Wilmar share price to hit the roof in 2020?

Wilmar share price

World-class investor, Jim Rogers, once remarked that “nobody wants to be farmers anymore” because of changing lifestyle and rapid affluence among agricultural countries. Due to this global trend, there is a market distortion in the commodity supply and demand. Against the backdrop of rising demand and decreasing supply, commodity stocks are expected to do well in the long-run. In view of this, will Wilmar share price hit the roof in 2020?

All eyes are on the upcoming mega listing of its Chinese subsidiary in China and this catalyst had led to a buoyant Wilmar share price for the past few months. Question now is: will Wilmar share price hit the peak of $7.00 in 2010? That was when crude palm oil price was peaking due to oil price hitting USD100 per barrel. Fast forward ten years later, Wilmar share price had lost plenty of steam due to the lacklustre crude palm oil price. But the listing of its Chinese unit could possibly shake things up.

Wilmar share price

Indeed, the reason for the business diversification in recent years is because Wilmar share price has always been proxy to the crude palm oil. However, as compared to Golden Agri share price, Wilmar share price …

CPF accrued interest may lead to HDB negative sale?

CPF accrued interest

In Singapore, many people use their CPF Ordinary Account (OA) savings to pay for their property loan instalments. Fundamentally, there is nothing wrong with this approach. I have been doing this since I bought my first property in 2010. Then again, it is important to be mindful of the amount of CPF accrued interest because it may lead to negative sale when you disposed your property.

Due to the HDB lease decay issue, the prospect of facing HDB negative sale is very real for some HDB owners in recent years. This is especially so for those who owned ageing HDB flats. What is HDB negative sale and how does CPF accrued interest play a part in it? In this article, I will explain why it is important to factor in the CPF accrued interest when you buy and sell properties.

CPF accrued interest

CPF accrued interest and its dark side

CPF’s rule is that whatever amount of CPF savings you take out for housing or education purposes, you must refund the amount with compound interest. The rationale is that our CPF savings is primarily meant to fund our retirement needs. This is akin to borrowing money from your own retirement fund and paying …

Singtel share price in double trouble

Singtel share price

Toward the end of 2019, I was seriously contemplating to invest in Singtel share using my SRS fund. Eventually, I opted to invest in OCBC instead. Obviously, the Indian Supreme Court’s hefty fine on its associate (Airtel) played a part in my investment decision. To contain the fall out, Singtel had to set aside a staggering provision of $1.93 billion (pre-tax) for the mind-boggling penalty. In the process, Singtel share price shattered like falling glass.

The massive provision resulted in Singtel recording its first ever quarterly loss ($674 million). The latest result also came on the back of an eighth consecutive quarter of declining profits/losses. Against this backdrop, Singtel share price corrected to $3.18 and only climbed back to $3.30 level recently.

Singtel share price

Analysts had argued that the Airtel provision is likely to be ‘one-off’. To this, I do not disagree. But in my previous article, I have also highlighted that Singtel share price could be volatile due to its various legal disputes with foreign stakeholders. Apart from Airtel, the financial result also revealed that Singtel’s joint venture in Thailand, AIS, is locked in a legal dispute amounting to an estimated total of $7 billion.

It should also be highlighted …

Parkway Life REIT walloped Raffles Medical share price

Parkway Life REIT

While Temasek-linked REITs had been hogging the limelight amid the current bull run in the sector, Parkway Life REIT had been under the radar of many investors. The 3-month average trading volume amounted to a mere 8.29mm! Despite the extremely poor liquidity, the unit price of Parkway Life REIT had been on a roll and even stormed to a record high of $3.36 recently.

The stunning form of Parkway Life REIT unit price completely knocked the wind out of Raffles Medical share price, which had been in goofy form in recent years. I know, I know. It is not fair to compare price performance of a REIT to a share. But let’s face it. Both Raffles Medical and Parkway Life REIT operate in the same sector (private hospital) and both entities share basically the same challenges. But their destinies are remarkably different.

