Wednesday 1st April 2015
NEWS TICKER: WEDNESDAY, APRIL 1st 2015 : The EBRD is considering a credit line of up to €15m to Všeobecná úverová banka a.s. (VUB) in the form of an extension of a €5m existing facility signed in December 2014, bringing the total amount provided to VUB under SlovSEFF III to €20m. This operation will enable VUB to provide sub-loans to companies and residential sector borrowers (housing associations) for energy efficiency and renewable energy investments in the Slovak Republic and provide financing for sustainable energy projects with a focus on reducing greenhouse gas emissions and assist in mitigating high energy and carbon intensity in the region - CMS says it has advised Orifjan Shadiyev, owner of Capital Bank Kazakhstan, on the acquisition of RBS’s business in Kazakhstan (RBSK). The CMS team was led by Graham Conlon, a partner in the corporate and international private equity team, and supported by senior associate Tetyana Dovgan - CBRE Group Inc says it has agreed to acquire the Global WorkPlace Solutions (GWS) business of Johnson Controls Inc. (JCI) for $1.475bn in cash. GWS is a provider of integrated facilities management solutions for occupiers of commercial real estate and has operations around the world – The Securities and Exchange Board of India (SEBI) says it has allowed OTC Exchange of India (OTCEI) to exit as a bourse from the nation's securities markets. According to SEBI, OTCEI had complied with the regulator's conditions for exit and is therefore "a fit case to allow exit" from capital markets adding that the bourse had made payment of necessary dues to the regulator, including 10% of the listing fee and the annual regulatory fee. "From the valuation report and undertaking of OTCEI, it is observed that all the known liabilities have been brought out and that there is no other future liability that is known as on date," SEBI said in the order dated March 31. In allowing the exit, SEBI has asked the bourse to change its name and not to use the description ‘Stock Exchange’ or any variant of it and to avoid any representation of present or past affiliation with the stock exchange, in all media. The central government had granted recognition to OTCEI, as a stock exchange on August 23, 1989 initially for a period of 5 years, which was subsequently renewed from time to time. As per SEBI’s rules, a stock exchange, whose annual trading turnover on its platform is less than Rs1,000 crore, can apply for voluntary surrender of recognition and exit, while a bourse which fails to achieve a turnover of Rs 1,000 crore, is subject to a compulsory exit process - Independent subsea remotely operated vehicle (ROV) services provider, ROVOP, has established a Western Hemisphere headquarters and support base in Houston and has hired three ROV industry professionals to lead the business. Scott Wagner, Brett “Gonzo” Eychner and Wayne Betts bring a combined total of more than 100 years’ global experience in the ROV services sector to ROVOP. They join an established management team and staff of 130 based in Aberdeen, Scotland, who have developed ROVOP into a leading player in the ROV field. The company’s client portfolio includes oil & gas, offshore wind and telecommunications companies. Mark Vorenkamp, chairman of ROVOP, said: “ROVOP is changing the market for ROV services. Over the last two decades, ROV technology, capability and service has fallen behind the pace of change seen in other industries. ROVOP’s facility is located in North West Houston on a 1.5 acre site which includes a 4,500 ft2 office and 17,300 ft2 workshop where the company will manage their fleet of FMC Schilling Robotics and SAAB Seaeye ROVs. “The recent mobilisation of two Schilling Ultra-Heavy Duty (UHD) Generation III ROVs, capable of closing a blowout preventer (BOP) within 45 seconds to meet American Petroleum Institute (API) requirements, illustrates ROVOP’s commitment to supporting clients with industry leading technology in the Gulf of Mexico,” says Wagner - The Straits Times Index (STI) ended +0.01 points higher or 0.00% to 3447.02, taking the year-to-date performance to +2.43%. The FTSE ST Mid Cap Index gained +0.02% while the FTSE ST Small Cap Index declined -0.04%. The top active stocks were CapitaLand (unchanged), SingTel (-0.23%), UOB (+0.22%), DBS (+0.15%) and ST Engineering (unchanged). The outperforming sectors today were represented by the FTSE ST Technology Index (+1.13%). The two biggest stocks of the FTSE ST Technology Index are Silverlake Axis (+1.83%) and STATS ChipPAC (unchanged). The underperforming sector was the FTSE ST Basic Materials Index, which declined -1.24% with Midas Holdings’s share price unchanged and Geo Energy Resources’s share price gaining+0.52%. The three most active Exchange Traded Funds (ETFs) by value today were the DBXT MSCI Indonesia ETF (+0.14%), LYXOR China H (+0.29%), DBXT FT China 25 ETF (+1.75%).

