UBS Leading Southeast Asia Stock Sales on Billionaires
UBS AG (UBSN) jumped to the lead among share-sale underwriters in Southeast Asia for the first time in six years, capitalizing on its relationships with wealthy families and a surge in equity offerings in countries including the Philippines.
The Swiss bank worked on deals equal to 37 percent of the total value of equity sales in the region in the first half, compared with 26 percent for second-placed CIMB Group Holdings Bhd., data compiled by Bloomberg show. UBS won roles on the biggest-ever share sales in the Philippines, Thailand and Indonesia, including PT Matahari Department Store (LPPF)’s $1.4 billion offering in March.
Posted by admin on July 19, 2013
Asian corporates face higher financing costs
MANILA, Philippines – Asian corporates face higher financing costs for expansion plans as the recent financial market turmoil underscored the fast-growing region’s vulnerability to sell-offs, an investment bank said yesterday.
“In the context of weak global growth and stalling demand from China, falling asset values and rising funding costs are likely to hit capex plans, particularly in Southeast Asia,” Barclays said in a report.
Capital expenditures or capex pertain to firms’ spending to boost production and expand businesses. The British lender said at this early, capital goods imports have already turned “negative” for Indonesia, Thailand and the Philippines.
Posted by admin on July 1, 2013
Japan’s Mitsubishi Financial set to buy major Thai bank
In what should be the first time a Japanese group takes direct control of a major bank in Asia, reports say thatMitsubishi UFJ Financial Group will be buying a 51 percent stake in Thailand’s fifth-largest commercial bank, the Bank of Ayudhya. The deal is reportedly for around 400 billion yen (approx. 4.06 billion US dollars) and will see MUFJ expand its business in Southeast Asia through offering financial services to consumers and businesses.
MUFG has been lending to Japanese companies inThailand and helping with their trade settlements. But this time around, they will be upping the ante as they expand towards catering to the bank’s strong ties with small and medium enterprises (SME). The deal, expected to be formalized next month, will see MUFG buy out the 25 percent stake of GE Capital then launch a tender for the remaining shares, but at the same time keeping the Ratanarak family which holds 22 percent, as a partner. The bank has around 3.4 trillion yen (34.8 billion dollars) in assets.
Posted by admin on June 24, 2013
Malaysia’s consumer debt is at 76.6 per cent of its GDP and some economists believe that the growing consumer credit could rock the country’s economy.
Malaysia’s consumer debt is at 76.6 per cent of its GDP and some economists believe that the growing consumer credit — where each ringgit of growth nearly matches an extra ringgit of consumer debt — could rock the country’s economy, the Financial Times (FT) reported today.
The country’s household debt ratio is the highest in the region, the influential daily reported, citing Johanna Chua, an economist at Citigroup, who believed this makes the Southeast Asia’s third largest economy vulnerable, especially as lower-income households bear a greater share of the overall debt.
Posted by Innovator on May 24, 2013
The International Monetary Fund has cut its forecast on the economic growth of five nations in Southeast Asia to better reflect faltering growth in the global economy. Monday’s assessment, released in a report by the IMF, was the latest development institution to announce an assessment after the World Bank cut its economic growth forecast for next year.
The IMF cut the economic growth forecast for Indonesia, Malaysia, the Philippines, Thailand and Vietnam, which together are known as the Asean 5, to expand 6.1 percent in 2013, slightly lower that its earlier forecast of 6.2 percent. It cut the global economic outlook for growth to 3.9 percent next year, from its previous forecast of 4.1 percent.
Still, the IMF, which loaned billions of dollars to Thailand and Indonesia during the 1997-98 Asian financial crisis with strict conditions, maintained the growth forecast for the year at 5.4 percent, unchanged from its forecast three months ago.
Posted by stekunan on August 8, 2012
Asia’s fast growing beer market is facing a shake up after ThaiBev, Thailand’s biggest brewer, offered to buy stakes in two breweries.
Overseas-Chinese Banking Corporation (OCBC) said it had been approached for its stakes in the two companies.
The bid is for an 18.2% stake in Fraser and Neave (F&N), and 7.9% of Tiger Beer maker Asia Pacific Breweries.
Heineken jointly controls Asia Pacific Breweries with F&N and has said it will act to safeguard its interests.
Threat to rivals?
ThaiBev is owned by Thai billionaire Charoen Sirivadhanabhakdi, who listed the company in Singapore in 2006.
It operates distilleries in Thailand, Scotland and China, as well as breweries and soft drink facilities in Thailand.
The two stakes ThaiBev is seeking to buy are valued at about $2.3bn (£1.5bn), based on Tuesday’s closing share prices.
The move could be worrying for rivals such as Heineken and Kirin, who also own various shareholdings in F&N and Asia Pacific Breweries.
Heineken holds a 42% stake in Asia Pacific Breweries, while F&N owns 40%. Heineken also owns a direct 9.5% stake in Asia Pacific Breweries.
Japan’s Kirin is the second-largest shareholder in F&N with 15%.
Posted by Innovator on July 18, 2012
Japan’s Government Pension Investment Fund, the world’s biggest public pension fund, said on Monday it had selected six asset managers to make its first investments in emerging markets as it tries to boost returns in the face of rising payout obligations.
Known as GPIF, the pension fund, whose 108.1 trillion yen ($1.35 trillion) in total assets nearly matches the size of the Spanish economy, has become a net seller of its assets in recent years as it tries to cope with Japan’s rapidly aging population.
Market analysts expected the investment in emerging market equities to start at around several hundred billion yen, too small to have a big impact on overall returns, but said the move was an important step to diversify the fund’s portfolio.
The pension fund, which issued a tender for active and passive managers in October 2010, selected Invesco (IVZ.N), Nomura Asset Management, Nomura Funds Research and Technologies, Mizuho Asset Management, Sumitomo Mitsui Asset Management and Lazard Asset Management (LAZ.N). It said there were no suitable managers for passive investments.
Posted by Innovator on July 3, 2012
China’s factory activity shrank in June at the fastest pace in seven months as new export orders tumbled to depths last seen in March 2009, a private sector survey showed, underlining the risk of a lurch lower for the Chinese economy.
The HSBC Purchasing Managers‘ Index (PMI) fell to 48.2 after seasonal adjustments, its lowest since November 2011, and little changed from a flash, or preliminary, estimate of 48.1. The final reading in May was 48.4.
June was the eighth straight month of a reading below 50, the threshold dividing expansion from contraction in the survey methodology.
China’s official PMI, released on Sunday, also fell to a seven-month low in June. However, the official PMI was 50.2, indicating the sector was still expanding.
Posted by Innovator on July 2, 2012