By Dylan Loh |
Posted: 26 April 2012 1820 hrs
BINH DUONG PROVINCE,
Vietnam: Singapore's four joint industrial parks in Vietnam have pulled
investments worth some US$5.3 billion since the first one started in
1996.
Per hectare, the parks now attract US$6 million in investments, nearly twice higher than the national average of US$3.5 million.
Singapore's President Tony Tan Keng Yam was given this update as he toured developments outside Ho Chi Minh City on Thursday.
The developments are largely influenced by Singapore's urban planning model.
President
Tan visited the second joint industrial park to be established, where
87 companies currently operate and employ 26,000 workers.
The companies cover sectors such as furniture, food and electronics.
"We
have built a very, very, good flagship to symbolise the close
cooperation between Singapore and Vietnam. And we like to think that, in
a way, maybe a small way, we help to enhance the close economic, social
and political cooperation and warm relationship," co-chair of the
Vietnam-Singapore Industrial Park Group Low Sin Leng said.
Co-chairman
of the Vietnam Singapore Industrial Park Group and Chief Executive of
Becamex IDC Corp, Nguyen Van Hung, said they aim to create an
environment to support investors and contribute to Vietnam's long-term
development.
Approximately 110,000 jobs have been created as a result of the collaboration.
- CNA/fa
Monday, April 30, 2012
Nokia chairman indicates company no longer leader
Posted: 26 April 2012 0309 hrs
HELSINKI: Nokia chairman Jorma Ollila indicated in an interview with Finnish media on Wednesday that his company was no longer the world's biggest mobile phone maker after 14 years at the top.
"Nokia was number one for 14 years and still has the chance to be so again," Ollila told commercial broadcaster MTV3.
The former Nokia chief executive, who will be leaving his position as chairman of the board next week, thus provided the first hint that the company is no longer leader.
Media reports have indicated for more than a week that Nokia was losing the top spot to Samsung, who along with Apple is already well ahead of Nokia in the lucrative smart phone sector.
Nokia announced disastrous first quarter results last week, posting a net loss of 929 million euros ($1.2 billion) and showing sales down 30 percent year-on-year for the first three months of the year.
The company also acknowledged that it had sold just 82.7 million mobile devices during the quarter, down from 108.5 million a year earlier.
While Samsung is not set to release its full first quarter results with details of the total number of units sold until Friday, analysts reportedly expect the figure to land somewhere between 85 and 92 million units.
Nokia has for more than a year been undergoing a major restructuring, phasing out its Symbian smartphones in favour of a partnership with Microsoft.
On Tuesday, ratings agency Fitch cut its debt rating to junk status.
Ollila remained upbeat however, pointing out that Nokia had in the past also run into bouts of trouble but had always landed on its feet again.
"I am absolutely convinced there is a turn-around in sight," he told MTV3 Wednesday, adding that "there are indications that it will come at the end of this year."
- AFP/de
HELSINKI: Nokia chairman Jorma Ollila indicated in an interview with Finnish media on Wednesday that his company was no longer the world's biggest mobile phone maker after 14 years at the top.
"Nokia was number one for 14 years and still has the chance to be so again," Ollila told commercial broadcaster MTV3.
The former Nokia chief executive, who will be leaving his position as chairman of the board next week, thus provided the first hint that the company is no longer leader.
Media reports have indicated for more than a week that Nokia was losing the top spot to Samsung, who along with Apple is already well ahead of Nokia in the lucrative smart phone sector.
Nokia announced disastrous first quarter results last week, posting a net loss of 929 million euros ($1.2 billion) and showing sales down 30 percent year-on-year for the first three months of the year.
The company also acknowledged that it had sold just 82.7 million mobile devices during the quarter, down from 108.5 million a year earlier.
While Samsung is not set to release its full first quarter results with details of the total number of units sold until Friday, analysts reportedly expect the figure to land somewhere between 85 and 92 million units.
Nokia has for more than a year been undergoing a major restructuring, phasing out its Symbian smartphones in favour of a partnership with Microsoft.
On Tuesday, ratings agency Fitch cut its debt rating to junk status.
Ollila remained upbeat however, pointing out that Nokia had in the past also run into bouts of trouble but had always landed on its feet again.
"I am absolutely convinced there is a turn-around in sight," he told MTV3 Wednesday, adding that "there are indications that it will come at the end of this year."
- AFP/de
Samsung overtakes Nokia as world's top handset maker
By Lim Yun Suk |
Posted: 27 April 2012 1918 hrs
SEOUL: Samsung Electronics has rung in record earnings for the first quarter of this year, driven by strong sales of smartphones.
To top the numbers, industry experts believe it has overtaken Nokia as the world's top seller of cellphones, and has outsold Apple in the smartphone space.
Samsung, the world's biggest supplier of memory chips, booked a record net profit of almost US$4.5 billion for the first three months of this year, driven mostly by strong numbers from its mobile business.
