Author: The Fifth Person

5 reasons to be bullish about Singtel even with the entry of a fourth telco

The telecommunication landscape in Singapore is likely to get more challenging for the incumbent companies of Singtel, StarHub and M1. Liberty Wireless entered the market recently on 5 May 2016 with its brand – Circles.Life. Among its perks, Circles.Life offers free unlimited data service for WhatsApp and free caller number display which other telcos charge $5 a month for. If this is not sufficient to shake up the market, IDA announced on February 2016 that it would introduce a fourth full service telco in Singapore by April 2017. The intention of IDA is to introduce more competition to benefit...

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Expect more central bank easing, strength in yen, greenback and gold post Brexit

The UK officially decided to leave the European Union on June 23, with leave votes trumping remain by 51.9% to 48.1%. A total of 33.5 million voted. Mayhem ensued in the markets, with the British pound dropping more than 10% to a 30-year low of 1.32 against the US dollar and the Japanese yen strengthening 6.6% past 100 during the day. Gold rose to US$1,315 per ounce, while Brent crude dropped to US$48 a barrel, weighing on commodity currencies like the Canadian dollar, Australian dollar and Malaysian ringgit. Finally, UK Prime Minister David Cameron stunned markets with his resignation,...

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Singapore May headline inflation contracts for 19th straight month

Singapore’s Consumer Price Index-All items inflation has fallen year-on-year by 1.6% in May, which is slightly over three times more than the 0.5% decline reported the month before. In a joint release today, the Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry (MTI) mainly attribute the decline to base effects associated with the timing of the disbursement of Service & Conservancy Charges (S&CC) rebates which are disbursed in May, July and October this year. The negative contribution from the rebates in May will be reversed in June, add the institutions. Another significant factor contributing the...

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How to escape living paycheck to paycheck in Singapore

Living paycheck to paycheck is not only stressful – it’s dangerous. Here’s how to stop and turn your finances around. If your paycheck seems to vanish as soon as it arrives, and you find yourself surviving on Maggi mee toward the end of the month – you have a problem. Specifically, you’re living paycheck to paycheck. Not only is it stressful; it’s dangerous. A single emergency, such as retrenchment, will send you neck deep in debt. Here’s how to break the habit: 1. Always pay yourself first Before you start spending your money, make sure 20 per cent goes into your savings. We...

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9 things I learned from Wilmar International’s FY2015 AGM

In my opinion, Wilmar has one of the best AGMs around. Held at the prestigious Shangri La hotel, the variety of food at their lunch buffet always packs quite a punch. But then again, that’s not what we are really here for (except for some AGM junkies who only go for the free lunches). I love Wilmar’s AGM because it’s always very insightful and the company usually holds its Investors’ Day straight after the AGM where shareholders can stay back to ask questions and find out more about Wilmar’s business and next stage of growth. I am always fascinated...

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3 reasons to still be optimistic about the stock market

As headwinds persist in the global economy, weak corporate earnings and countries over the world are seeking loose monetary policies to keep inflation up, investors wonder if that is the end of the rise of the market. This is given the assumption that dividend stock prices have already been pushed up by yield-driven investors. However, Wharton School’s finance professor, Jeremy Siegel and strategist from Fundstrat Global advisors, Tom Lee (formerly Chief Strategist with JP Morgan) explained that that is not the case. In fact, they have three reasons why the stock market will go higher instead of down. 1....

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This is why stock markets hate Mondays

Many people in the working world – across time and culture – hate Mondays because it’s the first day back at work after the weekend… and love Fridays because they’re the doorway to the weekend. It turns out that stock markets feel the same way. Much of what happens in stock markets seems random. But there are some strong non-random patterns to stock market behaviour. For example, we’ve talked about whether the January barometer is a good indicator of performance for the rest of the year, and whether the “sell in May and go away” strategy actually works. Add...

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ThaiBev cut to ‘hold’ by OCBC with higher fair value of 89 cents

OCBC Investment Research is downgrading its “buy” to “hold” recommendation on Thai Beverage (ThaiBev), while lifting its fair value estimate for the stock from 83 cents to 89 cents. In a Thursday report, lead analyst Jodie Foo notes that ThaiBev’s share price, following 1Q16 results, has “done well thus far” and serves as a “testament to the success of its new marketing strategy for Chang Beer”. It is partially in observation of this sharebro price run-up that the stock has been downgraded. “Recall that (ThaiBev’s) market share for beer had increased from 30% to ~40% and (its) ASP, volume...

