Don't rush into investments linked to virtual currencies

In recent years, virtual currencies such as bitcoins - and the huge gains these digital tokens have achieved - have made headlines globally. They started as virtual currencies but some have evolved to involve investment schemes.
Before you rush in, you should heed the advice of financial experts and the authorities who are urging investors to understand the potential risks of these complex products.

On Thursday, the Commercial Affairs Department (CAD) and the Monetary Authority of Singapore (MAS) warned retail investors not to throw caution to the wind when dealing with such investment schemes. They noted the emergence of an
initial coin (or token) offerings (ICOs), and other investment schemes involving digital tokens here. Some recent ICOs were TenX in June and Cross Coin last month.

Since 2015, a little over 100 police reports have been filed here involving five such investment schemes. And since January last year, the Consumers Association of Singapore (Case) has received five complaints about digital currencies, such as Bitcoin. The complaints focused on the lack of payouts after investing or unsatisfactory services.

The consumer advisory follows a recent clarification from MAS on its regulatory stance on digital tokens. MAS had said that the current securities regulatory framework requires that any offering of shares, debt instruments, or units in a collective scheme will have to comply with prospectus requirements, or exemption requirements (if any are applicable).

Singapore University of Social Sciences (SUSS) Professor David Lee said he has invested in digital tokens not to get good returns, but to learn and be involved in the digital token community. He declined to disclose the sum he had invested.

Besides hoping for high returns through appreciating token prices, advocates of digital tokens see the new technology as an enabler of the growth of community projects, particularly in areas where financial services infrastructure is lacking. Others like the transparency and liquidity opportunities.

Like any investment product, it is prudent to understand it first. When sellers of digital tokens fail to highlight the risks, consumers should make the effort to find out more information about the underlying project, business or assets. Look out for these eight risks.

1. FOREIGN AND ONLINE OPERATORS

The CAD and MAS warned that you are exposed to a heightened risk of fraud when investing in schemes that operate online or outside Singapore as it would be difficult to verify their authenticity.

2. SELLERS WITHOUT A PROVEN TRACK RECORD

Sellers of digital tokens may not have a proven track record, making it hard for one to establish their credibility. As with all start-ups, the failure rate tends to be high.

3. INSUFFICIENT SECONDARY MARKET LIQUIDITY

Even if digital tokens are tradable in a secondary market, in practice, there may not be enough active buyers and sellers or the bid-ask spreads may be too wide. This means you may not be able to exit your token investments easily.

4. HIGHLY SPECULATIVE INVESTMENTS, PRICE VOLATILITY

The valuation of digital tokens is usually not transparent and is highly speculative. Transparency could be limited as there might be little publicly available information that could help you gauge the fair value of the virtual currency.

There is a high risk that you could lose a portion or your entire investment amount. In the worst-case scenario, the digital tokens could be rendered worthless.

5. INSUFFICIENT SECURITY PRECAUTIONS

The platforms or persons you deal with may not have taken enough security precautions and this could lead to theft through hacking.

6. FRAUD AND SCAMS

Fraud has also occurred in relation to companies that claim to offer virtual currency payment platforms and other virtual currency-related products and services.

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Yamada Green Resources calls for compulsory trading suspension

SINGAPORE - Mainboard-listed Yamada Green Resources called for an immediate mandatory trading suspension in a pre-market filing around 7:30 am on Wednesday (Sept 6).

Yamada, which is a major supplier of shiitake mushrooms with cultivation bases in China's Fujian province, had said late on Tuesday night (Sept 5) it would be asking for its trading halt to be converted into a voluntary suspension, and for a further extension of time of an aggregate of seven months to announce its full-year financial results and hold its annual general meeting.

Yamada said the audit committee has also initiated an inquiry into the extent to which finance documents and it/computer hardware of the group are affected by the fire incident. It has also proposed to the board that, as an interim measure, oversight procedures be implemented in relation to cash balances in the bank accounts of the group, and this has been accepted by the board.

Shook Lin & Bok LLP has been appointed as the company's legal advisers to advise the board and the audit committee of the immediate measures and the actions to be taken in relation to the fire incident and the additional audit works, and moving forward, any other matter entrusted to them by the board and/or the audit committee arising therefrom.

Yamada had on Aug 25 said it was applying for more time to file its results and hold its AGM as it had experienced high staff turnover in the finance team and because its external auditors needed more time to complete its procedures.

On Aug 11, the company flagged a loss for the fourth quarter and full year.

