Reuters: Hot Stocks: STOCKS NEWS SINGAPORE-CIMB lowers CapitaMall Trust target

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STOCKS NEWS SINGAPORE-CIMB lowers CapitaMall Trust target Jul 19th 2012, 03:23 Wed Jul 18, 2012 11:23pm EDT CIMB Research said Singapore shopping mall owner CapitaMall Trust's second-quarter earnings showed signs of weakness in shopper traffic and tenant sales growth, and lowered its target price on the stock to S$2.01 from S$2.02. By 0255 GMT, CapitaMall Trust units were down 0.8 percent at S$1.95. They have gained 14.7 percent this year, underperforming the FT ST Real Estate Investment Trust's 22 percent rise. CIMB said CapitaMall Trust's shopper traffic fell 3 percent in the first half compared with a year ago, while tenant sales growth moderated to 1.5 percent year-on-year, versus 3.9 percent in the first quarter. CapitaMall Trust's management attributed the weakness to construction work at two of its properties in Singapore, IMM and Plaza Singapura, the brokerage noted. "While portfolio performance should remain resilient, we see limited share price upside from current levels," said CIMB, which kept its 'neutral' rating on the stock. Separately, DBS Vickers downgraded CapitaMall Trust to 'hold' from 'buy' and kept its target price at S$2.05 citing valuations. To read a related statement, click 1058 (0258 GMT) (Reporting by Charmian Kok in Singapore; charmian.kok@thomsonreuters.com) ************************************************************ 11:04 STOCKS NEWS SINGAPORE-UOB Kay Hian raises targets on telcos UOB Kay Hian raised its target prices on Singapore telecommunication firms - Singapore Telecommunications Ltd , StarHub Ltd and M1 Ltd - as they are considered more attractive amid low interest rates. The broker increased its targets on SingTel by 12.6 percent, M1 by 11 percent and StarHub by 10.6 percent. On Thursday, StarHub shares were up 1.1 percent at S$3.62, SingTel was 0.6 percent higher at S$3.50 and M1 was flat at S$2.58. Interest rates in Singapore, which are highly correlated to those in the United States, are expected to remain exceptionally low for an extended period of time, UOB Kay Hian said. Singapore telcos offer yields that have become increasingly higher than government bond yields. "Telcos in Singapore have consistently provided attractive dividend yield, coupled with regular episodes of capital management exercises and are thus correctly perceived as yield plays," UOB Kay Hian said. It added that sector catalysts include increased usage of wireless broadband, differentiated services and implementation of lower caps on mobile data. 1051 (0251 GMT) (Reporting by Eveline Danubrata in Singapore; eveline.danubrata@thomsonreuters.com) ************************************************************ STOCKS NEWS SINGAPORE-Maybank raises Keppel Land target price Maybank Kim Eng raised its target price for property developer Keppel Land Ltd to S$4.04 from S$3.65 and kept its 'buy' rating, on signs its sales in China are improving. By 0158 GMT, shares of Keppel were 1.5 percent higher at S$3.44, and have surged 55 percent so far this year, outperforming the FT ST Financial Index's 25.4 percent gains. Keppel reported an 87.5 percent jump in its second quarter earnings to S$94.7 million, lifted by its high-end residential project in Singapore and K-REIT Asia, a real estate investment trust that it sponsors. Keppel's actual residential pre-sales improved in the second quarter, especially in China where it sold 491 units, up from 187 units in the previous three months, Maybank said. "With buyers' interest seemingly picking up in China, we think that Keppel Land will benefit and continue to roll out more units from its mass market projects, such as The Botanica in Chengdu and Tianjin Eco-city," Maybank said. It added that Keppel's low net gearing of 0.2 times will allow it to remain nimble while seeking out acquisition opportunities. To read a related story, click 1001 (0201 GMT) (Reporting by Charmian Kok in Singapore; charmian.kok@thomsonreuters.com) ************************************************************ 9:45 STOCKS NEWS SINGAPORE-DMG ups target price for OCBC DMG & Partners raised its target price for Oversea-Chinese Banking Corp to S$8.54 from S$8.30 and kept its 'neutral' rating, citing gains from the sale of its stake in Fraser and Neave (F&N) and potential special dividends. Shares of OCBC were up 1 percent at S$9.39, and have gained nearly 20 percent since the start of the year, compared to the Straits Times Index's 14.5 percent rise. OCBC said it and its insurance unit Great Eastern Holdings will make a total post-tax gain of S$1.15 billion from the stake sale in F&N to Thai Beverage and other companies linked to a Thai billionaire. DMG said OCBC may pay out special dividends, but the amount will not be significant as OCBC would want to retain capital to expand its core financial business. The brokerage estimates that OCBC's potential special dividend could be up to 26 Singapore cents, but believes the bank will pay out less than that. To read a statement, click 0934 (0134 GMT) (Reporting by Charmian Kok in Singapore; charmian.kok@thomsonreuters.com) Link this Share this Digg this Email Reprints

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