Market News
The FSSTI lost 14.25pt to close at 3,237.53 after India unexpectedly
raised its key interest rate. Bucking the trend, Sino Grandness Food
gained 0.4% to close S$1.27 after its subsidiary agreed to sell its entire
51% stake in Yunnan Shizong Zhenhua Food for Rmb10m. The broader
market saw 176 gainers and 307 losers, with total trading value at
S$1.51b.
US markets slumped on Friday as investors reacted to the uncertainties
of central bank's tapering stance. The DJIA fell 1.2% to 15,451.09 while
the S&P 500 index dropped 0.7% to 1,709.91. A Federal Open Market
Committee member had signalled that the Fed could curb stimulus next
month and another was critical of the decision not to taper in September.
Blackberry fell 17% after the Canadian smartphone maker said it would
lay off 40% of its global workforce and reported a nearly US$1b in
second-quarter loss.
What’s in the Pack
Singapore Airlines- Bumpy ride ahead for the new Indian JV.
(SIA SP/HOLD/S$10.37/Target: S$11.50)
Maintain HOLD and target price of S$11.50, valuing the stock at 0.8x
forward book value (ex-SIAEC) and adjusting for its fair value stake in SIA
Engineering. Our target price reflects 1x FY14F book value. Entry price is
S$10.15.
Weekly Watch: Mid-caps - In multi-year growth sectors and with
catalysts
ISOTeam (ISO SP/BUY/Target: S$0.55)
Kori Holdings (KHLL SP/BUY/Target: S$0.525)
Ying Li Intl’ Real Estate (YINGLI SP/BUY/Target: S$0.64)
Mid-cap stocks are back on the radar after the non-tapering
event...ISOTeam is in a defensive sector that is growing with the
Singapore population...We remain upbeat on Kori Holdings with its recent
fund-raising reinforcing its expansion plans... Ying Li International’s
presence in Chongqing allows it to benefit from the city’s upbeat
economic indicators.-----------------------------------
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