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Jaya Holdings fails to get SINGAPORE EXCHANGE pre-clearance for reverse takeover of Papua New Guinea finance company SINGAPORE

SINGAPORE - Mainboard-listed Jaya Holdings said on Tuesday (Sept 5) that its proposed 
reverse takeover of Papua New Guinea personal and consumer lending firm Heduru Moni has 
failed to obtain pre-clearance from the SGX.

Jaya, who was earlier an offshore fleet and shipyard owner, became a cash company after it sold 
its businesses for S$625 million in 2014 to Mermaid Marine Australia. It entered into a reverse 
takeover agreement to acquire Heduru Moni in May last year in a S$232.2 million all-share deal.
Jaya said it was informed that taking into consideration the nature of Heduru Moni's business, 
together with the jurisdiction risks of the acquisition target, "it has not been demonstrated to 
SGX that the target is suitable for listing on SGX at this point in time."

Jaya said it is considering the options available and intends to seek further clarification from 
SGX on the pre-clearance.It said shareholders should note that there is no certainty the proposed acquisition can be completed by the new completion date of Sept 30, 2017, in which event the agreement may terminate.

Jaya also reminded shareholders that it faces delisting unless it can meet SGX's new listing 
requirements by Oct 3, 2017.

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4 SMALL CAP STOCKS THAT MIGHT       HELP YOU MAKE A COMEBACK

The Straits Times Index (STI) has been extending its losses over the past month as investors continue to take profit ahead of key events. The STI fell from 3,346.02 to 3,262.61 last Friday (25 Aug 2017) as it recorded a monthly loss of 2.5%.

Moving forward, the STI looks to be heading downwards in the month of September as markets continue to be impacted by geopolitical risk from North Korea as well as uncertainty over Donald Trump’s administration.
Here are four small-cap stocks that analysts are recommending.

1. Raffles Medical Group

Raffles Medical Group recently announced its 2Q17 results, which reflected headwinds that the company is facing.
However, analysts believe that Raffles Medical Group’s significant expansion plans over the medium term would help to buoy share price as the company evolves toward becoming a regional healthcare provider.
Raffles Medical Group management highlighted that it expects its planned hospitals in China to achieve EBITDA breakeven within three years.

The management has also indicated that it is looking to open its Chongqing hospital (operational by 2H18) with around 120 doctors (80 local) and 250 operational beds (50 public).
Daiwa Capital Markets: Raffles Medical Group Limited (SGX: BSL) – BUY; Target Price $1.46

2. SIA Engineering: Riding on tail of SIA

SIA Engineering is setting itself on a good long-term growth trajectory as it stands to be a key beneficiary of three long term trends.
Firstly, analysts note that SIA’s fleet is expected to grow by ~50% over the next decade. That means that there will be more fleet maintenance work for SIA Engineering.SIA has also been collaborating with original equipment manufacturers (OEMs) like Boeing and Airbus for fleet management services and airframe maintenance contracts respectively.
SIA Engineering is expected to be the lead beneficiary for SIA’s collaboration with OEMs.

In addition, SIA Engineering also embarked on a joint venture with GE Aviation to provide a full range of aircraft maintenance, repair and overhaul (MRO) services for GE90 and GE9x over the next three years.
Lastly, the opening of Terminal 4 in 2H17 will increase maintenance opportunities for SIA Engineering as the number of flights to and from Singapore increases.

Daiwa Capital Markets: SIA Engineering Company Limited (SGX: S59) – BUY; Target Price $4.10

3. Sinotrans: Laggard turning into outperformer on recovery in global trade

Sinotrans is one of the largest logistics company in China. With the recovery in global trade and the shipping industry, Sinotrans stands to be a beneficiary.The logistics industry looks to be recovering from its trough of the past three years. Analysts expect the recovery momentum to sustain and even extend into 2018 on the back of a global trade recovery.
Given that Sinotrans has been lagging behind its logistics peers, improving sentiment and profitability and the expected industry recovery will drive investor interest in Sinotrans over the next few months.

Daiwa Capital Markets: Sinotrans Limited (HKG: 0598) – BUY; Target Price HK$5.00

4. ThaiBev: Fried chicken and beer combo in the making?

ThaiBev’s subsidiary recently announced the acquisition of Yum Restaurants in Thailand. Upon completion of the deal, ThaiBev will own over 240 KFC stores in Thailand.
According to ThaiBev, KFC is the number-one quick service restaurant brand in Thailand by brand share and outlets.
Analysts believe that the expansion allows ThaiBev to venture further into the food business and enable ThaiBev to further understand Thai consumption trends.The deal will help ThaiBev move closer to its Vision 2020 plan to diversify and have 50% revenue contribution outside of alcoholic beverages.