Parkway Life REIT

With a market capitalization of $2 billion, Parkway Life REIT is the largest healthcare REIT in Singapore. The other healthcare REIT is First REIT, which pale in comparison to Parkway Life in terms of scale. The latter has a diversified healthcare businesses sprawling across Singapore (59.8%), Japan (39.8%) and Malaysia (0.4%).

Listed on SGX in 2007, Parkway Life …

My NTUC Incomeshield experience

NTUC Incomeshield

A very belated Happy New Year to all readers! My family had a bad start for 2020 and things only settled down for the past few days. Now that things had pretty much gotten back to normal, I am taking this opportunity to pen down some thoughts and reflections about what had happened to my family. In addition, I have also decided to share my positive experiences with NTUC Incomeshield. Hopefully this sharing will benefit readers when crisis struck home.

For sure, nobody is ever prepared for crisis. But when disaster strikes, make sure you are ready.

This is the second time that my family had activated NTUC Incomeshield. In both instances, the claiming experiences were very positive. Many people like to joke that NTUC stands for “No Trouble Until Claim”. But our claiming experiences turned out to be otherwise!

NTUC Incomeshield

Note that this is not a sponsored post by NTUC Income nor am I promoting NTUC Incomeshield. In addition to this, the information contained in this article is not meant to be a form of financial advice. If you have any queries pertaining to NTUC Incomeshield, please seek financial advice from a licensed financial consultant.

Enhanced Incomeshield Preferred

CapitaLand Commercial Trust (CCT share price) into the unknown

CCT share price

Amid the rally in the S-REIT sector, CapitaLand Commercial Trust share price is also enjoying a bullish run. The counter surged from $1.80 in January 2019 to a high of $2.30 in July 2019. Since then, CCT share price had cooled off a bit and maintained around the $2.00 level. Is the run of CCT share price sustainable?

Hands down, I like this counter and could not find much fault on the management. However, certain aspect of the Group’s financial cashflow made me wonder if the bullish run of CCT share price is sustainable in the long run.

CCT share price

Being Singapore’s first and largest listed commercial REIT, CCT is considered a blue chip among the S-REITs. Currently, the market capitalization stands at $7.8 billion. The portfolio consists of eight prime commercial properties in Singapore and two properties in Frankfurt, Germany. The assets are valued about $11.6 billion as of $11.6 billion. In addition to this, CCT also owns approximately 10.9% of MRCB-Quill REIT, a commercial real estate investment trust listed in Malaysia.

Despite the quality assets of CCT, the biggest concern of investors must be the seven-year lease, commencing in early 2Q 2021 with WeWork Singapore for the entire building of …

Genting Singapore turns to Japan for royal flush

Genting Singapore

Will it be a royal flush or royal rumble for Genting Singapore? Investors’ patience are wearing thin as Genting Singapore continued its bid to enter the Japan market, one of the last untapped markets in the world. Considering the fact that Japan is the world’s third largest economy, the pay-off could be tremendous for Genting Singapore. In view of this, it is no wonder that investors are fervently hoping that management would hit the jackpot (no pun intended).

Currently, Genting Singapore is making two bids for integrated resorts in Japan – Osaka and Yokohama. What is the chance of Genting Singapore winning the bids? In my point of view, the Group stands a high chance of winning at least one bid. It is only a matter of when, and not if, that Genting Singapore win at least one of the Japan IR bids. In this article, I will share my views on this counter.

Genting Singapore

Note that this is an opinion article and not meant to be a financial advice. Please do your due diligence or engage financial advisors before investing in the stock market. Furthermore, I am not vested and have never invested in Genting Singapore share before. Whether Genting …

DBS Group share to sink or swim with Grab IPO?

Wilmar share price

Is this the beginning of the end for DBS Group share? One of the biggest Singapore financial news that set tongues wagging should be the joint application of a digital bank license by Singtel and Grab. Many investors are wondering if digital banks could pose a serious threat to the incumbent banks in the long run.

In my point of view, the move by Grab should be a desperate bid to enhance bottom-line to pave the way for the coming Grab IPO in 2023. I honestly doubt that Grab or Singtel would want to compete directly with DBS Group because all three entities are backed by Temasek Holdings. It will not be the interest of the investment firm to see DBS Group share collapsing like StarHub.

