PetroChina's Value Tops $1 Trillion, Surpassing Exxon
By Ying Lou
Nov. 5 (Bloomberg) -- PetroChina Co. almost tripled on its first day of trading in Shanghai, becoming the world's first company to be valued at $1 trillion, larger than the entire Russian stock market.
PetroChina shares rose to 43.96 yuan from the sale price of 16.7 yuan, giving the state-owned oil producer a greater market value than Exxon Mobil Corp. and General Electric Co. combined.
The rally makes PetroChina shares four times more expensive than those of Exxon, even though China's biggest oil producer has a quarter of the revenue. China's stock market was valued at less than $1.1 trillion before tripling this year and giving the communist nation five of the world's 10 biggest companies.
The share sale, the world's biggest this year, surpassed the 66.6 billion yuan raised by China Shenhua Energy Co. in September. PetroChina raised 66.8 billion yuan selling 4 billion shares last week as investors applied for more than 3.3 trillion yuan of stock, almost 50 times the amount PetroChina sold.
The other Chinese companies that rank among the world's 10 largest by market value are China Petroleum, known as Sinopec, China Mobile Ltd., Industrial & Commercial Bank of China Ltd. and China Construction Bank Corp.
Showing posts with label Market Talk. Show all posts
Showing posts with label Market Talk. Show all posts
Monday, 5 November 2007
Monday, 15 October 2007
Uni-Asia VS FST
Today a friend called and asked me what I think of Uni-Asia. She said her husband is laughing to the bank as the share price rocketed from $0.60 to more than $2 in just 2 weeks.
I told her Uni-Asia does not meet my investment criteria. However attractive it might seem, I will not hold such counter unless there are fundamental changes to its business model and other new growth drivers come into play to support the hefty valuation at this moment.
I just checked the share price performance for today. It shot to new high of $2.75 and dropped to under $2 at closing. At the half year result briefing, the management highlighted that a significant part of the income arisen from the launch of Akebono Fund and one-time disposal of 3 vessels under its finance.
Some investors might interpret these exceptional items as recurring transactions and hence the high profitability can be sustained. That is unlikely to be the case as the Company has not made any other significant announcement so far.
My friend also asked why i did not dump everything into this stock as the Virtual Fund doesn't involve real money anyway. That way, I might be able to reap the returns in the shortest possible time.
I wish to reiterate that despite my stated target return of 50%, I still have more than 1 year to achieve that. I will not be pressurised to punt at this juncture. Moreover, I know that this Virtual Fund has been closely followed by some. Some friends even try to mirror what i buy and sell in using hard earned savings. To this group of followers, despite my disclaimer, I need to act responsibly so not to mislead them into speculating.
For my own portfolio, I bought some First Ship Lease Trust today at US$0.86. FST is in the business of leasing, similar to that of Uni-Asia. It doesn't however engage in any ship operating activities. Uni-Asia, on the other hand, derived half of their revenue from ships investment and management, which arguable can be more risky.
FST has committed to be paying quarterly dividends. The potential payouts could yield more than 10% return at current prices. Its share price has been heading south since listing, mainly due to the weakening USD. I believe FST provides good exposure to the shipping trust sector, which has been under performing so far.
I told her Uni-Asia does not meet my investment criteria. However attractive it might seem, I will not hold such counter unless there are fundamental changes to its business model and other new growth drivers come into play to support the hefty valuation at this moment.
I just checked the share price performance for today. It shot to new high of $2.75 and dropped to under $2 at closing. At the half year result briefing, the management highlighted that a significant part of the income arisen from the launch of Akebono Fund and one-time disposal of 3 vessels under its finance.
Some investors might interpret these exceptional items as recurring transactions and hence the high profitability can be sustained. That is unlikely to be the case as the Company has not made any other significant announcement so far.
My friend also asked why i did not dump everything into this stock as the Virtual Fund doesn't involve real money anyway. That way, I might be able to reap the returns in the shortest possible time.
I wish to reiterate that despite my stated target return of 50%, I still have more than 1 year to achieve that. I will not be pressurised to punt at this juncture. Moreover, I know that this Virtual Fund has been closely followed by some. Some friends even try to mirror what i buy and sell in using hard earned savings. To this group of followers, despite my disclaimer, I need to act responsibly so not to mislead them into speculating.
For my own portfolio, I bought some First Ship Lease Trust today at US$0.86. FST is in the business of leasing, similar to that of Uni-Asia. It doesn't however engage in any ship operating activities. Uni-Asia, on the other hand, derived half of their revenue from ships investment and management, which arguable can be more risky.
FST has committed to be paying quarterly dividends. The potential payouts could yield more than 10% return at current prices. Its share price has been heading south since listing, mainly due to the weakening USD. I believe FST provides good exposure to the shipping trust sector, which has been under performing so far.
