SG Market: Spore share likely to trade higher on improved sentiment in wake of firmer close on Wall Street last week & ahead of results season this wk but gains could be capped by China's latest move to curb bank lending in order to tame inflation. China's central bank raised banks' reserve requirement ratio by 50 bps, after 6 hikes last year with media reports suggesting more hikes to follow.
SPH unlikely to react much to its 29% drop in 1Q11 earnings, which is line with expectations. A host of S-Reits, business trusts - Areit, KGT, CCT, FSLT, K_Reit, MLT, CMT, ART will be releasing 1Q results this week. Key support for the STI remains at 3200, with resistance likely at 3280.
Stock highlights:
* SPH: no major surprises in 1Q11 results. Deutsche, KE maintain Buys with $4.70, $4.75 targets r’ptively.
* Banks: Deutsche says property measures to weigh on banks. Order of preference is DBS, OCBC, then UOB (most vulnerable to housing slowdown).
* Hi-P: positive profit guidance. Expects to report higher revenue in 4Q10 vs 3Q10.
* Sound Global: awarded Rmb 120m contract for a Build Operate Transfer (BOT) project in Shaanxi. Separately, CFO resigns to pursue other opportunities.
* Int’l Press Softcom (IPSCOM): profit warning for upcoming results, expects a loss.
* China Environment Resources 20k/ 4k: 5-into-1 share consolidation to take effect today.
* BanJoo: to be renamed Next-Generation Satellite Communications Ltd
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