DBS Group share

Of course it is still early days for the digital banks but it will be too far-fetched to claim this could signal a slippery slope for DBS Group share price.

The key reason why Grab IPO is on the cards is due to the acquisition of Uber assets in Southeast Asia in 2018. According to Uber IPO prospectus, Grab paid Uber 409 million stocks issued at USD5.54 in exchange for the assets. One of …

Gold price hit six-year high

gold price

As 2019 comes to an end, wealth builders will surely look back and marvel at how gold price had stormed back in style. Since the beginning of the year, gold price had surged 17% to reach a six-year high. The last time that gold price was in such bullish form was 2009 – 2011. That was the tumultuous period in the aftermath of the Great Financial Crisis and European debt crisis.

Since 2011, global loose monetary policies and low interest rate environment caused gold price to fall from a record high of USD1900 to a low of USD1068 per ounce in 2015. The crash of gold price was the result of recovering US economy and strengthening of US dollar.

gold price

Question now is whether gold price will reach another high in 2020? In this regard, I don’t see why not. This is because the world has not seen another alternative safe haven for financial assets. And gold has always been used as a form of hedge against uncertainties and volatility in the financial markets.

In 2016, the crash of China stock market, UK Brexit and the US Presidential Election saw gold price surging from USD1100 to USD1300 per ounce. Based on …

SingPost share price see light at end of tunnel?

SingPost share price

Lo and behold! Is this really the light at end of tunnel for SingPost share price? Investors got massively hyped up over announcement of bankruptcy protections for its ill-fated United States subsidiaries, Jagged Peak and TradeGlobal. Under the scheme, SingPost will no longer recognise profit or loss from the toxic subsidiaries. In view of this, is SingPost share price out of the woods?

The latest development marked the end of a dark chapter that started way back in December 2015. Jagged Peak and TradeGlobal were the two major assets acquired under former CEO Wolfgang’s tenure. Within months after the acquisitions, Wolfgang resigned. I do not know what transpired behind the scene. But since the acquisitions, the eCommerce segment had been consistently loss-making and the management struggled to turn the business unit. SingPost share price also plunged from a high of $2.00 to the current $0.93.

SingPost share price

Of course, it is not fair to solely attribute the ailing SingPost share price to the two United States subsidiaries. There was also a special audit ordered by regulators in 2015 to look into a possible lack of interest disclosure by one of its former directors, Keith Tay. That saga concerned the acquisition of FS …

A Comprehensive Property Buying Checklist

property buying

Below is a guest post on property buying in Singapore. It is written by Stuart Chng, Senior Associate Executive Director of OrangeTee & Tie, a renowned leader, real estate broker and personality in the real estate industry.

He is a licensed real estate agent, team leader, industry trainer and speaker, columnist for several property newsletters and blogs and is often quoted in media interviews on 938FM, Channel 5, PropertyReport, PropertyGuru and other publications.

Throughout his career, he has also coached many top million dollar producing agents from different real estate agencies in Singapore. You can find out more about him at www.StuartChng.com.

A Comprehensive Property Buying Checklist

Congratulations on starting your search for a new home or investment property!

Whether you’re a soon-to-be parent, a first time property buyer or investing in your Xth property, it helps to have a comprehensive guide & checklist to follow when deciding on a property.

Apart from the criteria cited in my earlier article, Important Entry Signals for Property Investors, here’s a checklist of stuff you would do well to check for when committing to possibly the largest purchase in your lifetime!

Some are basics, some take a little more …

DBS CEO can still laugh his way to the bank

DBS CEO

As 2019 draws to a close, it is timely to review the performance of the largest bank in Singapore – DBS Group. In a year which many analysts predicted to be a challenging year for DBS Group, the Singapore bank stunned many critics by posting a series of solid financial results. For nine months, net profit rose 13% to $4.88 billion. Total income grew 12% to $11.1 billion. Against this backdrop, DBS CEO can laugh all the way to the bank.

