STI on drop

Singapore shares were headed for their biggest one-day decline in more than a year, tracking weaker global markets after Federal Reserve chairman Ben Bernanke said the central bank would start to reduce its stimulus measures later this year.
The benchmark Straits Times Index dropped nearly 2% on Thursday. The broadest MSCI's index of Asia-Pacific shares outside Japan fell more than 3% in its sharpest daily slump since November 2011.
Share price of Medtecs International Corp, which produces medical products including face masks, surged 11% in a second straight day of rise to $0.07, on expectation of higher sales of masks in the city-state hit by its worst air pollution in history.
In other stocks, ComfortDelGro Corporation fell 2.8% to $1.76, but stayed off a six-month low of $1.70 hit last week. Analysts at OCBC Investment Research saw it as a good entry point given its recent share stability and unchanged fundamentals.
“Domestic challenges aside, the group's overseas growth prospects, which have been its key growth driver, remain unchanged,” the analysts wrote in a note, adding that the blow to share price from a recent partial stake sale by the Singapore Labour Foundation has tapered off.
OCBC upgraded the stock to “buy” with a target price of $1.95.

SXG up with Phillip, Keppel Corp

PhillipCapital removes Boustead Singapore (F9D.SG) and SIA Engineering (S59.SG) from its top picks list for Singapore and replaces them with Singapore Exchange (S68.SG) and Keppel Corp. (BN4.SG).

The house likes Singapore Exchange for three reasons: higher securities revenue; continued derivatives revenue growth; an expected increase in free cash flow and dividend yields. It has an Accumulate rating and $8.00 target on the stock.

The house believes that Keppel Corp. "will continue to benefit from the robust O&M outlook, which is well-supported by high dayrates and utilizations for both jack-up and semi-sub rigs." Keppel's 4%-5% dividend yield should also not be ignored, it says. It has an Accumulate rating and $12.34 target on the stock.
Boustead is flat at $1.32, SIA Engineering gains 0.8% to $4.93, Singapore Exchange is up 1.1% at $7.34 and Keppel Corp. is 1% higher at $10.68.

Singapore's STI is trading at 3,215.39, up 1.1% from Monday's close after a bullish cue from Wall Street. Singapore Technologies Engineering (S63.SG) is pacing gains, up 2.8% at $3.99 after it announced its unit ST Aerospace has signed a deal with UTC Aerospace systems for long-term repair and maintenance of Boeing 787 Dreamliner components.

Consumer Sector, Cache Logistics Trust: SG Market Updates

We downgrade the consumer sector to UNDERWEIGHT in light of the weaker SG retail sales figures for Apr and the potential threats to regional consumer spending (i.e macro-overhang, government policy changes and greater foreign competition). With sales figures likely to showcase unimpressive results for May, 2QCY13 could well shape out to be a muted quarter in terms of top-line growth for consumer companies. Furthermore, operating cost pressures resulting from higher wage costs and advertising and promotional spending still remain so operating margins are likely to stay depressed. Within the sector, we favour counters with defensive qualities such as Sheng Siong [BUY; FV: S$0.82] or counters with potential M&A activity Viz Branz [BUY; FV: S$0.74]. (Lim Siyi) MORE REPORTS Cache Logistics Trust: Valuation looks undemanding Summary: We are reiterating our prognosis that Cache Logistics Trust (CACHE) is likely to continue to deliver sustainable growth for FY13. CACHE has a portfolio of quality assets which has a 100% occupancy rate and strong weighted average lease to expiry of 3.7 years. Together with the recent acquisition of Precise Two, CACHE is likely to meet our growth projection for 2013. Since 22 May, the S-REITs sector, including CACHE, has recently experienced a sell-down on fears that the US Federal Reserve may reduce the pace of its bond purchase programme and raise the interest rates in the coming months. However, we believe that the market reaction on CACHE is overdone, given its strong financial position and active capital management. At current price, CACHE offers a FY13-14F DPU yield of 6.8-7.1%, which represents an attractive spread of 471-500 bps to Singapore's 10-year bond yield. While we now revise our fair value to S$1.40 from S$1.45 on higher risk-free rate assumption, we still see good upside potential on CACHE. Maintain BUY. (Kevin Tan)

