Singapore Stock Factors to Watch Today 17-Dec

SINGAPORE STOCKS TO WATCH

SINGAPORE TECHNOLOGIES ENGINEERING

ST Engineering said its aerospace arm will acquire 100 percent of Volant Aerospace LLC for $13.1 million, which will help the company to develop cabin interior engineering, manufacturing and repair capabilities.

MAPLETREE INVESTMENTS

Mapletree Investments Pte Ltd, a firm owned by state investor Temasek, has hired major investment banks to manage an initial public offering next year of a real estate investment trust (REIT) that would have only Chinese assets and raise $1 billion, IFR reported. 

Mapletree manages other listed REITs including Mapletree Logistics Trust and Mapletree Commercial Trust

Singapore StockMarket Index at 16 Months High

Singapore shares rose to the highest in about 16 months, after encouraging economic data from China and the United States, with property firms CapitaMalls Asia Ltd and Hongkong Land Holdings Ltd leading the gains.

The Straits Times Index advanced as much as 1 percent to 3,139.40 points, the highest since early August 2011. MSCI's broadest index of Asia Pacific shares outside Japan was 0.2 percent higher.

Shares of CapitaMalls Asia rose as much as 2.8 percent to S$2.01, the highest since February 2011. More than 8.6 million shares were traded, 1.2 times the average full-day volume over the past 30 days.

Nomura sees limited upside to the valuation of CapitaLand Ltd's residential development business at the current level, and advised investors to buy CapitaMalls Asia, a unit of CapitaLand which owns, develops and manages shopping malls.

"We believe it is more attractive to invest directly in CMA to maximise returns from its core earnings recovery and potential capital recycling opportunities," Nomura said.

Shares of Interra Resources Ltd gained as much as 5.2 percent on volume of 20.3 million shares, more than double the average full-day volume over the past 30 days. The share price was 5.3 times the level at the start of the year.

OCBC Investment Research said the share price surge was fuelled by Interra's exposure to Myanmar and possible significant oil and gas discoveries in the country, as well as the potential of its exploratory block in Indonesia.

OCBC said it believes the company, which recently completed a rights issue, has enough cash to fund its requirements in 2013, barring significant discoveries. It added that Interra shares could be worth S$0.441.

Singapore Stocks Trading Strategy For 10th Dec

Olam International Rebounds as Temasek Keeps Key Stake

Olam International shares rebounded Thursday, recouping some of the losses in previous sessions as Singapore state investment fund Temasek said it was keeping its 16 percent stake in the farm commodities trader.

Muddy Waters Research, a US-based shortseller, had sent the stock plunging after it warned that the Singapore-based Olam was in danger of collapsing like US energy trader Enron.

Olam shares closed four percent higher at Sg$1.56, but analysts warned of further volatility.

Despite the gains, the stock is still down 10 percent since Carson Block, the influential founder of Muddy Waters, told an investment conference in London on November 19 that he was betting against the company.

Muddy Waters on Tuesday released a 133-page report supporting Block's criticism of Olam's accounting practices, debt levels and business model.

Olam fired back with a 45-page rebuttal on Wednesday and its chief executive Sunny Verghese followed it up with a conference call with the media and analysts in which he thanked Temasek for its support.

Olam International Ltd. Recommended to Sell

Religare Capital Markets downgraded Olam International Ltd to 'sell' from 'buy' and cut its target price to S$1.40 from S$2.40, as it expects the commodity trader's shares to be weighed down by concerns raised by short-seller Muddy Waters.

By 0426 GMT, Olam shares were down 0.96 percent at S$1.55, off an intraday low of S$1.465, which was a three-and-a-half year low. Its shares have plummeted 27.5 percent since the start of the year, compared with a 13.5 percent rise in the Straits Times Index.

"Olam shares will face difficulty re-rating upwards and sustaining even a moderate earnings multiple for the next few quarters, even if the financial risks Muddy Waters warns of don't materialize," Religare said in a note.

The brokerage noted Olam's guidance that it won't be generating positive free cash flow until 2015, making it hard for the company to completely dispel the concerns raised.

Most Undervalued Stock at SGX Singapore Exchange

Boustead announced earning growth of 43% for 1Q2012. This earning growth rate is fantastic! Many companies are not able to produce this kind of earnings in this challenging environment.

Today Boustead is trading at $0.9650. This stock has since appreciated 17%. In addition this stock pays a dividend yield of 7% based on our entry price. This means that while we are waiting for the stock to appreciate in value, we are being rewarded 7% dividend per year.

In our opinion Boustead is one of the most undervalued stock at Singapore Exchange.

Straits Times Index - Weekly Overview (19-23 Nov)

Weekly Technical view on STI

Weekly wrap of STI:

After 3 weeks straight fall, STI traded above its 50 week MA level this week and recovers some losses.