Piyush Gupta joined the bank in November 2009. In the blink of an eye, ten years had passed. Under the helm of the current DBS CEO, the Singapore bank has enjoyed a decade of tremendous growth.

Of course, there were challenges along the way, such as the European debt crisis (2011-2012), the oil slump (2014-2016) and the unfolding trade war between USA and China. Somehow, the DBS CEO managed to steer the bank to safe harbor and grew the bank to an even bigger scale than what it was ten years ago. Very impressive indeed.

DBS CEO

According to SGX filing, DBS CEO Piyush Gupta held 1.84 million of DBS shares as at 25 February 2019. Most of the shares were …

OUE share price emerged from nightmare

OUE share price

On 29 October 2018, I wrote that OUE share price plunged to a record 14-year low of $1.37. Since that fateful day, the counter confounded all critics by staging a magnificent run to reach a high of $1.80 on 12 April 2019. It certainly seemed like OUE share price is out to prove me wrong. Well, I have no problem with that as long as shareholders made money out of the rebound!

After that minor bull run, OUE share price tamed off quite a fair bit to reach the current level of $1.50. At current OUE share price, the Price/Book Value amounts to a mere 0.33. Is OUE share price undervalued or is it a value trap?

OUE share price

For sure, OUE is not in the league of CapitaLand, City Development or UOL. But this stock is no pushover either. With a market capitalization of $1.46 billion, OUE share is considered a large cap among SGX property counters. Furthermore, OUE boasts many premium grade assets under its stable, among them are OUE Bayfront, One Raffles Place, Lippo Plaza, Mandarin Orchard Singapore, Crowne Plaza Changi Airport, Marina Mandarin Singapore and Mandarin Gallery.

Given the pedigree of OUE, the Group is in strong …

Mapletree Logistics Trust in amazing form

Mapletree Logistics Trust

Can anything stop Mapletree Logistics Trust? Since my last coverage on this counter in September 2019, the unit price had been on an incredible bullish form. The surging unit price of Mapletree Logistics Trust had created plenty of wealth for unitholders. Christmas certainly comes early for these investors!

To be frank, I had underestimated the potential of this S-REIT. Amid the rally in the S-REIT sector, 2019 turns out to be a fantastic year for Mapletree Logistics Trust as its unit price rocketed from $1.30 in January to the current $1.68. The increase of almost 30% within a year is certainly very impressive for an S-REIT!

Mapletree Logistics Trust

It appears to me that the management is riding on the current industry upturn and seizing opportunities in the Asia Pacific region. In November 2019, Mapletree Logistics Trust had raised $250 million through private placement of 154.6 million unit to fund the acquisition of 50% interest in four properties in China, 100% interest in two properties in Vietnam and 100% interest in one property in Malaysia.

Despite the equity financing, the unit price of Mapletree Logistics Trust remained resilient. Question now is: will this S-REIT takes its swashbuckling run right into 2020? On …

Lost my wedding expenses to stock market

wedding expenses

2019 come and go. In the blink of an eye, it has been 10 years since the Great Financial Crisis took place. As I look back, I can’t help but feel intrigued at the transformation of my wealth building journey. This blog was borne in an era of great financial upheaval and also at a time when I was struggling financially. Specifically, 2009-10 was the period in which I lost a substantial portion of my wedding expenses to the stock market.

The loss was attributed to a poor strategy executed for one of the penny stocks – China Enersave. I have always maintained that there is no good or bad stocks. In investing, there are only good or bad strategies. When the share price of a stock dived, you can always choose to cut loss or short-sell. In my case, I did neither. The loss of my wedding expenses culminated in one of the biggest challenges that I had to face in the course of my financial journey.

wedding expenses

Losing money to the stock market is not the end of the world. But being on the receiving end, it did feel like the end of the world. This is especially so …

OCBC share price led to my first investment in decade

OCBC share price

On 13 December, OCBC share price turned bullish upon the announcement of Bangkok Bank winning the bid for Bank Permata acquisition. Previously, it was reported that OCBC had mulled over the acquisition of the Indonesian bank. On the basis of the mild recovery of OCBC share price, it seems that shareholders are glad that OCBC pulled out of the deal.