NEWS HEADLINES - Asian stock futures fell, signaling a possible extension of declines amongst Asian equities after the International Monetary Fund cut its US growth forecast and ahead of the Federal Reserve meeting this week. - Singapore may gain from its first-mover position for business trusts in the region, market watchers say, even if historical performance is mixed and amid a recent dip in sentiment for yield plays. - Singapore's monetary authority censured banks for trying to rig benchmark interest rates and orders the setting aside of as much as S$12b at zero interest pending steps to improve internal controls. - Far East Orchard has been awarded a tender for a residential land parcel with FCL Topaz Pte. Ltd., a member of Frasers Centrepoint and Sekisui House, Ltd. The total tender price for the land was S$256.9m. - First Ship Lease Trust demands the redelivery of its two crude oil tankers, after lessees default on their lease payments. - Freight Links Express expands the scope of its logistics business by entering the commodity logistics segment

STI Weekly Technical Data Analysis

Some points to note for this week's analysis (10-14 Jun 2013):
1) None of the counters are in the overbought region (RSI value 70 and above).
2) 10 of the counters is in the oversold region (RSI value 30 and below).

After ending last week at 3184.72, the STI slid further this week to close at 3161.43 (closing end of today), with an intraweek high of 3214.88 and an intraweek low of 3094.86.

Despite another week of losses, we note that the index has built a firm support at the 3100 key level after rebounding strongly from its intraday low yesterday.

And with the index showing signs of re-conquering the 3160 immediate obstacle today, we could potentially see a further technical recovery towards the 3230 subsequent resistance in the week ahead.

STI down 1.86%

Singapore shares fell for the third day in a row, plumbing new 2013 lows, hit by concerns that the U.S. Federal Reserve will roll back its stimulus amid a slowing global economy.

The Straits Times Index (STI) declined as much as 1.86% to 3,094.86, the lowest since Dec. 7. MSCI’s broadest index of Asia-Pacific shares outside Japan was down 1.9%. 

 Japan’s Nikkei share average dived more than 5%, while Hong Kong’s Hang Seng Index shed 2.9%.

 "Markets are very jittery these few weeks, believing that once QE (quantitative easing) is taken out, markets will more likely reflect the reality of the slow growth environment," said Kenneth Ng, head of CIMB Research in Singapore. "We think the floor (for the STI) is somewhere at 2,740 to 2,955. 

We think that the selldown will continue, so we’ll start buying only after it falls below 3,000." Selling in the Singapore market is broad-based on Thursday, led by Global Logistic Properties, Singapore Technologies Engineering and Sembcorp Industries, which fell around 3% each.

STI down 0.6% with 3150 support

Singapore shares slipped into the red in early trading, joining Asian peers in poor health as investors continued to mull mixed economic signals out of Asia and the US.

The STI drops 0.6% to 3,180.80, retreating to near its 2013 lows.
"Given mixed Wall Street seen overnight and the lack of catalyst for any rally, do expect the STI to remain range-bound at 3,150-3,210," OCBC says in a note. Penny stocks find favour in thin volume, with 729.8 million shares worth $385.6 million changing hands. Decliners outnumber gainers 236 to 71.

Property-related stocks, which had helped lift the index Monday, handed back much of those gains. Global Logistic Properties (MC0.SG) led decliners on the STI with a 1.8% fall to $2.76, while CapitaLand (C31.SG) retreated 2.4% to $3.26. City Developments (C09.SG) meanwhile slipped 1.1% to $10.04.
Banks are also in the red: DBS Group Holdings (D05.SG) is down 0.4% at $16.02, UOB (U11.SG) falls 0.4% to $20.00, while OCBC (O39.SG) eases 0.7% to $10.07.

Golden Agri, ASL Marine, Swiber for STI Up

Golden Agri-Resources: Modestly firmer CPO boost

Summary: Golden Agri-Resources (GAR), being one of the largest palm oil plantation owners in the world, should benefit from the recent rebound in CPO (crude palm oil) prices to MYR2450/ton; we note that there is a strong historical correlation of nearly 0.7 between CPO prices and GAR share price. While the general outlook for commodities is still uncertain (as China's economic growth continues to sputter along), we believe that headwinds appear to be dissipating. Furthermore, management remains fairly upbeat about its prospects as it continues to expand its integrated operation capabilities to benefit from the firm industry outlook. Maintain BUY with an unchanged S$0.63 fair value (based on 12.5x FY13F EPS). (Carey Wong)

