Tuesday 28th April 2015
NEWS TICKER: APRIL 28th 2015: The Straits Times Index (STI) ended 20.76 points or 0.59% lower to 3495.09, taking the year-to-date performance to +3.86%. The top active stocks today were SingTel, which declined 0.45%, DBS, which gained 0.48%, UOB, which declined 0.36%, Keppel Corp, which declined 2.56% and OCBC Bank, which closed unchanged. The FTSE ST Mid Cap Index fell 0.63%, while the FTSE ST Small Cap Index fell 0.67%. The outperforming sectors today were represented by the FTSE ST Utilities Index, which rose 1.24%. The two biggest stocks of the Index - United Envirotech and Hyflux – ended 1.11% lower and 1.60% higher respectively. The underperforming sector was the FTSE ST Oil & Gas Index, which slipped 2.59%. Keppel Corp shares declined 2.56% and Sembcorp Industries declined 2.60% - India’s MM Auto Industries Ltd has withdrawn its proposed initial public offer, making it the third entity to pull back of an IPO this year. The Gurgaon-based company had filed draft offer documents with the Securities and Exchange Board of India (SEBI) for the proposed IPO in March. It was yet to receive Sebi's approval for the proposed public offer. However, the company through its lead merchant banker Mefcom Capital Markets Limited withdrew the IPO application on April 18th according to the firm’s spokesman - Orezone Gold Corporation (ORE-TSX) has released the findings of an independent Feasibility Study for its wholly owned Bomboré Gold Project in Burkina Faso, West Africa. The study envisions a shallow open pit mining operation with a processing circuit that combines heap leaching and carbon-in-leach (CIL) without any grinding to process the soft and mostly free digging oxidized ores. The eleven-year mine plan, based on a mineral reserve using an US$1,100 gold price, is designed to deliver higher grade ore in the early years (0.88 g/t over the first eight years of production at a strip ratio of 1:1). Lower grade stockpiles will be processed in the final three years. The financial model with revenues based on a US$1,250 gold price, yields a robust 24.4% after tax internal rate of return to the company (based on 90% ownership, 10% government stake) with a net present value of $196m at a 5% discount rate. Project payback is estimated at 2.7 years with all in sustaining costs averaging $678/oz. Initial capital is estimated at $250m including contingencies, all working capital and a $10.5m credit for gold revenues generated during the pre-production period. Capital costs include the mining fleet, a much larger water storage reservoir and higher resettlement costs than envisioned in the March 2014 Preliminary Economic Assessment (PEA). Sustaining capital is estimated at $75.2m, taking into account the additional three years of mine life and higher resettlement costs than estimated in the PEA. Total reclamation and closure costs are estimated at $22.5m including $8.7m of heap rinsing costs expensed in year twelve.

Macro gains offset by equity losses

Friday, 15 June 2012
Macro gains offset by equity losses Hedge funds post declines in volatile May; systematic macro post gains on fixed income http://www.ftseglobalmarkets.com/

Hedge funds post declines in volatile May; systematic macro post gains on fixed income

Hedge funds posted decline in May, with the HFRI Fund Weighted Composite Index posting a loss of -1.6%, says Hedge Fund Research, Inc., the indexation, analysis and research provider for the global hedge fund industry. This marks the third consecutive monthly decline, reducing the year to date gain for the index to 2.5% through May.  “During the volatile month of May, investors reacted to increased European bank and sovereign bond risk and weakening U.S. economic data by aggressively moving portfolios toward less risky exposures,” explains  Kenneth J Heinz, president of HFR. “This

risk-off response adversely impacted certain areas of equity-sensitive hedge fund exposures, while benefitting strategies tactically positioned to insulate portfolios and produce gains resulting from the strong trends and volatile environment which materialised. In the current environment, at some level, every hedge fund is a Macro fund.” 

Mirroring trends across financial markets, hedge fund performance during May was widely divergent across strategies, with macro funds posting their best monthly performance since April 2011, while equity hedge posted its largest decline since September 2011. The HFRI Macro Index gained 1.7% in May, bringing YTD gains to 1.9%, with significant contributions from systematic strategies and positions in fixed income, commodities and currencies, with limited aggregate exposure to equity market volatility. The HFRI Macro: Systematic Diversified Index gained 4.1% in May and has gained 2.9% year to date.

The HFRI Equity Hedge Index posted a decline of -4.1% in the month, paring its year to date gain to +1.8%, with declines across growth, energy and emerging markets strategies only partially offset by short bias funds, which gained over 7%. Event driven strategies fell by -1.4%, paring year to date gains to 3.1%, with weakness in activist, distressed and equity special situations funds. Falling yields and increased volatility failed to offset the impact of credit weakness as Relative Value Arbitrage funds posted a decline of -1.3%, the first decline for this strategy in 2012, narrowing year to date gains to 3.1%, for the global strategy.

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