Singapore Telecommunications Limited’s Mobile Business: 2 Big Trends Investors Should Know

Singapore Telecommunications Limited (SGX: Z74) reported its fiscal first-quarter results in early August.For the reporting quarter, Singtel reported an 8% rise in revenue, posting S$4.3 billion in sales.

The solid growth in the topline was credited to strong growth in the Australian consumersegment and the digital businesses.

However, the telco’s profit fell 5.6% year-on-year, dragged down by weaker earnings from its

regional associates.

Let’s take a look at the two opposing trends.

1. The Australian turnaround – click here

2. The Indian dilemma

Singtel has stakes in regional telcos such as Indonesia’s Telkomsel, India’s Bharti Airtel, Globefrom the Philippines and Thailand’s AIS and Intouch.

Over time, Singtel’s collection of regional associates has grown in importance. In the first-quarter, dividends from its associates accounted for almost 67% of the telco’s free cash flow.

The contribution is significant, and also important as free cash flow is the source of Singtel’s

dividends, and future investments.

For the fiscal first quarter of the financial year ending 31 March 2018 (FY17/18), regional

associates posted profits before taxes (PBT) of $673 million, a 4% decline from a year ago.Much of the decline was caused by lower profits at Bharti Airtel which posted a PBT fall of 42%year-on-year The most telling sign of Bharti Airtel’s impact is that Singtel would have posted a 9% increase inPBT if not for the Indian telco’s profit decline.

In a recent earnings briefing, Singtel’s chief executive Chua Sock Koong, said:

“Associates’ earnings were affected by intense market competition, especially in India. Theassociates made significant investments in networks and spectrum and recorded higherdepreciation and amortisation costs.

This is partially mitigated by strong results from Telkomsel.”

Bharti Airtel recorded an increase in its mobile subscriber base, but lost market share asReliance Jio, an aggressive competitor, entered the Indian telco market with cut-price offers. At the moment, it is unclear how long the competition in the Indian market will drag on. Until then,Singtel’s profits might take a sting.

We will have to continue watching developments in this space.

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4 INVESTMENT IDEAS WHICH WILL GEAR YOU UP TO GET A GOOD START IN STOCK MARKET

For those who are little bit nervous before entering in the stock investment here are some tips which will gear your investment up.In this eon of time every dollar and cent we earn goes to the next vacation or the future home, investing can seem to be a very puzzling concept.Out of a group of 2,000 young people aged between 20 and 30, around one-third had not started investing.

Common reasons, according to the survey, include either lack of investment or lack of awareness about how to invest.If you invest smartly, you will see the growth and the privilege of your capital. this perceives great, right? Investment in the Stock Market does require a bit technical knowledge.

Here are some tips which are highly recommended to get you started with your first investment:

"Start your work with whatever initial knowledge you have"

What all you need is just a little bit of knowledge that in which field you are about to enter.You have to keep yourself up to date which each new day so that you will become sound in picking up a good stock for increasing your capital.

"Keep your own Risk Management"

Investing for the first time is a bit risky, but then so is driving a car or crossing the road. Everything in life involves a certain amount of risk, but the more important point is to take calculated risks. For example, even though traditional savings accounts are considered safe, they also reap lower rates of return in the long run. So it's like many things that look attractive and valuable actually have no value at all so always be on a safer side. That way, you will increase your chances of seeing significant financial growth.

"Avoid listening to what others are investing in"

Just because everybody else is investing in something, does not mean you should jump on that. At the end of the day, it's all about doing your homework and knowing the best move for you before following trends. This goes back to point one: if you don't know anything about any particular thing, don't invest in it just because someone tells you to and still if you are doing so then the risk is all yours.

"Find Advice You think to be most liable"

Lastly, finding someone who can offer you unbiased advice is incredibly important to get you started. If you have never been in the field of investment it may sound weird but before attempting to anyone's advice just try to check it before executing.

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Share Investment Wrap : Caution Prevails for Asia Stocks, Iron Ore Drops

Financial specialists embraced a wary tone toward the finish of a positive week for Asian stocks, with crude materials organizations drooping. The yen withdrew from a two-day progress. 

