Monday, December 13, 2010

SG Market

Spore shares may open slightly higher, taking their cues from gains in US stocks Friday and mostly higher regional markets; but eyes will be on China's reaction to Saturday's inflation data and the PBOC's latest move to rein in bank lending. STI ended -0.8% at 3185 Friday...

While there was market talk that China would raise rates over the weekend, the govt opted instead chose the lighter option by hiking bank reserve ratios by another 0.5% in a bid to absorb excess liquidity and curb inflation...

Technically the STI needs to take out the 3250 level to negate the formation of a head and shoulders pattern. If the STI falls below 3150, then the pattern would be formed, and may be viewed as a reversal indicator for the uptrend since Aug.
News flow thin. Interest may centre around smaller caps today.

Stocks to watch:
* Gallant: we note that Msian-listed peer Landmarks Bhd surged 20% on Friday, after a CIMB initiation. KE reiterates Buy.
* China Animal Healthcare: received approval in-principle for the HK Listing (by way of introduction). To lodge listing document (or propectus) on Wed, 15 Dec 2010. Expected to commence trading on the SEHK at 9:30 am on Tue, 21 Dec 2010.
* AFP: subsidiary PT Bumi Serpong to spend Rp 1 tr on capex next yr to expand its BSP City Project in Indonesia.
* Popular: 2QFYApr11 results. Reports 87% yoy jump in net profit to $2.6m, on +11% in turnover to $124.1m. Interim dividend of 0.4cts.
* Beyonics Technology: may extend recent losses as 1Q11 results indicate bottom line under pressure. $2.8m net loss vs $2m profit last yr.

Stock ratings:
* SIA: DBSV gives update on regional airlines. Maintains SIA at Buy, with $18.50 target.
* Ascott Residence Trust: Credit Suisse initiates at Neutral with $1.30 target.
* Tiger Air: Credit Suisse maintains Underperform with $1.90 target. CLSA maintains Buy with $2.46 target; tips 4Q growth to accelerate; notes a number of routes for Dec already sold out.
* Osim: OCBC cuts to Hold from buy, but raises target to $1.68 from $1.52.
* NOL: UBS upgrades to Neutral from sell, raises target to $2.46 from $1.82; prefers container to bulk shipping. Deutsche maintains Sell with $1.61 target, due to negative view of container shipping rates going into 2011.

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