SG Market (29 Apr 13)

SG Market: S’pore shares are likely headed for a flat open on the mixed cue from Wall Street after US 1Q GDP came in weaker than expected. Attention this week will be on the Fed and ECB policy decisions with expectations of an ECB rate cut this week likely to lend support to the market. Myanmar theme stocks may take a hit after Aussino’s RTO deal appears to be on very shaky ground. The STI ended last Fri at its highest close in 5 years and is on track to challenge the 3400 psychological hurdle with support at 3320. Stocks to watch out for: *CapitaLand: 1Q13 net profit +41.2% to $188.2m with core profit +70% to $133.3m. Revenue +3.2% to $661.9m on strong residential sales in S’pore (544 units, similar to entire 2012) and China (955 units, 3x over 1Q12). NAV stood at $3.61. *UIC: 1Q13 net profit -10% to $39.8m, revenue -36% to $150.1m due to lower property sales and completion of The Trizon residential project in May 12 but buoyed by progressive profit booking from the Archipelago condo development. NAV stood at $3.43. *S’pore Land: 1Q13 net profit -11% to $49.6m, revenue -41% to $114.7m due to lower property sales and completion of The Trizon residential project in May 12 but buoyed by progressive profit booking from the Archipelago condo development. NAV stood at $12.55. *CDL Hospitality Trusts: Weak 1Q13 results with distributable income -3.2%, DPU -3.2% y/y to 2.69¢. Gross revenue -1.3% as lower sales from S’pore hotels were partially offset by higher revenue from overseas properties. RevPAR for SG hotels slipped 7.9% to $191 in 1Q13, while average occupancy dipped 1.2 ppt to 87%. *Starhill Global: 1Q13 DPU +28% y/y rise to 1.37¢, which included accumulated rental arrears from the Toshin master lease, barring which DPU would be up 10.3% to 1.18¢, giving an annualised yield of 5.38%. NPI +12.3% to $41.9m, mainly due to strong contributions from its SG portfolio +25.3%, driven by full occupancy and positive rental reversions from both the retail and office segments. *China Aviation Oil: 1Q13 net profit +5.3% to US$21.5m, revenue +30.2% to US$3.78b due to increased supply of jet fuel and trading volume of gas oil to 3.81m tonnes (+35.1%), offset by FX loss from currency swaps. *Jardine C&C: 1Q13 net profit -13% to US$231m, revenue -6% to US$5.21b due to reduced market share of Astra and difficult trading conditions in auto finance services, heavy equipment & mining, agribusiness, infrastructure & logistics and other motor interests in S’pore and Malaysia. *Aussino: Board rejects financial adviser's recommendation to voluntarily withdraw its application for its $70m RTO of energy business of Max Myanmar, owned Zaw Zaw after SGX raises concerns over Zaw Zaw remaining on US govt's sanctions list, alleged human rights violations by Max Myanmar, tax and land rights issues. SGX had given 3 May deadline for these concerns to be addressed or it may return co's RTO application. Co shares will resume trading today.