Singapore share market news update 15july08
- China Energy - PricewaterhouseCoopers' review of company's CNY197.8 million acquisition of Jiutai Energy last year found no evidence of irregularity. According to PwC, additional CNY190 million came from company's IPO proceeds, used mainly to repay Jiutai's debts, incurred to fund construction of phase 1 of its DME production plant. PwC says while review uncovered no discrepancy, China Energy failed to disclose payment of bulk of CNY190 million in 3Q07 to explain fall in its cash balance. Company says it'll take steps to strengthen its approval processes.
- Indofood Agri Resources said it did not plan to issue new shares to help repay loans that will become due next month.
- Singapore's central bank said it is closely monitoring financial markets in the wake of the crisis surrounding U.S. mortgage giants Fannie Mae and Freddie Mac, and warned of big downside risks in global markets.
- ST Engineering’s aerospace arm has signed an agreement for global cooperation with GE Aviation.
- Advanced Holdings has landed four new contracts totaling S$19.3m for projects in Singapore and China.
- Chosen Holdings warned it expects to report lower profits for FY08, citing lower demand from the data media storage industry and the slow ramp-up of new programs for the Malaysia and Thailand operations due to the slower US economy.
- ECS Holdings said it is working on a possible placement of shares to a sufficient number of placees in order to meet the 10% public free float requirement.
Tuesday, July 15, 2008
Tuesday, July 08, 2008
Singapore Share Market S-chips update :
Composition of the Merrill Lynch S-shares index
BBG Code Short Name Market Cap (USD MM) Weight Sector
COS SP Cosco Corp Singapore 5,462 6.63% Industrials
YZJ SP Yangzijiang Shipbuilding 2,175 6.63% Industrials
FRC SP Ferrochina Limited 734 6.63% Materials
CHHS SP China Hongxing Sports 842 6.63% Consumer Discretionary
LHCF SP Li Heng Chemical Fibre 817 6.63% Consumer Discretionary
YLLG SP Yanlord Land Group 2,823 6.63% Financials
CEGY SP China Energy Ltd 429 6.63% Materials
CENU SP Celestial Nutrifoods 371 6.63% Consumer Staples
CXLX SP China Xlx Fertiliser 568 6.04% Materials
SINOT SP Sino Techfibre 423 5.28% Consumer Discretionary
CMILK SP China Milk Products 414 5.22% Consumer Staples
SINE SP Sino-Environment Tech 348 5.04% Utilities
SYNF SP Synear Food Holdings 431 4.67% Consumer Staples
SVC SP Sunvic Chemical 158 3.75% Materials
CZAI SP China Zaino International 378 3.59% Consumer Discretionary
DLNG SP Delong Holdings Ltd 1,286 3.34% Materials
MIDAS SP Midas Holdings Ltd 560 3.13% Industrials
JIUC SP Jiutian Chemical Group 163 2.70% Materials
PAG SP Pine Agritech Limited 360 2.13% Consumer Staples
FBCM SP Fibrechem Technologies 434 2.09% Consumer Discretionary
Source: Merrill Lynch Equity Derivatives Strategy
Weights as of 30-Jun-08
Composition of the Merrill Lynch S-shares index
BBG Code Short Name Market Cap (USD MM) Weight Sector
COS SP Cosco Corp Singapore 5,462 6.63% Industrials
YZJ SP Yangzijiang Shipbuilding 2,175 6.63% Industrials
FRC SP Ferrochina Limited 734 6.63% Materials
CHHS SP China Hongxing Sports 842 6.63% Consumer Discretionary
LHCF SP Li Heng Chemical Fibre 817 6.63% Consumer Discretionary
YLLG SP Yanlord Land Group 2,823 6.63% Financials
CEGY SP China Energy Ltd 429 6.63% Materials
CENU SP Celestial Nutrifoods 371 6.63% Consumer Staples
CXLX SP China Xlx Fertiliser 568 6.04% Materials
SINOT SP Sino Techfibre 423 5.28% Consumer Discretionary
CMILK SP China Milk Products 414 5.22% Consumer Staples
SINE SP Sino-Environment Tech 348 5.04% Utilities
SYNF SP Synear Food Holdings 431 4.67% Consumer Staples
SVC SP Sunvic Chemical 158 3.75% Materials
CZAI SP China Zaino International 378 3.59% Consumer Discretionary
DLNG SP Delong Holdings Ltd 1,286 3.34% Materials
MIDAS SP Midas Holdings Ltd 560 3.13% Industrials
JIUC SP Jiutian Chemical Group 163 2.70% Materials
PAG SP Pine Agritech Limited 360 2.13% Consumer Staples
FBCM SP Fibrechem Technologies 434 2.09% Consumer Discretionary
Source: Merrill Lynch Equity Derivatives Strategy
Weights as of 30-Jun-08
Friday, July 04, 2008
SINGAPORE SHARE MARKET UPDATE 4july2008
- Another IPO bites the dust
Hong Kong dry-bulk shipping line Maritime Capital Shipping has
decided not to proceed with an initial public offering (IPO) in the Singapore Stock Exchange due to weak sentiment for the Singapore stock market in recent weeks.
