To say that Hong Kong stocks have been volatile the last few months would be a massive understatement. The Hang Seng Index, a barometer of the Hong Kong stock market, has had wild swings this year. It made impressive gains in the first half of 2019, from around 25,130 to a peak of close to 30,160. But political unrests and protests in the city have rocked investor sentiment. Since the protests began in the city, the Hang Seng Index has shed around 12%. This week, though, there was some reprieve as Hong Kong leader Carrie Lam announced the withdrawal of the hugely unpopular extradition bill. Buoyed by the news, investors flooded the market, pushing the Hang Seng Index up 4% on Tuesday, the day the news broke, marking the biggest single-day gain since November 2018.  Long-term impact?

Singapore Telecommunications Limited (SGX: Z74) shares the Singapore telecom spotlight with M1 Ltd and StarHub Ltd. The company’s share price has declined significantly over the last few years. Given its lower share price, investors might be attracted to the company now. Clearly, Singtel is a good candidate for further research given the negative sentiments. Yet, it’s not the only company worth considering. Let’s look at one company that might be an even better investment than Singtel, especially over the long run. The contender The company we’re talking about is Jardine Matheson Holdings Limited (SGX: J36), a conglomerate with interest in the web of Jardine companies that include Jardine Strategic Holdings Limited (SGX: J37), Jardine Cycle & Car

Did you notice how quickly markets recovered their mojo when Donald Trump told the media at one of the G7 press conferences in Biarritz that China had called to make a deal? He said China desperately wants to make a deal. He embellished it generously with his usual hyperbole that China is hurting, China s stealing billions of dollars from America, China is losing millions of jobs and that China is paying billions in US-imposed tariffs. Every man and his dog who was watching probably knew that no such phone call had either been made or received. Nor was China desperate about doing a deal. If anything, China is quite happy to sit on its hands…. …. but that didn’t stop traders from pushing up stock market index futures. Like Pavlov’s dog, they react with utmost pred

Two of the largest property development and investment companies in Singapore’s stock market are City Developments Limited (SGX: C09) and Hongkong Land Holdings Limited (SGX: H78). Unfortunately, both have produced lacklustre returns for their investors over the past five years. Adjusting for dividends, City Developments’ shares have generated a paltry gain of 3.6%, according to S&P Global Market Intelligence, while Hongkong Land’s shares have produced a slight loss of 2.6%. Singapore’s stock market benchmark, the Straits Times Index (SGX: ^STI), has climbed by 12.5% in the same period, even after including gains from dividends. So it’s clear that both real estate giants have not given much reasons for their long-time investors to smile. But which of t

Hong Kong leader Carrie Lam yesterday announced that her government would formally withdraw an extradition bill that started massive protests in the territory. Earlier in the day, the Hang Seng Index (HSI) soared almost 4% on reports that the bill is set to be removed. Well-known Hong Kong companies such as railway operator MTR and flag carrier Cathay Pacific jumped 6.4% and 5.3%, respectively. Over in Singapore, one company with a strong focus on Hong Kong rallied as well. And that company is none other than Hongkong Land Holdings Limited (SGX: H78), a property group with assets mainly in the Special Administrative Region (SAR). Hongkong Land’s shares soared 8.3% to US$5.89 yesterday. Despite the rally, the company’s shares still look cheap. Let’s find out why. Behind t

Listed in August 2014, IREIT Global (SGX: UD1U) is a real estate investment trust (REIT) that owns five freehold properties in Germany. The REIT gave investors something to smile about when it announced that its distribution per unit (DPU) increased by 1.1% for the six months ended 30 June 2019. Can this growth continue? I think so; here’s why. A decent balance sheet with low cost of debt Acquisitions are by far the fastest and easiest way for a REIT to increase its DPU. IREIT is in a great position to make more debt-funded acquisitions that can be yield-accretive. As of 30 June 2019, its aggregate leverage was 36.2%, still some way below the 45% regulatory ceiling. What’s more, the REIT has one of the lowest effective interest rates per annum at just 1.5%, giving it a high i

