STI Turns Bullish On Global Economy Outlook
The STI surged 2.7% yesterday to close at 2,612.33 following gains on Wall Street last Friday and analysts are optimistic that stocks should continue to rise and investors become more bullish about the global economy. On the broader market, gainers crushed losers 472 to 96 with volume up from 2.5b shares last Friday to 2.9b shares. Oil prices rising above US$70 have led to gains in offshore and marine stocks, as well as commodity stocks as crude palm oil prices gain in tandem with increasing oil prices. Banks were the main benchmark index movers with all 3 local banks rising on hopes that lending will start growing again while non-performing loans will remain under control.

Wall St Runs Out Of Steam After 4-Day Rally
Wall St snapped its 4-session winning streak on Monday after a warning over future bank losses saw the markets erase early gains. Nouriel Roubini, the economist credited with predicting the financial crisis said that there is a big risk of a ‘double-dip recession’, especially if central banks exit from monetary and fiscal easing too quickly. Meanwhile, veteran banking analyst added weight to the sentiment warning another 200 banks could yet close because of the crisis. The benchmark S&P 500 and the Nasdaq Composite both closed 0.1% down at 1,025.57 and 2,017.98, respectively. But the DJIA found fractional gains to 9,509.28.

Fortune REIT To Raise HK$5b To Acquire 3 Suburban Malls
Fortune REIT has joined the recent spate of S-REITs in raising capital via a combination of debt facilities and a rights issue worth close to HK$5b. The bulk of the HK$1.9b gross proceeds from rights issue and a term loan of HK$480m will be used to fund the company’s latest acquisitions of 3 suburban retail properties from Hong Kong tycoon Li Ka-shing for HK$2.04b. The acquisitions are said to help expand and diversify the company’s portfolio in Hong Kong, enlarge its exposure to the resilient suburban retail space, and provide opportunities for asset enhancement. The debt facilities, to be repaid in 3 tranches, also effectively defer any refinancing risks till 2013 and reduces the company’s aggregate leverage from 25.7% to 24.9%.

Raffles Education FY09 Net Profit Dives 48% To $51m
Raffles Education Corp has reported a substantial on-year drop of almost 50% in its FY09 net profit ended June 30 amounting to $51.1m. The bottom line includes a $33.1m impairment charge of its entire investment in associate Oriental Century. Other factors include a $15.5m increase in rental and personnel expenses due to investments in 6 new colleges in India, Indonesia and China and a larger headcount after operations expanded. Turnover had in fact risen 6.3% to $202m on the back of an overall increase in student enrolment. Going forward, the company intends to open 8 more colleges and to look for strategic acquisitions to develop its brand equity regionally. Other growth drivers include the development of its own proprietary courseware and Oriental University City, a self-contained campus in China’s Hebei province providing education services to 14 colleges.

Indiabulls Trust Clarifies Right Issue Rumours
Indiabulls Properties Investment Trust has clarified that it might not proceed with a proposed $200m rights issue as it is still in the process of evaluating various sources of funding and other means of capital management for its trust fund, including a rights issue and other borrowing facilities. The company added that it has not formally appointed an investment bank to handle the rights issue, however, it did make a listing application to stock exchange for new units to be issued under a rights issue.