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Shayne Heffernan is an Economist, Trader, Fund Manager and Venture Capitalist based in Asia. He also serves as Editor and contributor at, Founder of The Heffernan Group and currently building the company's financial services business in China. Major shareholder and CEO... More
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  • Shayne Heffernan ASEAN Markets Preview 0 comments
    Apr 27, 2011 4:55 PM | about stocks: THD, IDX, TTF

    SEAN Stars will post gains today and investors should be looking to buy insurance companies.

    US stocks extended gains, as the leading NAS hit a 10 yr high Wednesday following comments by US Federal Reserve Chairman Ben Bernanke, which reinforced the view the Fed is likely to maintain its support for the US economy.

    The DJIA .DJI closed up 95.59 pts, or 0.76%, at 12,690.87.

    The Standard & Poor's 500 .SPX closed up 8.42 pts, or 0.62%, at 1,355.66.

    The NAS Composite Index .IXIC closed up 24,44 pts, or 0.78%, at 2,869.98.

    The Fed's policy-setting Federal Open Market Committee said in a statement it intends to complete its $600 billion bond buying program in June as scheduled and maintain a fiscal and monetary policy designed to nurture the growing US economy.

    Some commodities saw early selling pressure in pit trade, but they recovered and closed Strong.

    Precious metals prices moved to the Neutral line in the morning, but both rallied in afternoon trade. As Gold settled with a 0.6% gainer at 1526.30 oz. and Silver settled with a 3.5% gainer at 47.56 oz.

    Crude Oil prices set session lows of about 111 bbl this morning when it was learned that weekly Crude Oil inventories had a greater-than-expected increase. Crude Oil settled in, and rebounded to positive territory then moved to a 0.2% gainer at 112.95 bbl on the day.

    Jakarta is trading at a new high and strong international earnings will see the JCI approach 4000 this year.

    Shayne Heffernan best buy are Insurance companies Lippo General and Panin Insurance

    PT Lippo General Insurance Tbk is an Indonesia-based company engaged in the provision of general insurance. The Company’s insurance products are divided into five categories: fire insurance, which includes industrial and property all risks insurance; motor vehicle insurance; marine cargo insurance, which includes sea transit, land transit and air transit; health insurance, and others, which include engineering insurance, public liability insurance, money insurance and personal accident insurance. Its engineering insurance includes contractor’s all risks insurance, erection all risks insurance, machinery insurance and electronic equipment insurance. The Company operates branches and marketing office in Karawaci, Medan, Surabaya, Palembang, Bandung, Semarang, Solo, Pekanbaru, Cikarang and Makassar.

    PT Panin Insurance Tbk is an Indonesia-based insurance company. The Company's insurance products cover property, motor vehicle, marine cargo, personal accident, engineering and money. The Company's subsidiaries, PT Panin Life Tbk, PT Panin Financial Assurance, PT Anugrah Life Insurance, PT Epanin Dotcom and PT Panin Geninholdco, are engaged in the life insurance business and the general trading and services industries. The Company is supported by branch offices in Jakarta, Bandung, Semarang, Surabaya and Medan, as well as representative offices in Cirebon, Palembang, Makassar, Bandar Lampung, Pekanbaru, Yogyakarta, Padang, Jambi, Pematang Siantar, Sukabumi, Puri Kencana-Jakarta and Solo. The Company is a member of Panin Group.

    Indonesia’s life insurance industry is set to grow up to 30 percent this year as the nation’s middle class grows and expectations of returns on investment in capital markets stay bullish, an industry chief said.

    “The expected economic growth of 6.4 percent to 6.5 percent will boost household consumption. This will create a potential market for the life insurance industry,” Evelina F. Pietruschka, chairwoman of the Indonesian Life Insurance Association (AAJI) told the Jakarta Globe in an exclusive interview on Tuesday.

    She said a larger middle class would boost the ranks of insurance policy holders, which stood at 16.75 million last year.

    Total assets within the life insurance industry were Rp 174.77 trillion ($20.3 billion) in 2010, up 24.4 percent from the previous year. While its growth outpaced the 6.1 percent increase in the Indonesian economy, the industry remained a small fraction of the nation’s financial sector.

    In comparison, Indonesia’s banking sector had total assets of Rp 3,008.9 trillion last year.

    In Jakarta yesterday the JCI rose 30.06 points, or 0.8 percent, to close at 3,804.93. About 5.4 billion shares worth Rp 3.8 trillion ($440.8 million) changed hands.

    The rupiah strengthened 0.4 percent to trade at 8,615 to the dollar at the close on Wednesday, on speculation the US Federal Reserve will keep its interest rates low, maintaining Indonesia’s yield advantage.

    Manila is seeing the return of foreign investors and that will help lift the index again today.

