Singapore Exchange (SGX)

Yield hungry funds flock to aus, speculative funds flock to less regulated thai, msia markets.

Other money coming in goes to property or to the 2 other casinos :-D

Locals money locked up in overpriced property as well.

Not much left for SGX which is run by BB. Only analytic smart VBs left who wont play their games

via Xperia Z1 with Android 4.4.4 tapatalk.

Well buddy, u summed it all up... sounded jialat...

(23-10-2014, 11:21 AM)BlueKelah Wrote: Yield hungry funds flock to aus, speculative funds flock to less regulated thai, msia markets.

Other money coming in goes to property or to the 2 other casinos :-D

Locals money locked up in overpriced property as well.

Not much left for SGX which is run by BB. Only analytic smart VBs left who wont play their games

via Xperia Z1 with Android 4.4.4 tapatalk.

Thinking back to the S Chips and Penny Stocks saga, it is disappointing to hear stories of investors getting burnt to be honest while SGX grew its bottom line at their expense (disclaimer: not intentionally of course but inadvertently) and paid out big fat bonuses.

I am a victim of the S Chips saga and fully understand the concept of Caveat Emptor but it still stings when I get duped by fictitious financial statements and the best part of it all is that the directors all got away scot free. Of course at the end of the day, I would rather get my money back rather than a bloody share certificate but hey, at least punish the perpetrators if all else fails.

I got queasy to be honest reading sometime back about how SGX intends to attract Chinese companies to list here albeit with better corporate governance. I honestly don't see how that will succeed when there are still so many dubious S Chips listed. The reality is that Chinese companies would rather list in HKEX which is more prestigious for them and attract higher valuations rather than be classed together with the most of the junk S Chips listed on SGX now.

It is also unfortunate for SGX that in trying to attract more oil & gas start ups to list here, oil prices have also started plummeting. Bad timing I guess.

I also think the CEO is also very keen for High Frequency Trading to be introduced here to increase the anaemic trading activity but until all the penny stock saga blows over, I think this won't come anytime soon until the house is clean since there are many issues associated with HFT as well.

All in all, SGX will continue to be a stable business generating 4% yields but if you ask me, I don't see much bright spots in the short run.

(23-10-2014, 11:21 AM)BlueKelah Wrote: Yield hungry funds flock to aus, speculative funds flock to less regulated thai, msia markets.

Other money coming in goes to property or to the 2 other casinos :-D

Locals money locked up in overpriced property as well.

Not much left for SGX which is run by BB. Only analytic smart VBs left who wont play their games

via Xperia Z1 with Android 4.4.4 tapatalk.

Participation and liquidity remains strong in SGX market, base on the acceptance of bonds issued. If funds have flocked elsewhere, where are the money that supporting the $23 billion in value, 48 in number of bond issued in Sept 2014 alone.

I reckon the question is funds are shunning equity market, with reasons already well-discussed. Will the funds be driven back to equity in near term? I don't know, but I am cautiously optimistic.

There is OK for a diverse in views, the same for your China property doom. It has made this forum interesting, hasn't it?

(vested in SGX, thus biased)

(23-10-2014, 03:33 PM)CityFarmer Wrote:

(23-10-2014, 11:21 AM)BlueKelah Wrote: Yield hungry funds flock to aus, speculative funds flock to less regulated thai, msia markets.

Other money coming in goes to property or to the 2 other casinos :-D

Locals money locked up in overpriced property as well.

Not much left for SGX which is run by BB. Only analytic smart VBs left who wont play their games

via Xperia Z1 with Android 4.4.4 tapatalk.

Participation and liquidity remains strong in SGX market, base on the acceptance of bonds issued. If funds have flocked elsewhere, where are the money that supporting the $23 billion in value, 48 in number of bond issued in Sept 2014 alone.

I reckon the question is funds are shunning equity market, with reasons already well-discussed. Will the funds be driven back to equity in near term? I don't know, but I am cautiously optimistic.

There is OK for a diverse in views, the same for your China property doom. It has made this forum interesting, hasn't it?

(vested in SGX, thus biased)

CF,

The bond market is a sucker game and trust me its going to hit the fence for retailers soon.

I stand by my above opinion. I have been warning my buddies who are plying their trade in the high net worth industry to be extremely carefully when peddling the instruments to their clients. The risks are high that a junk bond crisis that has never been heard of is brewing silently in Singapore already. When retailers gain access, I m afraid it will be ITE - another CLOB (where quality of listings are so shitty that there was no real fundamental investments to talk about), S Chip and Junior resources con game that is already under way.

Fixed income provides a false hope that it is less risky and private banks are extending credit very freely on names that sometimes are fundamentally questionable.

Anyway, if you can't make your equity market attractive to have quality listings, speculation alongside with fundamental investments will ebb. That is the tough reality.

What is the main issue here - casino / bucket shop mentality. This mentality is deeply rooted with SGX IMHO.

GG

Hi GG,

Parking Your Spare Cash - CapitalMall Trust 3.08% Bonds (7 Years)

Alamak! What about CapitalMall Bonds? O. K. or not?