STI opens its 50 week MA level @ 2967.08, and then it turns back to lower level and made a low @ 2953.43 and took support @ this level. After taking support its 50 week MA level STI recovery sharply and made a week high @ 2993.37, finally closed @ 2989.28 with gain of 43.65 points up by 1.48% wow basis.

Macro economic factors:

• Singapore's inflation rate eased to 4.0% in October from 4.7% the previous month.
  This slower-than-expected increase in the consumer price index was mainly due to smaller gains in transportation and housing costs.
• The core inflation rate, which excludes transport and accommodation costs, fell to 2.2 % in October from 2.4 % in September. 
• The preliminary HSBC China Manufacturing Purchasing Managers Index, a measure of nationwide manufacturing activity, rose to 50.4 in November compared with a final reading of 49.5 in October, HSBC Holdings said on Thursday. A reading above 50 indicates growth

Singapore Stock Picks, Trading Strategy - 23 Nov

Trading Strategy for 23-Nov 2012

Register to get Free Trading Calls on your mobile. Fill up Free Trial form now.

SGX Stock Recommendations For Today 22-Nov

Stock Name: Petra
Company Name: PETRA FOODS LIMITED
Research House: OCBC Price Call: BUY Target Price: 2.98

Stock Name: Kep Corp
Company Name: KEPPEL CORPORATION LIMITED
Research House: OCBC Price Call: BUY Target Price: 13.34

Stock Name: CapitaMall
Company Name: CAPITAMALL TRUST
Research House: OCBC Price Call: BUY Target Price: 2.38

Singapore Stocks News - Factors to Watch

CapitaMall Trust

CapitaMall Trust (C38U.SG) is planning to raise US$167 million by selling 100.5 million units in the real estate investment trust.

CapitaMall Trust

Olam International Ltd. (O36.SG) has initiated legal action in Singapore’s high court against Muddy Waters LLC and its founder, Carson Block, for statements made at the Sohn London Investment conference in London.

Straits Times Index - Trading Strategy for 22 Nov 2012

Market Review - End of Day Summary 21 Nov

Singapore share opens in ease with some points of loss and then traded with good movement.

STI opens @ 2955.41 and then made a day low @ 2953.43 , took support @ lower levels and recovers losses and made a day high @ 2967.29 , after making high it suddenly fell again and then recovers and finally closed @ 2960.30 with gain of 1.48 points up by 0.05%.

In the broader market, volumes were lower at 1.9 billion shares, compared to Tuesday's 2.2 billion. Gainers beat losers by 192 to 177.

STI Singapore - Market Outlook for 20 November 2012

Although the STI managed to cover the gap resistence in mid week, the bearishness in Europe hampered it rebound and caused it to retrace again. The retracement went deep and the STI eventually broke its support to trade lower. On the technical charts, various indicators currently show the STI weakening with a possible downward momentum to test it’s next level of support at 2683 points. 

What to watch out for: Bullish: 

whipsaw and trade back above 2755 

Next resistance to watch: 2904 

Bearish: continue to go lower 

Next support to watch: 2683

SGX Stock News - Trading Recommendations for 19-Nov 2012

Maybank Kim Eng said it expects office rents in Singapore to slide by 10 percent in 2013, after falling 12-15 percent over the past four quarters, as demand in the near term is set to remain weak.

Marina One and DUO, two mixed use developments that will come onstream five years down the road, are seen adding nearly 2.5 million square feet of prime Grade A office space, Maybank said.

"However, office players are in for a tough time as they face stiff competition from other Grade A developments completing from now till 2017, which may exert more downward pressure on rents in the near term," Maybank said.

The broker added that the Singapore economy experienced a contraction in the third quarter from the previous quarter, and the government is guiding for subdued growth of 1-3 percent next year.

Maybank maintained its 'hold' rating on Keppel REIT and Singapore Land Ltd. It has a 'sell' call on CapitaCommercial Trust.

SGX Singapore - Stock Recommendations for 16-Nov

Stock: Sheng Siong (SHENG SIONG GROUP LTD)
Recommended by: OCBC
Recommendation: BUY
Target Price: S$0.49

Stock Name: VizBranz (VIZ BRANZ LIMITED)
Recommended by: OCBC
Recommendation: BUY
Target Price: 0.74 

Stock Name: BreadTalk (BREADTALK GROUP LIMITED)
Recommended by: OCBC
Recommendation: SELL
Target Price: 0.49 

Stock Name: KS Energy (KS ENERGY LIMITED)
Recommended by: OCBC
Recommendation: HOLD
Target Price: 0.78

