Reuters: Hot Stocks: STOCKS NEWS SINGAPORE-Nomura likes defensive sectors

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STOCKS NEWS SINGAPORE-Nomura likes defensive sectors Mar 28th 2012, 04:49 Wed Mar 28, 2012 12:49am EDT Nomura has an overweight call on defensive stocks or sectors in Singapore, citing downside risks to economic and earnings growth this year due to a combination of weak external demand, higher costs and a correction in the property market. The Singapore market's fair value was at 1.5 times price-to-book and resistance was seen at 3,000 points, Nomura said. The Straits Times Index has jumped 14 percent this year, but has struggled above 3,000. "Consensus market earnings growth estimate of 9 percent is under pressure from weak external demand and higher costs, in our view," Nomura said in a strategy report. It was bullish on conglomerates, as strong balance sheet and cash flows are likely to support firm dividend yields, and healthcare firms due to resilient earnings. But it was bearish on gaming due to policy risks and downside risks to earnings expectations. Nomura's top stock picks for defensive earnings with yield include property and food and beverage company Fraser and Neave Ltd and transport operator ComfortDelGro Corp Ltd . It also has a buy rating on companies including Golden Agri Resources Ltd and Keppel Corp Ltd . 1240 (0440 GMT) (Reporting by Eveline Danubrata in Singapore; eveline.danubrata.thomsonreuters.com) ************************************************************ 11:45 STOCKS NEWS SINGAPORE-Citi downgrades Wilmar to hold Citigroup reduced its rating on Singapore palm oil firm Wilmar International Ltd to hold from buy and cut its target price to S$5.30 from S$6.10. Wilmar shares were down 1 percent at S$4.97. The shares are flat so far this year, underperforming a 14 percent rise in the broader market. Citigroup said the company's second half of 2011 was a disappointment as it had weak margin trends at both its oilseeds and palm merchandizing units due to heightened volatility. While market normalization will help Wilmar's margins recover in these two segments in 2012 fiscal year, the pace of recovery this year will be muted as Wilmar did not record sharply reduced inventory and receivables in the second half of 2011, Citi said in a report. "While execution on expansion plans in Indonesia may be slow for new entrants, there is now potential that more competitors (both existing and new) may be encouraged to set up facilities." 1140 (0340 GMT) (Reporting by Eveline Danubrata in Singapore; eveline.danubrata.thomsonreuters.com) ************************************************************ 10:19 STOCK NEWS SINGAPORE-Otto Marine falls after rights issue Shares of Singapore's Otto Marine Ltd declined as much as 11.1 percent after the offshore marine firm proposed a rights issue to raise around S$75.6 million ($60 million). Otto Marine shares were down 9 percent at S$0.131 on volume of 13.7 million shares, 3.3 times the average full-day volume traded over the past 30 days. The stock was among the top five traded shares by volume. Otto Marine said on Wednesday it plans to issue up to 945.21 million rights shares at S$0.08 each on the basis of one rights share for every two existing shares. For a related story, click: 1010 (0210 GMT) (Reporting by Eveline Danubrata in Singapore; eveline.danubrata.thomsonreuters.com) ****************************************************** 08:50 STOCKS NEWS SINGAPORE-Singapore index futures slip Singapore index futures fell 0.2 percent, indicating a weak start for the benchmark Straits Times Index. Asian shares drifted lower on Wednesday as investors waited for more clues on the state of the U.S. economy, after hopes for further stimulus from the U.S. Federal Reserve strengthened risk appetite and boosted prices the previous session. 0847 (0047 GMT) (Reporting by Eveline Danubrata in Singapore; eveline.danubrata.thomsonreuters.com) ($1 = 1.2563 Singapore dollars) Link this Share this Digg this Email Reprints

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