Samsung did not give a breakdown of its handset shipments. According to industry experts, it now sells more mobile phones than any of its competitors - pushing Nokia down from the position it has held for 14 years.
While Nokia sold some 83 million handsets in Q1, Samsung is believed to have sold some 93.5 million.
And in terms of smartphones, research firm Strategy Analytics says, Samsung's smartphone sales totalled 44.5 million handsets - outstripping Apple's 35 million.
Kim Jin Young, head of Roa Consulting, said: "Samsung did very well with its fast-follower strategy. It quickly caught up with Apple very quickly and very well. It has now overcome that fast-follower period and is now aiming to become a market dominator."
Meanwhile, earnings from its TV and home appliances business also posted strong gains, while its chip business saw profits decline by more than half because of falling memory chip prices.
Samsung is expected to launch its new Galaxy Phone next week in London. Analysts are predicting this momentum to continue into the second quarter.
SEOUL: Samsung Electronics has rung in record earnings for the first quarter of this year, driven by strong sales of smartphones.
To top the numbers, industry experts believe it has overtaken Nokia as the world's top seller of cellphones, and has outsold Apple in the smartphone space.
Samsung, the world's biggest supplier of memory chips, booked a record net profit of almost US$4.5 billion for the first three months of this year, driven mostly by strong numbers from its mobile business.
Samsung did not give a breakdown of its handset shipments. According to industry experts, it now sells more mobile phones than any of its competitors - pushing Nokia down from the position it has held for 14 years.
While Nokia sold some 83 million handsets in Q1, Samsung is believed to have sold some 93.5 million.
And in terms of smartphones, research firm Strategy Analytics says, Samsung's smartphone sales totalled 44.5 million handsets - outstripping Apple's 35 million.
Kim Jin Young, head of Roa Consulting, said: "Samsung did very well with its fast-follower strategy. It quickly caught up with Apple very quickly and very well. It has now overcome that fast-follower period and is now aiming to become a market dominator."
Meanwhile, earnings from its TV and home appliances business also posted strong gains, while its chip business saw profits decline by more than half because of falling memory chip prices.
Samsung is expected to launch its new Galaxy Phone next week in London. Analysts are predicting this momentum to continue into the second quarter.
Australian billionaire to build Titanic II
Posted: 30 April 2012 0955 hrs
SYDNEY: One of Australia's richest men, Clive Palmer, has unveiled plans for a 21st century version of the Titanic to be built in China, with its first voyage from England to New York set for 2016.
Palmer, a self-made mining billionaire, said he has commissioned state-owned Chinese company CSC Jinling Shipyard to construct Titanic II with exactly the same dimensions as its predecessor.
"It will be every bit as luxurious as the original Titanic but of course it will have state-of-the-art 21st century technology and the latest navigation and safety systems," Palmer said in a statement, released on Monday.
"Titanic II will sail in the northern hemisphere and her maiden voyage from England to North America is scheduled for late 2016.
"We have invited the Chinese navy to escort Titanic II on its maiden voyage to New York."
His announcement comes just weeks after the 100th anniversary of the sinking of Titanic, which went down on April 15, 1912 after striking an iceberg on its maiden voyage from Southampton to New York.
Palmer said the new ship would be a tribute to the spirit of the men and women who worked on the original.
"These people produced work that is still marvelled at more than 100 years later and we want that spirit to go on for another 100 years," he said.
Titanic was commissioned by White Star Line and was the largest liner in the world at the time.
Palmer said he has established his own shipping company, Blue Star Line, with the new ship having the same dimensions as its predecessor, with 840 rooms and nine decks.
- AFP/ck
SYDNEY: One of Australia's richest men, Clive Palmer, has unveiled plans for a 21st century version of the Titanic to be built in China, with its first voyage from England to New York set for 2016.
Palmer, a self-made mining billionaire, said he has commissioned state-owned Chinese company CSC Jinling Shipyard to construct Titanic II with exactly the same dimensions as its predecessor.
"It will be every bit as luxurious as the original Titanic but of course it will have state-of-the-art 21st century technology and the latest navigation and safety systems," Palmer said in a statement, released on Monday.
"Titanic II will sail in the northern hemisphere and her maiden voyage from England to North America is scheduled for late 2016.
"We have invited the Chinese navy to escort Titanic II on its maiden voyage to New York."
His announcement comes just weeks after the 100th anniversary of the sinking of Titanic, which went down on April 15, 1912 after striking an iceberg on its maiden voyage from Southampton to New York.
Palmer said the new ship would be a tribute to the spirit of the men and women who worked on the original.
"These people produced work that is still marvelled at more than 100 years later and we want that spirit to go on for another 100 years," he said.
Titanic was commissioned by White Star Line and was the largest liner in the world at the time.
Palmer said he has established his own shipping company, Blue Star Line, with the new ship having the same dimensions as its predecessor, with 840 rooms and nine decks.
