Reports » Singapore

Singapore stock market and companies daily report (IHH Healthcare, Jason Parquet Holdings) (September 14, 2012)

Contributed by Shares Investment

Dip in Electricity Demand Reflects Weak Local Economy
Singapore’s economy growth rate has cooled for the second half of this year and it has been reflected in a drop in electricity demand here over the last two months (July and August). From a new monthly average high of 5,208 Megawatts in June, electricity demand experienced a significant dip in July, a drop of 2.2 percent from June, before stabilising in August. Market operator Energy Market Company (EMC) said: “The drop in demand is in line with general subdued economic conditions and outlook in the second half of the year.” Other than a subdued economy, industry sources also indicated that the cooler weather in the last couple of months and the increase investment by big consumers in new embedded power generation units to provide electricity in-house were other contributing factors. EMC numbers for the first half of 2012 also show the same trend: demand growth is about 2.5 percent which is in line with gross domestic product growth of 1.5 percent and 2 percent for 1Q12 and 2Q12 respectively.
Significance: The fall in electricity demand coincides with private economists’ forecast this week that the Singapore economy would grow at a slower pace than last projected three months ago. Echoing similar sentiments, The Monetary Authority of Singapore revised their full year growth to 2.4 percent down from 3 percent in the earlier survey.

Half Year Review Of STI Constituents See IHH Healthcare Replacing NOL
IHH Healthcare, the new company on the block which was listed concurrently in Malaysia and Singapore back in July have been fast-tracked to join the Straits Times Index (STI) from 24 September 2012. IHH Healthcare which is also included in Malaysia’s benchmark composite index will replace Neptune Orient Lines as an STI constituent. The change comes after the latest half-yearly review of the STI and other indices in the FTSE ST Index Series. The next half-yearly review is scheduled for 7 March 2013 next year. On the STI reserve list are (in order of market capitalisation) Hutchison Port Holdings Trust, Keppel Land, Ascendas Real Estate Investment Trust, UOL Group and Capitacommercial Trust. They will replace any STI constituents that become ineligible as a result of corporate actions before next review.
Significance: The half-yearly review shows the commitment of SGX to keep the benchmark STI as relevant and diversified as possible to keep pace with the fast-evolving market. Additionally, a new quarterly review will be introduced in June and December to fast-track the inclusion of eligible IPO stocks, with the first IPO review scheduled for December 2012.

Timber Flooring Firm’s IPO On Catalist Set For 21 Sep-12
Jason Parquet Holdings, a timber flooring company has launched its initial public offering (IPO) for a listing on Catalist, the Singapore Exchange’s junior board. Established in 1987, Jason Parquet has supplied and installed timber flooring over 280 projects in commercial, private residential, hotel and public sector developments. Some of the notable projects among many others include Reflections at Keppal Bay, ION Orchard and the Nanyang Academy of Fine Arts. The local-based company provides a range of timber flooring under its Tech-Wood brand and over 30 types of timber species. It also sells and distributes timber products and flooring accessories. Jason Sim, executive chairman and chief executive officer of Jason Parquet said: “As we enter into a new phase of growth, we hope to strengthen our brand and financial position, and work towards a fruitful journey with our new shareholders.”
Significance: Trading is expected to commerce on 25 September 2012 and the group intends to use the expected IPO net proceeds of $2.9 million to fund possible acquisitions, joint ventures and/or strategic alliances when opportunities arise and for general working purposes.