Dull Sep Performance … Look forward to corporate activities in Oct

Sep has been a lacklustre month in terms of stock performance. All 3 indices (STI, Hang Seng Index and S&P 500) that I have been tracking closely are down for the month. The only silver lining was the SReit. Overall, I suffered more paper losses. Sign, what to do but to hang on …

However, in the last few days, there have been quite a fair bit of corporate activities that would affect my portfolios starting as soon as next month – see below.

  1. Accordia Golf Trust divestment is complete – I will get 70 cents back per share as the first tranche payment. This is above my cost price. The sad thing though is that I lose a good dividend paying company.
  2. DBS just announced that it would redeem its Preferential shares in November. I actually like this PS a lot because it has been providing me with 4.7% dividend every year. But again I will lose another source of stable divided. Although this development is fully expected given the current low interest rate environment, it is still painful.
  3. The merger of CCT and CMT is confirmed. It will be a mammoth Reit on SGX that predominantly holds Singapore-based retail and commercial assets. I hope Capitaland will help to lift its competitiveness given the large economy of scale it will enjoy particularly the additional headroom for growth available. Otherwise, it would be a waste of shareholders’ money for this exercise.
  4. Ireit announced a rights issue at 49 cents a share to raise funds from shareholders to fund the acquisition of the remaining equity in the Spanish assets it doesn’t hold currently. It is not expected to add immediate value, i.e provide higher yield to shareholders. But hopefully Ireit can do more to realise the potential value of this asset in the months to come. I plan to subscribe to this right issue.
  5. Frasers Centrepoint Trust also announced a private placement and rights issue at $2.34 a share. It would become the biggest pure retail Reit on Singapore market. I plan to subscribe to this right issue.
  6. Keppel announced its Vision 2030 today and the potential divestment of its non-core assets including its offshore and marine business. I think the latter would be acquired by Temasek to merge with SembMarine (which was craved out of Sembcorp) to gain the size required to compete effectively against the Chinese and Korean shipyard companies. As an existing shareholder that is not very keen on Keppel’s O&M asset, I think it is a good move. I hope it helps Keppel to focus more on the growth sectors that it has identified.
  7. I am happy to see ICBC CSOP China Government Bond ETF listed on SGX last week. It would add another option for me to diversify and grow my bond holding in my Index Portfolio.
  8. Wilmar is finally listing its China subsidiary in Shenzhen stock exchange. The IPO seems to be very successful and well received by the market. I hope it can give a greater lift to its share price 🙂

October is traditionally not a good month for stock market. Investors are generally nervous when it comes to October. This is because historically, there had been many super large market crashes that occurred in that month. They include:

  1. The Panic of 1907
  2. Black Monday, Tuesday, Thursday, Monday (1929)
  3. Black Monday (1987)

Well, for the last few months, we had been blue-blacked by the COVID already and it is still around. Therefore, I don’t expect October to have any great bull run but I hope it would a calm and smooth month. But if it doesn’t, we just take it in stride. If there is really a major major crash and you are cash rich, then it may be a great opportunity not to be missed to accumulate a few great companies at rock bottom price – isn’t this what many of us have been aspiring to do?

Good luck everyone!

Regards,

Warriortan

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