SG Market

SG Market: S’pore shares could be entering a correction phase following Wall Street’s biggest pullback on fears that the Fed may be preparing to change its loose monetary policy. Sentiment is likely to be punctured as investors take some chips off the table. Downside support for the STI is seen at the 3280 level (20-day dma) followed by 3250 with overhead resistance remaining at 3300. Among stocks in focus: *CapitaLand: 4Q12 net profit came in at $262.7m (-44.9%), taking full year earnings to $930.1m (+4.4%), which topped estimates on strong residential sales momentum in China and sustained sales in S’pore, higher contributions from shopping malls and fee-based businesses. Group hiked DPS by 1¢ to 7¢. *Ezion Holdings: 4Q12 net profit powered to $20.5m (+96%), lifting full year earnings to $78.8m (+36%), exceeding market consensus of $64.3m. 4Q revenue jumped 92% largely due to the deployment of additional liftboats and service rigs and higher contributions from OSVs supporting the QCLNG project in Australia. *OKP: Delivered dismal set of results with 4Q12 and FY12 net profit of $3.8m (-62%) and $12.4m (-55%) respectively. The weak performance was attributable to substantial completion of maintenance projects, keen price competition and rising labour costs. DPS has been cut to 1.5¢ from 2¢ in FY11. *Broadway: Achieved net profit turnaround of $3.2m for 4Q12 vs loss of $10.2m in 4Q11 as revenue surged 32% on strong foam plastics sales and reversal of one-off insurance claims from the Thailand floods. *Intraco: Widened FY12 loss to $8.9m due to allowance for doubtful receivables, write-down of inventories and provision for claims; management expects business environment to be challenging as the global economic outlook remains uncertain. *HanKore: 1HFY13 net profit rose 14% to Rmb36.8m as revenue increased 8% to Rmb146.7m on the back of higher construction sales and finance income from service concession arrangement. *Koh Brothers: Bags $99.8m PUB contract for canal improvement works to Bukit Timah First Diversion Canal. The project has commenced and will take 3 years to complete. *GSH Corp: Entered into 2 private placements totaling 395.2m new shares to Lippo unit, Golden Super Holdings (184.7m) and private equity fund SkyVen Growth Opportunities Fund (210.5m) at $0.095 or 12% discount to last close for total proceeds $37.5m. *Hi-P Int’l: Hit by a fire outbreak at its Shanghai’s manufacturing plant on 19 Feb but company does not expect any material impact on its overall operations and financial performance. *Enviro-Hub: Profit warning of 4Q and FY12 loss, citing continued difficult business environment. *Lonza: Awarded 3-year deal worth up to US$6.9m from US Nat’l Institutes of Health Center for Regenerative Medicine to generate induced pluripotent stem cells for research purposes