News Today

Saying 'I love you' in Cats classified pays off
Every Valentine's Day, Ms Chew Li-May, 30, checks The Straits Times Cats Classified - and, sure enough, her husband's love dedication will be there. Married for five years, Ms Chew (with husband Alex Chai) said: 'I used to keep every single... [Read more]

Attacking football paid off for the hosts, says ST panel
'The Singapore team did well and denied the Thais space and time. We did not allow them to settle down or get any kind of rhythm going.'The one time that they did get going, they scored a goal, so it shows... [Read more]

Forget sex, clothes come first for US women
NEW YORK - GIVEN a choice between sex and a new wardrobe, most women will go for the clothes.In a survey spanning 10 cities in the US, women on average said that they would be willing to give up sex for... [Read more]

Bush urged to suspend KL trade talks
WASHINGTON - A KEY American lawmaker has urged President George W. Bush to suspend free trade talks with Malaysia in protest over its mega energy deal with Iran.The call by Mr Tom Lantos came as the US embarked on a campaign... [Read more]

Fuel supplies: Steps in place for security
I REFER to the letter, 'What is procedure for managing energy crisis?' by Mr Raymond Tham Kon Weng (ST, Feb 8).The Government has put in place policies to safeguard the security of our energy supplies. We are developing a terminal to... [Read more]

Restrict agent banks' fee in CPF scheme
I REFER to the CPF Investment Scheme-Ordinary Account (CPFIS-OA) arrangement with DBS, UOB and OCBC, in which the three local banks are also known as the 'agent bank'. I applaud the Central Provident Fund (CPF) Board's decision to set a 3... [Read more]

Repo man rammed car into me and injured legs: Accused
THE woman accused of stomping on the roof of a repossessor's car in a street- side altercation claimed in court yesterday that he injured her legs by ramming his car into her. Wong Nguek Chin said she had asked the man,... [Read more]

Ongoing legal battle
THE Beijing Zhonghongji Construction company successfully sued two developers for unpaid wages after building two workers' dormitories. But by then, both developers, including one owned by a central government agency, had gone bankrupt. The State-owned Assets Supervision and Administration Commission (Sasac)... [Read more]

Lessen estate duty on commercial properties
GOVERNMENT leaders have indicated that the corporate tax may be reduced. This is heartening.On the question of estate duty, the Prime Minister had indicated in Parliament that the Government was looking at the matter.It is hoped that the Government will increase... [Read more]

Undersea quake hits Indonesia's Maluku islands
JAKARTA - A STRONG 6.6-magnitude undersea earthquake rocked Indonesia's northern Maluku province yesterday, the meteorology agency said, prompting initial fears of a tsunami.The agency urged residents on Bacan island to be alert for signs of rising sea levels after the quake... [Read more]

Money is not everything, Chelsea
HERE'S the bizarre thing about money. It brings hope, comfort and luxury. It also brings acrimony, jealousy and trouble.That came into sharp focus on Sunday, when Chelsea played Nottingham Forest in the FA Cup. Chelsea are the new money. Forest, European... [Read more]

Warrant trades climb amid stock sell-off

AS THE stock market takes a hammering over the past two weeks, trading in covered warrants has shot up dramatically.

Investment bank BNP Paribas data shows that warrants comprised nearly one-fifth of the total volume of share trades on the Singapore Exchange this week.

By contrast, covered warrants made up only 14 per cent of all trades between Feb 12 and 16 - the last full week of trading before Chinese New Year and the recent market correction.

There was also a sharp jump in the value of trades, with $445 million in warrants changing hands this week, compared to $406 million from Feb 12 to 16.

Traders are drawn to warrants in the light of the recent panic sell-off in global bourses as they can provide exposure to entire markets.

Warrants are a cheap way to bet on the movement of a single stock, or a wider market, by tracking key benchmarks such as Singapore's Straits Times Index or Hong Kong's Hang Seng Index.

Buying a call warrant gives the holder an option to buy into a stock or index over a period of three to nine months at a pre-set or 'strike' price. This means holders generally want to see a rally.

Put warrants give the holder the option to sell a stock or index at a 'strike' price over a period.

