tsi 5 jun 2015

Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Phillip Securities accepts no liability whatsoever with respect to the use of this document or its contents.

Phillip Securities Pte Ltd (A member of PhillipCapital) Co. Reg. No. 197501035Z © PhillipCapital 2015. All Rights Reserved. For internal circulation only.

Speakers: Daniel Cheong

William Chua

5 Jun 2015



Disclaimer

This presentation is provided to you for general information only and does not constitute a recommendation, an offer or

solicitation to subscribe for, purchase or sell the investment products mentioned herein. It does not have any regard to your

specific investment objectives, financial situation and any of your particular needs. Accordingly, no warranty whatsoever is

given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of you acting

based on this information. Investments are subject to investment risks including the possible loss of the principal amount

invested. The value of the units in any fund and the income from them may fall as well as rise. Access to services and your

account may be affected by market conditions, system performance and other reasons.

The information contained in this presentation has been obtained from public sources which PSPL has no reason to believe

are unreliable and any analysis, forecasts, projections, expectations and opinions (collectively the “Research”) contained in

this presentation are based on such information and are expressions of belief only. PSPL has not verified this information

and no representation or warranty, express or implied, is made that such information or Research is accurate, complete or

verified or should be relied upon as such. Any such information or Research contained in this presentation is subject to

change, and PSPL shall not have any responsibility to maintain the information or Research made available or to supply

any corrections, updates or releases in connection therewith. In no event will PSPL be liable for any special, indirect,

incidental or consequential damages which may be incurred from the use of the information or Research made available,

even if it has been advised of the possibility of such damages.

You may wish to seek advice from a qualified financial adviser, pursuant to a separate engagement, before making a

commitment to purchase any of the investment products mentioned. In the event that you choose not to seek advice from a

qualified financial adviser, you should consider whether the investment product is suitable for you before proceeding to

invest and we do not offer advice in this regard unless mandated to do so by way of a separate engagement.

You are advised to read the Conditions governing Phillip Securities Trading Accounts and the Risk Disclosure Statement

carefully before investing in this product.



• Understanding how the stock market works1

• Understanding common corporate actions2

• Trading and Investing Strategies3• The financial markets post-financial-

crisis4• A new approach to forecasting

market movements to complement with FA and TA

5• Basic rules and co-relationships of

the major asset classes6

Topics



Understanding how the

Singapore Stock Market

works



SGX

BROKING HOUSE

CDP

CDP: Central Depository Pte Ltd (Securities Account)

Trading Acct

Buy /

Sell Payment /

Receipt

Update of shares holdings

Update of

Corporate

Actions (Eg,

Dividends)

Market Info, Trade details

Settlements

Apply for CDP

Internet pin!

www.sharesinterest.com



Basic Trading Information

Before 19 Jan 2015: Lot Size: 1000 shares

From 19 Jan 2015: Lot Size: 100 shares

Trading Hours: 9am to 5pm continuous

(Pre-opening: 8.30am to 8.58/8.59am)

(Pre-closing: 5pm to 5.04/5.05pm)

Normal tradingPre-OpeningPre-

Closing

8.30am8.58am

8.59am

9am 5pm

5.04pm

5.05pm

Orders submission/withdrawal

Orders matching


Orders matching only

at 8.58 or 8.59

(opening price)


Orders matching only

at 5.04 or 5.05

(closing price)





Transaction costs:

Trading Fee: 0.0075%

Clearing Fee: 0.0325%

Brokerage Fee: 0.28% - 0.5% (min $25-$40)

GST on above fees

Contract value < $9000 : Total transaction fee ~ $27 to $31 per contract

Contract value $10000 : Total transaction fee ~ $35 per contract

• Amalgamation: Same counter, same market, same type, same side, same day

• Lower brokerage rate for larger contract value. Eg, > $50K





SGX Markets: Ready Market

Unit Share Market

Buy-In Market

Unit Share Market: Lot size 1; for trade qty of 1-99

Brokerage $10

Buy-in Market:

• For SGX to conduct “buying-in” of shares being ‘shorted’

• Accessible via brokers

• Immediate settlement




SGX Watchlist

The Exchange will place a Company on the SGX Watchlist, if it

records:—

(i) pre-tax losses for the three most recently completed consecutive

financial years (excluding exceptional or non-recurrent income and

extraordinary items); and

(ii) an average daily market capitalisation of less than $40 million over the

last 120 market.