"The performance of the global equity markets has deteriorated
sharply in the last few days and equity markets have closed for
IPOs, regardless of the underlying fundamentals of the company,"
said Maritime Capital chief executive officer Mark Harris. Mr. Harris
did not say when or whether the company might revive listing
plans.
After witnessing the "failure" of some of the recent IPOs in Singapore stock market, most investors would find it hard to jump into another IPO.
Most recent Singapore IPOs have tanked on day one of listing and are
still trading below their respective IPO prices. The last count is that
15 of the 18 new companies whose shares are listed in the Singapore stock exchange this year are now trading below their offer prices.
After the recent sell off in the broad market, some recent IPOs are
trading at 3-4 times FY08 earnings.......its no wonder new IPOs are finding hard
convincing investors to subscribe to them at 4-5 times FY07 earnings.
- Another IPO bites the dust
Hong Kong dry-bulk shipping line Maritime Capital Shipping has
decided not to proceed with an initial public offering (IPO) in the Singapore Stock Exchange due to weak sentiment for the Singapore stock market in recent weeks.
"The performance of the global equity markets has deteriorated
sharply in the last few days and equity markets have closed for
IPOs, regardless of the underlying fundamentals of the company,"
said Maritime Capital chief executive officer Mark Harris. Mr. Harris
did not say when or whether the company might revive listing
plans.
After witnessing the "failure" of some of the recent IPOs in Singapore stock market, most investors would find it hard to jump into another IPO.
Most recent Singapore IPOs have tanked on day one of listing and are
still trading below their respective IPO prices. The last count is that
15 of the 18 new companies whose shares are listed in the Singapore stock exchange this year are now trading below their offer prices.
After the recent sell off in the broad market, some recent IPOs are
trading at 3-4 times FY08 earnings.......its no wonder new IPOs are finding hard
convincing investors to subscribe to them at 4-5 times FY07 earnings.
SINGAPORE SHARE MARKET HEADLINE NEWS 4JULY
- SembCorp Marine said that Atwood Oceanics Inc. has conditionally exercised an option to construct a second deepwater semi-submersible rig with Jurong Shipyard. Contract details are being discussed.
- ST Engineering CEO Tan Pheng Hock said the impact of a slowdown in the aviation industry on the company was “minimal” at worst and could even provide growth opportunities.
- Although stock market turnover fell 15.6% YoY in 1H08 to S$220.1bn, warrant volume surged 21% to S$13.1bn.
- CityDev has begun to preview its much-awaited Livia condo at Pasir Ris at an average price of about S$650 psf for the initial batch of units according to the Business Times.
- Reuters reports that Fraser and Neave is looking to sell S$125m worth of two-year bonds with a semi-annual coupon of 3.6%.
- Driven by rising corporate demands, Frasers Hospitality says it expects to grow its brand of serviced apartments to 8,500 by 2010.
- BBR Holdings has secured a S$26.4m contract from the Ministry of Education for works at an existing school in Tampines.
- Healthway Medical Corp said that the public tranche of its IPO was 6.6x subscribed. Together, the private placement and public subscription was 1.04x subscribed.
- FM Holdings has inked a MOU to buy 90% of TriStar Global Services, which owns two Indonesian coal-mining firms, for up to S$160m.
- Hong Kong-based bulk cargo shipping firm Maritime Capital Shipping withdrew a Singapore listing worth up to US$300m.
- SembCorp Marine said that Atwood Oceanics Inc. has conditionally exercised an option to construct a second deepwater semi-submersible rig with Jurong Shipyard. Contract details are being discussed.
- ST Engineering CEO Tan Pheng Hock said the impact of a slowdown in the aviation industry on the company was “minimal” at worst and could even provide growth opportunities.
- Although stock market turnover fell 15.6% YoY in 1H08 to S$220.1bn, warrant volume surged 21% to S$13.1bn.
