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Editorial Desk
Editorial Desk | 27 April 2012
By: Xavier Lim
Articles (51) Profile

Remember the first time when our local bourse, the Straits Times Index (STI) breached the 3,000 level on 15 February 2012, after Valentine’s Day? This was followed by many false breakouts that led many investors to wonder if the market was due for a correction.

Well, let us take a look at the hard and factual economic data and stop guessing about the economy and the stock market. In the US, consumer confidence fell for a second month to 69.2 in April from a revised March reading of 69.5. Meanwhile, sales of new homes for March came in stronger-than-expected but home prices dived in February to hit the worst level since 2002.

On the other hand, fears about the ongoing political and economic turmoil in Europe emerged again as political uncertainty on French elections and rising bond yields in Spain and Italy seemed to weigh on global stock markets. Nevertheless, global indexes rebounded strongly on Apple’s better-than-expected earnings and Federal Reserve’s decision to leave its monetary policy unchanged.

Meanwhile, many market watchers are expecting a strong initial public offering (IPO) market despite lingering economic uncertainty and the underperformance of most IPOs that were listed in 2011. Looking into 2012, things seem to have shaped up for the newly listed stocks, as share prices of Cordlife Group, Bumitama Agri and CIVMEC surged strongly on their debuts as the three 2012 IPOs received overwhelming investors’ response.

Without a doubt, Global Premium Hotels’ (GPH) IPO, the spinoff of Fragrance Group, has also received strong responses from both the public issue and private placement. In this issue’s cover story, we take a closer peek at this fourth IPO of 2012, the second largest economy-tier hotel chain in Singapore. GPH has shown resilience in the recent economic slowdown and recorded stable revenue and occupancy rates over the years. To find out more on this newly listed mainboard company, turn to page 6.

Moving on, we switch our attention to Yamada Green Resources. The shiitake mushrooms supplier reported that its revenue and net profit soared 70.1 and 79.5 percent respectively in 1H12. Flip to page 15 for more information.

In these two weeks, the focus is still on earnings!

Armed with an arsenal of investment knowledge, Xavier is the Senior Research Editor at Shares Investment.

Please click here for more information about this author.

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