March 13, 2013 • 1:46 am 0
February 22, 2013 • 1:40 am 0
Timely measures to give market a boost
January 18, 2013 • 1:32 am 0
Macro indicators showed joyful December
December 23, 2012 • 1:17 am 0
Stability continues to be the priority for next year
November 18, 2012 • 1:59 am 0
Read detailed VAM monthly Monthly Market Analysis and Chart October 2012
CPI slowed down as price increases for healthcare and education were nearly completed
October 18, 2012 • 10:06 pm 0
Market reacted to ACB resignations as developments troubled investors
Source: VAM Vietnam Asset Management, 15.10.2012
May 17, 2012 • 6:55 am 0
Market Update – Read detailed VAM Market Analysis April 2012.
Both exchanges closed up for the month
Both markets and all three indices ended higher this month. The VN-Index closed at 473.77, up 7.4%; the HASTC closed at 79.86, up 10.6%, while the VN-30 closed at 541.20, gaining 8.2% for the month.
Year-to-date, the VN-Index continues to be one of the best performing markets worldwide, gaining 40.41% this year.
CPI for the month lowest in 5 years
April CPI came in at 0.05%, the lowest month increase in the past 5 years. Decrease in Food and Foodstuff (making up over 32% of the index) helped offset the increase of school fees and March’s petrol price. However, May’s inflation figures should see a slight increase due to April’s petrol price increase and May’s basic salary hikes. In addition, the government’s recent approval of coal price increase makes threats of electricity price hikes loom larger in May. If realized, it will definitely have further unfavorable impact on the month’s CPI.
April’s trade figures back in deficit
The trade surplus of USD 224mn recorded in Quarter 1 was rather short lived, as April’s trade figures show exports exceeded imports to the tune of USD 400mn. This brings the YTD trade account back into a deficit position of nearly USD 180mn. At cause for the reduced export values in April were the difficulties exporters faced with both the market and with prices. Among the declines in exports were coffee (25% decrease), textile and garments (7.3% decrease) and seafood (7.4% decrease).
Deposit interest rates brought down to 12%
Following on the 1% rate cut in March, rates on all term deposits were again reduced 1% in early April, bringing the maximum deposit interest rates permitted to 12%. Refinancing rates are set at 13% p.a. while the discount rate is 11% p.a. Lower financing rates reduce the liquidity pressure on banks, thereby reducing the threat of increasing NPL’s.
NPL ratios increase across all banking groups
In the division of banks into 4 groups, Group 1 being the best banks, Group 4 being the worst, the issues of NPLs have become clearer as NPLs have increased across all groups, which also include some state owned banks that are considered to be adhering to the safe lending procedures.
Gold import & export rules to change May 2, 2012
Gold ownership will remain legal but trading, importing/exporting without a permit will not be permitted after May 2. The government is also to maintain a monopoly over future bullion production. Gold as a form of payment will also not be permitted. The rationale behind this decision is to further discourage USD demand and soften gold imports.
Shift towards growth
The government has announced several measures to boost domestic growth, including (i) reclassification of non-productive loans which gives banks more room in lending real estate sector; (ii) SBV’s Document 2506 which asks financial institutions to work with borrowers to reach more favorable terms for borrowers’ existing loans. These measures are expected to bring assistance to struggling businesses.
Aiming to develop an economy where savings are channeled into productive investments, the Prime Minister approved New Financial Strategy, few initiatives of which, stretching to the year 2020, are: limits on government debt guarantees, limits on budget deficits, and a targeted savings rate of 33.5-35% (currently at 25%).The MoF is also considering other measures to support businesses, namely reductions in VAT, reduction or even elimination of Personal and Corporate Incomes taxes.
Foreign reserves up, as dong remains stable
The dong continues to be stable, trading at 20,828 VND per USD while foreign exchange reserves also seem to be fairing well. The SBV did not provide exact figures but stated that reserves now approach 9 weeks of imports. Thus it can be estimated that reserves range between USD 19-20bn, approximately 25% higher than the end of 2011.
Our View – As the AGM season is coming to an end, we observe that most companies suffered heavily from the 2011 global and domestic economic downturn, with Real Estate, Construction, Construction Materials and Transportation sectors getting hit the most as a result of high interest cost, lack of available credit, frozen property market and increasing oil price. Against this gloomy picture, selective Financials and Export companies became the rare bright sparks when they announced strong earnings growth, having benefited from an opportunistically large interest spread during the year, and weaker VND against the USD, respectively. As a defensive sector, Food & Beverage held up steadily through the storm with most companies showing resilient bottom lines.
