GIC’s humbling retreat from UBS makes sense 16 May 2017 The Singaporean wealth fund is losing money by selling a chunk of the bank it helped rescue nearly a decade ago. Even long-term investors have limits to their patience. A bounce in global financial stocks could tempt others such as Temasek to sift the wheat from the chaff.
Noble Group founder bows out on a low 11 May 2017 Chairman Richard Elman is stepping down as the embattled commodity trader confirmed a quarterly net loss of $130 mln. An earlier profit warning had already slashed 32 pct from its shares. Despite a rights issue and a slew of other initiatives, investor confidence is shot to bits.
Sinochem pounce on revamped Noble Group is timely 14 Feb 2017 The Chinese conglomerate is reportedly looking to buy into the Singapore-listed trader. Joining a capital hike last summer would have been cheaper. With much of Noble’s restructuring done and commodities prices rising there could still be upside for Sinochem, if it moves fast.
Singapore banks running out of profit defences 14 Feb 2017 Singaporean lender OCBC posted disappointing results due to higher bad debt charges, driven up by delinquencies in the energy sector. Banks in the city-state have propped up profits by running down bad debt provisions, but that leaves them increasingly vulnerable.
Blue-chip exodus is awkward for Singapore 10 Feb 2017 The $9 bln Global Logistic Properties could join a flurry of companies going private in the Lion City. Low valuations and poor liquidity are a problem. If even Singapore's state-backed giants are falling out of love with the exchange, luring bumper IPOs seems fantastical.
Singapore stresses under a wealth of worries 6 Dec 2016 Morale is lousy in the city-state. The trade-reliant nation is heading for a recession and China is flexing its muscles. Singapore's strategic direction and its outsize influence on the global stage are both in question. There are no easy fixes to restore the Lion City's roar.
Rally in Singaporean bank shares has overshot 29 Nov 2016 DBS, OCBC and UOB have joined a global sector upturn on hopes that rising interest rates and a steeper yield curve will boost profits. By historical standards, the city's banks still look cheap. But the lenders are badly exposed as bad debt risks rise across the region.
Dig at BHP heralds taxing times for Aussie miners 17 Oct 2016 The company is under renewed attack over allegations it channelled profits through Singapore to trim its tax bill during the resource boom. A fiery rant by Australia's former treasurer, weak public finances, and a recovery in commodity prices will keep miners in the spotlight.
China ties can help Hong Kong catch up in fintech 30 Sep 2016 The city is playing catch-up with Singapore in financial technology. But as a gateway to mainland China, Hong Kong has two big advantages: easy access to a huge market, and proximity to tech giants Alibaba and Tencent. Those benefits should help it close the gap.
Powerful owners hobble Asia’s governance reform 29 Sep 2016 Asian corporate governance is improving despite frequent scandals, according to a review, which goes on to call on institutional investors to speak up more. Fair enough, but majority owners can still bully outsiders so long as the latter lack say over independent directors.
Asian cull makes Goldman Sachs look rattled 26 Sep 2016 The Wall Street bank is laying off nearly a third of its Asian investment bankers. Lumpy deal flow, fierce competition and low fees are endemic in Asia, but Goldman's pullback suggests the scandal over Malaysia's 1MDB may have also dampened its appetite for risk.
Asian investment banking is a money pit 20 Sep 2016 Fees from underwriting and deals are up 8 pct this year after a poor start. But only a few big foreign houses are profitable. Fierce competition, global and regional, keeps fees down. Meanwhile, big-ticket Chinese business goes to Chinese firms. It creates the conditions for more banks to retreat.
Zika fear effect can create Asian contagion 12 Sep 2016 The virus is taking hold in Singapore and countries around the finance hub. The SARS crisis showed how changes in human behaviour can hurt growth more than an epidemic. Zika's grim effect on babies also adds a fear factor. Asia can ill-afford to see visitors stay away.
Singapore eyes last trick in the book to win IPOs 24 Aug 2016 The city-state is moving closer to introducing dual-class shares. A growing sense of desperation about a moribund market for new listings has reduced opposition to such a move. The risks of giving up the high ground on shareholder democracy are likely to outweigh any rewards.
Singapore metro buyout not as stingy as it looks 21 Jul 2016 State investor Temasek is offering $870 mln for the remaining 46 pct of local rail operator SMRT. The 9 pct premium looks low for a deal that needs high levels of minority shareholder approval. Factor in the recent overhaul of SMRT's business, though, and it seems much better.
Temasek’s goals are bold for a low-yield world 8 Jul 2016 The $180 bln Singaporean investor just suffered its first down year since the financial crisis. Still, it beat benchmarks, and some key holdings have since rebounded. However, Temasek is still targeting a feisty 8 pct annual return. That could skew future investment decisions.
Singapore, Saudi put corporate do-gooders on spot 9 Jun 2016 Banks covet business in Saudi Arabia despite its poor human rights. They can say it’s the direction of travel that counts. Singapore, which just told groups like Goldman Sachs to stop backing a gay and lesbian event, is going backwards. It puts corporate sincerity to the test.
Noble’s cash call will buy it one year 3 Jun 2016 The commodity trader is tapping shareholders for $500 mln days after its CEO resigned. The rights issue and other disposals should cover $2 bln of debt due next year. But Noble is still asking investors to believe its core business will be able to consistently generate cash.
Noble CEO exit signals reduced ambitions 30 May 2016 Yusuf Alireza is leaving the embattled commodity trader after four years in charge. Though Noble has avoided an immediate liquidity crisis, investors still question its long-term viability. Flogging its U.S. energy arm will raise cash at the expense of further shrinkage.
1MDB scandal stings Singapore’s banking pillar 24 May 2016 The city has shut down BSI as Swiss authorities open a criminal probe into the private bank relating to the Malaysian state fund. The battle against illicit money flows is global. But Singapore is only now properly facing up to the risks of its push into wealth management.