Expect a slow start in ASEAN but markets may not sell off. buying early looks like the best strategy as the world markets are proving resilient to events in Japan and the Middle East.

The CBOE Volatility Index fell 2.7 per cent to 20.05, not far from its level before the crisis in Japan sparked a huge spike. That suggests investors are more sanguine about the continuing problems in Japan, the Middle East and North Africa.

Fighting in Libya and unrest in Yemen have contributed to rising oil prices, which has dragged on equities. April US crude futures rose 1.5 per cent to $US103.82 while Brent added 0.2 per cent to $US115.17 a barrel.

Thai Stocks will have a shaky start but any fall in the pre-election run up.

Shayne Heffernan Best Buys are

Bangkok Listed Hana Microelectronics Public Co. Ltd. has been upgraded by Shayne Heffernan to a strong buy with a 2012 price target of 48 Baht.

The Hana Group is one of South East Asia’s leading independent ” Electronic Manufacturing Service ” (EMS) producers with facilities in Bangkok, Lamphun (in northern Thailand near Chiangmai), Ayutthaya (15 miles north of the Don Muang International Airport), and Shanghai, China.

Hana also has a significant stake in Advanced Interconnect Technologies Ltd which has IC assembly and test operations in Batam Indonesia, Hong Kong and in California, USA.

The parent company Hana Microelectronics Public Company Limited was established in 1978 and became Listed on the Securities Exchange of Thailand in February 1993.

Hana’s strict adherence to internationally recognized quality standards and procedures such as SPC, TQM, ISO 9001, ISO/TS 16949 and ISO 14000 has resulted in numerous awards and recognition from some of the world’s demanding corporations.

Kiatnakin Bank Public Company Limited (the Bank) is a commercial bank in Thailand. It offers deposit services, including priority banking services, deposit products and life insurance products, and loan services, which include retail loans and corporate loans.

The Bank provides various types of accounts, including savings account, current account and fixed deposit account. Life insurance products include KK Smart 7 Plus, which provides endowment assurance, providing life cover and cash back, and KK Cancer Care, which provides insurance scheme for bank customers, offering the life coverage together with cancer benefit.

In addition, the Bank provides hire purchase loans for all types of automobile and arranges car auctions for those looking to buy a car.

It also offers a variety of financial solutions, including resident project lending, housing loans and logistic loans, among others. The Bank has nine subsidiaries.

Thai Baht

Thai Prime Minister Abhisit Vejjajiva spoke on Monday Evening at The Foreign Correspondents Club of Thailand (FCCT).

After his keynote speech in which he outlined the Government’s achievements in Education, Economic Growth and stabilizing rural income, Abhisit Vejjajiva took some Q&A.

During the Q&A I was fortunate enough to ask the Prime Minister about the Thai Baht.

I have estimated that by 2015 the Thai Baht will be at a rate of 23 to 1 USD.

When asked about the rate the Prime Minister replied that he did not have a Baht problem, he had a dollar problem.

More interestingly he suggested that the answer may be to not write international trade deals in USD but in an alternate currency.

When asked if that would be an Asian Currency he replied, “why not”.

In USD terms should Thailand and other South East Asian Countries move away from the USD as the standard for international trade, the USD may well depreciate at an increased rate.

At this stage exposure to the Thai Baht, Singapore Dollar and the Malaysian Ringgit is a must in any diversified portfolio.

Tokyo AIM Inc and the Thailand Market for Alternative Investment (MAI) signed a memorandum of understanding yesterday to explore the possibilities of dual listings and other close cooperation in the near future.

Tokyo AIM was formed in 2009 by the Tokyo Stock Exchange, which holds a 51% stake in the bourse, while London AIM holds the rest.

The firm is seeking potential high-growth firms from China and Asia, said Tetsutaro Muraki, Tokyo AIM’s president.

Businesses attractive to Japan include chemical, technology and biodiesel.

In Bangkok yesterday the Stock Exchange of Thailand (SET) composite index on Tuesday lost 0.79 point, or 0.08 per cent, to close at 1,019.14 points. The market value was 30.62 billion baht, with 3.28 billion shares traded.