Incidentally, the latest development came at a time when I opened my Supplementary Retirement Sum (SRS) and looking at investing in a blue chip to generate reasonable returns. After much consideration, I opted to invest in OCBC share. In this article, I will share my view on why I chose to enter at current OCBC share price.

OCBC share price

Strictly speaking, my last stock investment was in 2010 when I bought K1 Venture, an investment holding company of Keppel Group. Back then, the intent was not really to grow wealth but to divert a portion of my CPF monies from the Ordinary Account before HDB wiped out the monies for the settlement of my HDB flat purchase. I wanted this investment to be a buffer in case I got retrenched from my job and still need to service my housing loan. In …

Gallant Venture transformed into fallen angel

Gallant Venture

How Gallant Venture had fallen. This listed company used to have a track record of making good profits and even counted Sembcorp Industries as one of its major shareholders. But in the aftermath of the Great Financial Crisis of 2009, Gallant Venture share price free fall from the sky to become a perennial penny stock. This counter would have been placed under SGX Watch List for failing to meet the Minimum Trading Price (MTP), if not for its $619 million market capitalization.

In the latest turn of events, investors of Gallant Venture should brace themselves for a roller coaster ride following the exit of Sembcorp Industries’ exit. On 11 June 2019, it was announced that Sembcorp Industries disposed its entire shareholdings in Gallant Venture and ceased to be a substantial shareholder.

Gallant Venture

Perhaps Sembcorp Industries had lost patience with Gallant Venture. For the past five years, revenue had declined from $2.33 billion in 2014 to $1.8 billion in 2018. Profits had become erratic and inconsistent as well. In 2014, full-year profit was $7.5 million while 2016 saw profit of $72 million. But in 2015, the Group suffered losses of $145 million. Subsequently, since 2017, Gallant Venture had been in the red.…

CapitaLand share price flying with Liang Court redevelopment

CapitaLand share price

Since my last coverage on 1st October 2019, CapitaLand share price had turned on the style, surging from $3.40 to $3.70. The driving factors for the bullish form of CapitaLand share price stem from the recent asset recycling activities and sale of new launches.

As of 20 November 2019, CapitaLand had divested close to $5.7 billion worth of assets, exceeding their annual target divestment of $3 billion. The most notable recent divestment was the divestment of The Star Vista for $296 million to Rock Productions. According to the management, the deal is expected to yield net proceeds of about $145 million and a net gain of about $32 million. The slew of divestments had led to the buoyant CapitaLand share price in 2019.

CapitaLand share price

Another catalyst for CapitaLand share price was the strong sale performance for its residential units in Singapore and China. One Pearl Bank has sold 235 of the 280 launched units while Sengkang Grand Residences sold 216 of the 280 available units. In China, the Group sold 3,694 units in the first nine months of 2019 with a value of RMB8.5 billion, and expects to launch an estimated further 1,700 units in 4QFY2019.

Against the backdrop of …

Golden Agri share price to lose shine after STI exit?

Goldern Agri share price

On 5 December, it was announced that Golden Agri share will be booted out of the prestigious Straits Times Index (STI). Taking over its place will be Mapletree Logistics Trust. With this latest development, I fear the worst for Golden Agri share price. In my previous article, I have mentioned that I am pretty bearish on Golden Agri share price in the medium term. This latest episode vindicated my point and also marked a sorry end to Golden Agri’s journey in the STI.

StarHub and SIAEC were booted out of STI in 2018 and 2017 respectively. Since then, the share prices of the two companies had plunged to abysmal levels. On this basis, I don’t see how Golden Agri share price can fight its destiny. Included in the STI since September 2008, Golden Agri share price had been in the limelight for the past decade and this counter enjoys much liquidity. The average three-month trading volume is actually 1.1 billion!