- CityDev has begun to preview its much-awaited Livia condo at Pasir Ris at an average price of about S$650 psf for the initial batch of units according to the Business Times.
- Reuters reports that Fraser and Neave is looking to sell S$125m worth of two-year bonds with a semi-annual coupon of 3.6%.
- Driven by rising corporate demands, Frasers Hospitality says it expects to grow its brand of serviced apartments to 8,500 by 2010.
- BBR Holdings has secured a S$26.4m contract from the Ministry of Education for works at an existing school in Tampines.
- Healthway Medical Corp said that the public tranche of its IPO was 6.6x subscribed. Together, the private placement and public subscription was 1.04x subscribed.
- FM Holdings has inked a MOU to buy 90% of TriStar Global Services, which owns two Indonesian coal-mining firms, for up to S$160m.
- Hong Kong-based bulk cargo shipping firm Maritime Capital Shipping withdrew a Singapore listing worth up to US$300m.
Thursday, July 03, 2008
What is CFD or contract for difference
CFD gives high leverage compared since you only need to put down about 20% of the investment value - but just like margin account, this can work for as well as against you if you do not know how to manage your position.
Also, CFD allows traders to "shortsell" a stock ie selling a stock which someone who does not own with the aim of buying back later at a lower price. CFD allows traders to hang on to the short position for as long as one month or even beyond. See below for more information.
1. What is Contracts for Difference (CFD)?
A CFD is an agreement between 2 parties to settle the difference between the opening price and closing price of the
contract multiplied by the number of shares specified. It is therefore a unique trading instrument that allows the
customers to trade in stocks with the key features of leveraging and short-selling.
2. Key Features of Phillip CFD?
These are the advantages of using Phillip Stock CFD:
_ Portfolio Diversification
Besides SGX, HKSE and KLSE, customers now have the added advantage of diversifying their stocks and CFD portfolio
with selected companies listed on the NYSE and NASDAQ. With lesser initial capital outlay (20%), customers can now
effectively perform portfolio diversification.
_ Convenience to Short Sell*
A CFD allows you to take a position on a stock without needing to buy and sell the shares themselves. Therefore, CFD
investors can take short position, and not be limited to the T+3 days contra period or be tired out by the
administrative hassles that accompany SBL trading.
* Share Borrowing and Lending(SBL) facility allows you to short the market by borrowing shares, the accompanying administrative hassles often
results in investors missing out on the ‘right’ price to sell.
_ 5 Times Trading Power, Increased Leverage
Phillip CFD will enable you to leverage up to 5 times the capital, allowing clients to pay only a fraction of the
underlying capital required.
_ 30 Calendar Days “CONTRA”
Each CFD contract has an expiry date of 30 calendar days. Investors can choose to close out anytimebefore
expiration. If contracts are not closed out within 30 calendar days, they will be automatically renewed at the end of
the 30th day.
_ Sophisticated Trading Strategies
You will have the added ability to protect your existing share portfolio against adverse market conditions by utilizing
the Phillip CFDs to hedge your exposure, via strategies such as pair trading and spread trading.
_ Smart STOP Order§
Increase your chances of winning and minimize losses with the use of the STOP order type. Our Stock CFD (US) now
has a system which allows for higher entries and cut loss trades. Simply by the differentiation of the mid-price and
the price input, the system will be able to identify if a customer is putting in a STOP order.
§STOP order is currently applicable for US markets only.
** Customers are advised to exercise caution when executing orders at current spread especially during volatile conditions.
_ 1.5%p.a. Interest Receivable for Short-Selling
Customers using Phillip US Stock CFD to short-sell will receive interest on their overnight short positions.
3. Corporate Actions
Dividends
A holder of long Phillip CFD on the quoted shares* will receive a credit adjustment** in the account, where the adjustment is equivalent to the net dividend payment due on the underlying shares. Conversely, a holder of short
Phillip CFD will incur a debit adjustment** where it is equivalent to the gross dividend.
*Shares refers to companies being listed on the respective exchanges
**Dividends adjustment will be in the respective exchanges’ currencies.
Bonus, Stock Splits, and Reverse Splits
Quantity and price adjustment will be made to reflect the market equivalent.
Note: Notwithstanding the foregoing, PSPL reserves the right to close all open positions relating to the underlying security before the ex-date for
any corporate action not mentioned above.