- AFP/ck
The Man Who Made $15 Billion from the Housing Bubble Just Bought These 5 Stocks
Tuesday, May 1st
2012
Published by: StreetAuthority (Austin, Texas)
Prior to the 2007 meltdown of the subprime lending market, hedge-fund manager John Paulson was a name with a solid reputation for performance, but not necessarily put on the same pedestal with the likes of George Soros or Warren Buffett. The primary fund he manages, the Advantage Fund, has averaged a 15.4% annual return since its inception in 1994. That's solid, but not earth-shattering.
After going against the grain and betting against the housing market in 2007, though -- and generating a $15 billion profit (a nearly 600% return) for his fund's investors as a result -- the 56-year-old Harvard MBA grad established himself as one of the elites among Wall Street's stock-pickers.
The money soon followed, as investors warmed up to the idea of not following the rest of the trading crowd. Paulson now manages $29 billion in assets, making him the head of the world's third-largest family of hedge funds.
Though steering such a vast amount of money makes it tough to step into off-the-radar opportunities and acquisition targets (his favorite), Paulson still has a penchant for owning stocks the rest of the market's key players aren't really considering.
The additions he made to the portfolio in the fourth quarter of 2011 are no different. While they may be surprising, his track record still makes these names worth considering yourself. Here's a look at some of Mr. Paulson's fourth-quarter purchases that you may also want to consider.
1. United Rentals (NYSE: URI)
An equipment rental business may not be the most riveting idea out there, but United Rentals may well have the makings of a buyout target.
Revenue for the $2.6 billion company is improving following the 2010 lull, and the company swung back to a profit in the middle of last year. United Rentals also has $500 million worth of cash and near-term receivables on the balance sheet. It's no wonder Paulson took on a new position with the stock -- to the tune of $20.8 million -- during the fourth-quarter.
No, United Rentals hasn't exactly been making rounds on the rumor mill as an acquisition target. Those shares are now worth 62% more than what Paulson paid for them, though, so he's obviously honing in on something.
2. Delphi Automotive (NYSE: DLPH)
This $10 billion auto parts manufacturer was Paulson's biggest pick-up last quarter. He added 51 million shares to his holdings, or $1.1 billion worth, making it his single-biggest holding (Delphi now comprises 8% of the entire portfolio). Though only a few months old in its current form, Delphi's forward-looking price-to-earnings (P/E) ratio of 7.3 is appetizing.
3. Medco Health Solutions (NYSE: MHS)
The tripling of the number of shares of Medco Health the fund owns still only got the position up to $126 million, which is a mere 0.5% of the entire portfolio. Yet, some say Medco Health was also one of the best decisions he made last quarter.
The health care management outfit is a reliable revenue producer and profit generator, even if earnings growth has slowed in the past 12 months. That's largely why Express Scripts (Nasdaq: ESRX) wanted to buy it, per the announcement in the middle of last quarter.
Did Paulson, who tends to play M&A and special situations, have a gut feeling the acquisition was coming? Or, maybe he sensed it when rumors of other mergers and buyouts in the space (like the Omnicare (NYSE: OCR) purchase of PharMerica) started to surface. Actually, it's not clear when he actually scooped up his Medco shares, but with an average entry of $53.41 compared with the current price of $63.74, it is clear his timing was spot-on.
4. El Paso Corp. (NYSE: EP)
The 4 million shares Paulson picked up at around $24 per share only translates into $96 million worth of the $21 billion natural gas utility. Yet, his entire purchase was new.
What's interesting is that, though off the beaten path, Paulson wasn't the only hedge fund to step into El Paso. Farallon Capital Management, with Thomas Steyer at the helm, also took on a big stake. Though Paulson has not indicated what his thought process is with El Paso Corp., we can presume his interest is the same as Steyer's -- it's a bet on an acquisition.
5. Goodrich Corp. (NYSE: GR)
Though it's a distant second compared to Delphi, aeronautical contractor Goodrich is a favorite for Paulson's fund. It still only makes up 1.3% of the entire portfolio, although it should be noted the bulk of that allocation was mustered in the fourth quarter, when 927,650 shares were added to the 502,000 shares already held.
Risks to Consider: Even the most prolific of fund managers have bad years, and Paulson's 2011 was pretty bad. His flagship Advantage Plus Fund lost roughly half its value last year. Is the worst over for the legend? You never really know until after the fact, but...
Sometimes the path less traveled is also the most fruitful path. Despite a lousy 2011, John Paulson has the historic numbers to prove he's worth following. In fact, his weak 2011 may mean 2012 is the time to really start embracing his stock ideas, as the law of averages says he's due for strong performance. Just don't fall into the same trap he may have fallen into last year and make a trade predominantly on the expectation of a buyout with little regard for the fact you'll actually own the company if it isn't acquired.
To that end, El Paso and Goodrich have already priced in buyouts and may not have much left to give in terms of upside. United Rentals, Delphi and Medco, however, are attractive even if they aren't acquired, and are definitely worth further research.