The dollar was blended against real monetary standards in the wake of debilitating Thursday on Treasury Secretary Steven Mnuchin's announcement that financial jolt consequences for the economy this year might be constrained. Tokyo offers fell back in the wake of deleting misfortunes in morning exchanging. Ware makers dragged Australian values bring down after iron metal tumbled. Gold set out toward a fourth week by week increment and oil was balanced for its greatest week of the year. 

A fifth week after week pick up for Asian shares that is pushed the estimation of worldwide values above $70 trillion is losing energy as cash administrators think about political instability and the Federal Reserve's calendar for lifting obtaining costs. Encouraged Bank of Dallas President Robert Kaplan asked his associates at the U.S. national bank to seize chances to raise loan fees, even as he said they ought to keep their alternatives open in front of one month from now's strategy meeting. 

"There are those out there considering, 'Admirably, markets have had such a major runup, it's a great opportunity to take a touch of cash off the table,"' said Shane Oliver, Sydney-based head of venture technique at AMP Capital Investors Ltd., which oversaw about $120 billion as of December 2016. "It wouldn't astound me to see a touch of combination or redress, and perhaps we're beginning to see indications of that." 

Markets this week have been subjected to intraday changes in resources from stocks to monetary forms, as financial specialists hold tight each word from national bank authorities and lawmakers. Notwithstanding worries about financing costs and Donald Trump's monetary arrangements, merchants are additionally watching improvements in French presidential decisions and the U.K's. Brexit arranges. 

"As the market sits tight for subtle elements on U.S. tax breaks, it's more probable that authorities' remarks influence the market," said Kenji Ueno, portfolio supervisor at Sompo Japan Nipponkoa Asset Management. "U.S. financial strategy is moving toward development, however the organization might attempt to chill a portion of the desire." 

Financial specialists will search for any strategy points of interest when Trump addresses Congress one week from now. 

Very rich person Warren Buffett discharges his yearly letter to shareholders with Berkshire Hathaway Inc's. income throughout the end of the week. 

Lawmakers in the U.K. will consider changes to the Brexit charge next Monday and Wednesday that may address the privileges of EU subjects in Britain and give parliament a coupling vote on the last arrangement. 

Here are the primary moves in business sectors: 

Monetary standards 

The yen dropped 0.1 percent to 112.74 for every dollar starting at 1:34 p.m. in Tokyo, in the wake of rising 0.6 percent Thursday. The cash is minimal changed for the week. 

The Bloomberg Dollar Spot Index dropped under 0.1 percent in the wake of falling 0.3 percent in the past session. 

The South Korean won climbed 0.7 percent, ascending for a fourth day in the longest dash of increases since August. 

The Australian dollar was minimal changed. National bank Governor Philip Lowe said he expects "a time of strength" in loan costs and recommended additionally cuts could push effectively high family unit obligation to "risky" levels. 

Stocks 

The MSCI Asia Pacific Index fell 0.4 percent, paring the current week's progress to 0.7 percent. Japan's Topix file lost 0.4 percent. The gage is up 0.4 percent for the week. 

Australia's S&P/ASX 200 Index withdrew 0.8 percent. BHP Billiton is on course to decrease 5.7 percent this week, the greatest misfortune since May. 

Hong Kong's Hang Seng dropped 0.4 percent, withdrawing for a moment day in the wake of coming to the most elevated since August 2015. The Hang Seng Enterprises Index lost 0.7 percent. 

Fates on the S&P 500 fell 0.1 percent. The file climbed under 0.1 percent on Thursday, while the Dow posted a tenth day of additions, its longest dash of record closes since 1987. The Stoxx Europe 600 file slipped 0.1 percent. 

Baidu Inc. surged in nightfall exchanging New York as benefit topped appraisals. 

Commodity :

Gold added 0.1 percent to $1,250.27 an ounce subsequent to rising 1 percent on Thursday. The metal is up 1.3 percent for the week, heading for the most astounding shutting level since November. 

Press mineral tumbled 4.5 percent, and is balanced for a week by week misfortune. Following an unexpected rally a year ago, the ware thundered into 2017 on confidence that Chinese request would demonstrate strong. This week has seen a progression of notices the additions might be overextended. 

Oil slipped 0.1 percent to $54.41, in the wake of hopping 1.6 percent in the past session as government information demonstrated a littler than-anticipated increment in rough inventories. Rough is exchanging close to the largest amount since July 2015. 

Bonds 

Yields on 10-year Treasuries were minimal changed at 2.37 percent, in the wake of dropping four premise focuses on Thursday. 

Australia 10-year yields fell six premise focuses to 2.73 percent.

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