Top five most active values were as follows;

TRUE remained at 6.70 baht.

BBL closed at 163.00 baht, up by 2.00 baht or 1.24 per cent.

KTB closed at 17.50 baht, up by 0.20 baht or 1.16 per cent.

SCC closed at 343.00 baht, up by 6.00 baht or 1.78 per cent.

JAS closed at 2.62 baht, up by 0.08 baht or 3.15 per cent.

Jakarta will open flat to lower, but there should not be a substantial fall, in overnight trading the USA traded marginally lower, but despite global events there was no sell off.

Shayne Heffernan Best Buys:

Perusahaan Perkebunan London Sumatra, Indonesia’s second-largest listed plantation company, was oversold falling 1.1 percent to close at Rp 2,200.

This followed the fall in Kuala Lumpur of palm oil 3.1 percent to 3,315 ringgit ($1,094) per ton as the market closed.

This will stabilize today and Perusahaan Perkebunan London Sumatra as well as palm oil will see higher prices.

Adaro Energy, Indonesia’s second-biggest coal producer, was also oversold down 4.3 percent to Rp 2,225.

Adaro Energy fell after CIMB-GK Securities dropped Adaro Energy’s rating to “trading sell” from “outperform.”

I do not see Adaro Energy as a sell in the current market and investors buying today will be getting a bargain.

In Jakarta yesterday the JCI was flat losing 1.13 points, or 0.03 percent, to close at 3,517.72. About 2.1 billion shares worth Rp 3.2 trillion ($368 million) changed hands.

The rupiah strengthened 0.1 percent to 8,721 to the US dollar as of the market’s close on Tuesday, from 8,730 on Monday, after lawmakers voted to delay planned cuts to fuel subsidies, helping contain inflation.

Stocks in Manila will open lower today after yesterday’s rally was not supported by global sentiment in overnight trading.

Shayne Heffernan Best Buys today are

Semirara Mining

Semirara Mining Corporation is engaged in exploring, developing, and mining coal resources in Semirara Island. The Company is a subsidiary of DMCI Holdings, Inc. The Company generates 98% of its revenues through sales of coal and 2% coal handling services.

The Corporation has a long term supply contract with National Power Corporation (NPC) for its power plants in Calaca, Batangas.

Manila listed First Philippines Holdings has been upgraded by Shayne Heffernan to a strong buy with a 2012 price target of 100 Pesos.

First Philippine Holdings Corporation (FPHC) is a holding company. The Company, along with its subsidiaries, is engaged in investments in real and personal properties including, but not limited to, shares of stocks, notes, securities and entities in the power generation, manufacturing and construction, and other service industries.

In Manila yesterday the Philippine Stock Exchange index added 9.83 points, or 0.26 percent, to finish at 3,854.14.

Property was the biggest gainer at the local stock market for the day, rising by 1.2 percent.

The Winners were Digitel, AGI, EDC, Leisure & Resorts World, ICTSI, SM Investments, Belle, Aboitiz Power, FPH, Banco de Oro, PNB, Ayala Land, First Gen, Ayala Corp. and JG Summit.

The Losers were PLDT, Semirara, Aboitiz Equity Ventures, Metro Pacific Investments and DMCI.

The Bursa Malaysia will come under early pressure this morning after Wall St traded very flat.

Shayne Heffernan Best Buys are

Palm Oil

Palm Oil fell yesterday but may stabilize and stage a rally later in the week.

Yee Lee has seen a strong run forward since 2009, based on the low P/E this stock should rally back toward $1.50 according to Shayne Heffernan.

Shayne Heffernan strong buy, Sime Darby, the world’s largest listed palm oil producer, will make its first investment in Africa, with the establishment of plantations in Liberia in April.

Sime Darby is Malaysia’s second-largest company by value, with a market capitalisation of 47 billion ringgit. It owns more than 5,000 square kilometres (1,930 square miles) of palm oil plantations in Malaysia and Indonesia.

Sime Darby was granted a 63-year concession in 2009 to develop 220,000 hectares (543,500 acres) of land in Liberia, will begin planting oil palm on 10,000 hectares in the first phase.