-- James Brumley
Published by: StreetAuthority (Austin, Texas)
Prior to the 2007 meltdown of the subprime lending market, hedge-fund manager John Paulson was a name with a solid reputation for performance, but not necessarily put on the same pedestal with the likes of George Soros or Warren Buffett. The primary fund he manages, the Advantage Fund, has averaged a 15.4% annual return since its inception in 1994. That's solid, but not earth-shattering.
After going against the grain and betting against the housing market in 2007, though -- and generating a $15 billion profit (a nearly 600% return) for his fund's investors as a result -- the 56-year-old Harvard MBA grad established himself as one of the elites among Wall Street's stock-pickers.
The money soon followed, as investors warmed up to the idea of not following the rest of the trading crowd. Paulson now manages $29 billion in assets, making him the head of the world's third-largest family of hedge funds.
Though steering such a vast amount of money makes it tough to step into off-the-radar opportunities and acquisition targets (his favorite), Paulson still has a penchant for owning stocks the rest of the market's key players aren't really considering.
The additions he made to the portfolio in the fourth quarter of 2011 are no different. While they may be surprising, his track record still makes these names worth considering yourself. Here's a look at some of Mr. Paulson's fourth-quarter purchases that you may also want to consider.
1. United Rentals (NYSE: URI)
An equipment rental business may not be the most riveting idea out there, but United Rentals may well have the makings of a buyout target.
Revenue for the $2.6 billion company is improving following the 2010 lull, and the company swung back to a profit in the middle of last year. United Rentals also has $500 million worth of cash and near-term receivables on the balance sheet. It's no wonder Paulson took on a new position with the stock -- to the tune of $20.8 million -- during the fourth-quarter.
No, United Rentals hasn't exactly been making rounds on the rumor mill as an acquisition target. Those shares are now worth 62% more than what Paulson paid for them, though, so he's obviously honing in on something.
2. Delphi Automotive (NYSE: DLPH)
This $10 billion auto parts manufacturer was Paulson's biggest pick-up last quarter. He added 51 million shares to his holdings, or $1.1 billion worth, making it his single-biggest holding (Delphi now comprises 8% of the entire portfolio). Though only a few months old in its current form, Delphi's forward-looking price-to-earnings (P/E) ratio of 7.3 is appetizing.
3. Medco Health Solutions (NYSE: MHS)
The tripling of the number of shares of Medco Health the fund owns still only got the position up to $126 million, which is a mere 0.5% of the entire portfolio. Yet, some say Medco Health was also one of the best decisions he made last quarter.
The health care management outfit is a reliable revenue producer and profit generator, even if earnings growth has slowed in the past 12 months. That's largely why Express Scripts (Nasdaq: ESRX) wanted to buy it, per the announcement in the middle of last quarter.
Did Paulson, who tends to play M&A and special situations, have a gut feeling the acquisition was coming? Or, maybe he sensed it when rumors of other mergers and buyouts in the space (like the Omnicare (NYSE: OCR) purchase of PharMerica) started to surface. Actually, it's not clear when he actually scooped up his Medco shares, but with an average entry of $53.41 compared with the current price of $63.74, it is clear his timing was spot-on.
4. El Paso Corp. (NYSE: EP)
The 4 million shares Paulson picked up at around $24 per share only translates into $96 million worth of the $21 billion natural gas utility. Yet, his entire purchase was new.
What's interesting is that, though off the beaten path, Paulson wasn't the only hedge fund to step into El Paso. Farallon Capital Management, with Thomas Steyer at the helm, also took on a big stake. Though Paulson has not indicated what his thought process is with El Paso Corp., we can presume his interest is the same as Steyer's -- it's a bet on an acquisition.
5. Goodrich Corp. (NYSE: GR)
Though it's a distant second compared to Delphi, aeronautical contractor Goodrich is a favorite for Paulson's fund. It still only makes up 1.3% of the entire portfolio, although it should be noted the bulk of that allocation was mustered in the fourth quarter, when 927,650 shares were added to the 502,000 shares already held.
Risks to Consider: Even the most prolific of fund managers have bad years, and Paulson's 2011 was pretty bad. His flagship Advantage Plus Fund lost roughly half its value last year. Is the worst over for the legend? You never really know until after the fact, but...
Sometimes the path less traveled is also the most fruitful path. Despite a lousy 2011, John Paulson has the historic numbers to prove he's worth following. In fact, his weak 2011 may mean 2012 is the time to really start embracing his stock ideas, as the law of averages says he's due for strong performance. Just don't fall into the same trap he may have fallen into last year and make a trade predominantly on the expectation of a buyout with little regard for the fact you'll actually own the company if it isn't acquired.
To that end, El Paso and Goodrich have already priced in buyouts and may not have much left to give in terms of upside. United Rentals, Delphi and Medco, however, are attractive even if they aren't acquired, and are definitely worth further research.
-- James Brumley
Asian stocks end up on Wall Street lead Posted
HONG KONG - Asian
markets rose on Monday, following a positive lead from Wall Street as
dealers look ahead to the release of key economic data and European
elections over the next week.
