SG Market (08 Mar 13)

SG Market: S’pore shares may push higher after Dow smashed another record high although sentiment has been wary and gains quite subdued as investors have one eye turned towards economic data coming out of China. The STI may make another attempt to surpass the 3000 psychological resistance before testing the next resistance at 3320. Downside support remains at 3250. Stocks to watch out for: *Index Changes: Following a quarterly review, Thai Beverage will replace IHH Healthcare on Straits Times Index. In the FTSE ST China Top Index, China Minzhong will replace China Aviation Oil. Mid Cap index will see Far East Hospitality, United Eng replacing Hong Leong Asia and Pacific Andes. All changes will take effect on 18 Mar. *Ascendas Reit: Plans to raise $350m via private placement of 140m new units @ $2.50-2.55 to fund property acquisitions. *SMRT: Entered into collective agreement with trade union to revise the wage scales of all its non-executive staff. The exercise will cost the group $10m for FY13, comprising a base salary revision and $5m one-off market adjustment component. *RH Petrogas: Makes oil discovery in Kepala Burung PSC with production test yielding 100 bpd of oil. Group is in process to bring well into production. *SC Global: Following the completion of compulsory acquisition on 1 Mar, company will be delisted from SGX wef 11 Mar. *Mandarin Oriental: FY12 net profit +7% but core earnings +20% to US$40.8m; revenue +7% to US$1.28b on robust performances in Asia and Europe but varied in Americas. Book NAV +4% to US$0.95, RNAV +7% to US$2.88. DPS raised to US7¢ from US6¢. *Dairy Farm: FY12 net profit -7% but adjusted core earnings +13% to US$506m; revenue +7% to US$9.8b on strong trading performances in HK and Indonesia. Proposed higher DPS of US23¢ vs US21¢ previously. *Hongkong Land: FY12 net profit -72% but core earnings +11% to US$777m; revenue -9% to US$1.1b on subdued office demand but mitigated by positive retail rental recersions in HK. Net gearing at comfortable 0.12x, NAV +5% to US$11.11. DPS raised to US17¢ from US16¢. *M1: Qatar Telecom reportedly planning to invest in S’pore although no specific targets mentioned. Possible candidates include M1, the smallest of the 3 telcos which has key shareholders in Axiaita (29%) and Keppel T&T (20%).