MORE REPORTS

ASL Marine: Ceasing coverage

Summary: Among the various offshore and marine stocks, ASL Marine (ASL) is one of the counters with a more diversified business model. Its shipbuilding operations accounted for 46% of gross profit in 9MFY13, ship-repair and conversion accounted for 22%, while ship-chartering contributed 32%. The group expects the outlook of the offshore and marine industry for this year to be "good", but margins may be impacted by stiffer competition from Chinese shipyards. The long-term future of ASL looks bright, but more time would likely be needed for significant earnings growth and a re-rating of the stock. In particular, the liquidity of the stock is relatively low, partly due to the free float of ~37.8%. We last rated ASL a Buy with a fair value estimate of S$0.86. Due to a re-allocation of internal resources, we are ceasing coverage on this counter. (Low Pei Han)

Swiber Holdings: More work coming up?

Summary: According to Upstream, PEMEX is preparing to begin a bid process that aims to offer a contract to deliver and install four Ayatsil platforms. The group is in the pre-qualification phase for the contract, and heavy-lift contractors such as Saipem, Heerema and Swiber Holdings are said to be interested. The entire package is estimated to be worth ~US$300m. Swiber recently saw its share price run up about 23% from 14 May (pre-1Q13 results announcement) to its close on Friday, after we upgraded our rating from Hold to Buy. However we still see an upside potential of about 12% over a one-year time frame. Maintain BUYwith S$0.86 fair value estimate. (Low Pei Han)



NEWS HEADLINES

- Sembcorp Industries Ltd. reports solid waste management unit getting a S$299m contract from NEA to provide refuse collection and recycling services to the City-Punggol sector of Singapore.

- British automaker Rolls-Royce has won a contract to supply engines and support 50 of Singapore Airlines' Boeing Dreamliner jets in a deal worth US$4b at list prices.

- Asian Pay Television says asset manager Thornburg Investment to raise stake in the company; buying 73.8m shares for S$53.6m.

- Halcyon Agri Corp. (HACL SP) reports listing of 40m new shares at S$0.5175 each.

- Armarda Group (AMDA SP) names Chu Yin Ling Karen as CFO. Chu Yin Ling was previously the Financial Controller of Armarda Group Ltd since July 2009.

Keppel gains, STI fall

Singapore shares weakened, while the world’s biggest offshore oil rig builder Keppel Corporation gained on news that it won an US$800 million ($999 million) rig order from Azerbaijan.

The Straits Times Index dropped 0.7% to 3,265.44, while the MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.7%.

Shares of Keppel Corp rose as much as 1% to $10.68, after the company announced that it won a contract from Caspian Drilling Company, a subsidiary of the State Oil Company of Azerbaijan Republic, to build a semisubmersible drilling rig, worth about $800 million.

 “This contract will lift Keppel’s year-to-date wins to $2.4 billion, forming 41% of our full year assumption of $6 billion,” said DBS Group Research, keeping an unchanged “buy” rating and target price of $13.00. Other brokerages had a bullish outlook on Keppel Corp.

 “With Keppel’s seven jack-up orders to date, all based on its KFELS B class jackup designs, we believe the outlook for margins in 2014 continues to improve,” said Barclays analysts, keeping Keppel as its top pick in the rig-building space.

The oil and gas sector index gained 0.4% on Wednesday, down 1% so far this year, lagging behind the benchmark index’s 3% rise.

