Reuters: Hot Stocks: STOCKS NEWS SINGAPORE-Index down as Fed stimulus rally fizzles

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STOCKS NEWS SINGAPORE-Index down as Fed stimulus rally fizzles Sep 18th 2012, 06:06 Tue Sep 18, 2012 2:06am EDT Singapore shares fell slightly, largely in line with regional bourses, as traders sold some stocks that had run up on the back of the U.S. Federal Reserve stimulus. The Straits Times Index was down 0.2 percent at 3,072.06, while MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.4 percent. Shares of commodities trader Noble Group Ltd fell as much as 1.8 percent, while palm oil firm Wilmar International Ltd lost 1.5 percent. "(The Federal Reserve's) QE3 is lifting sentiments but will not result in a sustained bull market when macro fundamentals are still trending down. Value hunting remains a winning strategy," CIMB Research said in a report. The third quantitative easing by the Fed is not a major game changer as euro zone debt concerns are unlikely to recede into the background, valuations are not cheap -- unlike during the first easing -- and there are no strong signs of a pickup in macro fundamentals, CIMB said. CIMB screened for stocks with cheap price-to-book value, rising return on equity and solid fundamentals. Its top picks include Noble, CapitaLand Ltd and ASL Marine Holdings Ltd. 1357 (0557 GMT) (Reporting by Eveline Danubrata in Singapore; eveline.danubrata@thomsonreuters.com) ************************************************************ 11:33 STOCKS NEWS SINGAPORE-Aug private home sales down, take-up strong-CIMB Although Singapore's private new home sales in August fell 27 percent from the previous month and mass-market volumes dropped to the lowest figure so far this year, mid-to high-end segments saw a sustained uptick in demand, CIMB Research said. Private residential sales last month dropped to 1,421 units excluding executive condominiums, data from the Urban Redevelopment Authority showed. Sales were hurt by the lack of large-scale launches and the Hungry Ghost Festival, which typically sees fewer buyers in the market. However, CIMB said sales still reflect steady buying, with take-up rate rising to 127 percent from 110 percent in July. Although the outside central region showed lowest sales year-to-date, core central region demand still remained steady. "With QE3 in progress, we remain watchful of capital flows and do not rule out further policy measures should property prices resume an uptrend," CIMB said in a report. Nomura also said Singapore could introduce other measures to cool the property market, and that Hong Kong's move to cap mortgage loans' tenure at 30 years could set a precedent for Singapore. The broker's top pick among residential developers in Singapore is Keppel Land, which is trading at a 42 percent discount to net asset value. 1116 (0316 GMT) (Reporting by Charmian Kok in Singapore; charmian.kok@thomsonreuters.com) ************************************************************ 11:23 STOCKS NEWS SINGAPORE-DMG says Hi-P is top pick for tech sector DMG & Partners Securities said it continues to favour Hi-P International Ltd, which supplies parts to companies such as Apple Inc, as the top pick in the Singapore technology sector. On Tuesday, Hi-P shares were up 0.5 percent at S$1.065. The stock has surged 76 percent so far this year versus the 23 percent gain in the FT ST Small Cap Index. Apple booked orders for over two million iPhone 5 models in the first 24 hours, reflecting a higher-than-expected demand for the consumer device giant's new smartphone and setting it up for a strong holiday quarter. "Despite some criticism over the lack of the 'wow' factors, we remain bullish over the demand for iPhone 5 as we have consistently argued that, rather than competing purely on hardware specifications, Apple focuses on providing a better and holistic user experience," DMG said. The broker has a 'buy' rating and S$1.28 target price on Hi-P. 1113 (0313 GMT) (Reporting by Eveline Danubrata in Singapore; eveline.danubrata@thomsonreuters.com) ************************************************************ 10:00 STOCKS NEWS SINGAPORE-Nomura raises SPH target to S$4.28 Nomura raised its target price on Singapore Press Holdings Ltd to S$4.28 from S$4.15 after updating its earnings estimates and valuation for the Singapore media and property firm's retail mall assets, but maintained its 'neutral' rating. SPH shares were flat at S$4.01 on Tuesday. The stock has increased nearly 9 percent so far this year versus the 16 percent gain in the broader Straits Times Index. In the third quarter of 2012 fiscal year, property profit before tax grew 42 percent to S$26.4 million ($21.6 million) from a year earlier on higher rental income from SPH's Paragon and Clementi shopping malls, Nomura said, noting that both are enjoying full occupancy. But Nomura said SPH's August newspaper weekly page count was down 4.6 percent year-on-year, based on its monthly average, indicating that display advertising was weaker last month. "While dividend yields remain attractive at 5.5 percent, given the tepid growth outlook and just 6.7 percent upside to our revised target price, we maintain our neutral rating on the stock," Nomura said. 0950 (0150 GMT) (Reporting by Eveline Danubrata in Singapore; eveline.danubrata@thomsonreuters.com) ************************************************************ STOCKS NEWS SINGAPORE-OCBC raises target on Wilmar to S$3.06 OCBC Investment Research raised its target price on Singapore palm oil firm Wilmar International Ltd to S$3.06 from S$2.90, saying the market is less averse to taking risk after the U.S. stimulus, but maintained its 'hold' rating. Wilmar shares were down 0.6 percent at S$3.27 on Tuesday. The stock has jumped 9 percent since the company launched its first-ever share buyback and the U.S. Federal Reserve stimulus sparked a rally in commodities stocks last week. OCBC said while "the market is adopting a more risk-on approach on the back of QE3", Wilmar's fundamental outlook is still rather muted. It advised investors to take profit when Wilmar's share price hits S$3.40 or higher. Crush margins in China for Wilmar's oilseeds business remain sub-optimal due to excess capacity in the industry, while prices of soy and other raw materials are still volatile, OCBC said. It added that cooking oil products could continue to face price freeze given the growing unemployment and inflationary concerns in China. Cooking oil makers like Wilmar could face margin compression due to rising input prices, OCBC noted. 0909 (0109 GMT) (Reporting by Eveline Danubrata in Singapore; eveline.danubrata@thomsonreuters.com) ($1 = 1.2239 Singapore dollars) Link this Share this Digg this Email Reprints

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