SG Market (18 Apr 13)

SG Market: S’pore shares are likely to open on a weak note after the declines on Wall Street overnight on disappointing economic and earnings news. Slower growth in China and US is likely to keep risk appetite in check for now The STI appears to be forming a near term downward trend channel with topside resistance near the 3300 level and bottomside support at 3280/3250. . Stocks to watch out for: *AIMS AMP: Proposed private placement of new units @ $1.575-1.625 to raise $97m to partially fund development projects, potential acquisitions, AEIs and other redevelopment opportunities. *Sembcorp Industries: 49% owned 1,320MW Indian power plant secures 25-year power purchase agreement to sell 500MW of electricity to power distribution companies in Andhra Pradesh. *Stamford Land: Purchased a freehold residential property in Sydney’s Inner-West area for A$23.7m. *S’pore Land: 53% owned Marina Square unveiled redevelopment plans to create a new 50,000 sf gourmet dining wing costing $15m (completion Jun 13) and a brand new 200,000 sf retail wing costing $80m (completion in 4Q14). *Keppel T&T: 1Q13 revenue improved 10% to $37m on better sales from logistics and data centre businesses but net profit rose a slower 4% to $15m due to higher borrowing costs. *Keppel Land: 1Q13 net profit of $96.6m was above estimates although 32% lower than previous year due to absence of bumper profit from Reflections at Keppel Bay but was partially offset by increased contributions from Keppel Reit and MBFC Phase 2, as well as higher fee income. Overseas sales constitute 26% of total revenue vs 72% in 1Q12. NAV climbed 3% to $4.11. *FCT: 2QFY13 results in line with distribution income +10.4% y/y to $23.5m, DPU +8% y/y to 2.7¢. Gross revenue +8.4% y/y with growth driven by higher contributions from Causeway Point and Northpoint. *MLT: 4Q12 results in line with distributable income +1.7% y/y to $42.1m, DPU +1.8% y/y to 1.73¢. Gross revenue +6% y/y and net property income +7% y/y on enlarged portfolio and positive rental reversions but moderated by weaker JPY. FY12 DPU +3% to 6.86¢. *Hutchison Port: Port contractors at HK Int’l Terminals offer 7% higher wages to dockworkers in bid to resolve the strike. Highlighted daily financial loss caused by the strike narrowed to HK$2.4m from HK$5m earlier as an increasing number of workers returned to work.