Reuters: Hot Stocks: STOCKS NEWS SINGAPORE-UOB reiterates sell call on ST Engg

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STOCKS NEWS SINGAPORE-UOB reiterates sell call on ST Engg Mar 29th 2012, 04:43 Thu Mar 29, 2012 12:43am EDT UOB Kay Hian reiterated its sell recommendation on SIA Engineering and said investors looking for dividend yield should instead buy shares of Singapore Technologies Engineering (ST Engineering). SIA Engineering gets two-thirds of its revenue from parent Singapore Airlines Ltd, which has been cutting capacity at its cargo unit. "The market has not priced in risk of capacity cuts. Maintenance revenue is typically based on flight cycles and as airlines cut capacity due to weak demand, revenue would be impacted," UOB Kay Hian said in a research note. The brokerage maintained its sell recommendation on SIA Engineering but raised the target price to S$3.80 from S$3.30 a share. It also said that the orderbook of rival aircraft maintenance firm ST Engineering is backward loaded and less vulnerable to a cyclical slowdown. Singapore Airlines said last month it was cutting its cargo capacity by 20 percent as global economic slowdown led to persistent weakness in demand and high jet fuel prices piled pressure on its profitability. SIA Engineering's shares had risen by around 20 percent so far this year, outperforming the 13 percent gain in the broader Singapore market. (Reporting by Harry Suhartono in Singapore; harry.suhartono@thomsonreuters.com) ************************************************************ 10:35 STOCKS NEWS SINGAPORE-Nam Cheong rises on contract wins Shares of Singapore-listed Malaysian offshore vessel builder Nam Cheong Ltd rose as much as 5.4 percent after it said its subsidiaries sold three vessels for $36.8 million. The vessels were sold to new customers from Singapore, including a Norwegian-based company, and are due for delivery in the second and third quarters of 2012, Nam Cheong said in a statement. Nam Cheong shares were up 4.9 percent at S$0.194 with volume of more than 4.3 million shares. This was 1.7 times the average daily volume traded over the last five sessions. Analysts said the contract wins were positive for Nam Cheong, as they mark an expansion in its customer base. "It's good that orders have been coming in, as they typically build the vessels before receiving orders from customers," said an analyst. For related story, click: 1028 (0228 GMT) (Reporting by Charmian Kok in Singapore; charmian.kok.thomsonreuters.com) ************************************************************ 08:44 STOCKS NEWS SINGAPORE-Singapore index futures fall Singapore index futures dipped 0.17 percent, indicating a weak start for the benchmark Straits Times Index . Asian shares eased for a second day in a row on Thursday as investors' concerns about growth prospects in the United States and China grew. Wednesday's data on new orders for U.S. durables increased modestly in February, falling below analysts' forecasts. 0840 (0040 GMT) (Reporting by Mark Tay in Singapore; mark.tay.thomsonreuters.com) Link this Share this Digg this Email Reprints

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