Companies on Watchlist are given two years to improve their

financials to be granted removal from Watchlist. Failing which, the

company might be asked to delist.




SGX Watchlist

Where to see which are the companies that are currently on

watchlist?

- SGX Website

- POEMS price information (special symbol ˄)




SGX Watchlist

New! The Exchange will place a Company on the SGX Watchlist, if

:—

the volume weighted average price of their shares for the 6 months

preceding the date of review is less than S$0.20 (Min Trading Price

requirement) . First review date is 1 Mar 2016.

Only companies listed on the SGX Mainboard are subjected to this

rule. They have 36 months to exit from the Watchlist, failing which,

the company might be asked to delist.




Understanding Some

Common Corporate

Actions



Some common corporate actions

Dividends

Profits

Dividends

Shareholders





Bonus Shares

1,000,000

shares

1,500,000

shares

1 for 2 bonus

shares

10,000 10,000

+ (10,000 ÷ 2)

5,000





Shares Split

Eg, 1 into 3 Split

Before: 1000 shares After: 3000 shares

Each share becomes more affordable

Improve liquidity





Shares Consolidation

Eg, 5 for 1

Consolidation

Before: 5000 shares

After: 1000 shares

Increase ‘profile’ of stocks

To meet regulatory requirement (Min trading price)




Some common corporate actionsQ

Shares of company ABC is currently trading at S$0.001, which is the

lowest tradable price in SGX. Mr X is thinking of buying some of the

shares. His reason of buying is:

Since S$0.001 is the lowest price, the price can only go up and so he

will not lose. Is Mr X reason valid?

No! He can lose his investment. The total value of shares can still go

down!






As at Mar 2015







www.sgx.com

Company Information

- Company Announcements

Select ‘Corporate

Action

-> Share

Consolidation

http://www.sgx.com/




Rights Issues

Rights – entitlement given to existing shareholders to buy more

shares at a predetermined price at a predetermined ratio.

Asking shareholders for more fund

Company ABC

2,000,000

shares

To raise $1m,

1 for 2 Rights issue at

$1 for each Right share

(new share)

Every 2 share you own,

you can buy another 1 at

$1 each.

3,000,000

shares





Rights Issues1 for 2 Rights issue at $1 for each Right share

10,000

Shares

10,000

Shares5,000

Rights

10,000

Shares

5,000

Shares

5,000 x $1 = $5000





Rights Issues

10,000

Shares

5,000

Rights

Rights, if not exercised, can be sold in the market

during the ‘Rights trading period’

Need to have a Singapore mailing address! Else, register a ‘Rights

Mailing Addr’ with CDP




Case Studies – Rights Issues

Company Year Details Current

Share Price

OCBC 2014 1 FOR 8 @ $7.65 ~ $10

2005 1 FOR 5 @ $5


Share Price

United Engrs 2013 1 FOR 1 @ $1.50 ~ $2.65

2009 3 FOR 5 @ $1




Case Studies – Rights IssuesCompany Year Details Current

Share Price

TIGER

AIRWAYS

2014 85 FOR 100 @

$0.20

~ $0.30

2013 1 FOR 5 @ $0.47

2011 1 FOR 2 @ $0.58


Share Price

S I2I 2011 1 FOR 1 @ $0.055 ~ $0.002

2010 1 FOR 1 @ $0.10

2006 1 FOR 4 @ $0.16





Where to find? - www.sgx.com





Where to find?