We believe that monetary policy starts to have positive impact on the economy. Looking forward, we think that with improving macro economic factors and new tax subsidies, companies with good governance and efficient management will gain further success. We continue to like F&B, Banks, Oil & Gas and are starting to go back into Property and Construction Materials.
Source: VAM, 16.05.2012
March 9, 2012 • 4:21 pm 0
Singapore/Bangkok March 8, 2012 – RTS Realtime Systems Group, a leading global trading solutions provider, today announced that the firm is now able to offer market access to the Thailand Futures Exchange plc (TFEX), a subsidiary of the Stock Exchange of Thailand (SET) Group.
Fueled especially by the interest in gold and the underlying arbitrage opportunities, the new RTS offering provides native connectivity to TFEX, giving RTS customers the ability to participate in one of Asia’s fastest growing exchanges. Volume in the TFEX Gold futures contract grew four-fold in the last two years.
Andy Woodhouse, RTS Managing Director, APAC, said, “Asia’s markets including TFEX are creating real opportunities for investors. New arbitrage opportunities across markets and easier access to the growing economies such as Thailand are all contributing to the rise in volumes in Asia. Our algorithmic trading solutions, including the RTD Tango algorithmic trading engine and the hybrid RTD Tango Trader solution, are ideally suited to detect and capture such opportunities. With customized, ready to deploy state-of-the-art algos, local and international traders can fully automate their strategies.” … read the full press release
Following the liberalization of brokerage licensing by the Thailand Securities and Exchange Commission, the Thailand Futures Exchange (TFEX) recently started accepting new members and welcoming new market makers.
Source: RTS, 08.03.2012
December 8, 2010 • 10:36 pm 0
November 4, 2010 • 2:04 am 1
Argentina to have its first Gold Futures Contract – on November 8, the New Gold Futures and Options Contract will begin trading In ROFEX.
As from November 8, gold futures and options will be traded for the first time in Argentina. This new hedging tool, approved by the National Securities Commission (CNV), will be listed next week and will be part of ROFEX´s Financial Derivatives Division (DDF). “The launching of the gold contract sprang from an initiative of Banco Ciudad, the main participant of the local gold market, which will also act as the product’s Market Maker, allowing traders to find a liquid market”, stated Luis Ossola, ROFEX´s president.
Taking as a reference the most important markets in the world, ROFEX will be the first local derivatives market to offer gold futures contracts, whose reduced size as compared to international contracts will offer the retail investor the possibility to participate. It will be quoted in US dollars per troy ounce (31.103 grams), in line with international trading.
Thus, this contract aims at providing smaller investors with an alternative of price coverage for domestic assets related to the metal.
“With this new contract’s trading, ROFEX will try to expand the local financial market, providing an innovative tool that generates trading records worldwide. According to estimates by the Futures Industry Association (FIA), five of the twenty most traded metal derivatives in 2009 were on gold”, emphasized Diego Fernández, ROFEX´s general manager.
Source: Mondovisione, 04.11.2010
August 18, 2010 • 9:14 pm 0
Singapore Mercantile Exchange (SMX), the first pan-Asian multi-product commodity and currency derivatives exchange, today announced that the Exchange will go live for trading on 31 August 2010.
With rapid economic expansion in the region and Asia’s demand for commodities, SMX is strongly positioned to offer an integrated and single-platform for multiple products. It has completed conformance testing with Independent Software Vendors (ISVs) and industry- wide testing with member firms prior to its impending launch.
Mr. Jignesh Shah, Vice Chairman of SMX and Group CEO of Financial Technologies Group, said, “SMX’s platform will herald Asia?s first stand-alone and next-generation global derivatives exchange for unrestricted cross-border trading in futures, options and other derivatives across multiple asset classes. We are looking forward to our newest venture to establish a footprint for transparent electronic trading that will manifest itself as a major platform for price discovery for commodities trading in Asia. SMX is well poised to unlock the immense potential of Asia and further position the region as a leading derivatives trading hub.”
Mr. Thomas J. McMahon, CEO of SMX, said, “We are witnessing Asia?s expanding influence on the global commodities market. SMX?s launch is a step in the right direction as we leverage off Singapore?s unique position as a premier financial and commercial hub in the region. The launch will provide market players in Asia the flexibility to trade products generic to regional trade flows within the Asian business day.”
The Monetary Authority of Singapore (MAS) recently granted SMX „Approved Exchange” status to operate as a regulated and fully licensed exchange.