Hongkong Land Holdings Limited  (SGX: H78), or HK Land, operates in the property sector. It is mainly involved in the property development, investment and management business. Its property businesses are spread across China, Southeast Asia and in its home base of Hong Kong. Recently, the stock tanked by 27% from its 52 weeks high price of US$7.53, mainly driven by the turmoil in Hong Kong. I think the challenges in Hong Kong will have an impact on HK Land’s business. But to what extent the impact will be is something that nobody can really answer. What I do know is that the company is currently trading at an extremely attractive valuation. Historical metrics One way to look at valuation is to compare its current valuation metric to its historical metric. Let’s consider a

With 14 companies in the midst of privatisation, it is safe to say that the M&A and privatisation wave is gaining momentum. Based on data from DBS, the number of M&A deals have exceeded the whole of 2018 and 2017 respectively. In privatisation deals over the last three years, shareholders could gain around 15 percent premium over the last transacted share price. DBS thinks that such opportunity continues to exist for investors to capitalize on. Screening Criteria For M&A Plays By DBS To screen for privatisation candidates, DBS uses three criteria: (1) Cash rich; (2) Low liquidity; and (3) Majority shareholder has more than 50 percent ownership. In this 3-part M&A series, we summarise six M&A investment themes from DBS for investors to consider as an alpha generating inv

1. SPH REIT  --  11th Jul 20192. SPH  --  12th Jul 20193. Kep Infra Trust  -- 15th Jul 20194. Kep Reit  --  15th Jul 20195. Kep-KBS US Reit  --  16th Jul 20196. Kep DC Reit  --  16th Jul 20197. CapitaCom Trust  --  17th Jul 20198. Kep Corp  --  18th Jul 20199. SATS  --  18th Jul 201910. FrasersCom Trust  --  22nd Jul 201911. Mapletreelog Trust  --  22nd Jul 201912. CapitaMall Trust  --  23rd Jul 201913. MapletreeInd Trust  --  23rd Jul 201914. Frasers Cpt Trust  --  23rd Jul 201915. MapletreeCom Trust  --  25th Jul 201916. Cache  --  25th Jul 201917. SIA Engg  --  26th Jul 2019 18. Suntec Reit  --  26th Jul 201919. Fr

Ireit Global is a Reit I used to own in the past due to the strong profiling of their freehold assets in Germany, high dividend yield, low borrowing costs and long WALE with concentrated blue chip tenant profile.You would think that Germany is a strong powerhouse in Europe and they are too big to fail, so everything else equal, it's something which is probably too good to be true, especially since they debuted and listed back in 2014.I bought them in the past in the range of 63 to 66 cents when most people were skeptical about the relatively new manager at that time and managed to sell them when they were at around 73 cents. The main reason I sold was because Tikehau Capital came in and they kept harping about a possible inorganic growth through acquisitions in their investors present

I like to monitor companies that dish out dividends for investment ideas. In the next few days, there are some companies going ex-dividend. In other words, you need to own shares in the company before a particular day of the week to receive their dividends. Let’s look at three of those companies. Wednesday, 21 August 2019 On Wednesday, Singapore Technologies Engineering Ltd (SGX: S63) will be going ex-dividend. The conglomerate is dishing out S$0.05 per share for its second quarter of 2019. For the latest quarter, ST Engineering’s revenue grew 8% year-on-year to S$1.78 billion while its net profit rose 18% to S$138.2 million. In April, the acquisition of MRA Systems (MRAS) was completed, and that contributed well to both sales and earnings. The group’s future looks brigh

City Development Limited (SGX: C09) reported a drop in profits for the quarter but is still positioned well for the future. Here's why.