Sydney gained 0.79 percent, or 34.5 points, to 4,396.6 and Seoul put on 0.34 percent, or 6.64 points, to 1,981.99 while Hong Kong climbed 1.70 percent, or 352.76 points, to 21,094.21.
Tokyo and Shanghai were closed for public holidays.
With no catalysts to drive buying in Asia, traders looked to Wall Street, which saw its three main indexes close in the green thanks to a strong earnings report from online retail giant Amazon, which said sales in the January-March quarter soared 34 percent.
The Dow added 0.18 percent, the S&P 500 advanced 0.24 percent and the Nasdaq rose 0.61 percent.
Markets seemed to shrug off figures showing the world's biggest economy grew at a slower pace than forecast in the first quarter, with analysts pointing out that personal consumption -- the biggest contributor to growth -- rose more than expected.
Washington released data showing growth of 2.2 percent in the January-March period, well down from the 3.0 percent chalked up in the previous three months and below predictions varying from 2.5 percent to 3.2 percent expansion.
On currency markets the euro bought US$1.3251 in late afternoon Asian trade, down from US$1.3258 on Friday. The European currency also lost ground against the Japanese yen, falling to 106.20 yen from 106.61 yen.
The dollar was at 80.15 yen from 80.29 yen on Friday.
Eyes will be on several events through the week, including Chinese manufacturing data, US jobs figures, a policy decision by the European Central Bank and the presidential election run-off in France.
"The non-farm payroll number in the US will be in focus on Friday, after which the market will turn its attention to French and Greek elections on Sunday. Cautiousness will be the watchword for the week and risk aversion is unlikely to go lower meaningfully," Credit Agricole in a note to clients.
On oil markets, New York's main contract, West Texas Intermediate crude for delivery in June was up two cents to US$104.95 per barrel while Brent North Sea crude for June shed 30 cents to US$119.53 in late afternoon.
Gold was at US$1,663.20 an ounce at 0800 GMT, compared with US$1,655.50 late Friday.
In other markets, Taipei rose 0.28 percent while Manila closed 0.65 percent higher.
- AFP/ir
Sydney gained 0.79 percent, or 34.5 points, to 4,396.6 and Seoul put on 0.34 percent, or 6.64 points, to 1,981.99 while Hong Kong climbed 1.70 percent, or 352.76 points, to 21,094.21.
Tokyo and Shanghai were closed for public holidays.
With no catalysts to drive buying in Asia, traders looked to Wall Street, which saw its three main indexes close in the green thanks to a strong earnings report from online retail giant Amazon, which said sales in the January-March quarter soared 34 percent.
The Dow added 0.18 percent, the S&P 500 advanced 0.24 percent and the Nasdaq rose 0.61 percent.
Markets seemed to shrug off figures showing the world's biggest economy grew at a slower pace than forecast in the first quarter, with analysts pointing out that personal consumption -- the biggest contributor to growth -- rose more than expected.
Washington released data showing growth of 2.2 percent in the January-March period, well down from the 3.0 percent chalked up in the previous three months and below predictions varying from 2.5 percent to 3.2 percent expansion.
On currency markets the euro bought US$1.3251 in late afternoon Asian trade, down from US$1.3258 on Friday. The European currency also lost ground against the Japanese yen, falling to 106.20 yen from 106.61 yen.
The dollar was at 80.15 yen from 80.29 yen on Friday.
Eyes will be on several events through the week, including Chinese manufacturing data, US jobs figures, a policy decision by the European Central Bank and the presidential election run-off in France.
"The non-farm payroll number in the US will be in focus on Friday, after which the market will turn its attention to French and Greek elections on Sunday. Cautiousness will be the watchword for the week and risk aversion is unlikely to go lower meaningfully," Credit Agricole in a note to clients.
On oil markets, New York's main contract, West Texas Intermediate crude for delivery in June was up two cents to US$104.95 per barrel while Brent North Sea crude for June shed 30 cents to US$119.53 in late afternoon.
Gold was at US$1,663.20 an ounce at 0800 GMT, compared with US$1,655.50 late Friday.
In other markets, Taipei rose 0.28 percent while Manila closed 0.65 percent higher.
- AFP/ir
Oil prices slip on Spain fears
Posted: 01 May 2012 0436 hrs
Source: Channel New Asia
|
|
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NEW YORK: Oil prices ticked lower Monday as investors fretted over Spain's double-dip recession and deepening fears that the eurozone's fourth-largest economy may be the next to need a massive bailout.
New York's main contract, West Texas Intermediate (WTI) crude for delivery in June, finished at $104.87 a barrel, down six cents from Friday's closing level.
Brent North Sea crude for June shed 36 cents to settle at $119.47 in London trade.
The New York futures contract managed to pare earlier losses but momentum was curbed by Spain, after official data showed the Spanish economy contracted for the second straight quarter in the first three months of the year, by 0.3 percent.
