HPH Trust

HPH Trust: earlier this wk, StanChart upgraded the stock to Outperform from Inline, with TP US$0.75, noting that the share price pullback has made valuations attractive, with FY14e yield in excess of 8.4%. Share price has been trending down, after the poor throughput data from the 3Q13 results, and downbeat guidance from mgt for 2H13. There may also be spillover concern that the Shanghai Free Trade Zone may displace the importance of HPH Trust's ports in HK and Yantian, though this is likely a longer term issue. Broadly, the yield sector is weak today, likely reflecting a broader macro play as investors position for a higher interest rate environment.