Global Cross-Asset Energy Analyst, VAC Investments

Aaditya Chintalapati, CFA

Global Cross-Asset Energy Analyst

Thematic (Sector/Industry)

<h2>Oil Price</h2>Crude prices fell through the week driven by concerns around continued US production growth and doubts about Russia's commitment to a likely OPEC quota cut extension when they meet on 30 November. However, prices rebounded on Friday following encouraging comments by Saudi Arabia's Energy Minister as well a leak and subsequent shutdown of the 590 Kbbls/day TransCanada pipeline, to end the week broadly flat. Brent ended the week at USD 62.72/bbl, with WTI at USD 56.55/bbl.  Our take: My…

Oil PriceCrude prices fell through the week driven by concerns around continued US production growth and doubts about Russia's commitment to a likely OPEC quota cut extension when they meet on 30 November. However, prices rebounded on Friday following encouraging comments by Saudi Arabia's Energy Minister as well a leak and subsequent shutdown of the 590 Kbbls/day TransCanada pipeline, to end the week broadly flat. Brent ended the week at USD 62.72/bbl, with WTI at USD 56.55/bbl.  Our take: My…

Asia Ex-J Consumer/ Transport analyst

Valerie Law, CFA

This issue of 'The Week that Was in Greater China@Smartkarma' covers the week of October 31 to November 5 and features a selection of the week's insights on China, Macau, Hong Kong and Taiwan. This is a collaborative report compiled by <a href="https://www.smartkarma.com/profiles/820" target="_blank">Scott Laprise/ 乐天虎</a>, <a href="https://www.smartkarma.com/profiles/803" target="_blank">Valerie Law, CFA</a>, <a href="https://www.smartkarma.com/profiles/9" target="_blank">Ke Yan, CFA, FRM</a>, and <a href="https://www.smartkarma.com/profiles/605" target="_blank" data-smartkarma-citation="accounts:605">Daniel Hellberg</a> on a rotating basis. Please let us know if you would like to collaborate.

This issue of 'The Week that Was in Greater China@Smartkarma' covers the week of October 31 to November 5 and features a selection of the week's insights on China, Macau, Hong Kong and Taiwan. This is a collaborative report compiled by Scott Laprise/ 乐天虎, Valerie Law, CFA, Ke Yan, CFA, FRM, and Daniel Hellberg on a rotating basis. Please let us know if you would like to collaborate.

The Week that Was in Greater China @Smartkarma: Tourism for Korea, Macau and Japan to Shine?

SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

<ul><li>Singapore’s Energy Sector was the strongest of Singapore’s stock Sectors in October, with a 10.4% market capitalisation weighted total return on oil and coal price swings. This followed on from Energy also being the strongest of the Sectors back in September.</li><li>The 10 largest capitalised stocks of Singapore’s Energy Sector averaged a 12.5% total return in October, consisting of seven advancing stocks and three declining stocks. CAO, the largest capitalised stock of Singapore’s Energy Sector is scheduled to report 3Q16 results Wednesday.</li><li>Two of the 10 largest capitalised Energy stocks, Geo Energy Resources and KrisEnergy also ranked amongst the 10 actively traded stocks that saw the biggest increase in their October traded volume, compared to respective three month average volumes. Geo Energy Resources was the fifth biggest volume leader while KrisEnergy was the sixth biggest volume leader.</li></ul>

Singapore’s Energy Sector was the strongest of Singapore’s stock Sectors in October, with a 10.4% market capitalisation weighted total return on oil and coal price swings. This followed on from Energy also being the strongest of the Sectors back in September.The 10 largest capitalised stocks of Singapore’s Energy Sector averaged a 12.5% total return in October, consisting of seven advancing stocks and three declining stocks. CAO, the largest capitalised stock of Singapore’s Energy Sector is scheduled to report 3Q16 results Wednesday.Two of the 10 largest capitalised Energy stocks, Geo Energy Resources and KrisEnergy also ranked amongst the 10 actively traded stocks that saw the biggest increase in their October traded volume, compared to respective three month average volumes. Geo Energy Resources was the fifth biggest volume leader while KrisEnergy was the sixth biggest volume leader.