“This foray is most significant as it allows us to explore opportunities for further growth and development in other emerging markets and regions,” said Franki Anthony Dass, executive vice-president of Sime Darby Plantation.

Sime Darby, which already has palm oil plantations in Malaysia and Indonesia, will invest 70 million ringgit ($23 million) in the project, Dass added in a statement.

In Kuala Malaysia yesterday index gained 0.22 points or 0.01%. The market traded within a range of 6.69 points between an intra-day high of 1514.20 and a low of 1507.51 during the session.

Most Active PERISAI, HWGB, SAAG, BORNOIL, HWGB-WB, OLYMPIA, BORNOIL-WB, RAMUNIA-WA, RAMUNIA and DRBHCOM.

The Winner were SIME (+9 sen to RM9.12), CIMB (+5 sen to RM8.08), BAT (+RM1.02 to RM47.12), GAM (+4 sen to RM3.70) and KLK (+14 sen to RM20.86).

The Losers were MISC (-34 sen to RM7.60), TENAGA (-5 sen to RM6.23), AXIATA (-2 sen to RM4.77), DIGI (-16 sen to RM27.50) and PBBANK (-2 sen to RM13.00). Market breadth was positive with 518 gainers as compared to 250 losers.

The Finance Index increased 0.22% to 13623.64 points, the Properties Index up 0.52% to 1060.38 points and the Plantation Index rose 0.37% to 7704.52 points.Trading volume increased to 1434.54 mil shares worth RM1687.92 mil as compared to Monday’s 1194.64 mil shares worth RM1434.65 mil.

Singapore stock market rises on easing Nuclear concerns

Singapore shares ended higher for 2nd day Tuesday as easing concerns over the Japanese nuclear crisis gave investors confidence to pick up beaten-down stocks, though buying was still cautious amid the ongoing geopolitical risk in the Middle East.

The benchmark Straits Times Index climbed 19.24 pts to 3,002. 75 pts, with 1.2B/shrs changing hands on a market turnover of 1.37B Singapore Dollars (US$1.08B). Gainers led losers 376 to 120, while 787 others remained unchanged.

Citigroup Equity Research said, “Surveys of growth indicators remain supportive of an intact growth phase, which implies that current market weakness is an attractive entry point for investors. We expect the market to grind higher in Y 2011.”

Among the top actives, Sembcorp Marine, the World’s 2nd largest Oil rig builder, jumped 3.3% to 5.66 Singapore Dollars (US$3.53). The company said Monday its subsidiary Jurong Shipyard had secured an order worth 450M Singapore Dollars (US$39.49) from Seadrill to build a jack-up rig.

CIMB Research, which maintained “outperform” rating with a target price of 6.38 Singapore Dollars (US$5.04) on Sembcorp Marine, said the win brought its year-to-date orders to 1B Singapore Dollars (US$79M).

K-REIT Asia closed flat at 1.29 Singapore Dollars. It said it plans to acquire four office levels in the city-state’s Prudential Tower for around 125.1M Singapore Dollars (US$98.82M).

OCBC Investment Research said after this acquisition, “more than 90% of K-REIT’s Singapore portfolio will also be located in the prime areas of Raffles Place and Marina Bay.” It added, with the debt-funded buy, K-REIT’s aggregate leverage will increase to 39.3% from 37%. The research house does not have a rating on K-REIT.

Genting Singapore inched up 1% to 1.93 Singapore Dollars. AmFraser Research said the share is likely to move up to higher end of month’s 1.86 Singapore Dollars and 2.03 Singapore Dollars range in keeping with its strong quarterly finishes in last 2 yrs.

Among the Top gainers, Jardine Cycle and Carriage surged 4.1% to 35.20 Singapore Dollars (US$27.8), while Hong Kong Land was one of the Top losers by falling 1% to US$6.70. (1 USD = 1.266 Singapore Dollars).

Shayne Heffernan

www.livetradingnews.com

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Posted by Shayne Heffernan on Mar 22nd, 2011and filed underEquities, Latest News, Limelight, Markets.You can follow any responses to this entry through theRSS 2.0You can leave a response by filling following comment form or trackback to this entry from your site