In the event there is a combination of Corporate Actions (“CA-Cum All”), where it includes corporate actions other than above mentioned,
clients might not be able to enjoy the entitlement and may be required to close off all open positions before the ex-date.
Eg. ABC stock announces $0.05 dividend per share (which Phillip CFD originally caters for) & 1 for 10 rights issue at $0.60 (which Phillip CFD
originally does not cater for). Ex-date for both Corporate Actions is on 1st October 07.
Clients who are holding the above position would not be entitled to both the rights & dividends and would have to liquidate their positions before
ex-date.
4. Settlement Currency
All Phillip CFD contracts would be settled in the traded currencies. Client’s MYR ledger is not allowed to go into deficit. Should there be a deficit, MYR ledger will be forced converted into SGD. For USD and HKD, there will be NO
AUTO CONVERSION for USD and HKD should there be any margin deficit in these 2 currencies. Should there be any margin deficit in the respective ledger, clients should submit conversion request to avoid margin debit interest.
Exchanges - Settlement Currency
SGX - Singapore Dollars
KLSE / HKSE / US - Traded Currency
Counters Available
For the latest list of counters Phillip CFD issues, please visit our CFD website @ www.phillipcfd.com to download the counter list.
Placing Orders
Phillip CFD orders can be placed in a similar way as placing an ordinary share order. They can be placed through
POEMS online or through your Trading Representatives.
Mini CFDs – Trade BLUE CHIPS at half a lot
You may place long or short CFD order of 500 shares instead of 1 board lot for the following SGX Blue Chips.
Mini CFDs counters
1 City Dev 6 Keppel Corp
2 DBS 7 SGX
3 F&N 8 SIA
4 Great Eastern 9 UOB
5 Jardine C&C 10 Venture
Minimum Deposit
Investors are required to put up an initial deposit of S$3,000 before any trades can be initiated. Thereafter, the
maintenance margin will be 20% of your portfolio market value, marked to market daily.
Withdrawal
Margin Excess from cash deposit may be withdrawn.
Mode of Payment
_ Cash payment for your CFD trading account can be made at the Head Office’s cashier counter.
_ EPS (Electronic Payment for Shares): Please choose “Lump Sum” payment and initiate payments before 9 pm to
ensure that your CFD ledger is credited punctually before the next market day. Kindly inform your dealer/remisier that the EPS is meant for your CFD trading account.
_ Cheque should be crossed and made payable to “Phillip Securities Pte Ltd”. Please state your trading account number, name and contact number on the back of the cheque, and stating clearly that this payment is meant for
Phillip CFD.
_ Existing Phillip clients can initiate transfer from your stock & shares trading account to CFD account via online or through your dealer / remisier.
_ Telegraphic Transfer (TT): Please state your trading account number and name along with the telegraphic transfer. Kindly inform your dealer/remisier that the TT amount is meant for your CFD trading account.
Closure of Account
An administrative fee of up to S$1.07 (inclusive of GST) would be levied for account closure with credit balance
of S$1.00 or below.
Fees & Charges
_ Commission
Market Commission Minimum Commission
SGX 0.3% for contract value > S$12,000
0.5% for contract value X S$12,000
Above applies to non STI component stocks
*0.1% for Component Stocks (*Promo till 31 Jul 08)
S$22 / US$15 / HK$150
KLSE 0.6% (Settlement Currency in MYR) RM60 (Settlement Currency in MYR)
HKSE §0.35% (§Promo till 30 Jun 08) HK$150
NYSE / NASDAQ 0.25%* US$25*
An additional renewal commission will be applied on the 30th day closing price. GST on commission.
Upon renewal, the new contract value will be the last done price (on T+30) multiplied by the contract quantity.
* Commission will be calculated on per trade basis, no amalgamation will be performed.
Differences between CFD & Traditional Shares (Singapore Market)
CFD Traditional shares
Settlement period _ T+30 calendar days _ T+3 market days
Capital Outlay _ 20% _ 100% on T+3
“Short-sell”function Just a mouse click away Subjected to T+4 buy-in if you
shortsell
without buying
back on same day
Financing charges 5.5% p.a. (Long) N.A
4.0%* or 8.0% p.a. (Short)
(based on 100% of opening
contract value)
Share ownership No Yes
Commission 0.2% or 0.3% or 0.5% 0.28% - 0.5%
*Rates are subjected to change*
SGX clearing
& access fee N.A 0.0475%
Short A Stock in Singapore Stock Market Using CFD For Example
A client is bearish on ZZ (listed on SGX and non-STI component stock) and sells 4,000 shares (2 times leverage) at S$1.40 after borrowing from SBL. Alternatively, the client can deposit the S$2,800 and sell up to S$14,000 worth of CFD contract in counter ZZ at S$1.40.
