Thursday, October 31, 2019

Portfolio Summary for October 2019

As of 31 October 2019

Cash Equity

Security# SharesPricePortfolio %
DBS Group400$26.0023.58%
OCBC900$10.9622.36%
SATS2,000$5.0522.90%
ST Engineering2,500$3.9922.61%
Old Chang Kee5,000$0.7558.56%
Portfolio Market Value = $44,114

SRS Equity

Security# SharesPricePortfolio %
SGX1,300$8.9424.00%
OCBC900$10.9620.37%
Sheng Siong Group8,700$1.1721.02%
SingTel2,000$3.3013.63%
CapitaCommercial Trust3,000$2.0512.70%
Frasers Commercial Trust2,446$1.648.28%
Portfolio Market Value = $48,426


Perhaps the most exciting news in the local market this month is the partial acquisition offer of Keppel Corporation by Temasek Holdings (announcement).  Keppel is a well-known conglomerate with its subsidiaries spread across many diverse industries.  Sadly, its Return on Equity (ROE) has been struggling around the low 7%, which means Keppel's management hasn't been doing a fantastic job creating value from shareholders' capital.  That said, the management has signaled their intention to boost the ROE to mid-teens (news).  Hopefully, with Temasek becoming a significant shareholder and providing strategic direction, Keppel will be able to accomplish the feat.

The earnings reporting season is in full swing.  Many blue chips will report their results in early November.  Supermarket operator Sheng Siong Group has turned in another beautiful set of numbers, derived mainly from new store sales.  On the other hand, same store sales has dropped slightly.  Hope that the decline is just a temporary blip.

On the economic front, the United States and China have come to a preliminary trade agreement (news).  But no one is popping champagne yet, as the final outcome is far from certain.  Meanwhile, the Federal Reserve has given the market another booster shot - the third interest rate cut this year (news).


Trade Actions

None.  I did not spot any suitable opportunity.


Savings

Next month's Singapore Savings Bonds (SSB) will likely have an average yield of 1.70%.  Consider SSB only if you are absolutely risk-averse.  The private market have fixed deposit products that give a better return.  Check out SINGPromo's website for details (link).


Looking Ahead

We have come to the last two months of the year.  This means I will need to set aside cash for my sons' endowment policies, as well as do a voluntary CPF Retirement Sum Topping-up (link).  I had max-ed out my SRS contribution earlier this year.  If you have not done so, this is a good time to consider topping up your SRS retirement account and take advantage of the tax savings.  You can check out IRAS website for more details (link).

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