Singapore’s NODX Declines 4.5% In September
According to a media release by IE Singapore, the Republic’s non-oil domestic exports (NODX) declined 4.5% on a year-on-year (y-o-y) basis in Sep-11. This was in contrast to 3.9% growth recorded in Aug-11. The reversal was attributed to the contraction in electronic NODX which outweighed the expansion in the non-electronic NODX. On a month-on-month seasonally adjusted basis (m-o-m SA), NODX declined by 9.3% as compared to the 7.2% growth in Aug-11. On a SA basis, NODX reached $14 billion in Sep-11, coming off the $15 billion recorded in the previous month. For the reversal in NODX on a y-o-y basis, the electronic contracted 14% while the non-electronic expanded marginally by 0.9%. The fall in electronic NODX followed the 19% decline in Aug-11, and was largely due to lower shipments in disk drives (-54 %), parts of integrated circuits (-29%) and integrated circuits (-9%). The rise in non-electronic NODX continued the 18% rise in Aug-11, supported by civil engineering equipment parts (+54%), printed matter (+37%) and pharmaceuticals (+12%).
Significance: Three of the top ten NODX markets – the US, Taiwan and Malaysia – recorded decline in Sep-11. In particular, shipments to the US declined 36% following the previous month’s contraction of 23%. Considering the anemic recovery in the US, export figures are not likely to see a turnaround in the near term.
CRCT’s 3Q11 Distribution Income Increases 12.3%
CapitaRetail China Trust’s (CRCT) distribution income increased 12.3% from $13 million to $14.6 million in the third quarter ended 30 Sep-11. Distribution per unit for the period improved from 2.08 cents to 2.12 cents, underpinned by a 13.7% rise in gross revenue from $29.8 million to $33.8 million. The trust’s strong results were boosted by a Rmb13.6 million contribution from CapitaMall Minzhongleyuan in Wuhan, its newest property acquired on 30 Jun-11. On a comparable portfolio basis, its net property income grew by 13.4% in reminbi terms which showcases its ability to generate organic growth from its malls. For the nine-month period, distribution per unit was 6.42 cents while distribution income and revenue came in at $41.5 million and $95.4 million respectively.
Significance: CCRT remained confident in the economic fundamentals of China and is positive of its prospects. Specifically, tenant sales at its five multi-tenanted malls increased by 21.1% and rental revision across its portfolio increased by 11.9% in 3Q11.
LionGold Makes $69.6m Bid For Australian Miner
LionGold Corp (LionGold) has made a $69.6 million bid for Australia-listed Signature Metals (SM). LionGold plans to acquire all outstanding issued shares of the target at A$0.02 apiece, representing a 54% premium to the closing price of SM on 13-Oct and a 46% premium to its one-month volume weighted average price of A$0.0137. The purchase consideration will be made through an issuance of approximately 80.4 million LionGold shares to SM’s shareholders at $0.8657 per share. It was noted that SM is currently producing gold at its flagship mine at the Konongo gold project in Ghana, West Africa. The project, which SM holds a 70%-stake, is known to contain 16 gold deposits along 12 kilometres of strike in an area known as the Ashanti Gold Belt. In addition, SM holds licences to prospect for iron ore, nickel as well as copper in Kenya and Uganda.
Significance: This acquisition will be LionGold’s biggest to date. The company forayed into the gold mining business in Dec-10, and has produced its first gold bar last month. Investors have so far backed the shift in business, as its shares have spiked nearly 64% since 1 Dec-10.