Scenario 1: Positions are closed 10 days later @ S$1.30
Original Investment Short CFDS$2,800 Short StockS$2,800
Opening contract value (Day 1) S$14,000 S$5,600
Opening commission (incl GST) (S$44.94) (S$16.78)
Clearing & Access fees (incl GST) S$0 (S$2.85)
Borrowing Charge (S$30.68) (S$10.74)
Closing contract value (Day 10) (S$13,000) (S$5,200)
Handling fee (incl GST) S$0 (S$21.94)
Closing Commission (incl GST) (S$41.73) (S$15.58)
Clearing & Access fee (incl GST) S$0 (S$2.64)
Net Gain S$882.65 S$329.47
Scenario 1: Positions are closed 10 days later @ S$1.50 (with a loss)
Original Investment Short CFDS$2,800 Short StockS$2,800
Opening contract value (Day 1) S$14,000 S$5,600
Opening commission (incl GST) (S$44.94) (S$16.78)
Clearing & Access fees (incl GST) S$0 (S$2.85)
Borrowing Charge (S$30.68) (S$10.74)
Closing contract value (Day 10) (S$15,000) (S$6,000)
Handling fee (incl GST) S$0 (S$21.94)
Closing Commission (incl GST) (S$48.15) (S$17.98)
Clearing & Access fee (incl GST) S$0 (S$3.05)
Net Loss (S$1123.77) (S$473.34)
Source : www.phillipcfd.com
CFD gives high leverage compared since you only need to put down about 20% of the investment value - but just like margin account, this can work for as well as against you if you do not know how to manage your position.
Also, CFD allows traders to "shortsell" a stock ie selling a stock which someone who does not own with the aim of buying back later at a lower price. CFD allows traders to hang on to the short position for as long as one month or even beyond. See below for more information.
1. What is Contracts for Difference (CFD)?
A CFD is an agreement between 2 parties to settle the difference between the opening price and closing price of the
contract multiplied by the number of shares specified. It is therefore a unique trading instrument that allows the
customers to trade in stocks with the key features of leveraging and short-selling.
2. Key Features of Phillip CFD?
These are the advantages of using Phillip Stock CFD:
_ Portfolio Diversification
Besides SGX, HKSE and KLSE, customers now have the added advantage of diversifying their stocks and CFD portfolio
with selected companies listed on the NYSE and NASDAQ. With lesser initial capital outlay (20%), customers can now
effectively perform portfolio diversification.
_ Convenience to Short Sell*
A CFD allows you to take a position on a stock without needing to buy and sell the shares themselves. Therefore, CFD
investors can take short position, and not be limited to the T+3 days contra period or be tired out by the
administrative hassles that accompany SBL trading.
* Share Borrowing and Lending(SBL) facility allows you to short the market by borrowing shares, the accompanying administrative hassles often
results in investors missing out on the ‘right’ price to sell.
_ 5 Times Trading Power, Increased Leverage
Phillip CFD will enable you to leverage up to 5 times the capital, allowing clients to pay only a fraction of the
underlying capital required.
_ 30 Calendar Days “CONTRA”
Each CFD contract has an expiry date of 30 calendar days. Investors can choose to close out anytimebefore
expiration. If contracts are not closed out within 30 calendar days, they will be automatically renewed at the end of
the 30th day.
_ Sophisticated Trading Strategies
You will have the added ability to protect your existing share portfolio against adverse market conditions by utilizing
the Phillip CFDs to hedge your exposure, via strategies such as pair trading and spread trading.
_ Smart STOP Order§
Increase your chances of winning and minimize losses with the use of the STOP order type. Our Stock CFD (US) now
has a system which allows for higher entries and cut loss trades. Simply by the differentiation of the mid-price and
the price input, the system will be able to identify if a customer is putting in a STOP order.
§STOP order is currently applicable for US markets only.
** Customers are advised to exercise caution when executing orders at current spread especially during volatile conditions.
_ 1.5%p.a. Interest Receivable for Short-Selling
Customers using Phillip US Stock CFD to short-sell will receive interest on their overnight short positions.
3. Corporate Actions
Dividends
A holder of long Phillip CFD on the quoted shares* will receive a credit adjustment** in the account, where the adjustment is equivalent to the net dividend payment due on the underlying shares. Conversely, a holder of short
Phillip CFD will incur a debit adjustment** where it is equivalent to the gross dividend.