Singapore Stock News - 25 Oct 2012

Stock News Singapore

1. Singapore Airlines is ordering five more Airbus A380s and another 20 A350s for additional capacity growth and fleet renewal.
2. CACHE Logistics Trust 3Q distribution per unit (DPU) of 2.14 Singapore cents, up 2.3 per cent from 2.09 Singapore cents a year ago.
3. HUTCHISON Port Holdings (HPH) Trust reported earnings per unit attributable to unitholders that came up to 6.91 HK cents in its third quarter. This was down 15 per cent from 8.13 HK cents in the same period last year.
4. CapitaLand has established its first value housing private equity fund, which will invest primarily in value housing developments in China.
5. FIRST Real Estate Investment Trust has posted 3Q distribution per unt (DPU) of 1.68 Singapore cents down 12.5 per cent from the same period last year. Distributable amount also slipped 12.1 per cent year-on-year to S$10.6 million.
6. Sheng Siong Group’s third quarter net profit increased 48.1 per cent to S$9.8 million, from S$6.6 million a year ago.

Singapore M&A Deals In Vietnam - Record High of US 72 Million

Singapore M&A Deals In Vietnam Tripled To US$72m

Total Mergers and Acquisitions (M&A) deals from Singapore into Vietnam has hit a record high of US$72 million this year, which represents a more than three-fold increase from the previous year’s US$23 million worth of deals. Singapore’s record deals were in line with the overall increase in level of M&A activity in Vietnam. According to the quarterly Spotlight Asia report, Vietnam’s 12-month M&A activity from August 2011 to July 2012 reached 22 deals totalling US$2.5 billion (which is more M&A capital inflow than any other year over the past decade) in spite of teething problems on its economic policies and corruption that may have deterred investors. A report co-published by mergermarket and Kroll Advisory Solutions shows that Singapore companies have invested US$203 million in Vietnam through 10 M&A deals since August 2007 to July 2012, with most of the M&A activity (four deals completed) focused in the industrials & chemicals sector.

Significance: Opportunities for investors in Vietnam is arising as the government have pushed to clean up its state-owned companies as a part of its economic plan to transform the once former communist nation. However, the progress has been slow and not free of controversy.

mDR Makes A Comeback With An Exclusive Deal With Nokia

mDR Limited, a telephone equipment and after-market services company, has been appointed as Nokia’s sole authorised distributor in Singapore with effect from 10 September 2012. While the company has been one of Nokia’s long established distributors here since 2004, the latest deal signed through mDR’s wholly owned subsidiary A-Mobile takes its relationship with Nokia a step higher by appointing it as the only distributor in Singapore. The announcement came at an apt timing when Nokia seems poised for growth after four years of decline when its Symbian-powered phones did not catched the eyes of consumers who turned to a new generation of smartphones made by Apple and Samsung. Fortunes have turned as its Nokia Lumia 920 and Nokia Lumia 820 smartphones, the first devices using a Windows Phone 8 system, and its Nokia Pure View imaging technology feature in these phones have also received positive market-wide acclamation.

Significance: Technology experts have said the recent court battle between Apple and Samsung, and Nokia’s decision to adopt Windows 8 for its smartphone could mark the resurgence of the brand. Hence, the deal could not have come at a better timing as Nokia’s new smartphones are due to hit the Singapore market in 3Q12.

TA Corp Ventures Into Motor Oil Distribution Market

TA Corporation (listed on SGX late last year) has acquired the entire business of Sino Tac Resources – the sole distributor of British Petroleum’s (BP) motor oils and lubricants in Singapore – for $2.8 million, as part of the property and construction group’s strategy to broaden its income stream. The move into the high-performance motor oil and lubricant market is aimed at creating value for shareholders and also serves as a strong platform for future growth in South-east Asia. Neo Tiam Boon, TA Corporation’s chief executive officer said: “While the real estate development and construction businesses remain the group’s core focus, we will selectively acquire earnings-accretive businesses that will diversify our revenue streams and act as a platform for us to explore opportunities in other high-growth industries.”

Significance: Sino Tac Resources boasts an established track record and has been the exclusive distributor of BP’s lubricating fluids in Singapore since 2007. The acquisition into an established and growing business could prove to be winning strategy for TA Corp as it seeks to enhance shareholder value through business diversification.

STI Singapore - Day Trading Signals

Short Term Down-trend May Continue in STI Index

As per technical analysis, the Straits Times Index (STI) gapped up last Friday due to the overnight announcement made by the European Central Bank. However, the STI has not turned up as its 7-day and 13-day moving averages (MA) are still moving down. Besides, as compared to markets in Europe and the US as well as the Hang Seng Index, the movement of the STI was not impressive. Therefore, the short-term downtrend of STI may continue.

Thank you..!

We have received your submission.  Thank you for requesting us for FREE TRIAL!. 

Our executive will call you soon.