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Singapore stock market and companies daily report (Religare Health Trust, SGX, Keppel Corporation) (October 19, 2012)

Contributed by Shares Investment

Units Of Religare Health Trust To Commence Trading Today
Trading of Religare Health Trust units on the Singapore Exchange (SGX) has been brought forward to 2pm today. According to a filing with SGX on 18 October, Religare Health Trust has shifted the commencement day of trading to Friday instead of what was stated in the prospectus – 22 October. The India-based healthcare operator has offered 567.5 million units at $0.90 each. At the close of its offer, the firm announced that the placement tranche more than 2.3 times covered while the public tranche was approximately 14.5 times subscribed. The initial public offering will see gross proceeds of $510.7 million being raised. The company has earmarked these fund to complete the acquisition of hospitals worth a total of $748 million from Fortis Healthcare, for the payment of expenses and debts, as well as for general working capital. Units of Religare Health Trust will trade under the name “Religare”.
Significance: The change in date is to accommodate an SGX systems upgrade over the weekend. Applicants who have applied for the public offer units can check with their banks from 9am today on the status of their applications.

SGX’s 1Q13 Earnings Slide 15.1%
Sluggish volumes weighed on SGX’s performance for the three months ended 30 September 2012. The market operator posted a 10.1 percent decline in revenue to $160.5 million and a 15.1 percent fall in earnings to $74.3 million. Securities daily average traded value was $1.3 billion compared to $1.6 billion a year ago. This was despite a record of $5.4 billion being transacted on 14 August as a result of merger and acquisition activities in Singapore. Meanwhile, derivatives daily average traded volume was 306,811 contracts compared to 322,152 contracts from a year ago. That aside, there was an increase in capital raising activities. During the quarter, $3.3 billion was raised through 10 initial public offerings. SGX has been trying to boost liquidity in the marketplace through the ASEAN Trading Link that was launched in September. The link allows cross-border trading between SGX, Bursa Malaysia and the Stock Exchange of Thailand. The company has declared an interim dividend of $0.04 per share.
Significance: According to SGX chief executive officer Magnus Bocker, the company has shown its resilience relative to that of its peers. For the rest of the year, some of key initiatives SGX will be focusing on are dual-currency trading, Chinese yuan trading and clearing, and Asian equity index futures.

Keppel Records A 14.7% Tumble In 3Q12 Net Profit
In its third quarter earnings release, Keppel Corporation reported earnings of $346.4 million for the three months ended 30 September. This was a 14.7 percent fall compared to $406.1 million in the previous corresponding period. Lower margin projects executed by its offshore and marine business were the main drag even though contributions from the division and the property arm boosted revenue 19.1 percent. For the nine-month period, earnings surged 46.8 percent in tandem with a 50.7 percent revenue growth. The improved results were underpinned by one-time profits from its property division. Keppel added $7.3 billion to its offshore and marine orderbook in the third quarter in Brazil, Kazakhstan and Singapore. This brings its net order book to $13.1 billion, with deliveries stretching into 2019.
Significance: With the uncertainties still plaguing the local residential property market, Keppel’s chief executive officer Choo Chiau Beng said the outlook is uncertain. The company’s property division would remain on the look-out for quality sites to acquire in Singapore and overseas for residential and commercial development.