SG Market: The overheated market is due for a near term pullback as bulls take a breather and digest the lacklustre 1Q earnings reports so far.
Regional bourses slipped today in Tokyo (-0.7%), Seoul (-0.4%) and Sydney (-0.7%).
From a chart perspective beyond 2,960, next resistance for STI is seen at 3,040, with support at 2,840.
Stocks to watch:
*Suntec Reit: 1Q16 DPU of 2.37¢ (+6.3% y/y) was in line, lifted by capital distribution (0.158¢) from the divestment of Park Mall. Excluding that, operating DPU slipped 0.8% on higher net financing costs (+57%) despite achieving a 5.2% rise in gross revenue to $78.3m on higher contribution from Suntec City following the completion of AEI works and better performance at Suntec Singapore. Office portfolio occupancy eased to 98.3% (-1ppt), while the retail portfolio improved to 98.6% (+0.7ppt). Aggregate leverage dipped to 36% (-1.1ppt) with average debt cost of 2.92% (+0.06ppt). NAV/unit at $2.138.
*Frasers Centrepoint Trust: 2QFY16 DPU of 3.039¢ (+2.6% y/y) met estimates. Gross revenue slipped 0.8% to $47.1m on lower contributions from Northpoint and Bedok Point, arising from AEI works, and tenant re-mixing, while NPI inched up 0.4% to $33.7m on a tax write-back, as well as lower utility tariffs. Portfolio occupancy slipped to 92% (-2.5ppt), with WALE of 1.51 years. Aggregate leverage held steady at 28.3%, with average borrowing cost of 2.29%. NAV/unit stable at $1.91.
*Frasers Centrepoint: Launching the refreshed "Modena by Fraser" serviced residence brand in Changsha, Hunan in Dec, ahead of the upcoming launch of a Bangkok serviced apartments in Aug.
*GuocoLand: 3QFY16 net profit plunged 77% y/y to $11.3m, while revenue fell 49% to $166m mainly due to the absence of an en-bloc sale of serviced apartments in Shanghai Guoson Centre. Bottom line was dragged by a FX loss of $9.5m, partially offset by fair value gain of $5.8m from FX hedges. NAV/share at $2.95.
*IHH: 59.6% owned Acibadem is acquiring Tokushukai-Sofia EOOD, the largest private healthcare service provider in Sofia, Bulgaria, for €65m. Separately, the group will also acquire a 41.2% effective stake in a Bulgaria-based integrated healthcare provider City Hospitals and Clinics for €11m.
*YuuZoo: Signed a franchise agreement with Media Rock to access Mexico’s population of 34.4m gamers. Media Rock will use Yuuzoo's payment platform for all payments to Media Rock, which booked revenues of over US$200m on average annually.
*Wee Hur: Awarded a $82.2m contract by Mapletree Logistics Trust to design and construct a single user 5-storey warehouse at 76 Pioneer Road. Works expected to be completed by Sep ‘17 and the contract will lift order book to ~$345.9m.
*Profit warning: Cheung Woh Technologies