Goldern Agri share price

Since 2014, Golden Agri share price had plunged from $0.44 to the current $0.22, representing a massive decline of 50%. The huge fall of Golden Agri share price had caused much wealth destruction for shareholders. Thus, understandably, many shareholders must …

ThaiBev share price in happy hour mood

ThaiBev share price

It seems that ThaiBev share price is going places. After announcing a stellar full-year financial results, ThaiBev share price is set for a bullish run after the management acknowledged in a SGX filing that they are currently “evaluating strategic proposals and opportunities, including but not limited to a potential listing of its beer business”.

The discussion is still at preliminary stage and there is no certainty that the potential listing may take place. However, this positive development had already sent ThaiBev share price hitting the sky. The recent performance of ThaiBev share price was in stark contrast in 2018, which was when the Thai government implemented the new Excise Tax Act. Effective from 26 January 2018, Thailand government mandated that all alcoholic beverages and tobacco products, both imported and domestically produced, to be charged an additional 2% of excise tax.

ThaiBev share price

In face of the tax increase, the management had turned to merger and acquisition activities to bolster revenue. And the strategy worked like magic. Three major acquisitions helped to fuel revenue performance and turbocharged ThaiBev share price. Among the acquisitions was the successful bid for a 53.59% stake in Saigon Beer – Alcohol – Beverage Corporation (“Sabeco”). ThaiBev also expanded …

SRS withdrawal for retrenchment benefits?

SRS withdrawal

During the National Day Rally 2019, Singapore government announced that retirement age will be raised to 65 by 2030. In addition, it was also announced that the proposed adjustments will not affect CPF withdrawal policies or age. The adjustments are necessary due to Singapore ageing workforce and the need to ensure that Singaporeans will be financially independent in their twilight years. Nonetheless, the increase in retirement age will impact the Supplementary Retirement Scheme (SRS) withdrawal age as it is pegged to the statutory retirement age.

In this article, I will share my view on how the increase in statutory retirement age will impact the SRS withdrawal. As usual, this article is not meant to be a form of financial advice. Please consult a financial advisor if you have doubts. I am writing this article because I am planning to open an SRS account and is sharing my research with readers. If there is any mistake contained within this article, please let me know.

SRS withdrawal

10-year SRS withdrawal period

Although both CPF and SRS serve to provide the retirement needs, there are major differences between the two schemes. CPF focused primarily in housing, medical, education and retirement needs. CPF monthly contribution is …

DBS Group share price in path of glory

DBS CEO

Crisis? What crisis? On 11 November 2019, DBS Group confounded investors by delivering a surprisingly better-than-expected 3rd quarter financial results. Many investors had feared the worst for DBS Group share price due to the unfolding Hong Kong civil unrests, Singapore property cooling measures and the cuts in US Federal Reserves’ interest rates. Notwithstanding these challenges, the management navigated the storm relatively well and continued to post great results.

Question now is: will DBS Group share price recapture the height seen in 2018? Make no mistake, the slew of headwinds in 2019 had taken some shine off DBS Group share price as the market deals with the onslaught of uncertainties.

DBS Group share price

While DBS Group cannot control macro-economic conditions, the bank continued to power ahead with its business front. Compared to a year ago, total income for 3rd quarter surged 13% to $3.82 billion while net profit stormed 15% to $1.63 billion. Interestingly, against the backdrop of declining US interest rates, DBS Group actually increased its Net Interest Margin (NIM) to 1.9% from 1.86% a year ago. Return on equity (ROE) also reached a high of 13.4%. Given such stellar results, where will DBS Group share price go from here?

Note …

Gold price in high heaven

gold price

As 2019 comes to an end, let’s take a look at how gold price has performed. Looking back, 2019 will be remembered for a year of great uncertainties. The protracted trade war between US and China continued to rattle global economy. Brexit continued to drag on at this point of writing. And then the civil unrests in Hong Kong exploded out of nowhere in the middle of the year.

Amid the turmoil, gold price went on a rampage to reach a euphoric high of USD1544 per ounce on 3 September 2019. This is a remarkable surge of 20% since January 2019. Of course, this was still way off the peak of USD1900 per ounce seen in 2011, but current form of gold price reflected the resilience of the yellow metal.

gold price

Since the high seen in September, gold price had cooled off quite a bit. But a few factors could provide critical support for gold price in the coming months.

