Morning Highlights
There Are No Short Term Trading Picks

Market experienced shallow pullback for the time being. There are some stocks going ex-date today, namely SembCorp and KepCorp.

Do note that the price depreciation of KepCorp is due to bonus issue. Bonus issue is deemed as a positive sign on the company and is seen as an alternative way of giving dividends.

According to 1:10 bonus issue on KepCorp, the share price should be trading around 11.74. The calculation will be 1/11 * 12.92 (which is the last done price yesterday). Bonus issue is shares given by the company FREE since company is not trying to raise money. If you buy 1 lot of Kepcorp at 12.56, you should be paying $12,560.

With the bonus issue, your holdings increased to 1100 with additional 100 shares given to you. So your per share price is at 11.42 (using $12,560 / 1100 shares).

At the same time, KepCorp is giving away dividend at $0.26.

For all this to materialize, you have to be sure that you are still having the shares on or after ex-date. You can choose to sell on or after ex-date since that will not affect your status of receiving the dividends and the bonus shares. However, you will not be entitled to the bonus issue and dividend if you purchase shares on and after ex-date.

Same goes to Sembcorp which is giving out $0.17.