The head of warrants sales at Macquarie Securities, Mr Barney Matthews, said: 'When the market is volatile, traders don't have to choose between individual stocks as they can just ride on the index which gives them exposure to the whole market.'

Mr Simon Yung, head of retail listed products sales at BNP Paribas, observed: 'Turnover in index warrants rose from 39 per cent to 47 per cent of the total daily warrant trades when the market corrected.'

A further breakdown showed that as investors turned bearish, put warrants have also become more popular, accounting for 36 per cent of daily warrants trades now, compared with 20 per cent just three weeks ago.

The Hang Seng was easily the most popular index for both calls and puts, accounting for 25 per cent of all warrants traded over the week.

Given the volatile market, Mr Yung advised traders who plan to 'pick the bottom' if shares go into free fall to only consider using half their usual investment outlay to minimise risk.

Those planning to hold warrants for at least one week should consider warrants whose 'strike' prices are at least 5 per cent higher than current market prices.

Investors should also avoid warrants that are almost fully issued out. This is because foreign banks, which let traders get in and out of warrants easily by giving price quotes, may widen the spread between the bid and offer quotes. Mr Yung said: 'If everyone is trying to sell the warrants at the same time, it would be harder for investors to get out.'

engyeow@sph.com.sg



Mr Yung says turnover in index warrants rose from 39 per cent to 47 per cent of total daily trades when the market corrected.

News Today

Europe's biggest trial of Islamic terrorists
MADRID - THE trial into Europe's worst terrorist attack in 15 years started in Spain yesterday amid tight security, with 29 mostly Moroccan suspects facing charges in the bombings three years ago. More than 190 commuters were killed in the attacks... [Read more]

FairPrice to absorb GST hike for 6 months
SHOPPERS with rice and about 400 other essential items in their baskets at NTUC FairPrice supermarkets will not feel the pinch when the Goods and Services Tax (GST) is raised on July 1. This is because, for six months from that... [Read more]

Saving the planet, one degree at a time
ACCORDING to the Economist Intelligence Unit, Singapore was ranked 15th in the world in electricity consumption in 2004, but jumped to 11th in the Economist Pocket World In Figures 2007.I wonder how many of us complain that the temperature in offices,... [Read more]

Britain's Iraq troop withdrawal plan fuels debate in US
IN WASHINGTON - BRITAIN'S timetable for withdrawing forces from Iraq has stirred a heated debate in the United States. The White House declares it a sign of progress, but critics charge that the US is becoming increasingly isolated in its war... [Read more]

S'pore has till April to decide on hosting F1 race
SINGAPORE will have to decide in three months whether to have Formula One (F1) motor racing here.That is, if it wants to host the world's most glamorous spectator sport next year, said a senior executive from Hotel Properties, the group believed... [Read more]

Why complainant could not get Business Class seats
I refer to the letter by Mr Robert James Eve, 'A would-be memorable trip marred by inability to get Business Class seat using frequent flyer award points' (Online forum, Feb 14).Singapore Airlines, like all other airlines, reserves a number of seats... [Read more]

Mittal buys 49% of Indian refinery
NEW DELHI - THE Mittal group, controlled by steel tycoon Lakshmi Mittal, has acquired a 49 per cent stake in an Indian refinery being built by a leading state-run firm, India's oil minister said yesterday. The investment comes a year after... [Read more]

Bouquets
CELLPHONE FOUND, THANKS TO STAFF OF FAST-FOOD OUTLETON FEB 2, I left my mobile phone at McDonald's at Centrepoint after having breakfast there. I only realised this later, at the National University of Singapore campus, and had to get my husband... [Read more]

Siblings rally round aged mum in time of need
I AM touched by Prime Minister Lee Hsien Loong's Chinese New Year message to 'keep family unit strong and healthy'. Also his sharing of his personal experience when he suffered from lymphoma in 1992 and how his family members rallied to... [Read more]

Directors' Trades
CAPITALAND CEO CUTS STAKE IN FIRM'S REITA DIRECTOR of CapitaRetail China Trust (CRCT) Management has reduced his direct interest in the real estate investment trust (Reit).Mr Liew Mun Leong, who is also CapitaLand's president and chief executive, sold 200,000 units in... [Read more]

Flip side of foreign students topping exams
IT IS no surprise that almost half the 25 students who scored nine A1s are foreign students, in particular those from China ('Foreign students post strong O-level showing'; ST, Feb 10). Extrapolating from this trend, we can expect a similar figure... [Read more]

Is the worst over yet?