S-REITs Nam Cheong

Singapore REITs: Capitalize on over-reaction We see two key factors driving the S-REITs price correction over the last two weeks. First, increased expectations that the Federal Reserve could taper its bond purchases as early as 2H13; and secondly, opportunistic profit-taking on the back of a strong performance over 2012-13. At this juncture, however, we see the selling to be overdone. In our view, the odds of the Fed tapering bond purchases in 2H13 are roughly 50-50 and we see fundamental valuations for the S-REITs sector (370bp against the 10Y government bonds) to be undemanding currently. In addition, S-REITs sector would likely continue to deliver, in 2013, firm earnings from asset enhancement initiatives/development projects, yield-accretive acquisitions and active leasing efforts. Maintain our OVERWEIGHT rating on the S-REITs sector. Starhill Global REIT [BUY, S$1.05 FV] is our top pick in the sector due to its growth potential, strong fundamentals and compelling valuations. We also like CapitaCommercial Trust [BUY, S$1.80 FV] and Fortune REIT [BUY, HK$8.64 FV] for the quality of their portfolio assets, positive rental reversion profiles and low gearing. (S-REITs Team) MORE REPORTS Nam Cheong: Ride the upcycle! Nam Cheong Limited recently announced that its Executive Director, Mr. Leong Seng Keat, has been re-designated as the CEO. Mr. Leong, also the son-in-law of ex-CEO Datuk Tiong Su Kouk, has been with the group since 2005. We expect the leadership transition to be smooth. Meanwhile, we continue to like Nam Cheong for its market leadership in the increasingly active Malaysia oil & gas industry. Having seen a healthy pick-up in order wins, Nam Cheong recently expanded its shipbuilding programme to 28 vessels for FY14F (FY13: 19 vessels). Its large order-book of MYR1.3b, for 26 vessels delivered over FY13-15F, helps to mitigate its risk by providing a base level of earnings. Maintain BUY with a higher FV of S$0.35 (previously S$0.30). (Chia Jiunyang)

NEWS HEADLINES - Datapluse Technology posted a 23.2% increase in net profit to S$2.19m for its 3QFY13 ended 30 Apr. - NH Ceramics entered into a purchase agreement to buy BlackGold Asia Resources Pte Ltd and BlackGold Energy Limited for US$150m. The two BlackGold firms control about 53,000 hectares of coal concessions in Indonesia. - Asian Micro Holdings is planning to acquire Oxley Global Limited in a proposed RTO deal. - Halcyon Agri announced that it would acquire Malaysian rubber processor Chip Lam Seng for RM63m (S$25.7m). - According to the latest purchasing managers' index, Singapore's industrial activity grew at a faster pace in May, also signalling a fourth consecutive month of growth for the electronics sector.

STI on Downfall

STI dropped 0.61% to 3,291.08. 

The top trading stock are Ramba gain +28.93%, Singtel keep flat, DBS dropped -1.81%, OCBC Bk gained +1.55% and UOB also gained +1.96%.

Real Estate Investment Trusts (REITs) gained +1.72% 
but fall was recorded in CapitaComm -0.66% and CapitaMall of -1.40%.

STI Up with SG Press Gains

STI shares get narrow up with Singapore Press Holdings Ltd in biggest gainers, as plan to establish and list a real estate investment trust (REIT).

The STI up with 0.2% to 3,403.63 while MSCI's broadest index get down 0.2 %.

Singapore Press Holdings (SPH) shares gained as much as 3.9 percent to a seven-week high of S$4.56. It was the most traded stock by value on Tuesday. The company aims to make S$1.048 billion ($829 million) by selling part of a REIT whose assets are two shopping malls.

Sembcorp Marine Ltd also rose as much as 1.6 % to S$4.48. Shares in Yoma Strategic Holdings Ltd jumped as much as 6 percent to a three-month high of S$0.88 on Tuesday, after brokerages upgraded the property developer on upbeat business prospects in Myanmar.

Yoma reported a net profit of S$11.5 million for the quarter ended March 31, up from S$2.1 million a year earlier, boosted by an increase in sales of residences and land development rights in Myanmar.

Yoma's involvement in Myanmar's telecommunication and agriculture industries could propel its share prices higher, analysts also said. The shares have risen nearly 22 percent so far this year, beating a 6.7 percent gain in the sector index.

Soilbuild Up 56% with Huge Volume in SGX

Soilbuild Construction Group Ltd's equities move up 56% on its debut in Singapore. It rise up S$0.39 from its offer price of S$0.25. Soilbuild Group also offers new 168M shares to raise nearly S$40 million. It had got two contracts in Myanmar. Its also expects to further expand. The company has a total market value of about S$259 million.

STI on 61.2 pt down fall

On 23 May, SGX noticed 1.77% fall and got closed on 3393.17. It was approxed 61.20 pt fall. It may cause due to effect of other share markets.

Keppel REIT fall down SGX Live

Keppel REIT's units fell down up to 2% with just Keppel Corporation Ltd would sell a 6.7 % stake in the trust for S$280 million.

Price down notice after a 5-1/2-year high of S$1.63 last week, outperforming a 13 % rise in the sector index.