Ex-Date and Book Closure Date (Record Date)

SGX Settlement cycle: T+3

20Jan

1314 15 16 1917 18

Last day to buy

for entitlement

Ex-DateBook Closure Date

(Record Date)




Trading and Investing

Strategies



Trading and Investing Strategies



Trading Strategies

Use Charts to identify trends and Support/Resistance

(impt!)

Avoid trading based purely on news

Do not contra

Use the appropriate tools

Margin/leverage (eg, CFD, Margin acct)




Trading Strategies – Support / Resistancewww.sharesinterest.com



Trading Strategies – Trendwww.sharesinterest.com



Trading Strategies – Trendwww.sharesinterest.com

Other case studies:

M1

DBS

yzj



Investing Strategies

1) Growth High growth companies at the beginning of the cycle –

• High Price Earning ratio (PE)

• High Price to Book Value (P/BV)

• Little or no dividends

More suitable for aggressive, young investors as risk is higher

Benefits

can be very rewarding as share price can appreciate many times.

Risks

Revenue/profit growth might slow unexpectedly – can result in sharp

drop in share price as earlier expectation might be too high.

Non-profitable companies might be marketed as growth companies.





Case studies

• Osim

• Super Gp

• Ezion

1) Growth





2) ValueOccurs during major shock/crisis when price of the stock falls

significantly while fundamental of the company remain little or

unaffected; or, Undiscovered gem not realized by the market

• Low PE

• Low Price to Book

More suitable for patient investors

Benefits can be very rewarding as share price can recover fairly quickly or

appreciate quickly as more investors discover the value of the stock.

Risks Share price can remain at depressed levels till the market “discover”

the value, or existing substantial shareholders do something to unlock

shareholders’ value.





2) Value

Case studies

• Hong Fok

• Valuetronics





3) High dividend yieldCompanies in a mature industry;

REITs, Business Trust

- Look at the company's sustainability in maintaining or even

increasing the dividend payout ( look at OCF )

More suitable for less aggressive, long-term investors

Benefits Stock price tends to be less volatile

Consistent returns from dividends

Risks Might underperform during market bull-run (Risk-on scenario)

Share price may adjust downwards in reaction to any upside in interest

rates.

For highly-geared companies, in an increasing interest rate

environment, dividends payout may be impacted.





3) High dividend yield

Case studies

• SPH

• REITs

• Telcos





SPH: last 10 years





Singtel: last 10 years





CapitaMall Trust : last 10 years




Special deal – only for today!



5 Min



Inter-Market Analysis (IA)



Profit from Global Markets

A New Approach To Forecasting Market Moves

Speakers: William Chua



Disclaimer

This presentation is provided to you for general information only and does not constitute a recommendation, an offer or

solicitation to subscribe for, purchase or sell the investment products mentioned herein. It does not have any regard to your

specific investment objectives, financial situation and any of your particular needs. Accordingly, no warranty whatsoever is

given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of you acting

based on this information. Investments are subject to investment risks including the possible loss of the principal amount

invested. The value of the units in any fund and the income from them may fall as well as rise. Access to services and your

account may be affected by market conditions, system performance and other reasons.

The information contained in this presentation has been obtained from public sources which PSPL has no reason to believe

are unreliable and any analysis, forecasts, projections, expectations and opinions (collectively the “Research”) contained in

this presentation are based on such information and are expressions of belief only. PSPL has not verified this information

and no representation or warranty, express or implied, is made that such information or Research is accurate, complete or

verified or should be relied upon as such. Any such information or Research contained in this presentation is subject to

change, and PSPL shall not have any responsibility to maintain the information or Research made available or to supply

any corrections, updates or releases in connection therewith. In no event will PSPL be liable for any special, indirect,

incidental or consequential damages which may be incurred from the use of the information or Research made available,

even if it has been advised of the possibility of such damages.

You may wish to seek advice from a qualified financial adviser, pursuant to a separate engagement, before making a

commitment to purchase any of the investment products mentioned. In the event that you choose not to seek advice from a

qualified financial adviser, you should consider whether the investment product is suitable for you before proceeding to

invest and we do not offer advice in this regard unless mandated to do so by way of a separate engagement.