We’ve written previously on the pros and cons of buying an Executive Condominium (EC), and concluded that if you’re a Singaporean who is eligible to purchase an EC, they should definitely be on the top of your priority list before looking at other private properties. If you do decide that you wish to buy an EC – and enjoy government grants and typically lower selling prices – here is your step-by-step guide. Read Also: Pros And Cons Of Buying A HDB Executive Condominium (Over A Regular Private Condo) #1 Are You Eligible To Purchase An Executive Condominium? Like buying a HDB flat, there are specific eligibility conditions for buying an Executive Condominium. – You have to purchase an EC under one of these HDB schemes: Public Scheme, Fiancé/Fiancée Scheme, Orphans Scheme or

On 17 July 2019, the Singapore Exchange (SGX) will celebrate the 2nd anniversary of launching Daily Leverage Certificates (DLCs) in the market. DLCs are short-term trading products that allow investors to amplify their exposure to the market and offer both long and short positions. Offered by Societe Generale in Singapore, the number of securities listed in the market has increased from just 10 initially to more than 76 today, covering both the Singapore and Hong Kong markets. This includes 56 single stock DLCs, such as Venture Corp, Yangzijiang Shipbuilding and Keppel in Singapore and Tencent, Geely Automobile, AIA and China Construction Band in Hong Kong, and the rest comprises indices such as the MSCI Singapore Index and Hang Seng Index (HSI). Allowing traders to leverage their positio

CapitaLand and City Developments are two of the leading property firms in Singapore. But which one is the better investment?

City Developments Limited (SGX: C09) has invested in IREIT Global (SGX: UD1U). Here are three things to know about the REIT.

One of the biggest property developers in Singapore reported soaring profits in its latest earnings recently.

If you are new to investing on the Singapore Exchange (SGX), you may not know that some of Singapore’s biggest and most popularly traded companies are actually home-grown conglomerates which are run by some of Singapore’s richest families. Besides playing an integral part in growing Singapore to become the successful city-state that it is today, these companies have also generated good returns for its owners and investors over the past years. In this week’s edition of 4 Stocks This Week, we take a closer look at some of these local family empires to find out how well they have been performing. Haw Par Corporation Limited (SGX: H02) Haw Par Corporation and its subsidiaries is in the business of manufacturing and selling pharmaceutical and healthcare products. Its most recognisable bra

At the end of April, City REIT Management, a subsidiary of City Development Ltd (CDL) purchase 50% of IREIT’s manager. City Strategic, also a subsidiary of CDL, purchase a substantial stake in IREIT itself. In November 2016, Tikehau Capital purchased a 80% stake in IReit’s manager. The rest of the stake is held by Chinese Tycoon Tong Jinquan and Soilbuild founder Lim Chap Huat. Tong Jinquan owns 297 mil units (47%), Chap Huat owns 33 mil units (5.2%), Tikehau Capital owns 52.6 mil (8.3%). In this deal, Tikehau Investment Asia Pacific bought back Tong’s stake in the manager. They then sold half the stake in the manager to City Reit Management, which is CDL’s arm in doing reit management. Now, Tikehau and City Reit owns roughly 50% each in the manager. Then, Tika

1. SPH REIT  --  5th Apr 20192. SPH  --  9th Apr 20193. First REIT  --  10th Apr 20194. Kep Infra Trust  --  15th Apr 20195. Kep DC Reit  --  15th Apr 20196. Kep-KBS US Reit  --  16th Apr 20197. Kep Reit  --  17th Apr 20198. Soilbuild REIT  --  17th Apr 20199. Kep Corp  --  18th Apr 201910. CapitaComm Trust  --  18th Apr 201911. MapletreeInd Trust  --  22nd Apr 201912. MapletreeCom Trust  --  23rd Apr 201913. FrasersCom Trust  --  23rd Apr 201914. Suntec Reit  --  24th Apr 201915. CapitaMall Trust -- 24th Apr 201916. Frasers Cpt Trust  --  24th Apr 201917. CapitaR China Trust  --  24th Apr 201918. SGX  --  25th Apr 201919.