Friday, July 29, 2011
SG Market: Spore shares are likely to open mixed as investors remain in a skittish mood following Wall Street’s nervous close & Nikkei’s slightly softer opening. Blue chips may be in for some volatility as funds work towards a 2Q close. While the STI appears to have broken out of its 10-month triangle, momentum indicators are overbought, pointing to a possible near term pullback. SIA is likely to run into turbulence after reporting a sharp decline in 1Q net profit to $45m, well below the $178m due to higher fuel costs while Tiger Airways may resume its Australian flights as early as Aug 5. Lian Beng may also be in focus after doubling FY11 earnings to $48m, in line with expectations & declares final DPS of 1¢ & special DPS of 0.6¢. Midas also expected to regain some ground with the surprises anncmt that Nanjing Metro Co has awarded 2 contracts worth a combined Rmb3.13b to its 33.5% JV, Nanjing SR Puzhen Rail Transport, to supply of train sets for the Nanjing Metro Lines. GMG Global 2Q net profit lumped 90% to $18m while revenue more than tripled to $288.4m on higher rubber prices & one-off gains from compensation costs & a loan waiver. Hyflux warns completion of its Algerian seawater desalination plant will be delayed till May 12 due to a fire which broke out on the site yday with early est of damages coming up to US$50m.