Friday, 5 October 2007
New STI Index 30 Stocks
SGX unveils revamped STI index of 30 stocks:
1. Capitaland
2. Capitamall Trust
3. City Developments
4. Cosco Corp
5. DBS Group Holdings
6. Fraser and Neave
7. Genting International
8. Hong Kong Land
9. Jardine Cycle & Carriage
10. Jardine Strategic
11. Keppel Corp
12. Keppel Land
13. NOL
14. Noble Group
15. Olam
16. OCBC
17. Sembcorp Industries
18. Sembcorp Marine
19. SIA engineering
20. SIA
21. SGX
22. SPH
23. ST Engineering
24. SingTel
25. StarHub
26. Thai Beverage
27. UOB
28. Wilmar
29. Yangzijiang
30. Yanlord
1. Capitaland
2. Capitamall Trust
3. City Developments
4. Cosco Corp
5. DBS Group Holdings
6. Fraser and Neave
7. Genting International
8. Hong Kong Land
9. Jardine Cycle & Carriage
10. Jardine Strategic
11. Keppel Corp
12. Keppel Land
13. NOL
14. Noble Group
15. Olam
16. OCBC
17. Sembcorp Industries
18. Sembcorp Marine
19. SIA engineering
20. SIA
21. SGX
22. SPH
23. ST Engineering
24. SingTel
25. StarHub
26. Thai Beverage
27. UOB
28. Wilmar
29. Yangzijiang
30. Yanlord
Wednesday, 29 August 2007
Fed Underestimated Spread of Debt Crisis
Fed Underestimated Spread of Debt Crisis By Craig Torres Aug. 29 (Bloomberg) --At the time of the Aug. 7 meeting, the stock market had lost about $1.3 trillion in market capitalization. On July 24, Countrywide Financial Corp., the biggest U.S. mortgage lender, reported its third straight decline in quarterly profit, as even prime borrowers struggled with debt payments. The earnings release showed that delinquencies were spreading into less risky loans. "The minutes indicate they underestimated how severe the problems were in the credit markets,'' said Scott Minerd, chief investment officer at Guggenheim Partners LLC in Santa Monica, California. Injecting Cash Policy makers have employed a range of tools since their last scheduled meeting to ease the credit crunch. The Fed has also allowed banks to channel discount-window borrowings to their securities subsidiaries to help improve clients' access to capital. Officials clarified that they will accept as collateral securities such as asset-backed commercial paper sold by special-purpose companies. Given the way the market is, I think it would be very difficult for the Fed to avoid cutting its target rate next month, said John Silvia, chief economist.
Friday, 24 August 2007
DBS has more CDO Exposure
24-08-2007 11:44:45 UPDATE 1-Singapore's DBS says has more direct CDO exposure (adds detail, background) By Saeed Azhar SINGAPORE, Aug 24 (Reuters) - DBS Group Holdings , Southeast Asia's biggest bank, said on Friday it has more direct exposure to collateralised debt obligations than previously declared, sending its shares down over 2 percent. Broker CLSA said in a report this week that while Singapore banks have limited exposure to collateralised debt obligations, DBS may have S$2.4 billion ($1.6 billion) worth of CDO holdings -- nearly double the S$1.3 billion direct exposure it initially declared. It said DBS may have more direct CDO exposure through a special purpose vehicle that had commercial paper backed by S$1.1 billion worth of CDOs, with the paper due for renewal.
DBS bank had previously said that it had distributed $1.7 billion of structured products involving CDOs that were backed by AA and AAA rated collateral to institutional and private clients. Share prices of banks have slid on worries about further fallout from a global credit squeeze, and two of Singapore's three banks have also taken smaller hits on their books due to their exposure to complex debt-linked securities.
Analysts have warned weaker markets may force banks to further mark down their portfolio of credit derivatives, amid looming risk of credit downgrades for these instruments. CLSA said in its report that if the three banks mark down their entire asset-backed CDOs, the impact on financial year 2007 earnings would be around 11 percent. Oversea-Chinese Banking Corp. said earlier this month it had marked down its portfolio of CDOs by US$33 million as of end June while the No. 2 lender, United Overseas Bank , had made provisions of S$34 million at end June. But most analysts say despite the recent shift in risk appetite there is still growth potential for Singapore banks as resurgent construction and property sector and strong economic growth boost their loan books.
DBS bank had previously said that it had distributed $1.7 billion of structured products involving CDOs that were backed by AA and AAA rated collateral to institutional and private clients. Share prices of banks have slid on worries about further fallout from a global credit squeeze, and two of Singapore's three banks have also taken smaller hits on their books due to their exposure to complex debt-linked securities.
Analysts have warned weaker markets may force banks to further mark down their portfolio of credit derivatives, amid looming risk of credit downgrades for these instruments. CLSA said in its report that if the three banks mark down their entire asset-backed CDOs, the impact on financial year 2007 earnings would be around 11 percent. Oversea-Chinese Banking Corp. said earlier this month it had marked down its portfolio of CDOs by US$33 million as of end June while the No. 2 lender, United Overseas Bank , had made provisions of S$34 million at end June. But most analysts say despite the recent shift in risk appetite there is still growth potential for Singapore banks as resurgent construction and property sector and strong economic growth boost their loan books.
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