(Sept 18): Shares in Apple slipped in trading this past week, after the company unveiled its latest futuristic phone on Sept 12. Shares in the world’s most valuable public listed company were heavily traded in the run-up to the launch, and touched a new high of US$164.94 early in the month. On Sept 12, however, the stock closed at US$160.86 after more than 71.7 million shares changed hands. On Sept 13, the stock slipped a further 1.1% in trading to close at US$159.65.

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High expectations for the company’s latest offerings have been brewing for a while, in light of this year being the company’s 10-year anniversary. A week before the launch, some details of Apple’s new line-up were leaked to trade media, which may have tempered enthusiasm among consumers and investors alike come launch day. Among the specifics were the new handsets’ designs and support for facial identification.

It has also emerged that the top-tier iPhone X, launched in conjunction with the iPhone 8, will only be available from November. That has caused some disappointment in the market. The iPhone X will be coming with a hefty price tag of US$999 ($1,348) — a substantial premium to what is in the market so far. That has raised some concern among investors about price sensitivity among consumers.

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The US dollar has come off its 2½-year lows against the currencies of its trading partners, ahead of the release of key US economic data. The currency had taken a beating in light of the political and policy uncertainty in Washington, the North Korean missile tensions and, most recently, the destruction wrought by hurricanes. The steady appreciation of the euro has also impacted the US dollar’s performance against its rival currencies.

The US Dollar Index, which measures the greenback against a basket of currencies, sank to a close of 91.352 on Sept 8. On Sept 13, the index closed at 92.52, up 0.7% from the start of the week. The dollar could gain further should US consumer price inflation and retail sales figures be positive. These numbers are due to be released on Sept 14 and 15, respectively. Analysts say further strengthening of the dollar could depend on how quickly Texas and Florida recover from the hurricane disasters.

LNG prices rise on weather disruptions

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Prices of Asian liquefied natural gas imports have risen in recent weeks, on the back of disruptions to supply caused by the hurricanes that struck the southern coast of the US. Industry observers have noted that storm damage has held up exports from the area. Asia currently accounts for 70% of global LNG demand; Japan and Korea are the region’s top importers, accounting for about half of total demand.

LNG futures for October settlement, traded as the SGX North Asia Sling (Singapore LNG Index Group) rose to a high of US$6.50 per million British thermal units (MBTU) on Sept 13. That is 6.6% higher than where it was before Hurricane Harvey hit on Aug 25. The contracts for November settlement are at US$7.15 per MBTU, 8.3% higher than in late August. The index is based on LNG cargo delivered to ports in North Asia.

LNG is used to power electricity and gas supplies. Prices have just about collapsed in recent years as supplies were boosted, not only from traditional sources such as Russia and Qatar but also from US shale producers. For instance, Japan was paying between US$18 and US$19 per MBTU in early 2014.

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SATS jumps on Kangaroo’s return Shares in airport services provider SATS have traded strongly, gaining 2.7% in trading from the start of the week to close at $4.88 on Sept 13 before slipping slightly to close at $4.82 on Sept 14.

UOB Kay Hian analyst K Ajith issued a report on Sept 13 highlighting how SATS is likely to benefit from Qantas Airways’ resumption of Australia-London flights through Singapore from March next year. “We believe there is a strong chance Qantas will choose SATS for its inflight catering, ramp handling and cargo handling services, instead of Emirates- owned dnata,” he writes. “Aside from the fact that SATS is not owned by a competing airline, the company already provides ground handling [and catering] services to its sister airline, Jetstar Asia.”

Qantas is expected to add 3,388 one-way seats from Singapore to London, and another 3,806 one-way seats between Australia and Singapore each week. Further, the Singapore-London sector is a key business route. “We believe Qantas could boost SATS’ local inflight catering and ground handling revenue by 3% and boost net profit by a similar proportion,” Ajith says.

He also expects business from the launch of flights between Singapore and London operated by Norwegian Air. The low-cost carrier is scheduled to start flying between Changi and Gatwick later this month.

Meanwhile, SATS is well positioned to take advantage of the continued pickup in air cargo volumes. As Ajith notes, Changi Airport recorded an 11.2% y-o-y growth in cargo throughput in July.

At current levels, SATS is trading at 21.5 times earnings. That gives the stock a dividend yield of 3.5%.

Spackman rises on Korean drama deal Korean film production company Spackman Entertainment Group has seen its share price trade heavily, and appreciate nearly 9% from its close the previous week. However, the company is still trading 35% below where it was at the beginning of the year. At current levels, the stock is trading at 6.4 times earnings.

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On Sept 7, Spackman announced that it is collaborating with a Korean television drama producer, Mongjakso Co, on a proposal to develop and produce two television series. These include The Game, a series starring Korean heart-throb So Ji-sub, expected to be released next year.

Charles Spackman, group chairman and CEO, said in a statement to the Singapore Exchange that the partnership agreement with Mongjakso is part of Spackman’s plans to expand and diversify its revenue stream, by capitalising on the popularity of Korean entertainment in Southeast Asia.

Spackman, which listed on Catalist in July 2014, recently posted half-year earnings of US$4.6 million, a turnaround from the losses of US$3.5 million it reported in the same period a year ago. However, this was largely due to a gain of US$3 million from the partial disposal of its associated company, Spackman Media Group, as part of Spackman’s acquisition of Frame Pictures, a film production equipment leasing business in Korea. Revenue for the period was 38% higher than the year before.

What to look out for An Australian company is set to list a European property real estate investment trust on SGX. Cromwell Property Group is aiming to raise as much as €900 million ($1,445 million) in the IPO. The trust’s portfolio comprises 81 office, industrial and retail properties across Europe, valued at about €1.8 billion.

Cromwell, listed on the ASX, is a global real estate investment manager with more than A$10 billion ($10.8 billion) in assets under management. Its European properties are in Benelux (an economic union of Belgium, the Netherlands and Luxembourg), the Czech Republic, Denmark, Finland, Sweden, France, Germany, Italy, Poland and Romania. It also has properties in Australia, New Zealand and the UK.

Also, APAC Realty has lodged its prospectus with the Monetary Authority of Singapore. The company operates a real estate brokerage under the ERA brand. ERA is one of the largest real estate agencies here, with 6,223 agents. The company is raising money to strengthen and expand its presence here and in Asia-Pacific, and to enhance its technological capabilities. Meanwhile, there is a host of economic data being released in the coming fortnight. Singapore’s non-oil domestic export figures for August are scheduled for release on Sept 18, while the August Consumer Price Index is slated to be out on Sept 25.

Little juice for Apple stock from highly anticipated iPhone X

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