When I can entrust my $ with:

i) Communist Merchant Parties $0.895 DPS $0.07, Yield 7.82%,

ii) FCL $1.665, DPS $0.05, Yield 3%

iii) Boustead $1.785, DPS $0.07, Yield 3.92%

iv) St****** $0.555 DPS $0.02, Yield 3.6%

v) Sp Ship $0.25, DPS $0.0125, Yield 5%,

vi) UOB $22.25, DPS $0.75, Yield 3.37%

vii) Starhub $4.11, DPS $0.20, Yield 4.87%

There is no need to convince oneself that you need a flat coupon with no participation to upside potential.

Moreover, inflation rates are quite high - at least the costs of living is much higher than government's reported CPI numbers. So what is the point of getting security with flat and miserable coupon rates. When global interest rates picked up, then the downside risks of low yielding bonds will be glaring...

YMMV
GG

(23-10-2014, 07:09 PM)Temperament Wrote: Hi GG,

Parking Your Spare Cash - CapitalMall Trust 3.08% Bonds (7 Years)

Alamak! What about CapitalMall Bonds? O. K. or not?

(23-10-2014, 01:42 PM)sgpunter Wrote: The reality is that Chinese companies would rather list in HKEX which is more prestigious for them and attract higher valuations rather than be classed together with the most of the junk S Chips listed on SGX now.

After what happens to HK now where protesters take to the streets illegally to demand for more democracy, which is indirectly against Beijing’s policy, I am sure some of the big mainland companies will think harder if they want to IPO in HK. The mega ones like Ali of course can choose to list anywhere they want. The not so big ones, if they want to list in Asia, other than HK, I think Spore is their next best alternative.

Quote:It is also unfortunate for SGX that in trying to attract more oil & gas start ups to list here, oil prices have also started plummeting. Bad timing I guess.

Oil prices is cyclical. I don’t see anything wrong to do the ground work first, regardless of the price of oil. It takes time to build up a reputation, so perhaps when we are ready, oil price could hit north again.

Quote:I also think the CEO is also very keen for High Frequency Trading to be introduced here to increase the anaemic trading activity but until all the penny stock saga blows over, I think this won't come anytime soon until the house is clean since there are many issues associated with HFT as well.

It may takes a while before we can see active trading activities again, but I am 100% sure interest will be back. Meantime, its directives business is progressing very well. So overall, SGX is still very much profitable and can continue to pay its dividends like before, even with the lacklustre securities trading business. What if trading volume improve and directives continue to do well? What would be the value of SGX then?

Quote:All in all, SGX will continue to be a stable business generating 4% yields but if you ask me, I don't see much bright spots in the short run.

IMO, I think as long as Spore remains stable, politically and economically, and SGD currency remains stable, and our monetary policy is accommodating enough, I believe Spore will always be an attractive place for company to list. And SGX future will be bright, to me.

(23-10-2014, 06:37 PM)greengiraffe Wrote: CF,

The bond market is a sucker game and trust me its going to hit the fence for retailers soon.

I stand by my above opinion. I have been warning my buddies who are plying their trade in the high net worth industry to be extremely carefully when peddling the instruments to their clients. The risks are high that a junk bond crisis that has never been heard of is brewing silently in Singapore already. When retailers gain access, I m afraid it will be ITE - another CLOB (where quality of listings are so shitty that there was no real fundamental investments to talk about), S Chip and Junior resources con game that is already under way.

Fixed income provides a false hope that it is less risky and private banks are extending credit very freely on names that sometimes are fundamentally questionable.

Anyway, if you can't make your equity market attractive to have quality listings, speculation alongside with fundamental investments will ebb. That is the tough reality.

What is the main issue here - casino / bucket shop mentality. This mentality is deeply rooted with SGX IMHO.

GG

GG,

I have no strong opinion on the quality of SGX listed bonds. They are highlighted to support my view on liquidity and participation in SGX, which is opposing to your and BlueKelah's view.

BTW, FCL's $600 million issue of PS, is one of the listed bonds mentioned.

(23-10-2014, 07:35 PM)greengiraffe Wrote: When I can entrust my $ with:

i) Communist Merchant Parties $0.895 DPS $0.07, Yield 7.82%,

ii) FCL $1.665, DPS $0.05, Yield 3%

iii) Boustead $1.785, DPS $0.07, Yield 3.92%

iv) St****** $0.555 DPS $0.02, Yield 3.6%

v) Sp Ship $0.25, DPS $0.0125, Yield 5%,

vi) UOB $22.25, DPS $0.75, Yield 3.37%

vii) Starhub $4.11, DPS $0.20, Yield 4.87%

There is no need to convince oneself that you need a flat coupon with no participation to upside potential.

Moreover, inflation rates are quite high - at least the costs of living is much higher than government's reported CPI numbers. So what is the point of getting security with flat and miserable coupon rates. When global interest rates picked up, then the downside risks of low yielding bonds will be glaring...

YMMV
GG

(23-10-2014, 07:09 PM)Temperament Wrote: Hi GG,

Parking Your Spare Cash - CapitalMall Trust 3.08% Bonds (7 Years)

Alamak! What about CapitalMall Bonds? O. K. or not?

>There is no need to convince oneself that you need a flat coupon with no participation to upside potential. Remember this is spare cash.

Remember this is spare cash . Still have a lot more (in the FDs) & CPF to take advantage of a "Black Swan" in case it appears.
Yes i can agree with you on your above (>) But what about downside potential. Like when sentiments are prevalent regardless of what the economy says. Then can you be sure the FD interest rate will be more then now? Or for that matter more than 3 %.