ARA – Upside to $1.74 followed by $1.82 on
technicals, fundamental TP $1.89
Frasers Centrepoint Trust - BUY for attractive
valuations and visible long term growth drivers, TP
raised slightly to S$ 2.14
Our view that STI at c.3100 offers bargain hunt
opportunities on the presumption that US does not go
into default stays valid. Broad market stocks were
generally weak yesterday weighed down by the volatility
suffered among penny stocks. Still, underlying strength
was noted among some of the stocks that DBSV research
highlighted recently. Dairy farm, for example, firmed from
$10.11 to $10.45 post our initiation last week. Our
fundamental TP is USD11.60. Another stock that looks
firm is ARA that currently sits just slightly above its base at
c.$1.65. Technically, we see upside to $1.74 and $1.82
while our fundamental TP is $1.89.
Frasers Centrepoint Trust’s two largest malls, Northpoint
and Causeway Point, contribute c.80% to gross revenue.
Rising affluence in the north as well as its sustained
population growth bodes well for FCT, underscoring
strong and sustainable organic rental growth going
forward. FCT’s acquisition of Changi City Point and
possible expansion into Malaysia are expected to drive
longer term growth. BUY for attractive valuations and
visible long term growth drivers. Target price raised
slightly to S$ 2.14 (Prev S$ 2.07).
Moody's Investors Service has changed the outlook of
Mapletree Commercial Trust's Baa2 issuer rating and
(P)Baa2 programme rating to positive from stable.
Moody's has also changed the outlook of the Baa2 senior
unsecured rating and the (P)Baa2 programme rating on
Mapletree Commercial Trust Treasury to positive from
stable. At the same time, Moody's has affirmed all ratings.
The rating action reflects MCT's enlarged and enhanced
asset quality and improved operating performance.
Boustead Singapore announced that its Energy-Related
Engineering Division has recently secured approximately
S$38m in contracts from the oil & gas industries globally.
Over S$140m in oil & gas contracts has been secured by
US Indices Last Close Pts Chg % Chg
Dow Jones 14,936.2 (136.3) (0.9)
S&P 1,676.1 (14.4) (0.9)
NASDAQ 3,770.4 (37.4) (1.0)
Regional Indices
ST Index 3,136.6 (1.5) (0.0)
ST Small Cap 528.4 (17.2) (3.1)
Hang Seng 22,974.0 (164.6) (0.7)
HSCEI 10,427.2 (90.1) (0.9)
HSCCI 4,485.8 (13.8) (0.3)
KLCI 1,776.8 0.3 0.0
SET 1,414.6 (13.1) (0.9)
JCI 4,375.0 (14.4) (0.3)
PCOMP 6,443.2 52.7 0.8
KOSPI 1,994.4 (2.6) (0.1)
TWSE 8,333.7 (30.9) (0.4)
Nikkei 13,853.3 (171.0) (1.2)
STI Index Performance
Singapore
Total Market cap (US$bn) 582
Total Daily Vol (m shrs) 4,291
12m ST Index High 3,454
12m ST Index Low 2,946
Source: Bloomberg Finance L.P.
Stock Picks – Large Cap
Rec’n Price ($)
7 Oct
Target Price
($)
ST Engineering Buy 4.160 4.80
ComfortDelgro Buy 1.910 2.19
OCBC Bank Buy 10.240 12.40
Singapore Airlines Buy 10.220 11.40
Stock Picks – Small /Mid Cap
Rec’n Price ($)
7 Oct
Target Price
($)
Ezion Holdings Buy 2.170 3.10
Goodpack Buy 1.735 2.00
CSE Global Buy 0.880 1.07
Mapletree Commercial Trust Buy 1.205 1.35
CDL Hospitality Trust Buy 1.620 1.80
Frasers Centrepoint Trust Buy 1.830 2.14
Source: Bloomberg Finance L.P., DBS Vickers
Singapore
Wired Daily
Page 2
the division since the start of FY2014 in April. On a group
basis, over S$300m in contracts has been secured in FY2014.
Boustead Group’s order book backlog has been raised to
S$523m.
Mencast Holdings has been awarded a three year contract by
Shell Refining Company for the provision of MRO
(maintenance, repair and overhaul) related diving services
such as underwater inspection and maintenance for Single
Buoy Mooring and marine facilities, which includes diving
vessel support.
Blumont has appointed Alexander Molyneux as its chairman
designate with effect from yesterday. The move came after
Mr Molyneux, in cooperation with Pacific Advisers, agreed to
buy 135mil Blumont shares, which represents about 5.2% of
the total shares outstanding, post rights issue. The indicative
acquisition price will be 40cts/share, subject to price
adjustments. The final acquisition price will be the volume
weighted average price of Blumont's shares between the
date of the agreement and closing of the transaction subject
to a floor price of S$0.20/share and a ceiling price of
S$0.60/share. Closing is expected to take place within 30
days.
GSH Corp announced that the extension of the MOI for the
proposed joint planning and development of the Longhai-
Singapore Marine Eco-City Project in Nanxi Wan New City
Dongyuan Sector in Fujian Province, China, has expired on 6
October 2013. Due to unforeseen circumstances, there was a
change in the Longhai City Government with whom the
Company had been negotiating the terms of the MOI with.
Hiap Hoe intends to make a voluntary conditional offer to
acquire all the issued and paid up shares in SuperBowl
Holdings at S$0.75 in cash for each SuperBowl Share.
Viking Offshore and Marine is in discussions with another
party on a possible investment in a private company in
relation to the construction of a marine offshore asset.
Climate Holding, a special purpose vehicle in which its
shareholders have a collective 43% control of Devotion
Energy Group, is seeking voluntary delisting of the SGX
mainboard. The exit offer price of 19 cents each represents a
23.4% premium above the last transacted price.
US markets fell as a breakthrough between lawmakers to
resolve the deadlock over raising the debt ceiling stayed
elusive. Unless the debt limit is raised, the US will exhaust its
borrowing authority on Oct 17 and run out of funds to pay
all of its bills sometime between Oct 22 and Oct 31, this
according to the Congressional Budget Office. Industry Credit
ratings agency Moody’s Investors Service said it sees a “very
low” chance the US will default on its debt payments.
Meanwhile, the US 3Q results season starts mid-week with
Alcoa first to report.
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