Traders on SGX to get an hour's lunch break from November - Channel NewsAsia

An office worker walks past a logo of the Singapore Stock Exchange (SGX) outside its premises in Singapore, April 23, 2014. (Photo: Edgar Su/Reuters)

SINGAPORE: Following a public consultation, the Singapore Exchange (SGX) on Tuesday (Jul 18) said it is going ahead with changes that will allow stock traders a noon break. 

From Nov 13, the market will be closed from 12 noon to 1 pm.

It is also making a number of other changes to the equities market structure. 

The minimum bid size (MBS) for securities in the S$1.00 to S$1.99 price range will go up to S$0.01 from the current S$0.005.

"The S$1.00 to S$1.99 price segment is the one that has shown the biggest decline in traded value and has the lowest level of retail participation in recent years," it said.

A wider MBS targeting this price range is expected "to achieve ... balance between the various competing interests of market participants".

It said it will also widen the forced order range (FOR) for relevant securities to +/- 30 ticks from +/- 20 ticks. An order is "forced" when it is submitted at a price outside the stated forced order bid spread. A system then alerts a trader when he enters an order price that is more than the stated forced order bid spread from the current bid/ask prices in the market. 

"The midday break, increased minimum bid size and wider forced order range are the result of the collaborative approach the entire market ecosystem is committed to in enhancing our market,” said Loh Boon Chye, CEO of SGX.

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SGX to reintroduce lunch break, widen bid spreads from Nov 13, Companies & Markets

SINGAPORE Exchange (SGX) has decided to bring back the lunch break and widen the minimum bid spreads from Nov 13, 2017, after a public consultation exercise, the market operator announced on Tuesday after the market closed.

Following the public consultation, SGX said it will not change its original proposals to:

1) widen the tick size for stocks in the S$1-S$1.99 range from half a cent-one cent range;

2) introduce a mid-day trading break from noon to 1pm; and

3) raise the threshold at which trades trigger an "error trade" warning, also called the forced order range, from the current 20 bids to 30 bids in either direction.

SGX launched the public consultation exercise on the rules in March, the strongest signal from the market operator that it was ready to reverse course on a number of moves that had generated controversy in the market.

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KKR on the prowl at SGX, says its S-E Asia head, Companies & Markets

BUYOUT giant KKR is looking at a couple of companies listed on the Singapore Exchange (SGX), said Ashish Shastry, the private equity firm's head of South-east Asia.

These could be mid-cap companies in the manufacturing or industrials sector, valued from a few hundreds of millions to S$1.5 billion, he said.

"There's value in stocks in Singapore, I think you can pay premiums to take some of these companies private," said Mr Shastry.

KKR, also known as Kohlberg Kravis Roberts, is flush with dry powder after raising a US$9.3 billion fund in June for private equity investments across the Asia-Pacific.

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Nifty can open gap up by 43 points: Maximus Securities - Moneycontrol.com

Maximus Securities’ Daily Report:

F&O Outlook

Nifty PCR-OI has increased to 1.44 from 1.39. The rise in the ratio may be due to increase in PE of 9700 and decrease in CE of 8700. PE of 9700 and CE of 9800 are the highest number of contracts traded.

Opening for the Day:

Trading of SGX Nifty futures on the Singapore stock exchange indicates that the Nifty could gain 43 points at the opening bell.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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Top stocks in focus on Friday, 14 July 2017

NEW DELHI: Domestic equity markets are likely to open on a flat to positive note on Friday, tracking Nifty futures on the Singapore Stock Exchange (SGX Nifty) and mixed global cues.

SGX Nifty was up 7.50 points, or 0.08 per cent, at 9,901.50.50 around 7.45 am (IST), indicating a flat start for NSE Nifty index.

Here is a list of top stocks that are likely to be in focus today:

Infosys: The IT major will report its June quarter numbers on Wednesday. Brokerage firm Motial Oswal believes Infosys may post 4.5 per cent quarter-on-quarter (QoQ) fall in net profit at Rs 3,438 crore compared with Rs 3,603 crore profit reported for the sequential quarter ended March 31, 2016. The company’s revenue may slip 0.43 per cent QoQ to Rs 17,654 crore.

Max Financial, HDFC: HDFC Life Insurance may call off its proposed takeover of the Max group's life insurance business as the two have not been able to arrive at a mutually agreeable alternative structure for the transaction, which the regulator has rejected in its current form.

Bhushan Steel: The National Company Law Tribunal ( NCLT ) on Thursday heard the bankruptcy petitions of Bhushan Steel and Bhushan Power and Steel. The court gave Bhushan Steel four more days.

TCS: A bigger-than-expected fall in operating profit in June quarter may not go down well with TCS investors. A sustained deceleration in topline reflects rising pressure, analysts said.