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Thai Beverage Public Company Limited: 5 things you need to know about its business

Thai Beverage Public Company Limited (SGX: Y92) (ThaiBev) is 69.89% owned by Charoen Sirivadhanabhakdi, a prominent billionaire in Thailand. ThaiBev is one of the largest beverage companies in South East Asia. The company comprises four business segments: spirits, beer, non-alcoholic beverages, and food. Spirits is the largest revenue contributor accounting for 61.6% of total revenue.  Besides Thai spirit brands like Mekhong and Phraya, the company also carries international brands like Old Pulteney, Balblair and Spiced Pacific Rum. Beer is the second largest revenue contributor accounting for 25.1% of total revenue. Thai Beverage has three beer brand – Archa, Federbrau and...

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4 reasons why Singapore’s 1Q labour market statistics is gloomy

Singapore’s labour market slowed in the first quarter of 2016, according to a report released on Monday by the Ministry of Manpower (MOM). “Amid softer economic conditions and as the economy restructures, redundancies are expected to rise in sectors affected by weak external demand,” MOM said. Here are 4 highlights in the 1Q16 Labour Market report by MOM’s Manpower Research and Statistics Department: 1) Long-term unemployment rate increased Long-term unemployment rate has increased to 0.7% from 0.5%, even as seasonally adjusted overall unemployment rate remained low and unchanged at 1.9% in March 2016. Unemployment among residents declined to 2.7%...

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10 things I learnt from REITS Symposium 2016

The REITS symposium held on June 4th was one to remember, with a panel of distinguished speakers. The various speakers shared many insights into the REITs industry and reinforced why they believed S-REITS to be an important asset class. Here are 10 key takeaways I got from the event as well as the invaluable advice shared by the speakers. 1. Focus on distributions per unit, not the current share price David Kuo, CEO of Motley Fool Singapore, emphasized that oftentimes, investors who buy into REITs start to panic when the share price falls below their buy-in price. However, he emphasized...

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10 things to note about Frasers Logistics and Industrial Trust IPO

Frasers Logistics and Industrial Trust (FLT) is set to raise about $903 million after pricing its IPO at the top of its indicative range at 89 cents. This is Singapore’s biggest new listing in three years. About 521.7 million units will be sold to institutions and retail investors. Another 492.8 million units is set aside for cornerstone investors. The portfolio at IPO comprises 51 logistic and industrial properties with gross lettable area 1.2 million sqm of properties in three cities: Melbourne (40%), Sydney (28%) and Brisbane (28%). Land tenure is freehold for 60% of the portfolio, with the rest...

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7 wisecracks heard from Warren Buffett and Charlie Munger at the 2016 Berkshire annual meeting

I attended Berkshire Hathaway’s annual meeting in Omaha, Nebraska this year and it was hands down the best annual meeting I’ve ever attended. (You can read more about my experience and the 33 things I learned from the Berkshire 2016 annual meeting.) And part of what made the meeting so entertaining was the dry wit and humour displayed by Buffett and Munger throughout the day. They literally had the audience in stitches with some their zingers and one-liners. So here are some of the funnier wisecracks heard from Warren Buffett and Charlie Munger at the 2016 Berkshire annual meeting:...

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Brexit or Bremain, BlackRock expects ‘far-reaching market implications’

Stay, or go? That is the question on the lips of billions around the world on the topic of Brexit – especially with the UK’s June 23 European Union (EU) referendum looming in the weeks ahead, which will determine whether Britain will leave the EU or not. “The vote outcome is highly uncertain, with global risk assets vulnerable under a British-exit (Brexit) scenario,” says Blackrock’s global chief investment strategist Richard Turnill in a weekly commentary, who views the upcoming referendum as a “major risk for global markets”. He reiterates last week’s warning of caution to investors, while recommending that...

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MAS eases regulations for securities-based crowdfunding platforms

The Monetary Authority of Singapore (MAS) on Wednesday announced changes to make it easier for startups and small and medium enterprises (SMEs) looking to raise funds via securities-based crowdfunding (SCF) platforms. MAS said it will simplify checks for SCF platform operators to rely on the existing regulatory framework for small offers to raise funds, including from retail investors. Under current rules, issuers raising less than $5 million within 12 months are not required to issue a prospectus. However, they have to document and disclose the key risks of SCF investments, and obtain investors’ acknowledgement that they have read and...

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