OCBC Report 10 Dec 13

Commodities Sector: Upgrade to NEUTRAL Summary: As expected, the commodities sector performed relatively poorly against the broader market for most part of 2013, after we maintained our Underweight rating from 2012. While some of the commodity plays have staged a recovery in 2H13, we note that valuations are still looking pretty inexpensive. From this perspective, we upgrade our rating from Underweight to NEUTRAL. Although we do not see any stock that stands out at the moment, there may be some potential upgrades should there be an over-correction in the market on the back of the Fed tapering. (Carey Wong)

For more information on the above, visit www.ocbcresearch.comfor the detailed report.

NEWS HEADLINES - US stocks nudged higher overnight, sending the S&P 500 to a record close, as investors were unfazed by a trio of Fed officials suggesting a stimulus reduction could come next week. - Singapore's reliance on foreign labour will inevitably come under more scrutiny after Sunday’s riot, but observers say that it is unlikely for government to further tighten the inflow of foreign workers. - The employment outlook in Singapore is tipped to stay favourable in 1Q14, says the Manpower employment group. - The executive condominium (EC) scheme has been tweaked to bring the terms for ECs closer to that for public housing and to support a stable and sustainable EC market. - Standard & Poor's Ratings Services has cut Thai Beverage Public Co's credit rating to below investment grade to reflect the weaker combined profile of its corporate group. - The outlook is stable for S-REITs next year, with Moody's 13 rated S-REITs expected to grow by 4%, fuelled by a larger asset base and rent increases on existing properties. - Popular Holdings sank to a net loss of S$52,000 in 2QFY14, from a S$1.73m net profit a year ago. - Cordlife Group has acquired a further 11.89% interest in StemLife Berhad, an associated company of Cordlife, for RM17.66m (S$6.9m).