By Bloomberg News
May 13 (Bloomberg) -- Shanghai’s municipal government may levy a tax of up to 1.5 percent of the value of properties on May 15, Hexun.com reported on its Web site today, citing a developer who declined to reveal his name.
Several Shanghai-based developers have received “hints” that new policies are poised to be issued to cap property prices, and have begun to sell their properties, the Chinese-language news website reported.
--Luo Jun in Shanghai. Editor: Eugene Tang.
1 trillion dollar bailout for Europe
As what CNBC has shown, the bailout package for Europe is about 1 trillion! Does that sound familiar? I remember vaguely about the 700 billion bailout package about 1 year ago in USA and it has lead the market-dollar rally till now.
Anyway, this bailout package has caused the dollar to plunge massively to around S$1.377 which is near the initial FX rate I changed.
Currently with the US markets opened, it was up at 400+ points but right now at 9.49pm, it has only around 260+ points gained for Dow. Quite an exciting night though for the market as we embrace this bailout package..
Anyway, this bailout package has caused the dollar to plunge massively to around S$1.377 which is near the initial FX rate I changed.
Currently with the US markets opened, it was up at 400+ points but right now at 9.49pm, it has only around 260+ points gained for Dow. Quite an exciting night though for the market as we embrace this bailout package..
History was created yesterday
If you stayed and see the US market yesterday, you would have witness history. Probably first time ever, dow plunged to a all time low of -980+ points before bouncing back. Not even lehman's collapse caused such a big fall.
Apparently there's alot of speculation that it was due to error trading. In fact, we can see that if it was an error trade, apparently most of the traders have their trade all computerized nicely to see trigger to domino effect. Once it broke past a certain level, every computer starts to sell, from A to Z! I guess not even any circuit breaker in NYSE could have prevented that auto trigger of selling though.
After this mega mistake, we could learn some good experience on this. I'm very sure alot of panic selling was triggered in various affected counters like P&G, Accenture. Accenture was the scary one though, dropping from $40 to $0.01! If i was holding or trading that, my heart will also fly out!
Recently my work project has cut over, thus I didn't have much time to update the daily market news from our local market, but nevertheless, our market cannot survive this massive plunge and has broken down back to the 2800+ range.
Do take note that we took about 3-4 months to even reach to this stage of closing in to 3000 mark. It took only less than a week to break it down? This feeling of depression seems to be kicking back into the markets, like in the month of end January and close to end 2008.
While the trigger was about Greece again, do take note that the news have mentioned Greece for like the 4th time at least over the past 7-8 months? I vaguely remembered the PIGS were mentioned in Oct 2009 and it caused quite a correction back then. Second time came in around Jan 2010 and in Mar 2010 as well if I remember correctly. This time round, the europe markets has really reacted strongly to the news from Greece and alot of thinking can be derived from this episode.
Greece is only like 1% of GDP in the whole of Europe, why would it cause so much damage to the markets? One being as a country, having a country to so call declare bankrupt is a big thing already. Next, the social unrest that it caused is limitless. Look at the rising riots that are happening in Europe due to this issue. My take is it is going to be a repeat of what the US govt did back then in 2008. Time to bail out the bankrupt countries by printing more money. Look at the Euro; it has plunged to a all time low to the USD. Apparently, most people have flee back to Gold and the dollar for safety havens.
I myself have bought some USD and have an average dollar of S$1.38 against US$1. Right now it is exchanging at around S$1.40 and I am predicting it to hit at least S$1.42 before some pullback occurs. If Europe is not solving this issue, I can see USD strengthening again while investors flee the euro zone.
Apparently there's alot of speculation that it was due to error trading. In fact, we can see that if it was an error trade, apparently most of the traders have their trade all computerized nicely to see trigger to domino effect. Once it broke past a certain level, every computer starts to sell, from A to Z! I guess not even any circuit breaker in NYSE could have prevented that auto trigger of selling though.
After this mega mistake, we could learn some good experience on this. I'm very sure alot of panic selling was triggered in various affected counters like P&G, Accenture. Accenture was the scary one though, dropping from $40 to $0.01! If i was holding or trading that, my heart will also fly out!
Recently my work project has cut over, thus I didn't have much time to update the daily market news from our local market, but nevertheless, our market cannot survive this massive plunge and has broken down back to the 2800+ range.
Do take note that we took about 3-4 months to even reach to this stage of closing in to 3000 mark. It took only less than a week to break it down? This feeling of depression seems to be kicking back into the markets, like in the month of end January and close to end 2008.
While the trigger was about Greece again, do take note that the news have mentioned Greece for like the 4th time at least over the past 7-8 months? I vaguely remembered the PIGS were mentioned in Oct 2009 and it caused quite a correction back then. Second time came in around Jan 2010 and in Mar 2010 as well if I remember correctly. This time round, the europe markets has really reacted strongly to the news from Greece and alot of thinking can be derived from this episode.