*Shares refers to companies being listed on the respective exchanges
**Dividends adjustment will be in the respective exchanges’ currencies.
Bonus, Stock Splits, and Reverse Splits
Quantity and price adjustment will be made to reflect the market equivalent.
Note: Notwithstanding the foregoing, PSPL reserves the right to close all open positions relating to the underlying security before the ex-date for
any corporate action not mentioned above.
In the event there is a combination of Corporate Actions (“CA-Cum All”), where it includes corporate actions other than above mentioned,
clients might not be able to enjoy the entitlement and may be required to close off all open positions before the ex-date.
Eg. ABC stock announces $0.05 dividend per share (which Phillip CFD originally caters for) & 1 for 10 rights issue at $0.60 (which Phillip CFD
originally does not cater for). Ex-date for both Corporate Actions is on 1st October 07.
Clients who are holding the above position would not be entitled to both the rights & dividends and would have to liquidate their positions before
ex-date.
4. Settlement Currency
All Phillip CFD contracts would be settled in the traded currencies. Client’s MYR ledger is not allowed to go into deficit. Should there be a deficit, MYR ledger will be forced converted into SGD. For USD and HKD, there will be NO
AUTO CONVERSION for USD and HKD should there be any margin deficit in these 2 currencies. Should there be any margin deficit in the respective ledger, clients should submit conversion request to avoid margin debit interest.
Exchanges - Settlement Currency
SGX - Singapore Dollars
KLSE / HKSE / US - Traded Currency
Counters Available
For the latest list of counters Phillip CFD issues, please visit our CFD website @ www.phillipcfd.com to download the counter list.
Placing Orders
Phillip CFD orders can be placed in a similar way as placing an ordinary share order. They can be placed through
POEMS online or through your Trading Representatives.
Mini CFDs – Trade BLUE CHIPS at half a lot
You may place long or short CFD order of 500 shares instead of 1 board lot for the following SGX Blue Chips.
Mini CFDs counters
1 City Dev 6 Keppel Corp
2 DBS 7 SGX
3 F&N 8 SIA
4 Great Eastern 9 UOB
5 Jardine C&C 10 Venture
Minimum Deposit
Investors are required to put up an initial deposit of S$3,000 before any trades can be initiated. Thereafter, the
maintenance margin will be 20% of your portfolio market value, marked to market daily.
Withdrawal
Margin Excess from cash deposit may be withdrawn.
Mode of Payment
_ Cash payment for your CFD trading account can be made at the Head Office’s cashier counter.
_ EPS (Electronic Payment for Shares): Please choose “Lump Sum” payment and initiate payments before 9 pm to
ensure that your CFD ledger is credited punctually before the next market day. Kindly inform your dealer/remisier that the EPS is meant for your CFD trading account.
_ Cheque should be crossed and made payable to “Phillip Securities Pte Ltd”. Please state your trading account number, name and contact number on the back of the cheque, and stating clearly that this payment is meant for
Phillip CFD.
_ Existing Phillip clients can initiate transfer from your stock & shares trading account to CFD account via online or through your dealer / remisier.
_ Telegraphic Transfer (TT): Please state your trading account number and name along with the telegraphic transfer. Kindly inform your dealer/remisier that the TT amount is meant for your CFD trading account.
Closure of Account
An administrative fee of up to S$1.07 (inclusive of GST) would be levied for account closure with credit balance
of S$1.00 or below.
Fees & Charges
_ Commission
Market Commission Minimum Commission
SGX 0.3% for contract value > S$12,000
0.5% for contract value X S$12,000
Above applies to non STI component stocks
*0.1% for Component Stocks (*Promo till 31 Jul 08)
S$22 / US$15 / HK$150
KLSE 0.6% (Settlement Currency in MYR) RM60 (Settlement Currency in MYR)
HKSE §0.35% (§Promo till 30 Jun 08) HK$150
NYSE / NASDAQ 0.25%* US$25*
An additional renewal commission will be applied on the 30th day closing price. GST on commission.
Upon renewal, the new contract value will be the last done price (on T+30) multiplied by the contract quantity.
* Commission will be calculated on per trade basis, no amalgamation will be performed.