"Generally there is enough strength to support oil," said Matt Smith at Summit Energy.
"But the general fear about slowing demand in Europe and potentially here in the US if the economic data continue to deteriorate" weighed on the market, he said.
Investors fear that Spain could follow a Greek-style downward debt spiral and trigger chaos in the market, in turn ravaging global energy demand.
Doubts about Spain's ability to meet its deficit goals have been amplified by the plight of Spanish banks, many bogged down in bad loans after a property price bubble collapsed in 2008.
Standard & Poor's on Monday downgraded the ratings of the top Spanish banks, including Santander and BBVA. On Friday it had cut the country's credit rating by two notches.
"Given the size of the Spanish economy, the size of its debt burden and the exposure of banks across the eurozone, for 'Spain in crisis' read 'the eurozone in crisis,'" said PVM Oil Associates analyst David Hufton.
In the United States, the world's biggest oil consumer, there was mixed consumer data for March. The government said growth in consumer spending, the biggest driver of the economy, slowed to 0.3 percent in March, after a 0.9 percent surge in February. Personal incomes rose 0.4 percent.
"The good news in this report is the strength in income and, for the first time this year, growth in income after taxes and adjusting for price increases was in positive territory," said Leslie Levesque at IHS Global Insight.
-AFP/ac
SECC approves stock-pricing rules, lowers fees
Published: Apr 02, 2012
Written by: Sann Sethvitou, Economics Today
As Cambodia’s stock exchange prepares to begin trading, the Securities and Exchange Commission of Cambodia (SECC) has approved the amount and price of stocks in the country’s first initial public offering, state-owned Phnom Penh Water Supply Authority, and decided to reduce several exchange operating fees.
The SECC accepted a report on stock price determination and approved the final document of registration and corporate information of the PPWSA. The path is now clear for the IPO, set for April 18.
According to the PPWSA website, its stock will sell for 6,300 riel, or US$1.57. That puts the price at the top end of the range, according to the SECC. A report released by SBI Royal Securities showed that shares were oversubscribed by a factor of 17, largely beating expectations and indicating a high level of interest in the IPO. The PPWSA is on track to earn as much as US$20.4 million.
The company has issued more than 13 million shares, or 15 percent of the total. Thirty percent of the issued shares are available for public purchase, according to Phnom Penh Securities, one of the seven securities firms licensed by the SECC.
By Sann Sethvitou, Economics Today
- : Economy & Business
- : 105
Can Cambodia afford to go green?
Published: Apr 02, 2012
Written by: Sann Sethvitou, Economics Today
Some worry a focus on green industry could impede economic growth
Cambodia is the first least-developed country to begin working toward “greening” its economy, and the government has released a plan to promote environmentally friendly industry. But some wonder if this is the right time to be talking about a green economy since environmental protections might serve to slow economic growth rates and hurt the country’s drive toward poverty reduction and greater prosperity.“The Royal Government of Cambodia fully recognizes that national growth is to be inclusive, equitable and ecologically friendly with the strong support of the strengthened institutional framework for sustainable development,” said Environment Minister Mok Mareth in his opening remarks at a conference in Phnom Penh in preparation for the Rio+20 UN conference on sustainable development.
The United Nations Conference on Sustainable Development, Rio+20, will be held from June 20-22 in Rio de Janeiro, Brazil. It is known as Rio +20 because it marks the twentieth anniversary of a similar meeting in 1992. The green economy in the context of sustainable development and poverty eradication will be a primary focus.
By Sann Sethvitou, Economics Today
- : Economy & Business
- : 121
India's economic reforms
India's economic reforms
Now finish the job
Apr 15th 2012, 16:50 by A.R. | DELHI
The event, in Delhi,
was billed as a discussion of India’s economic reforms, hosted by a
prominent and respected economics think-tank, ICRIER, along with Oxford
University Press. The idea was to celebrate Mr Singh and the launch of
an updated version of a book marking his momentous economic reforms of
the early 1990s. These, everyone agrees, did more than anything else to
usher in sustained and rapid economic growth which has helped to lift
millions out of absolute poverty.
As
ever, Mr Singh sat twinkly-eyed and almost entirely silent, as a series
of speakers took turns to address the room. Yet rather than waste time
celebrating his work of two decades ago, everyone pushed on with far
more urgent business: trying to get India’s prime minister to understand
that, without a second round of economic reforms, and soon, India’s
economic prospects will look far grimmer in the next few years than they
have recently. In turn, Mr Singh may not be remembered as the man who
reformed India’s economy, but the man who only got the job half done.
The
evening had the mood of an intervention: when friends and relations get
together and, without warning, confront a loved one who has some sort
of destructive habit that he won’t admit to. In normal life it might be
an addiction to drugs or booze. In India’s political life, and the case
of Mr Singh, it is a desperate failure to push on with reform.