WITH two days of gains behind them, investors are now wondering if this rebound is a bright new beginning or a bear trap waiting the unwary.

There was no obvious answer in the numbers yesterday, just a sign that nerves are still frayed after the bloodbath of the past week.

The Straits Times Index (STI) opened strongly enough, surging nearly 60 points to an intra-day high of 3,102.46. But the air of nervousness put the STI into reverse after both the Nikkei 225 Stock Average in Tokyo and Hong Kong's Hang Seng Index went into the red.

The Nikkei fell 0.7 per cent and the Hang Seng lost 0.5 per cent but the STI showed more resilience to close 22.63 points higher at 3,059.15.

While investors cheered the upswing - the STI has recovered about 2.6 per cent in the past two days - analysts believe a sharper fall may be looming. 'While markets in Asia have broadly stabilised, it is still not entirely clear if the worst is behind us,' said United Overseas Bank economist Jimmy Koh.

For the five trading days to Monday, the STI fell 328 points or 9.9 per cent. While it has recovered some ground, it is still 7.6 per cent lower than its record high of 3,310.44 on Feb 23.

Shifts in investor psychology are highly unpredictable, especially when the herd mentality grips investors and sends them rushing for the exits, Mr Koh said. Thus, the tendency for financial markets to overshoot suggests that the eventual magnitude of the downturn is anyone's guess.

OCBC Investment Research analyst Ritesh Menon expects further declines for the STI in the weeks ahead. 'For every correction that suffered a loss ranging from 9 per cent to 11 per cent within the first phase of any selldown, the index would resume its plunge after a muted attempt at recovery.'

The final phase of the correction could result in a loss of more than 18 per cent from its peak, he added.

Market watchers say the market will continue to be volatile as investors keep a close watch on the yen-dollar rate for an indicative direction for the equity markets.

'Investors are focused on the carry trade, and many have been swift to ascribe much of the recent movement in equity markets to the unwinding of positions funded by yen liabilities,' said Goldman Sachs analyst Timothy Moe in a research note.

He noted that the correlations of equity markets to the yen-dollar exchange rate have moved sharply negative in recent weeks.

Indeed, the yen's 4.3 per cent rise against the greenback since Feb 23 has coincided with a decline in other regional markets. This has been fuelled by concerns that loans taken out in yen by global investors to buy investments might unravel as the Japanese currency strengthens.

Some estimates say investors borrowed more than US$200 billion (S$305.9 billion) in yen at low Japanese interest rates to finance risky investments elsewhere.

In Singapore, gainers led losers by 388 to 385 with about 2.04 billion shares worth $2.27 billion traded.

Hongkong Land and its parent Jardine Matheson accounted for half of the STI's 22-point gain. It rose 30 US cents to US$4.48 after the firm posted a 31 per cent gain in underlying profit.

Star Cruises fell 12.5 per cent to 28 US cents on concerns that it must now solely finance a HK$3.5 billion (S$685.3 million) Macau casino after Genting International's withdrawal.

arthurp@sph.com.sg

News Today

Top Sec 5 student kept spirits up with singing
CIVIL engineer Margaret Ngi, 51, was in the kitchen of her five-room Simei flat yesterday morning when her daughter Juliana Lim, 17, walked towards her with her phone to her ear and tears in her eyes. 'If not for her happy... [Read more]

Yudhoyono draws fire from retired generals
JAKARTA - RETIRED military chiefs are marching back into the limelight to challenge President Susilo Bambang Yudhoyono's two-year-old administration. Former military commander Wiranto set up a new political party, the People's Conscience Party (Partai Hati Nurani Rakyat), last month to serve... [Read more]

Foreigners to be enlisted in terror fight
A NEW front is being opened in the fight against terror and crime here as the authorities enlist the help of foreigners, working and living among the population, in their security efforts.For a start, the Jurong police division is reaching out... [Read more]

