International Report

EWS

March 20 $11.89

March 27 $12.38

VWO

March 20 $76.04

March 27 $78.27

Both of our global stocks got a bump this week, following the trend of the S&P and the Nikkei. EWS and VWO beat both exchanges over the week. The run up on the Singaporean Stock Exchange (SGX) is due to a lot of recent M&A activity, for example, Investment holding company Thinkpac is making a bid for SM Summit Holdings. Thinkpac has been increasing its stake in SM Summit, and finally made an offer.

In Singapore, analysts are calling for a 4.7% wage increase in 2007, with the majority of the increase going to financial and real estate workers (6%), with manufacturers and IT specialists lagging (3%). The trend here is toward a more incentive-based pay system, which has been popular globally in recent years. Companies are trying to decrease their fixed costs, while at the same time aligning the goals of employees with management and stockholders.

The Deputy Managing Director of the Monetary Authority of Singapore (MAS) Ong Chong Tee was speaking at an industry event today, and noted that there is likely to be growth in the insurance and reinsurance sectors in Singapore. He said that de-regulation and the increasingly complex risk environment will allow Singapore to be the insurance and reinsurance hub in the region.