RPT-Singapore’s NOL places $1.2 bln ship orders from Daewoo

Wilmar Africa has also entered into an agreement with Unilever Ghana
Limited to acquire the “Frytol” cooking oil brand and its oil processing
activities in Ghana.

Impact on Stock

The offer price for the stakes in BOPP is at GHS0.83/share or for a total
consideration of US$20.3m assuming 100% stakes in BOPP. The offer price is
5.1% above BOPP’s last closing price of GHS0.79/share (up from GHS0.66 @
21 May 10).  No information on purchase price disclosed with regards to
the acquisition of “Frytol” cooking oil brand and oil processing from
Unilever Ghana. Financial data for BOPP was not available for comment on
valuation.

BOPP is involved in growing of oil palm and other agricultural products,
processors of oil palm fruits to produce palm oil and palm kernels and
dealers and traders in palm oil, palm kernels and other agricultural
products.  BOPP is in the Mpohor Wassa East District in the Western Region
of Ghana where the plantation is 42km from Takoradi.

These acquisitions of BOPP, cooking brand and oil processing activities in
Ghana are consistent with the Wilmar’s plans to develop a fully integrated
oil palm business in the emerging markets.  Wilmar also owns other oil
palm plantations in Africa through its joint ventures in Uganda and Ivory
Coast. Thus the downstream acquisition would be able to complement its
upstream investment in Uganda and Ivory Coast.

Wilmar investment in Africa is to capture the domestic market, which is
not new to palm oil market. Oil palm was originated from West Africa and
palm oil is widely used as cooking oil in West Africa due to its cost
competitiveness and its availability domestically.

Earnings Impact
No major earnings impact to Wilmar as this is a small acquisitions vs its
current operation in Asia.

Recommendation
We reiterate our BUY call with a lower target price of S$7.40 based on sum-of-the-parts valuation to value its palm-base business at
16x 2011F PE and 20x for its China operations.  We still like Wilmar for
(1) market leader in China consumer cooking oil with pricing power (2)
wide marketing and distribution network enable quick response to take
market opportunity (3) Experience management team.

Genting Singapore <GENS.SI>, which operates one of the city-state’s two mega casinos, reported its losses rose 12-fold in the three months to March, hurt by impairment losses on its UK casino operations.

Genting Singapore, a unit of Malaysia’s Genting Bhd <GENT.KL>, reported late on Thursday a net loss of S$396 million for the first quarter, widening from S$32 million a year ago.

Resorts World at Sentosa, its $4.8 billion Singapore casino resort which opened on Feb. 14, achieved earnings before interest, tax, depreciation and amortisation of S$109 million.

Resorts World is being opened in stages and currently comprises a casino, four hotels, a few restaurants and shops, and a Universal Studios theme park. When fully completed, the complex will have another two hotels, spas and a maritime park with one of the world’s largest aquaria.

Rival Marina Bay Sands, owned by U.S. casino firm Las Vegas Sands <LVS.N>, opened partially on April 27.

Las Vegas Sands CEO Sheldon Adelson has said he expects the $5.5 billion Singapore property to generate EBITDA of over $1 billion in its first full year of operations

Singapore Telecommunications Ltd. said its profit rose 12 percent last quarter, boosted by higher income from its local and Indonesian businesses.

The company, also known as SingTel, said in a statement Thursday that net profit for the January-March period rose to 1.02 billion Singapore dollars ($738 million) from SG$903 million a year earlier.

SingTel’s stakes in telephone companies in Australia, Thailand, Indonesia, India, the Philippines, Pakistan and Bangladesh account for more than half of the company’s profits.

Operating revenue rose 25 percent to SG$4.47 billion from SG$3.57 billion a year earlier.

Asian stock markets advanced Thursday after Spain’s deficit reduction plan eased worries about Europe’s debt mountain and good economic news sent U.S. stocks sharply higher.

Japan’s benchmark Nikkei 225 stock average rose 1.6 percent to 10,556.78. Solid corporate earnings results also boosted sentiment in Tokyo.

South Korea’s Kospi gained 1.4 percent to 1,686.28 and Hong Kong’s Hang Seng added 0.4 percent to 20,289.18. Australia’s S&P/ASX 200 index was up 1.2 percent at 4,625.40 and benchmarks in mainland China, Singapore and Taiwan also climbed.

The Asian rally followed a big day on Wall Street, where the Dow Jones industrial average climbed 148.65 points, or 1.4 percent, to 10,896.91 _ the highest level since May 4.