Keppel REIT alive at S$1.57 per unit 7 sell price of $1.555 for the 180 million units or 6.7 percent of the total issued units. it remained positive on Keppel REIT because of the trust's strong office portfolio in Singapore, and retained its target price of S$1.64.

STI up with Singtel, Keppel stock

SGX Shares up with Singapore Telecom rise up high since Jan 2008 & Keppel Corp with 1 month high.

STI up with 0.1% to an intra-day high of 3,458.04. MSCI's broadest index also gained 1%.

 

Keppel Corp's shares rise a month high of S$11.09. Its crosstown rival Sembcorp Marine Ltd rose 0.9 percent to S$4.47.

SingTel also get up a 5 ½ yr high as1.5% to S$4.08. The company's Australian unit, Optus, has announced plans to roll out Australia's first multi-band 4G network. 

SingTel posted a 33 percent drop in fourth-quarter net profit, but said it will pay a final dividend of 10 cents a share, up from 9 cents a year ago.

STI again on 5.5 yr High, SIA down

SGX Shares hit up their 5 ½ yr high, beside it Singapore Airlines Ltd, Asia's second-biggest airline drop after 19 months via posting disappointing results.

STI rise with 0.5% to 3457.07, thats topped valuve since 2008, while MSCI's broadest index of Asia-Pacific' shares down 0.2% .

SIA's shares fell 4.4 % to S$10.95, a low since three weeks. Its due to company reported weaker-than-expected full-year results. It downgraded SIA to "sell" with a fair value estimate of S$10.00.

STI on Balance, Noble Down SGX Live

SGX stock keep steady state, besides it Noble Group Ltd fell down due to weak first-quarter results.

STI keep flat while MSCI's broadest index get up 0.2%.

Noble' equities fell 2.3% to S$1.07.

Noble report negative image by posting a 62% fall in first-quarter results.
Ezion Holdings Ltd's shares also rise 4.4% to remarked high S$2.39.

DBS Vickers kept its "buy" rating on the stock and upgraded its target price to S$2.52 from S$2.47.

Yongnam Holdings Ltd's equities rose 6.1 percent to S$0.35, the highest since November 2007, after the company posted a marginal rise in first-quarter net profit.

STI Up Noble Down : SGX Stock Live

SGX shares rise a little with a downfall on Noble Group Ltd's shares due to poor results in first quarter.

STI get up just 0.2% to 3451.04 pts besides it, MSCI's broadest index also shed 0.1%.

Noble's equities fell 6.3% to to S$1.045, the lowest since July 2012. Just due to first-quarter net profit fell 62 percent to $41.3 million, attributing the results to a challenging operating environment.

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SGX Stock Pick Live : Golden Agri Boost Stock

The Straits Times Index (STI) inched up 0.3 percent to 3,441.83, hovering near a 5-1/2-year high of 3,447.73 hit in the previous session.

Golden Agri-Resources Ltd boost up 4.7 % after the company posted a more than two-fold increase in quarterly net profit compared with the preceding quarter.

The company, a palm oil producer in Indonesia, said its net profit in the first three months of the year jumped 176 % to $113 million from the previous quarter, though it fell 30 percent from a year earlier.

Improvement in the company's China operations, selldown of inventory and lower operating expenses helped offset the seasonally lower production and soft palm oil prices.

OCBC Investment Research upgraded its rating on the shares of the company to "buy" from "hold", with a target price of S$0.63.

Despite the gains, Golden Agri was the worst index performer so far this year with a 15 percent decline, while the index was up nearly 2 percent. Shares were up 3.77 percent at S$0.55 at 0324 GMT.

First Resources Ltd, another palm oil firm, reported a 29.9 percent jump in its first quarter net profit. Share price rose more than 3 percent to a near one-month high of S$1.81.

SGX Index Up with Fortune REIT, Olam Profit

SGX Equities come up with again Olam International Ltd. It was just after reporting company’s
joint venture with Sanyo Foods.

STI ganed 0.2 % at 3442.45 with MSCI's broadest index shed 0.9 %.

Olam's shares gained 2.8 5 to S$1.82, a highest since November 2012.

Units of Fortune Real Estate Investment Trust (REIT) up with 5.2 % to a record high at S$8.24. The company posted a first-quarter net profit of HK$153.3 million ($19.76 million), up 16.3 percent from the previous year.