Close
friends spoke bluntly. Dr Isher Judge Ahluwalia, a close family friend
of the prime minister, who edited the book celebrating Mr Singh’s work
and who played host to the evening, set out plainly how a “deteroriating
macro environment, a downturn in investment”, plus a dire fiscal
situation, poor governance and more are weighing down on India.
Then
a blunt-speaking economics professor from the University of Chicago,
Raghuram G. Rajan, pointed out that things are looking bad when
“domestic industry prefers to invest abroad” rather than brave the
hassles and uncertainty of India today. Nor did he shy away from
identifying who was at fault: “paralysis in growth-enhancing reforms” is
a blunt way for an economist to speak; it means Mr Singh and his
cabinet have done almost nothing to promote growth, devoting energy
instead to ways to dish the proceeds of growth as welfare and other
public spending.
He
argues that the licence permit raj, supposedly cleared away two decades
ago, in fact lives on strong, for example in keeping out foreign
investors from higher education. The commanding heights of India’s
economy (power production most notably) are still largely state run. And
finite resources, such as land, telecoms spectrum and natural resources
are shared out in unpredictable (and too often corrupt) ways.
He
frets, too, that India’s middle class has no clue how high economic
growth was first brought about, and instead is deeply, and increasingly,
suspicious of capitalism and liberalisation. The result, as another
speaker eloquently pointed out, is that there is no political
constituency for reform. He saved his most explicit attacks for the
budget passed last month, which came with a baffling mix of
anti-business measures, especially over retrospective tax, and which is
now scaring away the foreign investors that India desperately needs.
Even
the governor of the central bank, Duvvuri Subbarao, joined in. He
damned the prime minister’s government with faint praise, explaining
that India today “probably” does “not face an imminent implosion” as it
had in 1991, though he went on to list how the fiscal deficit (today at
5.9% he says, compared with 7% in 1991), the current-account deficit
(worse today than then) and short-term debt (ditto) are worrying. “We
are not saying the economy is in the pink of health…we should be
concerned…we should prove the current downturn is just a short-term
phenomenon”.
For an
hour or more, the comments flowed, tempered at times with more positive
asides and recognition that India’s story is (in particular compared
with much of the rest of the world’s) not all gloomy. It was the sort of
frank and intelligent intervention that India needs more often: it
should be repeated in parliament, on television, in newspaper columns,
around dinner tables and farther afield, so more Indians stop being so
complacent in assuming that high growth is guaranteed.
Almost
half of India’s population was born in the past two decades, and knows
little other than rapid economic expansion. For them, slumping back to
the bad old days of the Hindu rate of growth (3.5% or so) would feel
like a shocking recession. Is the prime minister listening, or able to
do anything to change policies, say to welcome more foreign investors,
slash subsidies for fuel, sort out the dodgy tax proposals, pass some of
the dozens of reforms (on land acquisition for example) that have been
long stuck in parliament?
It
hardly seems so. His government looks timid, beholden to destructive
allies and leaders in Congress who don’t grasp that India is losing its
economic fizz. At the end of the evening he graciously offered a few
dozen words in reply, concluding with: “I am confident that with
determination we will overcome.” It didn’t sound very confident. But
here’s hoping.
Source: The Economist Magazine
Trading volume drops on new Cambodia Securities Exchange
- Don Weinland
- Friday, 27 April 2012
Despite the drop, which was accompanied by a strong shift from institutional to retail investors, experts have stressed the time and patience required for a fledgling market – one with a single stock traded – to find its feet.
The relatively high opening price for public utility Phnom Penh Water Supply Authority contributed to the declining volume of trades, insiders said.
PPWSA closed at 8,800 riel (US$2.18) yesterday, down 4.86 per cent, near to the exchange’s mandated 5-per-cent trading range for the stock.
More than 590,900 shares went unsold yesterday, with close to 1 million unexecuted the day before.
“At the original price, there were some big profits for some early investors,” Dao Duy Anh, deputy chief executive at Cambodia-Vietnam Securities, said yesterday.
“This is one of the first [investment opportunities] available to the Cambodian people, and there was a lot of excitement during the first days.”
From the initial public offering price of $1.57, PPWSA peaked at $2.55 last Friday.
The price, Dao Duy Anh said, started high.
After a quick transfer from institutional to retail investors, traders were bound to wait for prices closer to regional price-to-earnings ratios, he said.
On Wednesday, PPWSA traded on a price-to-earnings ratio of 28, “significantly above regional comparables”, according to an SBI Royal Securities report yesterday.
The average ratio for peer companies in 2012 was 11 to 12 times earnings.
The ratio is a way for traders to gauge whether a stock is overvalued or undervalued relative to its peers.
The early performance of the CSX has been considerably different from that of the Lao Securities Exchange, which launched in January 2011.
The LSX index of two companies, a state-owned energy firm and Lao’s largest bank, climbed 87 per cent during the first 15 days of trading before eventually falling below its original starting level some 11 months later, according to LSX data.
The LSX yesterday was 32 points above its 2011 opening.
