STI - Technical support at 3015-3040 presents a buying
opportunity
The positive outlook for 2014 will be tempered by QE
tapering talks, which is likely to be a long-drawn-out event.
Risk appetite will stay modest with no re-rating for Asia
markets in sight. However, below-historical-average
valuations should support markets and stock picking
opportunities should be available throughout the year. We
expect Asia markets to return 16% in 2014. Overall, our
regional strategist thinks that North Asia markets will likely
outperform in 1Q14 while Singapore market maintains at
Neutral.
For the STI, the technical support at 3015-3040 presents a
buying opportunity. This support level, which was briefly
tested yesterday, is just below the -0.5 SD FY14F level of
3043. The -0.5SD level was only breached once last year in
June, also on the uncertainty over QE3 tapering.
Sheng Siong Group acquires the commercial premises
situated at Block 71 Kallang Bahru #01-531 for S$13.5m. The
property has a floor area of approximately 779 sq m and is
located within a two storey shopping complex. The Group
intends to use it for the operation of a supermarket following
the expiry of an existing tenancy.
Yoma has set up a second after-sales service centre for
Mitsubishi vehicles in Myanmar. The announcement came
shortly after the company also announced its involvement in
building telecommunications towers and a new property deal.
This after-sales service centre allows Yoma's joint venture
with Mitsubishi Motors Corp, Mitsubishi Corp and First
Myanmar Investment Co to service almost 80% of Mitsubishi
vehicles in the country.
Frasers Centrepoint Trust (FCT) has issued S$60m 2.535%
Notes due 2017. The Notes have been assigned a rating of
“BBB+” by Standard & Poor’s Rating Services. The Notes will
mature on 12 December 2017 and bear a fixed interest rate
of 2.535% per annum payable semi-annually in arrear. The
proceeds will be used to refinance existing borrowings, to
finance/refinance the investments of FCT and any asset
enhancement works and also for general working capital
purposes.
US Indices Last Close Pts Chg % Chg
Dow Jones 15,739.4 (104.1) (0.7)
S&P 1,775.5 (6.7) (0.4)
NASDAQ 3,998.4 (5.4) (0.1)
Regional Indices
ST Index 3,059.0 (1.7) (0.1)
ST Small Cap 525.0 0.0 0.0
Hang Seng 23,218.1 (120.1) (0.5)
HSCEI 10,962.2 (111.8) (1.0)
HSCCI 4,573.0 (36.5) (0.8)
KLCI 1,833.9 (9.0) (0.5)
SET 1,356.2 (13.1) (1.0)
JCI 4,212.2 (59.5) (1.4)
PCOMP 5,762.5 (126.2) (2.1)
KOSPI 1,967.9 (10.0) (0.5)
TWSE 8,361.3 (72.4) (0.9)
Nikkei 15,341.8 (173.2) (1.1)
STI Index Performance
Singapore
Total Market cap (US$bn) 565
Total Daily Vol (m shrs) 2,248
12m ST Index High 3,454
12m ST Index Low 3,004
Source: Bloomberg Finance L.P.
Stock Picks – Large Cap
Rec’n Price (S$)
12 Dec
Target Price
(S$)
Hutchison Port Hldgs Trust (US$) Buy 0.640 0.82
ComfortDelgro Buy 1.925 2.19
OCBC Buy 9.800 12.40
Singapore Airlines Buy 10.010 11.40
Stock Picks – Small /Mid Cap
Rec’n Price (S$)
12 Dec
Target Price
($)
Ezion Holdings Buy 2.190 3.30
China Merchants Buy 0.905 1.20
CSE Global Buy 1.005 1.11
Nam Cheong Buy 0.285 0.42
Source: Bloomberg Finance L.P., DBS Vickers
Singapore
Wired Daily
Page 2
Keppel Reit has achieved full occupancy at its five Singapore
properties, after Ocean Financial Centre (OFC) became fully
leased. Both the office and the newly completed retail space at
OFC have been completely taken up.
JES International kickstarts its maiden offshore project with the
commencement of the steel cutting for its first two Platform
Support Vessels (PSV) at its shipyard located in Jingjiang City,
China. The two PSVs will be delivered in 4Q2014 and 1Q2015.
KSH Holdings has been awarded a S$42.5m construction
contract by United World College of South East Asia
(UWCSEA). Under the contract, the Group will carry out work
on the proposed addition of 1 block of five-storey building
with other ancillary works to the existing UWCSEA campus at
Dover Road. Construction is expected to commence in
December 2013, with completion expected within 20 months.
Year-to-date, KSH has won construction projects amounting
to S$343.6m in Singapore and RMB157m in Beijing, China.
KSH’s existing construction order book, which stands at more
than S$430m, is expected to contribute to the Group’s
financial results up till FY2016.
ITE Electric expects to record an increase of loss and asset
impairment for FY13 as compared to FY12, primarily
attributable to trading losses and declines in the value of its
financial assets.
In US, stocks eased despite better than expected retail sales.
Initial jobless claims rose to 368,000 last week, higher than
what economists were expecting.
No comments:
Post a Comment