. For those who have not had a slightest idea of who they are, look at what they have done in Hong Kong, in Singapore, in Malaysia and in Australia.

4. EFFECTS OF THE DISCHARGE

The Discharge does not have any material effects on the unitholders’ capital, substantial unitholders’ unitholding, gearing and net asset value of the REIT.

The Discharge will have an impact on the earnings of the REIT. However, for financial year ending 31 March 2011 this will be mitigated by an amount of RM5.67 million received as compensation awarded by the authorities following the compulsory acquisition of the common area fronting The Summit Subang USJ. For financial year ending 31 March 2012 and subsequent years, we expect additional revenue arising from new tenancies as well as positive rental reversion due to the repositioning and rebranding strategies implemented, which will invariably cushion any financial impact arising from the Discharge.

Comments: Lets just hope that there will not be a huge private placement in the near future.

City square seems ready for injection

2011-03-13T23:54:00.001+08:00

City Square seems ready to be injected into Malaysia Commercial Development Fund or CapitaMalls Malaysia Trust. In a recently completed AEI, the management has added some beauty kiosks at the ground floor and managed to revamp a huge dead end corner lot retail unit at second floor. They shrunk the corner lot and created a few beauty kiosks out of it. Brilliant. They will divest it only at the peak of the market. When is the peak? It might be before the completion of the nearby Komtar building or it will never be divested.

Arbitrage activities by listed companies

2011-03-05T00:45:00.001+08:00

Currency Arbitrage

1) Buying products made in neighbouring countries at subsidised cost and selling at premium/higher than average price in destination countries

What i have seen – ice cream cakes, pastries, cookies

Interest Rate Arbitrage

2) Borrowing funds at low interest rates from source countries and buying properties with yield equivalent to/higher than borrowing cost in destination countries with high borrowing cost

Destination countries – Australia, India

Parkson(MY) vs Parkson(HK)

2011-02-26T22:51:00.001+08:00

The analyst told you

PARKSON MY is cheaper than PARKSON HK

PARKSON MY owns PARKSON MALAYSIA, PARKSON VIETNAM and others which PARKSON HK dont

BUT

the analyst forgot to tell you

PARKSON HK is more liquid than PARKSON MY

AND

PARKSON HK pays dividend while PARKSON MY does not