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.

Thematic (Sector/Industry)

<ul><li>Singapore lists four Coal mining plays - Golden Energy and Resources, Geo Energy Resources, Resources Prima Group and BlackGold Natural Resources. All four stocks mine thermal coal - used to generate electricity, with mining conducted in Indonesia, and all companies report in US Dollars.</li><li>The YTD returns of the four Coal miners have been mixed, with average returns of 1% in the 2016 year thus far. Geo Energy Resources has been the best performing of the four stocks with a 57% return.</li><li>Following a 3Q16 turnaround profit of US$11.6 million, the RTO of Golden Energy and Resources debuted this week on SGX Mainboard. As part of the RTO, the company placed out S$123 million of shares to institutions. The share price closed yesterday at a 28% discount to the S$0.67 share placement price. The Group’s coal business held by the PT Golden Energy Mines Tbk Group was valued at US$3.01 billion as of 31 August 2016.</li><li>The SGX Listing Rules for Mining plays recognise international best practices in reporting standards  - specifically JORC and NI43-101. Typically these reports will include the technical basis on which statements of reserves, resources or exploration results are made, and are available on all four Coal plays. </li></ul>

Singapore lists four Coal mining plays - Golden Energy and Resources, Geo Energy Resources, Resources Prima Group and BlackGold Natural Resources. All four stocks mine thermal coal - used to generate electricity, with mining conducted in Indonesia, and all companies report in US Dollars.The YTD returns of the four Coal miners have been mixed, with average returns of 1% in the 2016 year thus far. Geo Energy Resources has been the best performing of the four stocks with a 57% return.Following a 3Q16 turnaround profit of US$11.6 million, the RTO of Golden Energy and Resources debuted this week on SGX Mainboard. As part of the RTO, the company placed out S$123 million of shares to institutions. The share price closed yesterday at a 28% discount to the S$0.67 share placement price. The Group’s coal business held by the PT Golden Energy Mines Tbk Group was valued at US$3.01 billion as of 31 August 2016.The SGX Listing Rules for Mining plays recognise international best practices in reporting standards  - specifically JORC and NI43-101. Typically these reports will include the technical basis on which statements of reserves, resources or exploration results are made, and are available on all four Coal plays. 

Senior Credit Analyst, Lucror Analytics

Leonard Law, CFA

Senior Credit Analyst

High Yield Experts

Lucror Analytics

Lucror Analytics is a leading credit and ESG research specialist and a provider of technology solutions for differentiated fixed income strategies. Our roots are in bottom-up fundamental credit analysis with a specialization in high yield corporate credits from Europe, Asia and Latin America. We are one of few research specialists integrating ESG considerations with fundamental credit research through a dedicated ESG platform. Our ESG assessment covers five key criteria: Disclosure, E,S, & G Pillars, Controversies, ESG Impact on Credit and ESG Momentum.

Recognizing the importance and value-add of Factor Investing in fixed income, Lucror developed the Smart Quant Navigator (SQN), an intuitive platform that helps clients devise and implement factor-based strategies ranging from pure quant to active fundamental, with integrated ESG.

Our company has been at the forefront of developments in the fixed income markets, identifying opportunities and consistently delivering new products and value-adding solutions to clients. Lucror has close relationships with the largest and most reputable asset managers, family offices, hedge funds, investment and wealth managers globally.

Credit

<ul>
<li>In today's Morning Views publication we comment on developments of the following high yield issuers: China Vanke, Indika Energy</li>
<li>UST yields were stable yesterday, with the curve twisting marginally flatter around the 10Y. The yield on the 2Y UST rose 1 bp to 3.81%, while the yield on the 10Y UST was stable at 4.32%. Equities rallied for a second day, on hopes of a de-escalation in the Middle East conflict. The S&amp;P 500 and Nasdaq advanced 0.7% and 1.2% to 6,575 and 21,841, respectively.</li>
<li>US President Donald Trump delivered a 19-minute televised address at the White House this morning, mostly repeating previous remarks. Mr Trump said the US is "nearing completion" on its strategic objectives, but added that the military will be hitting Iran "extremely hard" over the next 2-3 weeks. Mr Trump also repeated calls for other nations to "build up the courage" to secure shipping in the Strait of Hormuz or buy oil from the US instead. In the US, the March ISM manufacturing index rose to 52.7 (52.3 e / 52.4 p), driven by a jump in the prices paid index on account of the higher oil prices.</li>
</ul>