You are advised to read the Conditions governing Phillip Securities Trading Accounts and the Risk Disclosure Statement

carefully before investing in this product.



My Profile

A License Remisier from Philip Securities Pte Ltd

Ex-Banker who has experience and Knowlege on dual currency, Fixed Income

(Convertible Bond, Government Bond, Corporate Bond etc), Equity Linked Note, Structured

Product, Forex and Structure Warrants

Has Been Investing in Share since 1993

A License Trader/Trading Representative who is regulated under MAS (Monetary Authority of

Singapore)

Full Time Equity/Forex/Structure warrant Trader since 2006



The STRAIT TIMES on 13 Jan 2013



The Global Financial Markets

The New World Order




New World Order – 6 May 2010(Flash Crash)www.sharesinterest.com



How to forecast the New World

FA + TA = Optimism

IA

FA – Fundamental Analysis

TA – Technical Analysis

IA – Intermarket Analysis




What is Intermarket Analysis (IA)

“ Intermarket Analysis is the analysis of

more than one related asset class or

financial market to determine the strength

or weakness of the financial markets or

asset classes being considered “




Intermarket Analysis

Four Major Sectors of the Financial Markets

1) Currency

2) Equities

3) Bonds

4) Commodities




Basics Rules of Intermarket Analysis

* A Financial Market never moves in isolation

* All Financial markets are connected, both domestically and

globally.

* An analysis of one financial must include an anlysis of all the

financial markets.

* The main financial market groups are stock, bond, commodities

and currency markets




Investment so be

SIMPLE



Selection of Stocks

DownTop Approach – Select Country / Sector

1) FA – Select the Stock to invest/Trade

2) TA – Set entry price, Exit Price and Stop Loss Price

3) IA – Monitor the overall markets conditions and Co

relationship of the selected stock




Fundamental Analysis - Stock Analyticswww.sharesinterest.com



Technical Analysis - ChartWhiz




My Trading RADAR




E.g1: Relationship between HSI index

and EUR/USD




E.g 2 – OLAM before the Attack24 Oct 2012

Olam Debt : $7.2B




E.g 2 - OLAM Chart

27 Nov 2012




Case 3 – Q&M12 Mar 15




Case 3 – Q&M




The DataBank

Global Desk

Fund Houses

Bond Desk

2 Group of

Remisiers

ME Clients




Questions?



Setting up POEMS trading account

No set-up cost

If you do not have a CDP account, we can assist you to open one

Accounts will be ready in approx 2 weeks time

No maintenance fee*

Trade online via Internet, mobile (apps) or your Remisier

* certain fees may be applicable to certain account types such as Margin, Custodian and Cash pre-paid.

Foreign shares custody fee may apply.




Investment Custodian

i) Liase directly with Phillip (your Remisier) on all corporate actions.

ii) Shares holdings are updated and your Remisier can assist to check your

holdings.

iii) Higher trading limits*

iv) Securities lending for extra income

Improve your trading/investing experience

Investment Margin

i) Liase directly with Phillip (your Remisier) on all corporate actions.ii) Shares holdings are updated and your Remisier can assist to check your holdings.iii) Increased purchasing poweriv) Securities lending for extra income

useful for foreigners residing outside of Singapore , or anyone who wishes to enjoy the

convenience and benefits of liaising with only one single custodian for all their shares.




Account maintenance fee

S$16.05 per quarter (waived if there is at least one trade (local or

foreign) in the quarter

Now waived till 30 Jun 2016!

Corporate action fee

Cash Dividend: 1% on net dividend subject to min S$1.07 capped

at S$53.50 + Foreign fees and taxes (if

applicable)

Others: S$10.70 + Foreign fees and taxes (if applicable)





Improve your trading/investing experiencewww.sharesinterest.com

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tsi 5 jun 2015

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