Tuesday, October 26, 2010

SG Market

SG Market: Spore shares likely to get a bit of lift from Wall Street's advance with DJIA closing near 6-month high on Mon. STI still trading within upward trend channel drawn from May 2010 with 20-day MA proving near term support at 3,62. China market’s performance to also influence sentiment today.

*SGX to remain top story following news of ASX bid as market still tries to get sense of deal but bourse facing increasing opposition from lawmakers in Aust as well as a host of downgrades by foreign houses, citing inflated pricing, absence of clear revenue synergies, integration risks as well as significantly higher financial leverage, which may impair future dividend payout ratio. Stock may continue to be pressured by arbitrage trades betw SGX & ASX, with the latter offering a cheaper entry
*GMG Global likely to draw attention after doubling 3Q rev to $110m & posting record net profit of $16.2m on higher rubber sales volumes (+23%) & ASP (+75%) of $4,141/ton vs >$5,000/ton currently.
*YZJ 3Q results came in above expectations with net earnings +32% to Rmb730.4m & revenue +19% to Rmb3.1b. Gross profit margin expanded to 23.5% vs 20.2% last period. Total orderbook stands at 128 vessels worth US$5.3b, which will keep the yard busy till late 2012.
*Wing Tai posts 35% drop in 3Q net profit to $30.2m on weaker sales & slower than expected profit recognition. Trading at 30% discount to RNAV.
*OCBC says low interest rates putting severe strain in banks margins
*MCL Land 3Q net profit -91% to US$8.8m, revenue -83% to US$46.6m
*Pan Hong plans to spin off & list its Jiangxi unit on HKSE; no details provided. This is not a done deal as the proposal requires regulatory approvals as in the failed Li Heng case.
*Fasers Centrepoint Trust ay see some interest after 4Q results slightly lower than consensus. DPU for quarter at 2.16¢, +4.3% qoq, bringing total FY10 DPU to 8.2¢ (+9%).

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