In today's Morning Views publication we comment on developments of the following high yield issuers: China Vanke, Indika Energy
UST yields were stable yesterday, with the curve twisting marginally flatter around the 10Y. The yield on the 2Y UST rose 1 bp to 3.81%, while the yield on the 10Y UST was stable at 4.32%. Equities rallied for a second day, on hopes of a de-escalation in the Middle East conflict. The S&amp;P 500 and Nasdaq advanced 0.7% and 1.2% to 6,575 and 21,841, respectively.
US President Donald Trump delivered a 19-minute televised address at the White House this morning, mostly repeating previous remarks. Mr Trump said the US is "nearing completion" on its strategic objectives, but added that the military will be hitting Iran "extremely hard" over the next 2-3 weeks. Mr Trump also repeated calls for other nations to "build up the courage" to secure shipping in the Strait of Hormuz or buy oil from the US instead. In the US, the March ISM manufacturing index rose to 52.7 (52.3 e / 52.4 p), driven by a jump in the prices paid index on account of the higher oil prices.


<ul>
<li>The UST curve twisted steeper around the 7Y on Friday. The yield on the 2Y UST fell 7 bps to 3.91%, while that on the 10Y UST was up 1 bp at 4.43%.</li>
<li>Equities tumbled and oil prices climbed on uncertainty over the length of the Middle East conflict and its impact on the global economy.</li>
<li>The S&amp;P 500 fell 1.7% to 6,369, while the Nasdaq slumped 2.1% to 20,948.</li>
<li>Several Fed officials have expressed growing worries over inflation amid the Iran war. Fed Governor Michael Barr said the US central bank is well-positioned to hold rates steady, given considerable uncertainty about the potential effects of developments in the Middle East on the US economy, as well as the impact of tariffs on inflation. Fed Governor Lisa Cook opined that inflation currently poses the greater risk, due to the Iran war. Ms Cook added that the labour market is in balance, albeit precariously so. Philadelphia Fed President Anna Paulson said she is worried about the sustained transmission of higher fuel and fertiliser prices to inflation expectations. That said, Ms Paulson added that the fragile jobs market is unlikely to contribute to higher inflation, which is “tremendously valuable”. Meanwhile, Richmond Fed President Tom Barkin stated that the Fed’s progress on inflation “may be at risk of stalling”. He said that the oil price spike was the latest in a series of cost-increasing supply shocks following the COVID-19 pandemic, which included semiconductor chip shortages, the war in Ukraine and immigration enforcement. Mr Barkin also noted that the labour market “feels a bit fragile”, with job growth near zero even though the unemployment rate is at healthy levels.</li>
</ul>


The UST curve twisted steeper around the 7Y on Friday. The yield on the 2Y UST fell 7 bps to 3.91%, while that on the 10Y UST was up 1 bp at 4.43%.
Equities tumbled and oil prices climbed on uncertainty over the length of the Middle East conflict and its impact on the global economy.
The S&amp;P 500 fell 1.7% to 6,369, while the Nasdaq slumped 2.1% to 20,948.
Several Fed officials have expressed growing worries over inflation amid the Iran war. Fed Governor Michael Barr said the US central bank is well-positioned to hold rates steady, given considerable uncertainty about the potential effects of developments in the Middle East on the US economy, as well as the impact of tariffs on inflation. Fed Governor Lisa Cook opined that inflation currently poses the greater risk, due to the Iran war. Ms Cook added that the labour market is in balance, albeit precariously so. Philadelphia Fed President Anna Paulson said she is worried about the sustained transmission of higher fuel and fertiliser prices to inflation expectations. That said, Ms Paulson added that the fragile jobs market is unlikely to contribute to higher inflation, which is “tremendously valuable”. Meanwhile, Richmond Fed President Tom Barkin stated that the Fed’s progress on inflation “may be at risk of stalling”. He said that the oil price spike was the latest in a series of cost-increasing supply shocks following the COVID-19 pandemic, which included semiconductor chip shortages, the war in Ukraine and immigration enforcement. Mr Barkin also noted that the labour market “feels a bit fragile”, with job growth near zero even though the unemployment rate is at healthy levels.