Results
BASKETBALLNBA: Detroit 92 LA Clippers 74, Denver 123 Golden State 111, Utah 102 Atlanta 76.SOCCERFAS Women's Challenge Cup, Group A: Bishan Arsenal A 14 NYPGA 0. Group B: Jollilads Arsenal 7 Paya Lebar Punggol 3, UWC 0 Police 0. Group C:... [Read more]

Just fix it
Just fix it WHEN Changi Airport staff found a pothole in the runway one day in the 1980s, then permanent secretary of the Ministry of Communications Sim Kee Boon, who had taken on the mammoth task of building Changi Airport, went... [Read more]

Summary of the Day
Thirteen killed by dengue this monthKUALA LUMPUR - THIRTEEN people have died of dengue fever in Malaysia this month. Most of the deaths were in the state of Selangor, where the authorities are scrambling to contain an outbreak, a news report... [Read more]

KL not envious of S'pore's progress: Najib
KUALA LUMPUR - MALAYSIA has never been envious of progress made by other countries, as they have a right to develop, Deputy Prime Minister Najib Razak has said.It is more important for Malaysia to focus on its own national development and... [Read more]

GST offsets seen as more to help elderly and poor
POWER station manager Eveline How was surprised by the generosity of the goods and services tax (GST) offset package, announced on Thursday. 'It seemed to be all give, give, give,' she said of the measures to cushion the impact of the... [Read more]

Three Thai firms show interest in Shin Sat
BANGKOK - TWO state-owned telecoms firms, as well as a private one, have reportedly shown interest in buying Temasek Holdings' stake in Shin Sat. According to reports in The Nation, Telephones of Thailand Corp and CAT Telecom have expressed their interest... [Read more]

So cool, so calm, so perfect
SINGAPORE'S passage into the Asean Championship final may have been confirmed only after Saturday's penalty shoot-out victory over Malaysia. But the win was actually the result of more than a year of diligence, during which the Lions devoted extra time after... [Read more]

Fulfil your promise on lift upgrading, Mr MP
I am disappointed to learn that Mr Chiam See Tong, the MP for Potong Pasir, has taken a different tack on lift upgrading in his ward 'Chiam: Difficult to fulfil lift promise' (ST, Feb 13).It has been almost a year after... [Read more]

News Today

NTUC co-ops urged to keep prices of basic items stable
THE labour movement's cooperatives are being urged by the Government to take the lead in keeping prices of daily necessities stable when the goods and services tax (GST) goes up.The call yesterday by Mrs Lim Hwee Hua, Minister of State for... [Read more]

They lie for love of the game
THREE colleagues are so adamant on watching the Asean Football Championship second-leg final between Thailand and Singapore that they even lied to their boyfriends and fathers. Nazeera Adam, Farhana Kamsan and Noor Ellyannie, all Singapore Airlines customer service agents, told the... [Read more]

Knocking out crime
PHOTO: REUTERS The police in Tokyo want these boxers to join their ranks. This job seminar held last week attracted 80 retired or active prize-fighters who want a job that allows them to stay active.... [Read more]

Nash may invest in Spurs
NATIONAL Basketball Association star Steve Nash is interested in investing in Tottenham.Nash, a two-time Most Valuable Player with the Phoenix Suns, has reportedly earned over &pound50 million (S$150 million) from his basketball career. The 33-year-old is a life-long Spurs fan, and... [Read more]

Want to win US$25m? Get rid of carbon from Earth
LONDON - VIRGIN chief Richard Branson yesterday launched what he called the world's biggest prize to inspire innovators to develop a way to remove greenhouse gases from the Earth's atmosphere. Sir Richard announced the US$25 million (S$38 million) Virgin Earth Challenge... [Read more]

Protests against name changes
TAIPEI - HUNDREDS of employees at Taiwan's state-run Chunghwa Post Co protested angrily yesterday against the company's plan to change its name from 'Chunghwa' - which means Chinese - to 'Taiwan'. The protesters held placards and shouted slogans outside Chunghwa's headquarters... [Read more]

School proves disabled can fit in
AT EVERGREEN Primary, Loh Jiawei is just one of the girls, the muscle-wasting disease that confines her to a wheelchair no barrier to learning. With help from an understanding and caring principal, teachers and schoolmates, the determined 11-year-old topped her Primary... [Read more]