Infibeam: ICICI Securities Primary Dealership today bought 1 lakh shares of e-commerce firm Infibeam Incorporation for over Rs 11 crore through open market transactions.

SBI: State Bank of India is planning to raise up to $750 million (Rs 4,835 crore) of overseas loans from international lenders to fund growth in lending activity at its offshore branches.

Cyient: Cyient has posted a 18.7 per cent rise in its June quarter net at Rs 87.8 crore from the Rs 74 crore in the year-ago period.
The company's total income rose 8.6 per cent to Rs 907 crore during the reporting quarter.

JSW Steel, Monnet Ispat: State Bank of India is not in favour of a JSW Steel proposal in its current form to buy a controlling stake in debt-laden steelmaker Monnet Ispat, the bank informed the Mumbai bench of the National Company Law Tribunal (NCLT) on Thursday.

Grasim Industries: Grasim said that the Aditya Birla Group company is ready to sell fertiliser arm for close to ₹3000 crore, media reports suggested.

Biocon: ​ The US Food and Drug Administration on Friday approved Biocon and US drug maker Mylan's proposed biosimilar breast cancer drug Trastuzumab, a move that opens doors for Bangalore based Biocon in the big league of US cancer drug market.

Kwality: Sebi has imposed a total penalty of Rs 12 lakh on Kwality and its five promoters for allegedly violating disclosure norms. The promoters are Sanjay Dhingra, Gulshan Dhingra, Naresh Dhingra, Krishan Dhingra and Kanika Dhingra, according to a Sebi order.

GVK Power: The company said thatbit has completed a deal to sell residual equity in BIAL.

Wipro: The comapny has sought members' nod to reappoint Azim Premji as Executive Chairman & MD.

Blue Star: Blue Star has tied up with Comfort Solutions for distribution of unitary products.

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Yinson forges ahead with RM2.13bil bond issuance News

Yesterday, the floating production, storage and offloading (FPSO) service provider announced on Bursa Malaysia that it had established a US$500mil multi-currency perpetual securities programme, which it has unconditionally guaranteed.

Yesterday, the floating production, storage and offloading (FPSO) service provider announced on Bursa Malaysia that it had established a US$500mil multi-currency perpetual securities programme, which it has unconditionally guaranteed.

PETALING JAYA: Yinson Holdings Bhd, which is bidding for three to six projects and fresh from inking a deal to sell part of its African unit to big-name Japanese investors, is now embarking on a massive perpetual securities programme of up to US$500mil (RM2.13bil) to fund its growth.

Yesterday, the floating production, storage and offloading (FPSO) service provider announced on Bursa Malaysia that it had established a US$500mil multi-currency perpetual securities programme, which it has unconditionally guaranteed.

Essentially, the establishment of this perpetual securities programme enables Yinson to issue perpetual securities when required for general corporate purposes.

During the group’s recent AGM, group CEO Lim Chern Yuan said that Yinson prefers not to tap into the primary equity market to raise funds.

“We will instead rely on the ability of the company to velocitise the future cash flows from its firm contracts through strategic partnerships, any form of hybrid securities, or bond raising from the market,” he said.

Hence, there is no timeline for Yinson to issue the perpetual securities, as the group can decide to do so at any given time under the programme in full sum or in tranches, depending on the market reception, as well as preferred coupon, tenure and other relevant pricing supplements.

Based on Yinson’s past track records, when raising funds from the market, the proceeds are usually earmarked for the embarkment of new projects.

In addition, Yinson has also received an approval-in-principle from the Singapore Exchange Securities Trading Ltd (SGX-ST) for permission to deal in, for any perpetual securities pursuant to the programme, the official list of the SGX-ST.

The perpetual securities are to be listed on the SGX-ST as it is an international Regulation S bond, which has a wider range of investor base.

Perpetual securities are commonly listed on three exchanges, namely, the London Stock Exchange, the Hong Kong Stock Exchange and the SGX.

Perpetual securities are usually classified as equities under the international financing reported standard and increase shareholders’ funds of the issuer group, reduce the gearing ratio and enhance gearing headroom to take on new projects.

The common ticket size per issuance of perpetual securities ranges from an estimated US$150mil to US$500mil for it to be meaningfully traded.

In 2015, Yinson, via unit Yinson TMC Sdn Bhd, issued a Regulation S perpetual securities amounting to US$100mil (RM429.82mil), the first of its kind in Malaysia, at a pricing handle of 7% for a tenure of non-call five (five years).

The estimated FPSO returns are in the range of 16% to 25% based on analyst consensus, while Yinson’s perpetual securities issued in 2015 has a 7% coupon rate.

Should this continue to be the case, then this would indicate that it is worthwhile for Yinson to issue bonds based on the lucrative FPSO returns.

With this low cost of equity funding, it is presumed that Yinson will be more competitive in its FPSO bidding process, which is capital-intensive.

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