Energy the Strongest Sector in October on Oil & Coal Price Swings

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Sino Gas & Energy Holdings / Event-Driven

The <a href="https://www.asx.com.au/asxpdf/20180727/pdf/43wtygynnjq25m.pdf" target="_blank">Scheme Booklet</a> for Lone Star's proposed acquisition of <a href="https://www.smartkarma.com/entities/6347" target="_blank" data-smartkarma-citation="entities:6347:1">Sino Gas &amp; Energy Holdings (SEH AU)</a> has been registered with ASIC.  Key points from the Booklet, plus other musings:
<ul>
<li>The Scheme Meeting is to be held on the 5 September.</li>
<li>The Independent Expert (IE), Grant Thornton, has concluded the Scheme is in the best interests of shareholders, in the absence of a superior proposal. The A$0.25/share offer is towards the low end of the IE's A$0.228-A$0.321/share fair value range.</li>
<li>Sino Gas' directors…</li>
</ul>

The Scheme Booklet for Lone Star's proposed acquisition of Sino Gas &amp; Energy Holdings (SEH AU) has been registered with ASIC.  Key points from the Booklet, plus other musings:

The Scheme Meeting is to be held on the 5 September.
The Independent Expert (IE), Grant Thornton, has concluded the Scheme is in the best interests of shareholders, in the absence of a superior proposal. The A$0.25/share offer is towards the low end of the IE's A$0.228-A$0.321/share fair value range.
Sino Gas' directors…


Sino Gas' Scheme on Track. IE Concludes Offer Is Fair

VAC Investments

Equity Bottom-Up

Sino Gas & Energy Holdings / Equity Bottom-Up

We believe market concern around <a href="https://www.smartkarma.com/entities/6347" target="_blank" data-smartkarma-citation="entities:6347:1">Sino Gas &amp; Energy Holdings Limited (SEH AU)</a> 's recent c.30% (adjusted) 2P reserves downgrade is overdone. SEH management's subsequent reiteration that planned development work, as well as the Lone Star offer, remains unaffected by the lower reserves is encouraging and should mitigate any near-term share price headwinds. Crucially, with the deal's adjusted implied EV/2P multiples (c.6x versus c.4x previously) now more aligned with street expectations, we would argue there is a higher likelihood that the offer is accepted by shareholders as well.

We believe market concern around Sino Gas &amp; Energy Holdings Limited (SEH AU) 's recent c.30% (adjusted) 2P reserves downgrade is overdone. SEH management's subsequent reiteration that planned development work, as well as the Lone Star offer, remains unaffected by the lower reserves is encouraging and should mitigate any near-term share price headwinds. Crucially, with the deal's adjusted implied EV/2P multiples (c.6x versus c.4x previously) now more aligned with street expectations, we would argue there is a higher likelihood that the offer is accepted by shareholders as well.  

Sino Gas & Energy Holdings (SEH AU) - 30% Reserves Downgrade Boosts Deal Likelihood

China

G3 Exploration is an investment holding company that explores for, develops, and produces coal bed methane in the People's Republic of China. It is also involved in the sale and distribution of gas, and provides financing and management services. The company was founded in 2006 and is headquartered in Zhengzhou, the People's Republic of China.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

G3 Exploration (GRDGF US)

Global E&Ps: Energy Weekly Vol. 2

Oil PriceCrude prices fell through the week driven by concerns around continued US production growth and doubts about Russia's commitment to a...

Aaditya Chintalapati, CFA

The Week that Was in Greater China @Smartkarma: Tourism for Korea, Macau and Japan to Shine?

This issue of 'The Week that Was in Greater China@Smartkarma' covers the week of October 31 to November 5 and features a selection of the week's...

Valerie Law, CFA

Energy the Strongest Sector in October on Oil & Coal Price Swings

Singapore’s Energy Sector was the strongest of Singapore’s stock Sectors in October, with a 10.4% market capitalisation weighted total return on...

Singapore Exchange Ltd (SGX)

Sino Gas' Scheme on Track. IE Concludes Offer Is Fair

The Scheme Booklet for Lone Star's proposed acquisition of Sino Gas & Energy Holdings (SEH AU) has been registered with ASIC. Key points from...

David Blennerhassett

Sino Gas & Energy Holdings (SEH AU) - 30% Reserves Downgrade Boosts Deal Likelihood

We believe market concern around Sino Gas & Energy Holdings Limited (SEH AU) 's recent c.30% (adjusted) 2P reserves downgrade is overdone. SEH...

Aaditya Chintalapati, CFA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)