Gold price rally to continue?

It remains to be seen whether the rally for gold price will continue right into 2020. But the macroeconomic condition certainly lend support for continued momentum in gold price. Global trade tensions have not reduced and …

Manulife US REIT (MUST) in explosive rally

Manulife US REIT

With an acronym like MUST, it seems like investing in Manulife US REIT will not go wrong. Indeed, the unit price had been surging from USD0.80 since the start of the year to the current USD0.94. Listed in May 2016, this REIT has a strong sponsor in Manulife Insurance Company, a leading Canada-based financial services group. Despite having a strong pedigree, it has not always been a bed of rose for this REIT.

Like many of its peers, Manulife US REIT unit price had been lacklustre in the initial year of listing. Looking back, the counter had been trading below its offering price of US0.83 per for most of 2016 and 2017. Then the unit price took on a life of its own when Temasek Holdings, through DBS Bank, increased its stake from 3.78% to 5.49% in July 2017. Subsequently, Manulife US REIT unit price enjoyed a splendid run, surging from US0.80 in July 2017 to hit a high of almost USD1.00 in February 2018. The bull run in unit price created plenty of wealth for unitholders.

Manulife US REIT

However, in 2018, Manulife US REIT suffered a torrid run. This is because in that year, the US Federal Reserve raised interest rates …

Singtel share price faces disaster

Singtel share price

What a calamity. Singtel share price looks set for a roller-coaster ride following a shocking 2nd quarter loss amounting to $674 million. Yes, that’s right. It is net loss of $674 million, vis-à-vis $661 million of net profit recorded in 2QFY2019. The mind-blowing loss was attributed to Airtel’s exceptional item.

The latest result came on the back of an eighth consecutive quarter of declining profits/losses. Question now is: where would Singtel share price go from here?

I have been a big fan of Singtel for years but I could not recall the last time in which Singtel recorded such massive losses. To be honest I am totally speechless by the latest results. Given the latest development, there is a high possibility of Singtel share price reaching my entry price of $2.60 in the coming days.

Singtel share price

According to Singtel’s media release, the telco’s subsidiary, Airtel was hit by an adverse Indian court ruling in relation to definition of “adjusted gross revenue” (AGR) for the Indian telco industry. Singtel share of the provision amounted to a whopping pre-tax $1.93 billion. The explosive loss would surely cause confidence in Singtel share price to be shaken.

Apart from the Airtel’s exception item, operating …

Sengkang Grand Residences a dream or nightmare for buyers?

Sengkang Grand Residences

When CapitaLand and City Development (CDL) teamed up to develop the 3.7 hectares residential site next to BuangKok MRT station in 2018, it promised to be a match made in heaven. Indeed, there was tremendous market hype as the two developers are the big boys in the real estate sector. The last time the two titans combined forces was in 2007 for the Botannia project in West Coast. Thus, it is not surprising that Sengkang Grand Residences became the best-selling integrated project in 2019.

But what raised plenty of eyebrows was the strong response shown during the launch day of Sengkang Grand Residences. 216 of the 280 units had been sold at an average price of $1,700 per square feet (psf). Prices for the integrated project start from $798,000 for a one-bedroom plus study unit, $998,000 for a two-bedroom, $1.498 million for a three-bedroom, and $2.1 million for a four-bedroom premium plus flexi. With such selling prices for Sengkang Grand Residences, one could be forgiven for thinking that it is a seller’s market now. But is it really so?

Sengkang Grand Residences

The selling prices of Sengkang Grand Residences are certainly mind-blowing. After all, the block-buster performance came against the backdrop of …

OCBC share price won the battle but lost the war

OCBC share price

It’s official. 3QFY2019 results for OCBC showed that the Hong Kong protests did not rupture its businesses nor impact its growth. On the contrary, OCBC Hong Kong actually reported an 11% increase in net profit on year-on-year basis. In this regard, many investors must be able to sleep better at night. But is OCBC share price really out of the woods?