Friendly, helpful bus driver spread cheer
ON BEHALF of my family, I would like to thank an SBS driver whose friendliness and enthusiasm for his job made our bus journey really pleasant while doing our Chinese New Year visits.On the second day of the new year, we... [Read more]

Mind your language(s)
IF YESTERDAY'S parliamentary proceedings can be seen as a microcosm of Singapore's current concerns, it would seem the country is moving in the right direction towards becoming a truly inclusive society.Up for discussion, after all, were the concerns of segments of... [Read more]

India, Pakistan vow joint anti-terror effort
NEW DELHI - INDIA and Pakistan vowed yesterday to fight terrorism together, days after a terrorist strike on a train killed 68 people, mostly Pakistanis heading home. The pledge was a clear message to terrorist groups that sought to sully the... [Read more]

World quickly
BIDEN JOINS WHITE HOUSE RACE WASHINGTON: Senator Joseph Biden of Delaware yesterday joined the crowded field of Democratic contenders angling to win the 2008 White House race, arguing that his foreign policy experience put him a step ahead. 'I am not... [Read more]

News Today

Ancient water dispute still causing ripples
THOUSANDS of riot policemen fanned out across India's technology hub of Bangalore earlier this week, as a court ruled on an ancient water dispute between the country's federal states.Not long after the British conquered India, the colonial rulers decided that the... [Read more]

Interest rates should be unchanged, Tokyo hints
TOKYO - JAPAN'S government kept its assessment of the economy unchanged yesterday, on the eve of a two-day central bank policy meeting, signalling that it considers the nation not ready for an interest rate increase.'The economy is recovering despite some weakness... [Read more]

US-Viet ties get boost with end to ban on arms sales
HANOI - WARMING ties between Vietnam and the United States, its former enemy, have been boosted by Washington's decision to lift an embargo on arms sales to the communist state.The important but little publicised move was made by US President George... [Read more]

Govt quizzes Genting over its tie-up with Stanley Ho
GENTING International, which is building its $5.2 billion Resorts World at Sentosa, has been quizzed by the Government over its latest partnership with Macau's casino mogul Stanley Ho.According to reliable sources, news that the Malaysian operator was in talks with the... [Read more]

4th in a row: Goods vehicle COE at $1
THE certificate of entitlement (COE) for commercial vehicles has remained at $1 for the fourth tender in a row.At the close of yesterday's exercise, the Land Transport Authority received only 506 bids for 679 available COEs for trucks, vans and buses.Motor... [Read more]

Beijing needs to crank up pressure on counterfeiters
BEIJING - IN CHINA, you do not need to spend a fortune to build up an enviable collection of Oscar-winning films, the hottest music CDs or the hippest 'designer' togs. Shops and vendors offer an expansive range of the latest -... [Read more]

Creator of S'pore Girl not Aussie
NOT to be pedantic but Mr Dorian Ball ('S'pore Girl born out of creativity, not statistics'; ST, Feb 15) and Mr Allein G. Moore ('Creativity big factor in award of SIA account'; ST, Feb 16) continue to perpetuate a myth about... [Read more]

ComfortDelGro's net earnings rise 21%
TRANSPORT giant ComfortDelGro's overseas contributions were almost nose to nose with those from local operations last year.And chief executive Kua Hong Pak indicated it is only a matter of time before they surpass profits generated here.For the year ended Dec 31,... [Read more]

Wilko's 27 points fire England to opening win
LONDON - JONNY Wilkinson could not have scripted his comeback any better. After more than three years of injuries to his neck, shoulder, arm, knee, appendix, groin and, most recently, kidney, the fly-half returned to rugby's international stage with a bang.... [Read more]

Special exemption
ANNIKA Sorenstam has given a sponsor's exemption to MacKinzie Kline for the Ginn Tribute, a golf tournament sponsored by the Swedish world No 1.Kline is a talented 14-year-old with a rare heart condition. As she cannot walk long distances without becoming... [Read more]

German militant to go on parole after 24 years
BERLIN - A LEADER of the notorious German left-wing militant group Red Army Faction (RAF) is to be freed on parole after 24 years in prison.A state court in Stuttgart ruled yesterday that Brigitte Mohnhaupt, involved in many of the 34... [Read more]