SG Market: Spore shares likely to follow the US lead after Wall Street's rally yday as specter of euro-zone debt problems recedes again. STI closed +0.1% at 3215 Thursday. Positive news flow may add to sentiment, as Spore expected to avoid the technical recession in 4Q, driven by strong financial services, integrated resorts contribution…
Citi says emerging stocks outlook now bullish after drop, with China tightening measures likely priced in. Commodities across the board also seeing rebound, with rubber, palm oil, soybean, cotton, cocoa all posting good gains. The Thomson Reuters/Jefferies CRB Index gained 2.4% in New York yday, snapping its two-day drop. Plantations, commodities counters may get lift.
Index likely to hold above 3200, may test 3240, 13-d MA.
#Stocks to watch:
Shipyards: Yangzijiang, Cosco may be in focus, as peer Rongsheng debuts on the HKEX today. Credit Suisse maintains Outperform for both stocks, citing strong execution, M&A opportunities for YZJ; likes Cosco for having the most advanced rig building capabilities among the Chinese shipyards.
DBS: good response to retail preference share public offering, 3.5x oversubscribed. Size of offering upsized to $800m from $500m.
#Olam: Business Times says recent underperformance to Wilmar, Noble not justified, given Olam’s potentially higher growth.
#Sim Lian: pre-launch of Phase 1 of Waterview at Bedok Reservoir well-received. 200 units of the 348 slated for launch have been sold at ASP of $838 psf.
#Seroja: secured a US$150m contract from PT Adaro Indonesia to transport coal to various buyers located within the Indonesia. The contract will be in force for 7 yrs and transportation will be using Indonesian-flagged vessels in line with cabotage laws.
* HK Land: Citi upgrades to Buy from Hold, raises target to US$9.37 from US$5.50.
* SembMarine: Citi lowers to Hold from buy, but raises target to $5.60
* Keppel Corp: Citi has $12.85 target.
* SPH: Deutsche maintains Buy with $4.70 on strong Oct adex numbers.
* Genting SP: HSBC rates as new Underweight. Macquarie maintains Underperform, $1.83 target, on slower than expected growth citing regulatory risks, overhang.