Daily Market Watch - 3 September 2012

SINGAPORE

Oversea-Chinese Banking Corporation (OCBC) said it updated its $5B programme for debt instruments to a $10B Global Medium Term Note Program.

Keppel Corporation (KEP) said it won an EPC contract for a waste-to-energy combined heat and power project, worth appx. S$124M, in Bialystok , Poland .

Capitaland Ltd (CAPL) to officially inaugurate Raffles City Chengdu, which "comprises a shopping mall, grade A office towers, a hotel, serviced residences and premium residential apartments."

US indices closed higher on Friday helped by semiconductors & semiconductor equipment and materials sectors. On the US economic data front, Chicago Purchasing Manager index fell to 53.0 (53.2 expected) in August from 53.7 the previous month while the Thomson Reuters/University of Michigan final index of consumer sentiment climbed to 74.3 (73.6 expected) from 72.3 in July. Finally, factory orders jumped 2.8% MoM (+2.0% expected) in July. Regarding US stocks, Splunk (SPLK +12.79% to $34.4) announced for its 2Q ended July 31, 2012 revenue up 71% YoY to $44.5M with an adjusted LPS of $0.01 ($0.03 expected) compared to a LPS of $0.13 the year before. Separately, SAIC Inc (SAI +3.39% to $12.21) reported a 2Q diluted EPS from continuing operation of $0.32, flat YoY, on revenue of $2.85B vs $2.66B expected. In other news, Newmont Mining (NEM +4.39% to $50.68), Randgold Resources (GOLD +5.11% to $102.97) benefited from a jump in gold price.

In Europe, in Euro Zone, inflation climbed to 2.6% in August from 2.4% in July. The seasonally adjusted jobless rate remained unchanged at a record 11.3% in July. Germany 's retail sales decreased 0.9% from a month ago in July, from the 0.5% rise in June. European stocks rose as Federal Reserve Chairman Ben S. Bernanke said he would not rule out further bond purchases. Hermes International edged up after the company raised this year's sales-growth target as first-half earnings beat estimates. The Nikkei225 index opened lower this morning, and is now below its 50-day moving average.

CHINA - HK

China 's official Manufacturing PMI fell to 49.2 in August (50.0 expected) from 50.1 in July, the lowest pace in nine months and "below 50 percent, which shows the manufacturing sector is contracting" announced the China Federation of Logistics and Purchasing.

Chinese Premier Wen Jiabao said Saturday "The controls on the real estate market have lasted two years and the government has made significant progress in curbing fast rises in housing prices" and asked local governments to increase supply of affordable houses to rein in speculative demand and help boost economic growth (Xinhua).

Hong Kong 's M1 money supply climbed 5.9% YoY in July , compared to +7.2% YoY in June, while M2 money supply expanded 5.1%, after a 6.2% growth in June.

Yue Yuen Industrial (551) posted 9-month net income of $438.6M, up from 400.5M a year earlier, on turnover of $5.56B, up 7.25% on the year.

GOME Electrical Appliances (493) swung to a 1H attributable net loss of 501M yuan, vs a 1H net income of 1.25B yuan the previous year. Revenue fell 22.4% to 23.13B yuan, due to "Government's progressive withdrawal of the policies which were implemented since 2009 to stimulate home electrical appliances consumption, as well as China 's ongoing property market austerity measures". The Co declared no dividend (1H11: HK$0.027 per share)

China Oilfield Services Limited (2883) to sell $1B of 3.25% senior guaranteed notes, maturing September 2022.

Weichai Power Co (2338) said it acquired a 25% stake in Germany 's Kion Group for E738M.

CLP Holdings (2): ex-div HK$0.53

PICC Property & Casualty (2328): ex-div HK$0.189 China Minsheng Banking Corp (600016): ex-div CNY0.15