    Shayne Heffernan best buys are Metro Pacific, Ayala

    Metro Pacific Investments Corporation serves as the holding company for investments in real estate and infrastructure projects. The Company is organised into six business segment: water utilities, toll operations, power, healthcare, and others. Water utilities primarily relates to the operations of DMCI-MPIC Water Company and Maynilad in relation to the provision of water services. Toll operations primarily relate to operations and maintenance of toll facilities. Power relates to the investment in Meralco through Beacon. Healthcare primarily relates to the operations ad management of hospitals and clinics. Others represent operations of subsidiaries involved in provision of services and holding companies. This includes the real estate segment which primarily relates to the operations of Metro Pacific Corporation and Landco Pacific Corporation and its subsidiaries, which are involved in the business of real estate of all kinds.

    Ayala Corporation (Ayala) is a Philippines-based holding company of diversified business groups. The Company operates in business units, such as real estate and hotels; financial services and bancassurance; telecommunications, electronics, information technology and business process outsourcing services; water utilities; automotives; international, and others. The real estate and hotels segments activities include planning and development of residential and commercial communities; development and sale of residential and commercial lots, and the development and leasing of retail and office space and land in these communities. Financial services and bancassurance include universal banking operations: commercial, consumer, mortgage and agribusiness loans, leasing, payment services and bancassurance operations; Automotive is engaged in the manufacture and sale of passenger cars and commercial vehicles. International is engaged in investments in overseas property companies and projects.

    In Manila Yesterday Philippine Stock Exchange index added 15.75 points or 0.36 percent to finish at 4,321.32. The index moved further away from the support level at 4,300 on news that US companies and consumers have turned more upbeat about the economy.

    Demand was brisk among foreign investors, resulting in a net buying position of P570 million for the day. There were 77 advancers versus 61 decliners while 37 stocks were unchanged.

    Bursa Malaysia looks set for more gains today and Shayne Heffernan best buys are Yeo Hiap Seng, Tanjung Offshore.

    Tanjung Offshore Bhd has been awarded a contract worth about RM15.0 million for the provision of valve repair and maintenance services for Murphy Sarawak Oil Co Ltd.

    It secured the contract through its wholly-owned subsidiary, Tanjung Maintenance Services Sdn Bhd.

    In a filing to Bursa Malaysia, the company said the contract is effective from March this year to March 2014 with an option to renew for another two years.

    In the event the contract is renewed for another two years, the cost will be determined at the then cost/prices.

    The contract is expected to contribute positively to the earnings and net assets of Tanjung Offshore for the financial year ending Decmber 31, 2011 and beyond

    Read more: Tanjung Offshore wins RM15m Murphy job

    Yeo Hiap Seng (NYSE:M) Bhd’s net profit for its quarter ended March 31 was up 35.7% to RM7.6mil year-on-year supported by higher sales from Yeo’s core products.

    The company in a filing with Bursa Malaysia yesterday said it recorded a marginal increase in revenue to RM151.6mil for the quarter under review from RM151.2mil previously.

    Earnings per share for the quarter stood at 5 sen compared with 3.68 sen a year ago.

    “Sales from Yeo’s core brand products improved by 11%. However, overall sales only improved by 0.3% mainly due to the reduction in sales from Red Bull products following the termination of the Red Bull distribution rights in April 2010,” said the company.

    In Kuala Lumpur yesterday the KLCI index gained 2.57 points or 0.17% to close at 1530.


    The Winners were GENTING (+16 sen to RM11.66), AMMB (+5 sen to RM6.39), CIMB (+2 sen to RM8.22), YTL (+2 sen to RM1.70) and SIME (+2 sen to RM9.07).

    The Losers were TENAGA (-4 sen to RM6.04), DIGI (-16 sen to RM28.82), PETDAG (-22 sen to RM15.68), BAT (-32 sen to RM47.28) and YTLPOWR (-1 sen to RM2.22).

    The Finance Index increased 0.28% to 13968.54 points, the Properties Index dropped 0.13% to 1098.04 points and the Plantation Index down 0.12% to 7595.71 points. The market traded within a range of 8.11 points between an intra-day high of 1534.69 and a low of 1526.58 during the session. Market breadth was negative with 320 gainers as compared to 454 losers.

    Trading volume increased to 1144.63 mil shares worth RM1431.28 mil as compared to Tuesday’s 1043.93 mil shares worth RM1270.02 mil.

    Singapore should see further gains today and Shayne Heffernan best buys are Osim

    Osim International said its first quarter net profit surged 150 per cent to $20 million from a year earlier.

    The firm said a better product mix and higher productivity resulted in its strong performance. Osim said it was eying growth from high-end tea brand TWG, in which it has a 35 per cent stake, and its OSIM-TWG joint venture in which it has a 60 percent controlling stake.

    Mapletree Commercial Trust opened at $0.89 on its Singapore debut, slightly above its offer price, as investors were drawn by its relatively attractive yield.

