A fast drop in the US dollar index lifted metal prices but failed to bail out crude oil.

A weaker dollar and rising uncertainties sent gold above the $1,300 mark for the first time in almost three months. Silver and platinum have also climbed to one-month highs, technically entering into an uptrend. 

The DoE’s crude inventory numbers jumped by 14.42 million barrels last night, much higher than the market’s earlier forecast of a 1.75 million barrel increase. Rising inventories led to a glut of concerns and sent oil prices lower. WTI Dec Crude oil prices broke below key support levels at $45.90. The next key support level can be found around $43.80. 

Crude Oil West Texas Dec 2016


GLP jumps 8.7% on potential buyout deal 

Singapore-based logistic giant Global Logistic Properties (GLP) attracted takeover interest from a group of Chinese investors, including sovereign fund China Investment Corp (CIC) and Hopu Investment Management, according to Bloomberg news on Tuesday. Although GLP subsequently clarified that it is not in discussions with the above referenced investor group at this time, the market still responded positively to price in the potential deal in advance. GLP’s share price surged as much as 14% intraday and closed at S$1.945 or 8.7% higher. 

Like other Singapore-listed companies, GLP was trading at relatively low valuations, 0.7 times price to book value, 11 times trailing price-to-earnings ratio. The cheap valuation made it an attractive target to Chinese funds looking at acquiring overseas assets in anticipation of further depreciation of the Chinese yuan. 

However, investors should also take into consideration the potential risks as the deal is subject to the receptiveness of Singapore’s sovereign fund GIC, which holds a majority 37% stake in GLP. There is no certainty that the consortium will proceed with a bid. 

GLP

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