The first phase of product launches will include a Gold Futures Contract with physical delivery in high-security vaults in Singapore, West Texas Intermediate (WTI) Crude Oil, Brent-Euro Crude Oil and Euro-US Dollar Futures Contracts, amongst others. The first phase of product launches will be followed by multiple product launches to be introduced in the market after consultation with industry participants.
Source, MondoVisione, 17.08.2010
December 11, 2009 • 1:53 am 2
ETF Securities: Commodity ETC Assets Triple Over Past 12 Months To $17bn As Demand For Gold, Energy, Agriculture And Other Hard Assets Surge
- Record breaking year for commodity ETCs, with assets up over $11bn to $17bn
- ETCs tracking agriculture and industrial metals show highest buy/sell ratio
- Physically-backed precious metal holdings – gold, silver, platinum, palladium – reach historic highs
- ETFS Copper (COPA) up 118% in 2009 to end-November, the best performing ETC, followed by ETFS Physical Palladium (PHPD) up 96% and ETFS Zinc (ZINC) up 81%
- ETFS Industrial Metals (AIGI) best performing commodity basket in 2009, up 67% YTD
- ETFS Forward All Commodities DJ-UBSCI-F3SM (FAIG) up 268% over the past 10 years, the top performing major asset class over the period
Commodities bounced back strongly this year following the recent credit crisis, with ETFS Forward All Commodities DJ-UBSCI-F3SM (FAIG) up 20% year-to-date and 268% over the past 10 years based on data to the end of November. ETFS Industrial Metals (AIGI) was the best performing ETC, with YTD growth of 67%. Industrial metals significantly outperformed developed market equities, outperforming the Dow Jones Euro STOXX 50 by 37 percentage points since the start of 2009. Industrial metals have also outperformed bonds, cash and real estate over the same period as the global recovery has become more entrenched and market appetite for plays on the recovery has accelerated. The precious metals sub-sector was the next best performing major sector, with ETFS Physical Silver (PHAG), ETFS Physical Platinum (PHPT) and ETFS Physical Palladium (PHPD) all returning over 60% YTD.
Commodities remain the best performing major asset class over a 10 year horizon, with ETFS Forward All Commodities DJ-UBSCI-F3SM (FAIG) registering cumulative growth of 268%, compared to a 10% rise in the Dow Jones Euro STOXX 50, a 13% rise in the FTSE 100, a 6% rise in property1 and 75% return on bonds2. This outperformance was achieved with lower average annual volatility than equities over the same period (see table below).
Asset Class Returns Compared (YTD, and Past 10 years)
|ETFS Industrial Metals||67%||178%||23%|
|ETFS Forward All Commodities DJ-UBSCI-F3SM||20%||268%||15%|
|Dow Jones Euro STOXX 50||30%||10%||24%|
|US Tracker 1-10 Yrs Bond Index||0%||75%||4%|
|UK EPRA Real Estate Index||21%||6%||25%|
1 Property: proxied by the UK EPRA Real Estate Index
2 Bonds: Proxied by US Tracker 1-10Yrs Bond Index
3 Calculated using the annual volatility of daily returns from 30th November 1999 to 30th November 2009
2009 has been a record breaking year for commodity inflows, with assets under management (AUM) in ETF Securities’ ETCs and ETFs rising over $11 billion to $17 billion over the past 12 months. Physical gold and long natural gas ETCs have seen the largest investment demand YTD, with inflows of $2 billion and $1 billion respectively since the start of 2009.
In terms of investor positioning, agriculture ETCs such as ETFS Agriculture DJ-UBSCISM (AIGA) had the highest buy/sell ratio of any sector in the 11 months ended November with a ratio of 3.2. This is consistent with steady inflows into agriculture ETCs in 42 of the 48 weeks to end-November. Industrial metals had the next strongest buy:sell ratio at 2.7, coinciding with the sharp rise in industrial metal prices in 2009. Although energy ETCs have seen the second largest inflows in 2009 YTD, their buy/sell ratio was one of the lowest at 1.8 as extremely strong oil inflows in the first four months of the year and the surge of inflows into natural gas ETCs since May were partially offset by outflows in May and June from ETCs tracking shorter-dated oil futures returns.
