UOB kay Hian

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#1
I did not find any Kay Hian thread hence decided to start one for discussion.

I think this could be classified as a gem as Wee Cho Yaw seems to be buying it up through various vehicles amassing shares near current levels. Privatisation candidate?

The dividend fluctuates but seems quite generous.

Perhaps the coming 'dry' season being the world cup and US market sell off will see investors staying sidelines - hence trading vol drop affecting the bottom lines, dips will allow us to buy in at lower prices.

The dividend as well as scooping of shares by Wee should support the price somewhat.

(Vested odd lots)
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#2
Thinner trading volumes hit UOB-Kay Hian's Q1 earnings
PUBLISHED ON MAY 15, 2014 10:40 PM


BY CHERYL ONG
Thinner trading volumes and cooling measures hurt brokerage UOB-Kay Hian's bottomline for the first quarter.

The firm said on Thursday that its earnings for the three months to March 31 tumbled 44 per cent to $17.9 million from a year earlier.

Revenue for the quarter fell 18.1 per cent to $95 million year on year.

Weaker corporate finance activity also sent operating income down to $6.7 million.

However, the firm's interest income came in at $32 million, up from $17.4 million in the same period a year ago, thanks to higher investment activities.

Quarterly earnings per share was 2.47 cents, down from 4.4 cents a year earlier.

Net asset value as at March 31 was 161.23 cents, up from 158.42 cents as at Dec 31.

UOB-Kay Hian shares closed 0.5 cent down at $1.64 on Thursday.

- See more at: http://www.straitstimes.com/news/busines...bIvQw.dpuf
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#3
with standard chartered no min commission strategy, is it a bit hard for uobkh to compete?
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#4
pianist Wrote:with standard chartered no min commission strategy, is it a bit hard for uobkh to compete?

Not true.

I am a Scb user myself.
I will use Scb if I buy real small amounts.
The downside is the inconvenience of not having an app to buy/sell.

However when I buy stocks that amount to $7k and above, I go full brokerage because the commission is the same and the convenience of buying/selling via app.

Again I am banging on senior Wee to turn this into something more attractive.
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#5
Sorry, it should be junior Wee (Wee Ee Chao)
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#6
Hi OrangeTea,

Doesn't' make much sense; contract value 8k.

SCB commission is: 8,000 *0.2*1.07= $17.12
UOB Kay Hian is: 8000*0.275*1.07= $23.54 or $26.75 (if there is a min $25 brokerage).

The only good thing about UOB and the rest is that they give you 3 days grace period to pay up, 2)there are free trade rebates (like Lim & Tan promotion), 3) You can attend AGMs

As for Kayhian, the company is quite shrewd recently as they made use of weakness in shares to buy back shares of their Thai sub which fell quite a lot. A plus point for the shrewd mgmt. However, business operation wise, I am not too optimistic.
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#7
Yes, you are correct!

Pardon my err.
(18-05-2014, 08:53 AM)CY09 Wrote: Hi OrangeTea,

Doesn't' make much sense; contract value 8k.

SCB commission is: 8,000 *0.2*1.07= $17.12
UOB Kay Hian is: 8000*0.275*1.07= $23.54 or $26.75 (if there is a min $25 brokerage).

The only good thing about UOB and the rest is that they give you 3 days grace period to pay up, 2)there are free trade rebates (like Lim & Tan promotion), 3) You can attend AGMs

As for Kayhian, the company is quite shrewd recently as they made use of weakness in shares to buy back shares of their Thai sub which fell quite a lot. A plus point for the shrewd mgmt. However, business operation wise, I am not too optimistic.
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#8
Trading activity on the Singapore Exchange (SGX) is likely to remain subdued over the next few weeks as the 2014 World Cup moves on to the knock-out stage.


By Wong Siew Ying
POSTED: 20 Jun 2014 20:04


SINGAPORE: If past World Cup tournaments are anything to go by, trading activity on the Singapore Exchange (SGX) is likely to remain subdued over the next few weeks as the 2014 World Cup moves on to the knock-out stage.

Some analysts say the average monthly value traded is already lower by 25 per cent since the World Cup kicked off in Brazil on June 12.

Jimmy Ho, remisier at UOB Kay Hian, said: "Before the football season, on average the daily value was above S$1 billion per day, now the average daily value is below S$1 billion.

“The casino, the World Cup, the stock market, they all fight for the pie from retail investors, so basically the drop in volume is from the World Cup season. As for the fundamentals, even the slightly better news from the Fed did not see any kind of a direct response.”

Federal Reserve Chair Janet Yellen had said this week that interest rates would remain near zero for a considerable time after the bond buying programme ends.

The Fed also remained confident that the US recovery is largely on track.

According to DMG & Partners Research, the average monthly value traded now is down by some 25 per cent, compared to the previous month.

This is worse than in 2010 when the drop was 14 per cent, but better than 2006, which saw a fall of 32 per cent.

Some analysts expect trading volume and value to dip further in the coming weeks as the World Cup tournament enters the knock-out stages.

The other thing to watch is the ongoing unrest in Iraq, which could have some impact on the markets if the situation worsens.

But while the World Cup is a key factor, analysts say it is not entirely to blame for the slow market activity.

Terence Wong, head of research at DMG & Partners Research, said: “If you have been studying what's been happening over the last 6, 7, 8 months, retail participation has also crimped, has come down significantly and the participation level, I believe has gone down anywhere from 35 per cent to 45 per cent.