    The real estate investment trust (REIT) is the most actively traded stock in the Singapore Exchange during the session, with some 140 million units changing hands.

    Mapletree Commercial Trust hit a high of 90 cents but the buying sentiment fizzled out causing the stock to end its first trading day at 88 cents.

    The REIT had offered about 713 million units to institutional and retail investors during its IPO.

    REIT manager Mapletree Commercial Trust Management said the total placement tranche and public offer was about 8.38 times subscribed.

    The offering of 712.89 million units consist of a placement tranche of 548 million units for institutional investors, and a public offering of 164.8 million units.

    Cornerstone investors, including the AIA Group, Hillsboro Capital, Itochu Corporation and NTUC FairPrice Cooperative, have subscribed to a total of 302 million units.

    These are separate from the offer.

    Distribution per unit for the first year of the Trust’s listing (2011/2012) is 4.97 Singapore cents, and 5.42 Singapore cents in the second year (projection year 2012/2013).

    The REIT owns VivoCity and office buildings such as the Bank of America Merrill Lynch HarbourFront and PSA Building.

    Part of the S$893 million in IPO proceeds will be used to pay for the acquisition costs of the two office buildings.

    The proceeds will also be used to fund loans, issue and debt-related costs and working capital.

    The IPO follows the mega US$5.4 billion offering by Hutchison Port Holdings Trust (HPH) last month, and the S$3.45 billion offering by Global Logistics Properties late October.

    In Singapore yesterday the Straits Times Index closed at 3,182.68, up 0.34 per cent, or 10.85 points.

    About 1.3 billion shares exchanged hands.

    Losers beat gainers 246 to 220.

    Thai Stocks, Thai Insurance, Siam Commercial New York Life, Ayudhya Insurance

    Shayne Heffernan best buys in Thailand today are Insurance companies, Thai Insurance, Siam Commercial New York Life, Ayudhya Insurance.

    The Thai Insurance Public Company Limited is a Thailand-based company engaged in the non-life insurance business. The Company offers a wide range of insurance products, including fire insurance, marine insurance, automobile insurance and miscellaneous insurance. Its miscellaneous insurance is comprised of construction, machinery installation, water tank explosion, individual accident, travel accident, health, cancer, business interruption and other insurance policies. The Thai Insurance offers its products in both personal and commercial lines, mainly for retail customers as well as small and medium sized enterprises. The majority of its revenue is derived from its automobile insurance sales. The Company operates eight branch offices in Rayong, Chonburi, Khon Kaen, Nakhon Ratchasima, Chiang Mai, Phitsanulok, Nakhorn Pathom and Chiang Rai.

    Siam Commercial New York Life Insurance Public Company Limited is a Thailand-based company engaged in the provision of life insurance business. The Company provides services throughout the country. It offers four types of insurance: ordinary life insurance, including whole life insurance, term insurance and endowment insurance; industrial life insurance, such as government officer life insurance; group life insurance, which is primarily provided for both public and private companies as employee benefit plans, and corporate business insurance, which is specifically developed for financial institutions, covering the risk of loss of loan arising from death and disability of borrowers, such as mortgage insurance. The Company also operates in the investment business to generate additional income by using insurance premiums to invest in equity, debt, derivative and mutual fund markets, as well as deposits and loan granting.

    The Ayudhya Insurance Public Company Limited is a Thailand-based company engaged in the provision of non-life insurance. The Company’s services is divided into three: individual insurance, which include motor insurance for private vehicle, personal accident, travel accident, cancer protection, fire insurance for dwelling, burglary and golfer’s indemnity; business insurance, which include motor insurance for fleet, group personal accident, fire, property all risks, business interruption, machinery breakdown, boiler, constructor’s all risks and erection all risks, public liability, hull and marine cargo insurance, and package insurance, which include motor, personal accident, group personal accident, property damage under Ayuhya Suksan plan and fire insurance under economic plan. The Company operates 19 branches, which are located in Thailand provinces.

    In Bangkok Yesterday The Stock Exchange of Thailand main index went up 4.40 points or 0.40 to close at 1,101.35 points at the end of trading session on Wednesday Afternoon. The trade value was 32.74 billion baht.

    Top five most active;

    CPF         closed at    30.75 baht, up 0.75 baht (2.50%)
    JAS          closed at     3.38 baht, down 0.04 baht (1.17%)
    SCC         closed at  384.00 baht, up 4.00 baht (1.05%)
    IVL         closed at     53.50 baht, down 1.50 baht (2.73%)
    MAJOR    closed at    14.60 baht  up 1.00 baht (7.35%)

    Shayne Heffernan

    Shayne Heffernan oversees the management of funds for institutions and high net worth individuals.

    Shayne Heffernan holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.

    Disclosure: I am long THD, IDX, TTF.

    Additional disclosure: I am long Singapore, Thailand, Indonesia, Philippines, Malaysia

    Stocks: THD, IDX, TTF
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