Commodity ETPs in demand as China outlook Improves

Wednesday, 09 July 2014
Commodity ETPs in demand as China outlook Improves Global Commodity ETPs saw a second consecutive quarter of inflows in Q2 2014, as increasing confidence in China’s economic outlook and global economic recovery boosted commodity prices and investor demand for commodity exposure. Inflows totalled $275m, up from $271m of inflows in Q1 2014. The combination of inflows and higher prices pushed assets under management (AUM) in commodity ETPs at the end of Q2 2014 to $123.3bn from $122.4bn at the end of Q1 2014. http://www.ftseglobalmarkets.com/

Global Commodity ETPs saw a second consecutive quarter of inflows in Q2 2014, as increasing confidence in China’s economic outlook and global economic recovery boosted commodity prices and investor demand for commodity exposure. Inflows totalled $275m, up from $271m of inflows in Q1 2014. The combination of inflows and higher prices pushed assets under management (AUM) in commodity ETPs at the end of Q2 2014 to $123.3bn from $122.4bn at the end of Q1 2014.

]  “All key commodity sectors saw inflows during the quarter except for agriculture and livestock.  Precious metals saw the strongest investor demand with $430m of inflows, followed by diversified broad commodity ETPs with $172m, energy with $135m and industrial metals with a more modest $15m.  Agriculture and livestock saw $477m of outflows. Increasing confidence in the US recovery, a positive turn in China growth after three years of slowdown, and expected further easing measures by China’s policy-makers has boosted prices and investor sentiment towards commodities,” says Nicholas Brooks, head of research and investment strategy at ETF Securities.

Commodity ETPs with the strongest demand in Q2 were platinum and palladium, with $400m and $410m of inflows respectively. Rising global auto demand (autocatalysts are a key source of demand for both metals) together with rising supply concerns due to mine strikes in South Africa and potential Russia export restrictions has exacerbated fears that already large supply deficits will worsen and has pushed prices higher for both metals.  We anticipate these trends will continue in H2.



Gold ETPs saw mixed flows, with US listed gold ETPs seeing $586m of outflows while Europe and other country listed gold ETPs saw $483m of inflows, leading to net quarterly outflows of $103m. Most of the divergence in the gold ETP flow trends took place in April.  The most likely explanation for the divergence is that during that period European investors were focusing on the close-to-home potential risks of a Russian invasion of the Ukraine, while US investors mostly maintained their bullish view on risk assets as US equities continued to hit new highs. With geopolitical risks still high and many risky asset classes trading at stretched valuations, we believe gold ETP demand will continue to improve in H2 2014 as investors look for hedges against possible risk market corrections.

Diversified broad commodity ETPs saw the largest inflows after platinum and palladium, with total inflows of $172m in Q2. The inflows reflect improving sentiment towards commodities as an asset class as China growth has shown signs of picking up and China policy-makers have made clear they are moving into stimulus mode after three years of tightening. It is interesting to note that the largest inflows were into diversified broad commodity ETPs that exclude agriculture, with $89m of new flows into these ETPs versus $75m into those that include agriculture, highlighting generally negative investor views towards agriculture. 

Agriculture ETPs as a group saw $468m of outflows, with broad diversified seeing the largest outflows followed by sugar, corn, cocoa and coffee. The outflows are likely a combination of profit-taking and expectations of improved growing conditions for a number of key agriculture commodities. If an El Nino weather event occurs later this year (current NOAA forecasts put the probability at 70%), speculative flows may return.

Energy ETPs saw $175m of inflows in Q2, with most of the flows ($169m) going into oil ETPs. Increasing violence in Iraq has raised concerns about supply disruptions, pushed oil prices higher and driven oil ETP demand higher. Natural gas ETPs saw $21m of outflows as investors took profits on the natural gas price surge earlier in the year. Industrial metals saw a modest $15m of inflows, with nickel seeing the strongest inflows ($38m) as Indonesia’s ban on ore exports drove prices higher.

 

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