“There's a combination of factors but one of the biggest one would be the small cap fiasco which started in October 2013 and it sort of carried over to a good part of this year."

Some market-watchers say that the lower trading volume on the SGX could also be seasonal, as the June school holidays pack investors off on a vacation.

The market is also in need of a catalyst to spur activity.

Liu Jinshu, lead analyst at Voyage Research, said: “I would expect the market to be range-bound for some time until further news jolt the market.

“For example, after the announcement of Alibaba taking a stake in SingPost, as well as previous M&A deals, so each time there is a major transaction, the market gets heated up again."

It appears that investors will be keeping their eyes fixed on their football screens for now, rather than their trading charts.

- CNA/nd
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#9
Tough times for brokers as trades slow, commissions fall
Published on Jun 23, 2014 7:44 AM

[Image: ST_20140623_P1BLURBS23JA7Q_430684e.jpg]

Mr Jimmy Ho, president of the Society of Remisiers (Singapore), thinks the future is bleak, with fewer young remisiers joining the industry. The cash has also dried up. -- ST PHOTO: LAU FOOK KONG

By Jonathan Kwok

SINGAPORE remisier Jimmy Ho remembers the good old days of stock trading when the action came thick and fast and the cash was free-flowing.

"It was very good. You'd answer the phone with your left ear until it became heated and you would have to change to your right ear," said Mr Ho, as he reminisced about the early days of his 20-year career.

"For some remisiers, they could do $100,000 a month in commissions during a bull run."

These days, remisiers like Mr Ho, who is also the president of the Society of Remisiers (Singapore), have a quieter existence, tapping away at the keyboard while monitoring the stock market on multiple screens.

A few times a day, a client calls for help with trades but most deals are done with a click of a button by the clients themselves.

The cash has also dried up, said Mr Ho. "I don't have the exact figures, but my estimation is that more than half of the remisiers earn less than $1,000 (a month, in commissions) nowadays."

The sharp slowdown in business these days is partly due to the World Cup and June school holidays, which bring down volumes on the market.

"Trading activity was low before, but now with the World Cup, it's lower than low," he mused.

Another reason for the slowdown has been the fallout from the penny stock crash.

Penny stocks, which are cheap to buy, used to be a good source of revenue as many small-time punters would do quick trades, resulting in higher volumes and commissions for remisiers.

But after Blumont Group, LionGold Corp and Asiasons Capital rose to record highs before crashing spectacularly last October, retail investors have shied away from such counters.

In turn, commissions earned by brokers have dropped by between 15 per cent and 40 per cent, brokers told The Straits Times.

The industry has been on a long and steady decline, battered by regulatory changes, technological advances and rising competition.

Five years ago, the daily average turnover in May 2009 was $2.27 billion.

Today, the local market's daily average securities turnover is just half of that, standing at $1.17 billion last month.

Changes in regulation have also hit remisiers hard. In December 1999, the Singapore Exchange (SGX) was formed by the merger of the Stock Exchange of Singapore, Singapore International Monetary Exchange, and Securities Clearing and Computer Services.

That came alongside a raft of changes which increased competition in the stockbroking industry and saw commissions slashed.

The changes were good for investors but very bad for remisiers.

Commissions for a remisier are now as low as $10 for an online trade, after deducting the cut to the brokerage firm.

This means brokers will need their clients to make 100 online trades a month to hit the $1,000 mark. But activity has dropped off so much that many struggle to hit that target, said remisiers.

New forms of trading products and services from non-conventional brokers are also making the landscape more competitive.

The growth of contracts for difference has also taken business away from remisiers.

These investment tools provide traders with a quick and easy way to take bets on the direction of the stock without needing to put a large amount of capital down.

Some remisiers still try to set themselves apart, with the trading advice and ideas they provide to their clients.

But some investors - particularly younger ones - prefer to trade and invest by themselves, without the input of their brokers, said remisiers.

It is no wonder Mr Ho feels the future is bleak, with fewer young remisiers joining the industry.

"When they see the situation is like this, the fresh graduates stay away," he said.

Brokers such as Mr Desmond Leong, with about 10 years in the trade, are now turning to trading their own money as means to support themselves and to rely less on commissions.

"The clients aren't providing a lot of brokerage (fees), I've got to bump up my own trading. That's the reality for a lot of the remisiers," said the 35-year-old.

Proposed changes from regulators, who want to stop a practice which allows investors to trade shares without putting up actual capital, could lead to further repercussions.

The end could be near for unsecured "contra trading", which will reduce the credit risk for remisiers - but also further dampen trading activity.

Some brokers are not sticking around to find out.

"A number of remisiers have quit the industry," said 26-year- old Alvin Yong, who has been in the business for three years and is one of the few young faces in the trading room.

Also, a major bugbear among remisiers is the dropping of a midday break by SGX, which was initiated in 2011.

Said Mr Yong: "Who wants to go into a job with no lunch break?"

jonkwok@sph.com.sg
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#10
http://www.businesstimes.com.sg/companie...-can-in-q3

Brokerages find relief where they can in Q3
By
Kenneth Limkenlim@sph.com.sg@KennethLimBT
13 Nov5:50 AM
Singapore

SINGAPORE brokerages had a mixed third quarter, with some players finding relief from a mix of channels after a weak first half of the year.

UOB-Kay Hian Holdings got some respite from its overseas business. The broker returned to growth as overseas trading volumes helped
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