Reuters: Hot Stocks: STOCKS NEWS SINGAPORE-Credit Suisse says it is 'overweight' on Singapore

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STOCKS NEWS SINGAPORE-Credit Suisse says it is 'overweight' on Singapore Jul 6th 2012, 08:10 Fri Jul 6, 2012 4:10am EDT Credit Suisse Private Bank said, within Southeast Asia, it is 'overweight' on Singapore owing to the city state's attractive valuations, healthy macroeconomic backdrop and bottoming earnings momentum. Singapore's Straits Times Index has gained 12 percent so far this year, compared to the MSCI Asia Pacific Ex-Japan's 5 percent rise. The private bank said Asian equities have outperformed commodities since the latter part of the second half of 2011, and it expects this to continue for the rest of the year. "To position for a potential growth recovery in the second half, we recommend policy easing plays, undervalued domestic cyclicals and high-yielding stocks," said Credit Suisse. Its top picks among Asian domestic cyclical stocks include Singapore oil rig builder Keppel Corp. Credit Suisse's favourite high-yielding stocks also include Singapore's Ascendas Real Estate Investment Trust and ComfortDelGro. 1556 (0756 GMT) (Reporting by Charmian Kok in Singapore; charmian.kok@thomsonreuters.com) ************************************************************ STOCKS NEWS SINGAPORE-Shares fall, snapping 7 days of gains Singapore's main index fell for the first time in seven sessions, in line with other Asian bourses, as investors remained cautious ahead of a U.S. jobs report later in the day. At midday, the benchmark Straits Times Index (STI) fell 0.4 percent to 2,960.34 points. It had gained almost 6 percent in the previous seven sessions. Equity markets shrugged off new stimulus steps taken by three major central banks, failing to gain confidence, and the MSCI's broadest index of Asia-Pacific shares outside Japan slid 0.6 percent. Container shipping firm Neptune Orient Lines was the largest loser on the STI, falling 1.7 percent to S$1.15, followed by telecommunications firm StarHub, which lost 1.4 percent at S$3.46. 1209 (0409 GMT) (Reporting by Charmian Kok in Singapore; charmian.kok@thomsonreuters.com) ************************************************************ 12:04 STOCKS NEWS SINGAPORE-CapitaLand, developers in China rise Shares of property developers with exposure to China such as CapitaLand Ltd and Yanlord Land Group Ltd rose, bucking the broader market trend, on expectations that China's rate cut could boost their earnings. By 0343 GMT, CapitaLand shares were up 2.1 percent at S$2.96, with over 16 million shares changing hands, making it the most actively traded stock by value. The benchmark Straits Times Index was down 0.4 percent. The People's Bank of China surprised markets with a cut in benchmark official interest rates late on Thursday, the second time it has cut rates in less than a month. "Banks will have more flexibility in offering mortgages, so this should help drive end-user demand. This also coincides with the peak (sales) periods in October and September, so (property) sales volumes should strengthen," said Wilson Liew, an analyst at Maybank Kim Eng. Yanlord Land Group, which develops residential projects in China, rose 4.4 percent to S$1.31 and have gained 37 percent so far this year. Smaller rival Ying Li International Real Estate gained 4.6 percent to S$0.34. 1149 (0349 GMT) (Reporting by Charmian Kok in Singapore; charmian.kok@thomsonreuters.com) ************************************************************ Despite potentially slower growth for Singapore, Nomura said it is bullish on the city-state's conglomerates and banks for their strong financial positions, but remains bearish on transport and gaming companies. Singapore banks are benefitting from the withdrawal of foreign competition in the region, Nomura said, adding that they look attractive at price-to-book of 1-1.2 times, with strong capital, resilient loan growth and improving margins. Nomura expects Southeast Asia's largest lender DBS Group and United Overseas Bank (UOB) to continue outperforming in the second half, and has a 'buy' rating for both with a target price of S$18.30 and S$22.60 respectively. DBS shares were down 0.5 percent at S$13.94, but have surged 21 percent so far this year, while UOB was down 1.3 percent at S$19.13, rising 25 