The trading volume of PPWSA, however, was stronger than Banque Pour Le Commerce Lao, a comparable IPO, Tong Yang Securities country head Han Kyung-tae noted yesterday.
BPCL floated 20.5 million shares with an average of 128,305 shares traded during its first seven days, according to LSX data.
PPWSA’s first seven-day average was considerably higher at 340,275 shares traded, CSX data showed.
The state-owned water utility floated about 13 million shares.
BPCL shares yesterday sold for 6,800 kip ($0.86), down from the original price of $1.06. It peaked at $1.95 on February 1, 2011.
The decline in PPWSA trading was “not surprising”, Han Kyung-tae said.
Retail investors were quick to sell at the first sign of a downward trend, he said. Buyers would wait until the price settled.
Given PPWSA’s growth performance above regional water utilities, current prices were not unreasonable, he added.
The past three days has seen some “shortsighted action”, he said
Operational troubles at banks and brokers may have a continued effect on trading, Dao Duy Anh at Cambodia-Vietnam Securities said.
Some institutional investors abroad have noted problems in connecting with brokers in Cambodia, and there was some concern over transfers between broker and settlement bank accounts, he said.
Brokers reported technical problems for money transfers between broker and settlement bank accounts this week.
CSX deputy director of market operations Lamun Soleil stressed that there have been no technical problems reported at the exchange itself and the impact of buyer-side glitches were small.
Kim Dae-chon, senior manager of emerging-markets business at Korea Exchange, and who helped to launch the CSX, said Cambodia’s exchange will require continued patience and confidence from all parties.
“It’s like a baby. It takes time,” he said yesterday by phone from Korea.
Real Time PPWSA Stock's Price
| Real Time PPWSA Stock's Price |
|---|
| Date | Closing Price |
Change | Trading Volume (shr) |
Trading Value (KHR) |
Opening | High | Low | Market Cap.(Mil.KHR) |
No. of Listed Shares(shr) |
|---|---|---|---|---|---|---|---|---|---|
| 2012/04/30 | 8,000 | 
400
|
33,629 | 269,032,000 | 8,000 | 8,000 | 8,000 | 695,785 | 86,973,162 |
| 2012/04/27 | 8,400 |
400
|
34,877 | 292,966,800 | 8,400 | 8,400 | 8,400 | 730,575 | 86,973,162 |
| 2012/04/26 | 8,800 |
450
|
3,453 | 30,386,400 | 8,800 | 8,800 | 8,800 | 765,364 | 86,973,162 |
| 2012/04/25 | 9,250 |
450
|
35,453 | 327,940,250 | 9,250 | 9,250 | 9,250 | 804,502 | 86,973,162 |
| 2012/04/24 | 9,700 |
500
|
54,735 | 530,929,500 | 9,700 | 9,700 | 9,700 | 843,640 | 86,973,162 |
| 2012/04/23 | 10,200 | 
0
|
542,994 | 5,553,099,200 | 10,300 | 10,300 | 10,200 | 887,126 | 86,973,162 |
| 2012/04/20 | 10,200 | 
450
|
377,342 | 3,848,888,400 | 10,200 | 10,200 | 10,200 | 887,126 | 86,973,162 |
| 2012/04/19 | 9,750 |
450
|
488,528 | 4,763,148,000 | 9,750 | 9,750 | 9,750 | 847,988 | 86,973,162 |
| 2012/04/18 | 9,300 | 
100
|
879,426 | 8,217,893,100 | 9,400 | 9,400 | 9,300 | 808,850 | 86,973,162 |
Does Always Thinking About Money Really Make Me Happy?
I
placed 2nd in a golf tournament and I received the trophy today. I was
so excited because I never won anything other than getting certificates
and ribbons before so it made me really happy to say the least. My
credit card balance, my next paycheck, the stock market tumbling all
didn’t matter seem to matter. As someone who always thought about money –
how to save more, how to earn more, how to accumulate more – this prompted the question “Does always thinking about money really make me happy?”The answer to the question is probably pretty complicated. On the one hand, the thoughts often stress me out unnecessarily. I certainly don’t need to worry about survival. My business is doing well, I have a substantial amount of savings and my overall debt load is small. In many ways, I’m probably too frugal. After all, money isn’t just for hoarding, so I should really live it up a little once in a while.
On the other hand, unexpected events can always happen. The economy can tank, the stock market may have many down years and my business income can be volatile. Furthermore, my expenses in the future will only go up as my family grows. Hopefully, my income will also increase but I can’t count on it to grow faster than the increased expenses. This means that I cannot just project the same savings that I do now indefinitely. Add to the fact that I’m still very far away from reaching my retirement goal since I’m so early in my wealth accumulation process, and I should try to save as much as I can, as early as I can just in case. There’s no such thing as saving too much right?
This is definitely a good problem to have but sometimes having choices can lead to confusion. This will probably be a question that I will ponder again and again through the years. In the meantime, I will be content with my first sports trophy ever.
How often do you think and worry about money? Do you think you are worrying too much? How do you deal with it?
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