atans1

Posts Tagged ‘Jardines group’

Amazon US deal affects S’pore listco

In Uncategorized on 20/06/2017 at 2:06 pm

Amazon.com just bought its way to the top of the food chain. The e-commerce titan is going whole hog for U.S. groceries with the $13.7 billion acquisition of upscale chain Whole Foods Market. Amazon’s comfort with low margins and savvy in logistics make it so fearsome a rival that investors in the sector ran for cover.

There’s a strong sense from investors that Amazon is upending the entire business. Its own market value increased by $15 billion on the news. More significantly, it caused some $30 billion to disappear from Costco, Wal-Mart Stores, Kroger, Supervalu and other grocery vendors. Fears of Amazon’s domination went global, with UK supermarket chains getting hit, too.

Reuters last friday

In Asia, Oz supermarket shares suffered.

Here Jardine Matheson Holdings, whose subsidiaries include a supermarket operator, was down 1.3% and one of only four stocks in the 30-member Straits Times to be in negative territory yesterday. STI up 0.4% yesterday.

Jardines today down under 1.5% so far.

LKY talked cock on UBS/ Ang mohs that really invest for long term

In GIC, Hong Kong, Property on 25/05/2017 at 4:26 am

GIC’s sale of at a loss of part of its stake in UBS reminded me that one Harry Lee boasted that S’pore was even more long term than Buffett: it had a 30 yr horizon. Well he said that in 2007 or 2008 after GIC bot UBS and Citi and Temask bot Barclays (sold) amd Merrill Lynch (disappeared), so it turns out he was talking cock: like on being a good friend of China? He was a running dog of the US going by the quality of the US crowd versus that of the PRC crowd at his funeral.

Now this is serious long term

— Jardines (controlling shareholder of Hongkong Land where the land in Central now resides) first bought freehold land in Central in 1901, and

— HSBC has owned its nearby site since 1866.

And that’s nothing. The Duke of Westminster has properties in central London dating from the 17th century.

STI ETFs — Are there values there?

In ETFs on 06/04/2010 at 5:30 am

The Straits Times Index (STI) is traditionally taken as the barometer of the S’pore stock market and the two ETFs that track it are the most liquid of the ETFs.

But should the STI and the two ETFs be as popular as they should be?

The reason is the presence of the Jardine Matheson, Jardine Strategic and Hongkong Land in the STI, which do not reflect the S’pore economy although apologists point to the operations of Cycle & Carriage Cold Storage, Guardian and Giant embedded within JM. While not peanuts, they are tiny in the Jardines scheme of things.  And, to boot,  they are illiquid and tightly held via cross holdings.

In theory, this means that the STI can be manipulated by judicious buying or selling of these counters. I stress “in theory” because there is no evidence that the STI has been manipulated by the trading  of these three counters.

Sometime back, BT wrote,”The STI’s guardians last week defended Jardine’s inclusion using reasoning that went something like this: ‘we have a set of criteria for index inclusion that Jardine meets, so they’re included’.”

BT went on to to say, “Conveniently omitted is what those criteria are; more interesting is the question of why it is that Jardine Matheson, Jardine Strategic and Hongkong Land, which are in the STI, are not in the more widely-followed MSCI Singapore Free Index*?”. Add to that the FT S’pore Index.

*Widely followed by the pros but not the retail punters. The ETF based on this is illiquid, as it is expensive in dollar terms.