<ul>
<li>Front-end UST yields declined on Friday, unwinding part of the jump in yields following the FOMC rate decision on Wednesday.</li>
<li>The yield on the 2Y UST fell 4 bps to 3.57%, while the yield on the 10Y UST was down 2 bps at 4.08%. Equities climbed, supported by optimism over corporate earnings.</li>
<li>The S&amp;P 500 gained 0.3% to 6,840, while the Nasdaq rose 0.6% to 23,725. </li>
</ul>


Front-end UST yields declined on Friday, unwinding part of the jump in yields following the FOMC rate decision on Wednesday.
The yield on the 2Y UST fell 4 bps to 3.57%, while the yield on the 10Y UST was down 2 bps at 4.08%. Equities climbed, supported by optimism over corporate earnings.
The S&amp;P 500 gained 0.3% to 6,840, while the Nasdaq rose 0.6% to 23,725. 


Trung Nguyen

<ul>
<li>US markets were in risk-on mode overnight, amid strong earnings from tech companies.</li>
<li>The S&amp;P 500 was up 0.6% for the eighth consecutive day, while the Nasdaq gained 1.5%.</li>
<li>US Treasuries steepened, with the 2Y yield shrinking by 5 bps but the 30Y gaining 3 bps as investors slightly curbed their bets on US interest-rate cuts this year given factory activity data, while keeping the inflation expectation further out.</li>
</ul>


US markets were in risk-on mode overnight, amid strong earnings from tech companies.
The S&amp;P 500 was up 0.6% for the eighth consecutive day, while the Nasdaq gained 1.5%.
US Treasuries steepened, with the 2Y yield shrinking by 5 bps but the 30Y gaining 3 bps as investors slightly curbed their bets on US interest-rate cuts this year given factory activity data, while keeping the inflation expectation further out.


Indonesia

Indika Energy is an integrated Indonesian energy company providing solutions across energy resources, services, and infrastructure. Its energy resources business focuses on coal exploration, production, and processing, while its energy services segment offers engineering, procurement, construction, operations, and maintenance for various energy sectors. The company also handles mining transportation, logistics, and electricity generation through its energy infrastructure business. Indika Energy is headquartered in Jakarta, Indonesia, and was founded in 2000.

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Indika Energy (INDY IJ)

Growth of Singapore's Coal Mining Stocks

Singapore lists four Coal mining plays - Golden Energy and Resources, Geo Energy Resources, Resources Prima Group and BlackGold Natural Resources....

Singapore Exchange Ltd (SGX)

Lucror Analytics - Morning Views Asia

In today's Morning Views publication we comment on developments of the following high yield issuers: China Vanke, Indika Energy

Lucror Analytics

Lucror Analytics - Morning Views Asia

In today's Morning Views publication we comment on developments of the following high yield issuers: West China Cement, Longfor Group, Indika...

Lucror Analytics

Lucror Analytics - Morning Views Asia

The yield on the 2Y UST fell 4 bps to 3.57%, while the yield on the 10Y UST was down 2 bps at 4.08%. Equities climbed, supported by optimism over...

Lucror Analytics

Lucror Analytics - Morning Views Asia

US markets were in risk-on mode overnight, amid strong earnings from tech companies. The S&P 500 was up 0.6% for the eighth consecutive day, while...

Lucror Analytics

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