Source: ETF Securities
Industrial metals were the strongest performing sector in 2009, up 67% to the end of November. Gains were led by a 118% rise in ETFS Copper (COPA) and an 81% rise in ETFS Zinc (ZINC). ETFS Aluminium (ALUM) remained the weakest of the industrial metals, but still managed a 24% return in the 11 months ended November. Flows into industrial metals accelerated in 2009, taking industrial metal assets to almost twice their previous peak level seen in H1 2008. Robust Chinese demand, coupled with stronger manufacturing activity in developed economies, has underpinned investor interest in industrial metals.
Top 10 Long and Short ETC Performance
|Top 10 Longs||YTD (End November 09)|
|ETFS Lead* (LEED)||125.8%|
|ETFS Copper (COPA)||118.3%|
|ETFS Physical Palladium (PHPD)||95.9%|
|ETFS Zinc (ZINC)||80.8%|
|ETFS Gasoline (UGAS)
ETFS Physical Silver (PHAG)
ETFS Industrial Metals DJ-UBSCISM (AIGI)
ETFS Silver (SLVR)
ETFS Physical Platinum (PHPT)
ETFS Sugar (SUGA)
|Top 10 Shorts||YTD (End November 09)|
|ETFS Short Natural Gas (SNGA)||69.1%|
|ETFS Short Lean Hogs (SLHO)||16.1%|
|ETFS Short Livestock DJ-UBSCISM (SLST)||14.5%|
|ETFS Short Live Cattle (SLCT)||9.3%|
|ETFS Short Wheat (SWEA)
ETFS Short Corn (SCOR)
ETFS Short Energy DJ-UBSCISM (SNRG)
ETFS Short Grains DJ-UBSCISM (SGRA)
ETFS Short Agriculture DJ-UBSCISM (SAGR)
ETFS Short All Commodities DJ-UBSCISM (SALL)
Source: ETF Securities
* ETFS Lead saw 126% growth based on simulated returns based on the underlying DJ-UBS Lead Sub-IndexSM. This product was listed in November 2009.
Within precious metals, the best performing commodities were metals tied to the industrial cycle, with ETFS Physical Palladium (PHPD) up 96%, ETFS Physical Silver (PHAG) up 68% and ETFS Physical Platinum (PHPT) up 61%. Gold prices reached fresh historic highs in 2009, breaching the $1200/oz mark by the start of December. Interest in physical gold holdings was extremely strong, up 1.9 million ounces (31 %) in the 11 months to the end of November. This marks the second year of rapid growth in physical gold holdings, which have more than doubled (up 4.2 million ounces, or $5 billion at current gold prices) since the start of 2008. Total assets in ETF Securities’ physically-backed gold ETCs stood at $9.5 billion by the end of November 2009, making them the largest ETF/ETC holdings in Europe and the second largest ETC/ETF holding in the world. Other physical precious metal ETC holdings also posted new historic highs in 2009, with physically-backed silver, platinum and palladium ETCs seeing their metal holdings (in ounces) reach the highest levels since inception by the end of November.
The energy sector saw mixed performance over 2009, with a 74% rise in ETFS Gasoline (UGAS) and a 44% gain in ETFS Brent 1mth (OILB) offset by a 57% drop in ETFS Natural Gas (NGAS). In H1 2009 sharp falls in oil prices attracted almost $1 billion of inflows into long oil ETCs between January and May. There was some profit taking on these positions subsequently, coinciding with $1.4 billion in inflows into long natural gas ETCs. These flows suggest some rotation in investor positioning within the sector as natural gas prices have underperformed their oil counterparts.
Agriculture saw a sharp divergence in returns with ETFS Softs (AIGS) up 34% in the 11 months to the end of November, compared to a 1% gain in ETFS Grains (AIGG). ETFS Softs were boosted by a 57% rise in ETFS Sugar (SUGA) and a 29% rise in ETFS Cotton (COTN). ETFS Soybeans (SOYB) was up 25% while ETFS Wheat (WEAT) was down 20% and ETFS Corn (CORN) was down 9%. Agriculture saw the most consistent and third largest inflows (behind energy and precious metals in 2009 totalling over $1 billion YTD. Historically low levels of inventories, together with a number of weather-related crop disruptions this season, have helped underpin investment demand in agriculture in 2009.
Nicholas Brooks, Head of Research and Investment Strategy, commenting on the 2009 performance numbers said: “Demand for commodity ETCs has been incredibly strong in 2009. ETF Securities assets under management nearly tripled to $17bn over the past 12 months on the back of strong and steady demand for gold and other physically-backed precious metal ETCs as well as energy, agriculture and industrial metal ETCs. Assets under management are now over 70% higher than they were in July 2008 before the financial crisis broke out. Most of the demand has been for long exposure, with investors’ building their holdings of “hard assets” both for their potential price-supportive long-term supply-demand fundamentals, as well as their potential to hedge against inflation and currency debasement risks as government finances deteriorate and central banks keep the liquidity taps open.
