Wednesday, April 15, 2015

SG Market (15 Apr 15)

Singapore shares could open higher, following the positive close in Wall Street overnight, despite mixed corporate earnings.

Regional bourses are trading mixed this morning, in Seoul (+0.1%), Sydney (flat) and Tokyo (-0.2%).

From a chart perspective, the STI breached past the psychological resistance level of 3,500 yesterday to close at a 7-year high at 3,521. We caution however that technical indicators are looking overbought, as indicated by both the RSI and Stochastic.

Stocks to watch:
*Economy: MAS surprised the market and kept the SGD on "modest and gradual" appreciating path, with no changes made to the S$NEER band. Highlighted that neither its growth nor inflation forecasts have changed since its off-cycle slope-reduction on 28 Jan. The central bank still sees GDP on track to grow 2-4% in 2015, with full-year headline and core inflation forecasts of -0.5 to 0.5% and 0.5 to 1.5% respectively.

*Palm oil: The Australia Burea of Meterological has raised the probability of an El Nino occurring in 2015 to a 70% from 50%. The return on an El Niño could bring below-average rainfall to this region, impacting yield but offset by higher CPO price.

*SPH: 2QFY15 results missed estimates, with net profit down 14.4% y/y to $69.6m, largely due to the absence of divestment gains from the previous year. Operating revenue fell 3% to $270.3m, with revenue for media segment (S202.8m) down 7.1% as advertisement and circulation revenue fell, while the property ($60.6m) segment jumped 17.2% mostly due to maiden contribution ($8.1m) from Seletar Mall. Operating margin improved to 25.2% from 19.2%, as a result of lower materials, production and distribution costs (-17%), staff costs (-6.3%) and other operating expenses (-21.6%). Interim dividend maintained at 7¢. NAV/share at $2.27.

*First REIT: 1Q15 DPU rose 3.5% to 2.06¢, diluted by new units issued to fund the balance of the Siloam Sriwijaya acquisition, while distributable income increased 7.4% to $15.3m. Gross revenue grew 10.1% to $24.7m, while NPI gained 9.3% in tandem to $24.2m, supported by maiden contribution from the newly acquired Siloam Sriwijaya in Indonesia. NAV/unit at $1.02.

*Keppel T&T: 1Q15 net profit climbed 2.3% to $15.8m, while revenue dipped 1.6% to $47.9m, as lower revenue from Data Centre division was offset by higher revenue from Logistics Division. Operating margin narrowed 2.1%, from the absence of contribution from the two data centers disposed in Dec, partly offset by fixed asset disposal gains. Bottom-line was aided by a 9.4% rise in associate and JV contributions. NAV/share at $1.31.

*QT Vascular: FDA approved the second generation of the Chocolate PTCA balloon catheter. The device is designed to dilate diseased coronary vessels in a less traumatic way than convential balloon angioplasty

*ST Engineering: Secured contracts worth $298m in 1Q15, involving projects ranging from aircraft maintenance and cabin interior modification, to engine wash and pilot training.

*Swiber: Secured a US$133m EPIC contract from a Indian national oil company for the design and installation of six pipelines totaling to 60km, scheduled for completion by 2Q16. This brings group's order book to almost US$2b.

*Nordic Group: Acquiring Austin Energy (Asia) Pte Ltd for $26m. Austin Energy is a construction services provider that specializes in thermal insulation in the petrochemical, pharmaceutical and offshore industries. The acquisition is intended to expand group's service offering.

*Mapletree Commercial Trust: Following the completion of AEI at VivoCity, MCT expects to launch its new 15,000 sf retail space today, with nine retailers including US apparels brand, American Eagle Outfitters, and Weekends, a multi-brand lifestyle retailer.

*Frasers Hospitality Trusts: Launched its urban-inspired, designed-led hotel residence brand “Capri by Fraser” in Brisbane. This is FHT’s fourth property in Australia.

*Sarine Technologies: Substantial shareholder, Alan Wang, has disposed 1.6m shares at $1.958 average on 13 Apr, lowering his stake from 6.3% to 5.6%.

*Otto Marine: Completed construction of two units of Harbour Tug and two units of Anchor Handling Tug Supply for PT Pertamina Trans Kontinental.

*Albedo: Disclosed that the group has been approached to explore a potential acquisition of shares in another company.

No comments:

Post a Comment