Despite taming the menacing fallout from the Hong Kong protests, there are signs that OCBC share price have peaked. In today’s context, it is unlikely that OCBC share price will hit the giddy high of $13.80 in 2018. The latest financial results revealed some hits and misses for the venerable bank. In this article, lets delve into the quality of OCBC 3rd quarter earnings and the potential outlook for OCBC share price.

OCBC share price

Note that this is an opinion article and not meant to be a financial advice. Please do your due diligence or engage financial advisors before investing in the stock market. Furthermore, I am not vested and have never invested in this counter before. Whether OCBC share price will surge or collapse has no impact on me. Thus, this article is not meant to induce readers to …

Eagle Hospitality Trust to blow up in pieces?

Eagle Hospitality Trust

Will unit price of Eagle Hospitality Trust blow up in pieces? Investors of Eagle Hospitality Trust look set for plenty of sleepless nights following more stunning revelations, which came straight after The Queen Mary fiasco. This time round, the management’s response to SGX queries on 1 November raised more concerns than assurance to investors. Why is that so?

Eagle Hospitality Trust initial asset portfolio consists of 18 properties, out of which 12 properties were owned by the Sponsor under its USHI Portfolio. The other 6 properties were from the ASAP6 Portfolio in which the properties were purchased from “third party ASAP6 Portfolio vendors”. The latest issue centred around the ASAP6 portfolio, and the information could provide a plausible rationale for the massive sell-offs by the big boys in recent months.

Eagle Hospitality Trust

Note that this is an opinion article and not meant to be a financial advice. Please do your due diligence or engage financial advisors before investing in the stock market. Furthermore, I am not vested and have never invested in this counter before. Whether Eagle Hospitality Trust unit price will surge or collapse has no impact on me. Thus, this article is not meant to induce readers to make any …

UOB share price in royal rumble with DBS and OCBC

UOB share price

It is the 3Q financial reporting season for the banks again. Will UOB share price edge over DBS and OCBC? With only 3 branches in Hong Kong, UOB Group has significantly smaller exposure to the Hong Kong civil unrests as compared to DBS and OCBC. But this is not to say that it is going to be a jolly ride for UOB share price.

For UOB share price, the real battle to be fought is actually the home ground – Singapore. After all, Singapore market is responsible for more than half of its operating profit. With Singapore economy slowing down in 2019, the outlook for UOB seems to be challenging.

UOB share price

By and large, 9MFY2019 results reflected a resilient performance as net interest income and net profit grew 7% and 8% respectively on a year-on-year basis. The report suggests that the strategy by merger wizard, Wee Cho Yaw, to focus growth mainly in Singaporean and South East Asia region had been prudent. As a result, I do not see UOB share price being shattered by the on-going fallout from the Hong Kong protests. The situation is different for DBS and OCBC, which had extensive businesses in Hong Kong through Dao Heng …

Eagle Hospitality Trust to sink or swim with Temasek Holdings?

Eagle Hospitality Trust

What a bad start for a REIT that barely got listed for six months! Debut in SGX only in May 2019, US pure-play REIT is facing some sort of crisis lately. At the centre of the storm is an astonishing article by The Edge Singapore revealing toxic inspection reports and a letter from the City of Long Beach to Urban Commons, sponsor of Eagle Hospitality Trust. In that letter, it was alleged that Urban Commons failed to meet obligations under The Queen Mary ground lease to make certain repairs required under the lease agreement.

The Queen Mary is one of the 18 properties held by Eagle Hospitality Trust, with valuation of USD159.4 million. Only Holiday Inn Resort Orlando Suites Waterpark, with valuation of USD162.8 million, carries a higher valuation. In this regard, The Queen Mary is one of the key assets of Eagle Hospitality Trust and the loss of this asset would likely have significant impact to Eagle Hospitality Trust.

Eagle Hospitality Trust

Eagle Hospitality Trust in dark chapter

The 23 October article by The Edge Singapore spooked the hell out of investors and sent the unit price spiralling out of control. The counter fell from USD0.65 to USD0.55, prompting the manager to …