Spain announced a plan Wednesday to cut its big deficit, and analysts say the market’s rebound from last week’s drop reflects growing confidence that Europe’s debt problems are contained for now. Economic reports from the U.S. and Europe also helped reassure markets that the global recovery is intact.

Investors moved into tech stocks ahead of earnings from network gear maker Cisco Systems Inc. and following upbeat forecasts from Intel Corp. and IBM Corp.

The tech buying extended to Asia, boosting shares of South Korean chip makers. Samsung Electronics Co. jumped 2.4 percent, while Hynix Semiconductor Inc. surged 3.5 percent. Advantest Corp., a Japanese maker of memory chip testers, shot up 3.2 percent.

Sony Corp. added nearly 3 percent ahead of its annual earnings release later Thursday. The Japanese electronics and entertainment company is expected to book a far smaller net loss for last fiscal year through March 31.

The Standard & Poor’s 500 index rose 1.4 percent to 1,171.67 on Wednesday while the Nasdaq rose 2.1 percent to 2,425.02.

Benchmark crude for June delivery was down 7 cents at $75.58 in electronic trading on the New York Mercantile Exchange, extending the previous day’s big drop after the International Energy Agency said global oil demand is expected to rise less than previously expected in 2010.

In currencies, the dollar fell to 93.16 yen from 93.21 yen. The euro edged up to $1.2650 from $1.2628 late Wednesday.

Investment interest in Singapore from non-traditional locations including Russia and the Middle East is escalating, as firms look for a base from which to tap the growth of Asia.

Currently, around 310 Middle East companies are registered in the country, higher than the 260 firms recorded in 2007. According to the data released by the Accounting and Corporate Regulatory Authority of Singapore (ACRA), Russian companies have moved in at a faster pace, rising to more than 200 from 140 in 2007.

“Apart from the traditional catchments of the US, Europe and Japan, and the increasing importance of China and India, EDB is also seeing interest from new geographies such as the Middle East and Russia,” said the Economic Development Board (EDB), the agency assigned to bring in foreign investors.

Recently, some firms from these regions expecting to gain from the fast-growing oil-and-gas-related industries in Asia have announced investments in the country.

These include Russia’s Gazprom, which plans to bolster trading of liquefied natural gas (LNG) in the region through its Singapore unit, and Qatar-based Tasweeq’s new office, which will have its official opening this week.

The representative office of Oman Oil Company in Singapore set up last month to market methanol feedstock and aromatics in the region, may also grow into a full-fledged headquarters within the next three years.

Although industry-specific opportunities are key to these developments, Singapore’s wider proposition as a “global business city” also attracts those new to the Asian market. “Companies from the Middle East and Russia are looking to tap into the Asian growth story, and Singapore can provide an excellent platform for them to do this,” said EDB.

This trend of increasing direct investments from Russia and the Middle East is a promising one. Most of the country’s fixed asset investment (FAI) still comes from the US, Japan and Europe. Figures from EDB showed that these three regions accounted for $7.6 billion or 65 percent of the total FAI committed in 2009.

The global economic crisis meant that these investments in equipment, facilities and machinery declined from the $15.4 billion or 85.6 percent of the total FAI in 2008.

Available statistics track investments from places other than the US, Singapore, Japan and Europe, as a grouped sum. Including the activities of firms from India and China, the gauge of investments from non-traditional economies stood at $700 million in 2009, compared to $800 million in 2008. This was 5.9 percent of the total FAI seen last year compared to 4.4 percent the year before.

Economists are certain that growth resilience in Asia will attract more investments to the region, although they could not tell if Middle East and Russian investments in particular are likely to keep rising.

Mr. David Cohen of Action Economics said that the diversification of capital sources is a continuing process. “The fact is that the emerging economies are beginning to carry a bigger weight on the world stage,” he said. “This is most dramatically so in the case of China, but likely also for the Middle East, and Russia as it recovers from its severe downturn last year.”

Other market observers noted the increasing number of newly globalized firms, which are now using Singapore as a springboard into Asia.

According to Mr. Alexey Dakhnovskiy, commercial senior counselor at the Russian embassy in Singapore, he knows of companies which previously conducted business directly in mainland China but are now opting to work through Singapore partners.

“Singapore companies are welcome in China and sometimes do not have the same problems Russian ones might face if we go in direct,” he said.

While attractive tax rates and transparency are long-standing pull factors, “both big and medium-size companies are setting up offices here so as to grow their business in Southeast Asia, and some even throughout the Asia-Pacific region,” added Mr. Dakhnovskiy.

Russian enterprises’ interest has been driven by initiatives such as the Russian Business Incubator: Futurus, which aims to bring research and Russian technology to Singapore market, and the annual Russia-Singapore Business Forum.