Differences between CFD & Traditional Shares (Singapore Market)
CFD Traditional shares
Settlement period _ T+30 calendar days _ T+3 market days
Capital Outlay _ 20% _ 100% on T+3
“Short-sell”function Just a mouse click away Subjected to T+4 buy-in if you
shortsell
without buying
back on same day
Financing charges 5.5% p.a. (Long) N.A
4.0%* or 8.0% p.a. (Short)
(based on 100% of opening
contract value)
Share ownership No Yes
Commission 0.2% or 0.3% or 0.5% 0.28% - 0.5%
*Rates are subjected to change*
SGX clearing
& access fee N.A 0.0475%
Short A Stock in Singapore Stock Market Using CFD For Example
A client is bearish on ZZ (listed on SGX and non-STI component stock) and sells 4,000 shares (2 times leverage) at S$1.40 after borrowing from SBL. Alternatively, the client can deposit the S$2,800 and sell up to S$14,000 worth of CFD contract in counter ZZ at S$1.40.
Scenario 1: Positions are closed 10 days later @ S$1.30
Original Investment Short CFDS$2,800 Short StockS$2,800
Opening contract value (Day 1) S$14,000 S$5,600
Opening commission (incl GST) (S$44.94) (S$16.78)
Clearing & Access fees (incl GST) S$0 (S$2.85)
Borrowing Charge (S$30.68) (S$10.74)
Closing contract value (Day 10) (S$13,000) (S$5,200)
Handling fee (incl GST) S$0 (S$21.94)
Closing Commission (incl GST) (S$41.73) (S$15.58)
Clearing & Access fee (incl GST) S$0 (S$2.64)
Net Gain S$882.65 S$329.47
Scenario 1: Positions are closed 10 days later @ S$1.50 (with a loss)
Original Investment Short CFDS$2,800 Short StockS$2,800
Opening contract value (Day 1) S$14,000 S$5,600
Opening commission (incl GST) (S$44.94) (S$16.78)
Clearing & Access fees (incl GST) S$0 (S$2.85)
Borrowing Charge (S$30.68) (S$10.74)
Closing contract value (Day 10) (S$15,000) (S$6,000)
Handling fee (incl GST) S$0 (S$21.94)
Closing Commission (incl GST) (S$48.15) (S$17.98)
Clearing & Access fee (incl GST) S$0 (S$3.05)
Net Loss (S$1123.77) (S$473.34)
Source : www.phillipcfd.com
Wednesday, July 02, 2008
Singapore Stock Market News 2july08
Accoding to Dow Jones report, singapore listed stock Dayen Environmental (5BT.SG) fell 26.2% to record low of S$0.155, as investors convinced water treatment firm's planned foray into coal mining business all but over after company said Indonesian partner PT ATPK Resources (ATPK.JK) unable to carry out obligations under mining rights agreement signed in December. Announcement comes just weeks after Dayen unveiled new management team and business units, including a coal mining arm. While company says ATPK still committed to entering new coal mining contract, investors taking no chances, sending share price into tailspin. Stock has been on sustained decline since late May, likely to remain below S$0.20 until company comes out with more reassuring news.
other singapore share market related news :
- SIA has sold five Boeing 777 aircraft in its fleet to Pembroke Group, a unit of Standard Chartered, and leased these back.
- Olam International and Wilmar International have joined forces to acquire a one-fifth stake in PureCircle Ltd - a leading producer of natural sweeteners - for US$106.2m.
- Keppel Corp has entered into a S$794m joint venture with Tianjin Eco-City Investment and Development Co.
- SembCorp Marine has won a US$400m contract from AP Moller-Maersk to build a harsh environment offshore platform to be installed in the Danish sector of the North Sea.
- Parkway Hldgs' 40% Pantai Irama Ventures has agreed to buy a 50% in Gleneagles Hospital (Kuala Lumpur) for S$71.6m.
- DBS has entered into an agreement to invest a maximum of US$8.7m in Raffles Fund 1 Ltd. As part of its private equity portfolio, DBS will own no more than 29% of the company, which will invest primarily in technology-related venture capital funds.
- Epure International acquired water treatment equipment provider Beijing Hi-Standard Water Treatment Equipment Co., Ltd for RMB208m.
- Inflation is taking a toll on China's businesses, as two manufacturing surveys show that input prices are rising and weighing on commercial activity.
- Del Monte Pacific has found itself embroiled in controversy over the use of a highly toxic and regulated pesticide.