Greece is only like 1% of GDP in the whole of Europe, why would it cause so much damage to the markets? One being as a country, having a country to so call declare bankrupt is a big thing already. Next, the social unrest that it caused is limitless. Look at the rising riots that are happening in Europe due to this issue. My take is it is going to be a repeat of what the US govt did back then in 2008. Time to bail out the bankrupt countries by printing more money. Look at the Euro; it has plunged to a all time low to the USD. Apparently, most people have flee back to Gold and the dollar for safety havens.
I myself have bought some USD and have an average dollar of S$1.38 against US$1. Right now it is exchanging at around S$1.40 and I am predicting it to hit at least S$1.42 before some pullback occurs. If Europe is not solving this issue, I can see USD strengthening again while investors flee the euro zone.
Daily market summary for 23-Apr-2010
The STI Index closed at 2988.49, up by 
7.8 points
7.8 points| Top Actives | ||||||||||||||||||||||||||||||||||||||||||||
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Daily market summary for 22-Apr-2010
The STI Index closed at 2980.69, up by 13.04 points
13.04 points| Top Actives | ||||||||||||||||||||||||||||||||||||||||||||
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Daily market summary for 21-Apr-2010
The STI Index closed at 2967.65, down by 
-13.72 points
-13.72 points| Top Actives | ||||||||||||||||||||||||||||||||||||||||||||
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Ascendas REIT (AEMN.SI): BUY: DPU To Be Driven By New Completions And Acquisitions
Ascendas REIT (AEMN.SI -1L -S$1.98)
Market Cap S$M 3,704.88
Target: S$2.28
Results below expectations due to one-off item - For 4QFY10, A-REIT reported a DPU of 2.73 cents, bringing the total DPU for FY10 to 13.1 cents vs consensus estimates of 13.5 cents and our estimate of 13.3 cents. 4QFY10 DPU were slightly below expectation due to the higher-than-expected finance cost as A-REIT expensed S$9.1m for the cost incurred for the issuance of collateral loan. QoQ, A-REIT revenue fell by 1% while NPI fell by 6% on higher property expenses. On a FY basis, revenue grew 4.3% while NPI grew 7.9%.
Full article here
Market Cap S$M 3,704.88
Target: S$2.28
Results below expectations due to one-off item - For 4QFY10, A-REIT reported a DPU of 2.73 cents, bringing the total DPU for FY10 to 13.1 cents vs consensus estimates of 13.5 cents and our estimate of 13.3 cents. 4QFY10 DPU were slightly below expectation due to the higher-than-expected finance cost as A-REIT expensed S$9.1m for the cost incurred for the issuance of collateral loan. QoQ, A-REIT revenue fell by 1% while NPI fell by 6% on higher property expenses. On a FY basis, revenue grew 4.3% while NPI grew 7.9%.
Full article here
Singapore Macro Weekly: More Thoughts on Monetary Tightening
Singapore Macro Weekly: More Thoughts on Monetary Tightening - Wei Zheng Kit
Output gap has turned positive with 1Q10 GDP surge, and will likely stay so - Real GDP levels are now about 2.8% above the previous peak in 1Q08, translating into a positive output gap of around 2% of potential output. Our 9% GDP forecast is conservative, as it assumes slight negative or flat sequential growth in 2Q and 3Q, with the output gap still positive. In reality, the boost from the opening of the IRs, and recovery in US consumer demand may see a milder slowdown in 2Q. Double digit full year GDP growth cannot be ruled out.
Full article here
Output gap has turned positive with 1Q10 GDP surge, and will likely stay so - Real GDP levels are now about 2.8% above the previous peak in 1Q08, translating into a positive output gap of around 2% of potential output. Our 9% GDP forecast is conservative, as it assumes slight negative or flat sequential growth in 2Q and 3Q, with the output gap still positive. In reality, the boost from the opening of the IRs, and recovery in US consumer demand may see a milder slowdown in 2Q. Double digit full year GDP growth cannot be ruled out.
Full article here
Daily market summary for 20-Apr-2010
The STI Index closed at 2981.37, up by 20.44 points
20.44 points| Top Actives | ||||||||||||||||||||||||||||||||||||||||||||
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How Citigroup, CEO Pandit Turned Themselves Around
Published: Friday, 12 Mar 2010 | 3:07 PM ET
Full article here
By: Jeff Cox
CNBC.com
CNBC.com
Just a year after being relegated to the pile of near-dead banks crushed by the credit crisis, Citigroup is back.
Investors both big and small have been taking massive stakes of Citi's shares that at this time in 2009 were teetering around the $1 mark.
 |
AP Vikram Pandit |
The venture to the brink of penny-stock territory was a torturous one, but that all seems to have changed as Citi's top officials are assuring investors that a return to profitability is on the horizon.
The company's return from its seemingly destined march to the graveyard has coincided with the rising star of embattered CEO Vikram Pandit.
"For the most part, Citi's done a good job of improving its balance sheet and its capital position," said David Konrad, banking analyst at Keefe, Bruyette & Woods. "It's going to be a long, long road there, but he's actually got a little bit of momentum on his side now."Full article here
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