Mr. Dakhnovskiy said that momentum is likely to pick up, as at least another oil firm has its eyes on the country for its global expansion plans, and others that are planning a public listing here.

Meanwhile, EDB said that it has already been “stepping up efforts to engage businesses from these regions by making more visits to understand the companies better.”

Real estate developers to bring forward property launches

Singaporeans can look forward to more property launches. The Real Estate Developers’ Association of Singapore (REDAS) on Thursday announced that its members will be bringing forward property launches.

REDAS added that its efforts are only limited by the land available and hence the long—term solution to a stable market is still adequate supply.

The association celebrated the Lunar New Year, riding on an upbeat mood.

Joining in its Spring Festival was Finance Minister Tharman Shanmugaratnam, and the association shared with him its views on his recent Budget Statement.

Simon Cheong, president, Real Estate Developers’ Association of Singapore, said: “REDAS was hoping for more cash in our ang pows (red packets) from you, Minister. But when we opened the ang pow, we were disappointed there was not much inside for developers.

“Nonetheless, we are happy with your long—term productivity ang pow, as what is good for Singapore’s economy in the long run must also be good for the Singapore property market. It is what REDAS calls a deferred payment ang pow.”

REDAS said that its members are surprised with the speed with which Singapore’s property market has recovered. But they added that they are prepared to live with the current problems rather than the problems faced by the property market last year.

However, in the interest of a stable property market, REDAS said its members are committed to a fast—track supply to satisfy demand. This would also minimise excessive speculation in the property market.

Mr Cheong said: “Given the unexpected return of an active property market, developers over the next few months would also be actively bidding for more land to position for the future supply.

“As such, REDAS, unlike the situation in the preceding 12 months, is now looking forward to more sites in the confirmed list for developers to replenish their land bank.”

Just last week, the government introduced two more measures to cool the property market and pre—empt a bubble from forming in the private homes sector.

SINGAPORE : Singapore’s economy may be picking up, but Prime Minister Lee Hsien Loong has said Singapore is not expecting the recovery to be very vibrant and strong.

And he cautioned Singaporeans against getting too carried away with the recent economic recovery.

Mr Lee said: “There is a fine balance; you want people to feel that they can make things better, but at the same time, do not assume that all the problems have passed.”

Mr Lee was speaking to reporters after taking part in the Lunar New Year light—up ceremony in Chinatown on Saturday.

On the buoyant property market, he said that Singaporeans cannot assume it will continue going up.

He added that the government is confident that things are under control.

And as to whether Singapore will achieve 3 or 4 per cent economic growth this year, Mr Lee said it will depend on how well things turn out.

Mr Lee also revealed that Finance Minister Tharman Shanmugaratnam will release the Economic Strategies Committee report on February 1

Asian shares edge up in slow trade, Tokyo closed

* Dollar comes off highs as traders digest recent gains

* Oil slightly up, awaiting weekly inventory data

By Yoo Choonsik

SEOUL, Dec 23 – Asian shares edged higher on Wednesday led by a spurt in Australian stocks to a three-week high, while the U.S. dollar came off highs as traders digested recent steep gains.

Oil prices ticked higher amid expectations in a Reuters poll that U.S. weekly inventory data will show a draw down in crude stocks of nearly 1 million barrels, but the dollar’s rally is keeping a lid on the market’s upside potential.

The U.S. dollar hit a two-month high of 91.86 yen <JPY=> in early Asia trade, before edging back. But the currency remains in demand even after jumping more than 8 percent in less than a month against the Japanese currency. [ID:nSGE5BL0H7]

Australian stocks <.AXJO> rose as much as 0.8 percent to a three-week high, helped by miners such as BHP Billiton Ltd <BHP.AX>, pushing the MSCI index of Asia Pacific stocks traded outside Japan <.MIAPJ0000PUS> up by 0.2 percent.

In Australia, Gloucester Coal <GCL.AX> jumped more than 25 percent higher after rival Macarthur Coal <MCC.AX> offered to buy the company in an all-share deal for $591 million. The shares resumed trading on Wednesday after being halted a day earlier pending the bid.

Key stock indexes in Hong Kong <.HSI>, Singapore <.FTSTI>, Taiwan <.TWII> and South Korea <.KS11> were all modestly higher on the day. Tokyo’s stock market was closed for the Emperor’s birthday holiday, dampening activity in the region.

Spot gold <XAU=> was quoted $1,086.65 an ounce at 0232 GMT, bouncing back after touching a seven-week low of $1,074.10 in New York trade overnight.