percent since the start 2012. "We believe Singapore conglomerates are well positioned to ride through this period of consolidation given their strong financial positions," Nomura said. Its picks include property and rigbuilder Keppel Corp , Fraser & Neave and Sembcorp Industries , whose strong balance sheets will give it opportunities to make acquisitions. However, Nomura expects container shipping firm Neptune Orient Lines (NOL) to report losses that are larger than consensus estimates, and said it was too early to turn positive on the shipping sector, with container earnings peaking and drybulk rates remaining depressed. It has a 'reduce' rating and a target price of S$1.20 for NOL, which it said it was currently reviewing. 1124 (0324 GMT) (Reporting by Charmian Kok in Singapore; charmian.kok@thomsonreuters.com) ************************************************************ 11:11 STOCKS NEWS SINGAPORE-Maybank upgrades K-REIT to hold Maybank Kim Eng upgraded K-REIT Asia, which owns commercial buildings, to 'hold' from 'sell' and raised its target price to S$0.99 from S$0.83, citing steps the trust took to improve unitholders' returns. By 0257 GMT, units of K-REIT were flat at S$1.075, and have gained about 29.6 percent since the start of the year, compared to the FT ST Real Estate Investment Trust's 18 percent rise. Maybank said a move by K-REIT to convert a vehicle to limited liability partnership from private limited company will result in greater tax transparency and estimated annual tax savings of S$2.2 million to S$5.2 million for 2012-2015, leading to higher distributions to unitholders. K-REIT also acquired additional 12.4 percent stake in Ocean Properties, bringing its interest to 99.9 percent. As a result, Maybank has raised its distribution per unit estimates for K-REIT by 6-12 percent for 2012-2014. For related story click 1034 (0257 GMT) (Reporting by Charmian Kok in Singapore; charmian.kok@thomsonreuters.com) ************************************************************ 10:43 STOCKS NEWS SINGAPORE-Aussino up after picking financial advisor Shares of bed linen maker Aussino Group Ltd rose as much as 12 percent to a one-week high after it said it had appointed Primepartners to be its financial advisor for a proposed reverse takeover by a Myanmar-based group. By 0232 GMT, Aussino shares were up 7.5 percent to S$0.144 and have surged 289 percent since the start of the year. Aussino shares have fallen nearly 16 percent since it emerged in late June that the reverse takeover may not go through as the firm planning to inject assets into Aussino, Max Strategic Investments, is linked to a Myanmar businessman on a U.S. blacklist. Aussino also said in a statement it was working towards executing a definitive legally-binding sale and purchase agreement before August 14. For related stories, click 1034 (0234 GMT) (Reporting by Charmian Kok in Singapore; charmian.kok@thomsonreuters.com) ************************************************************ 9:55 STOCKS NEWS SINGAPORE-OCBC upgrades Dyna-Mac to buy OCBC Investment Research upgraded oil and gas services firm Dyna-Mac Holding Ltd to buy from hold and raised its target price to S$0.45 from S$0.34, citing an increase in production capacity and growth in its non-module business. By 0142 GMT, shares of Dyna-Mac were 1.3 percent higher at S$0.405, but have fallen about 4.7 percent since the start of the year, compared to the FT ST Oil and Gas Index's 21.9 percent gain. Dyna-Mac plans to buy 70 percent stake in Paliy Marine Fabricator (Guangzhou) Ltd for S$3.8 million, which could potentially increase Dyna-Mac's maximum output by 70 percent, said OCBC. "Dyna-Mac is confident of getting sufficient new orders to fill the newly acquired yard, by leveraging on its good track record and close working relationships with its global clients," said OCBC. The brokerage said it expects Dyna-Mac to ramp up operations at its new yard over the next 12 months. It is also expanding other businesses, taking on other jobs such as turrets and land-based modules, which will help it to diversify its product offerings and lower risk, OCBC said. For related statement, click 0942 (0142 GMT) (Reporting by Charmian Kok in Singapore; charmian.kok@thomsonreuters.com) Link this Share this Digg this Email Reprints

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