Accoding to Dow Jones report, singapore listed stock Dayen Environmental (5BT.SG) fell 26.2% to record low of S$0.155, as investors convinced water treatment firm's planned foray into coal mining business all but over after company said Indonesian partner PT ATPK Resources (ATPK.JK) unable to carry out obligations under mining rights agreement signed in December. Announcement comes just weeks after Dayen unveiled new management team and business units, including a coal mining arm. While company says ATPK still committed to entering new coal mining contract, investors taking no chances, sending share price into tailspin. Stock has been on sustained decline since late May, likely to remain below S$0.20 until company comes out with more reassuring news.
other singapore share market related news :
- SIA has sold five Boeing 777 aircraft in its fleet to Pembroke Group, a unit of Standard Chartered, and leased these back.
- Olam International and Wilmar International have joined forces to acquire a one-fifth stake in PureCircle Ltd - a leading producer of natural sweeteners - for US$106.2m.
- Keppel Corp has entered into a S$794m joint venture with Tianjin Eco-City Investment and Development Co.
- SembCorp Marine has won a US$400m contract from AP Moller-Maersk to build a harsh environment offshore platform to be installed in the Danish sector of the North Sea.
- Parkway Hldgs' 40% Pantai Irama Ventures has agreed to buy a 50% in Gleneagles Hospital (Kuala Lumpur) for S$71.6m.
- DBS has entered into an agreement to invest a maximum of US$8.7m in Raffles Fund 1 Ltd. As part of its private equity portfolio, DBS will own no more than 29% of the company, which will invest primarily in technology-related venture capital funds.
- Epure International acquired water treatment equipment provider Beijing Hi-Standard Water Treatment Equipment Co., Ltd for RMB208m.
- Inflation is taking a toll on China's businesses, as two manufacturing surveys show that input prices are rising and weighing on commercial activity.
- Del Monte Pacific has found itself embroiled in controversy over the use of a highly toxic and regulated pesticide.
Tuesday, July 01, 2008
SINGAPORE STOCK MARKET HEADLINE NEWS 1JULY
- Bank lending accelerated in May to S$256.9bn, up 26.1% YoY – the fastest pace on record according to the MAS.
- SembCorp Marine has clinched a US$640m contract to build a deepwater semi-submersible drilling rig for Larsen Oil & Gas.
- MPU Offshore Lift ASA, a Keppel customer has declared bankruptcy. Keppel said it has ceased work on the EUR140m project with immediate effect, and has received payments to meet all costs incurred to date.
- Fraser & Neave has halted its search for a group CEO and will instead put in place a new management and organizational structure in the coming months.
- The 1H of 2008 has wiped S$120.4bn or some 15% from the total market cap of the Singapore bourse, now down to S$677.4bn.
- Suntec REIT said it has secured a S$400m club loan facility to refinance the remaining bridge loan due end October 2008 related to the acquisition of a one-third stake in One Raffles Quay.
- A-REIT said it is looking to invest some S$500m in industrial properties and business space each year to reach its target portfolio size of S$5bn by end 2010.
- Inter-Roller Engineering has taken the Dublin Airport Authority to court in Ireland over its decision to award a S$85.7m baggage handling contract to Siemens.
- Boustead Singapore has won a three-year S$175m water and waste water infrastructure deal in Libya.
- Tuan Sing is buying Katong Mall for S$219m, or S$865 psf of potential gross floor area.
- Bank lending accelerated in May to S$256.9bn, up 26.1% YoY – the fastest pace on record according to the MAS.
- SembCorp Marine has clinched a US$640m contract to build a deepwater semi-submersible drilling rig for Larsen Oil & Gas.
- MPU Offshore Lift ASA, a Keppel customer has declared bankruptcy. Keppel said it has ceased work on the EUR140m project with immediate effect, and has received payments to meet all costs incurred to date.
- Fraser & Neave has halted its search for a group CEO and will instead put in place a new management and organizational structure in the coming months.
- The 1H of 2008 has wiped S$120.4bn or some 15% from the total market cap of the Singapore bourse, now down to S$677.4bn.
- Suntec REIT said it has secured a S$400m club loan facility to refinance the remaining bridge loan due end October 2008 related to the acquisition of a one-third stake in One Raffles Quay.
- A-REIT said it is looking to invest some S$500m in industrial properties and business space each year to reach its target portfolio size of S$5bn by end 2010.
- Inter-Roller Engineering has taken the Dublin Airport Authority to court in Ireland over its decision to award a S$85.7m baggage handling contract to Siemens.
- Boustead Singapore has won a three-year S$175m water and waste water infrastructure deal in Libya.
- Tuan Sing is buying Katong Mall for S$219m, or S$865 psf of potential gross floor area.
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