Source: MondoVisione, 09.12.2009
November 27, 2009 • 12:09 am 2
Mexico is moving rapidly to become a gold producer power by boosting its production during the last decade, reported Stockhouse, a Canadian financial advisory firm.
Since 1998, the Mexican production Gold doubled last year, reaching a total of 45,075 kilograms, a figure that no other producer of this metal had shown.
Last year, world production of gold showed a deficit of almost 20% equivalent to 567,000 kilograms, which clearly demonstrates that, the trio of gold producers South Africa, USA and Australia are losing their luster.
The firm notes that among all nations, only Mexico gold production continue to experience an impressive growth. Production estimates predict that 2009 will be an exceptional year with another significant increase in the production of up to 54% compared to 2008 figures.
Gold in 2008 represented 16% of the total value of the country”s mining-metallurgical, breaking the one of silver which represented 15%.
This boom is due to the opening of foreign investment laws, a modern mining law, and NAFTA. These changes allow now that more than 250 foreign companies, mostly Canadian, are in Mexico working on at least 600 projects.
The Canadian company Agnico Eagle Mines opened this month a mine with a processing capacity of 4,000 tons per day of gold and silver, in which the company invested $240 million dollars.
The mine site, called Pinos Altos”, is located in the municipality of Ocampo in the northern state of Chihuahua, and is one of the most important and modern mining operations of the country.
The mine, which will be have underground and surface operations will generate about 500 direct jobs and 1, 500 indirect and has reserves of 41.8 million tons of gold and silver content.
Another project that is already succeeding is the Palmarejo, of the Canadian company Coeur d”Alene in the state of Chihuahua, which since March of this year invested $225 million dollars and generated 500 direct jobs for the production of 9 million ounces of silver and 110,000 ounces of gold.
Major domestic and foreign mining companies investing in Mexico in gold production include Grupo Mexico, Fresnillo Plc, Gold Corp Mexico, Empresas Frisco, Gammon Gold, Alamos Gold, and Silver Panamerican.
This increase in production coincided with the rise in prices gold in the last decade, a fact which helped for the first time last year the value of gold production in Mexico exceeded that of silver.
According to the Mining Chamber of Mexico (Canimex), last year gold accounted for 16% of the total value of mining and metallurgical of the country, surpassing that of silver, which represented a 15%. It also notes that the projected gold production in Mexico will grow in coming years and could place the country among the top 5 global producers of precious metal.
Stockhouse recognizes that growth of production in Mexico is enormous, since only 15% of the territory is geologically fertile.
Currently 71% of gold production at the national level is concentrated in only three states: Sonora 29% Chihuahua 26%, Durango 16%.
November 7, 2009 • 8:12 am 3
Today, the Tokyo Stock Exchange approved the listing of the “NEXT FUNDS S&P CNX Nifty Linked Exchange Traded Fund” managed by Nomura Asset Management Co., Ltd.. The ETF is planned to be listed on Thursday, November 26, 2009.
This is the first ETF linked to Indian stocks to be listed on markets in Japan. The “S&P CNX Nifty Index” to which the ETF is linked is comprised of the 50 premier issues of the National Stock Exchange of India.
|Code||1678 (ISIN JP3047100007)|
|Name||NEXT FUNDS S&P CNX Nifty Linked Exchange Traded Fund|
|Fund Administrator||Nomura Asset Management|
|Listing Date||November 26, 2009|
|Trading Unit||100 units|
|Underlying Index||S&P CNX Nifty Index|
TSE entered into a memorandum of understanding with the National Stock Exchange of India on October 15, 2006. Through this ETF, TSE hopes to supply investors with better access to the Indian securities market and contribute to the development of the markets in both of our countries.
With this listing there will be a total of 69 ETFs listed on the Tokyo market, bringing us closer to the goal of 100 listed ETFs by fiscal year 2010, as laid out in the Medium-Term Management Plan. TSE will continue working to diversify the ETF market and improve the convenience of our market for all investors.
Additional ETF’s listed in Tokyo include Brazil’s IBOVESPA, China A Share CSI300 as well as ETC (Exchange Trade Commodities) like Gold, Silver, Platinum and Palladium. See also TSE lists Brazilian ETF.
Source: Tokyo Stock Exchange 06.11.2009