SG Market

SG Market: Spore shares may rebound slightly at the open after yday’s sharp selloff & the midday reversal in US markets to a smaller loss at the close but gains could be short lived amid renewed fears of further tightening measures in China. Traders will be watching the key 3200 support level on the STI today. If that breaks, we may see the STI pull back to the triple bottom base at 3120.

4Q results from K-Reit, ART & MLT all in line & offer no catalyst for re-rating. ST Engineering may see some interest altho aero contract wins of $320m in 4Q vs $370m in 3Q not a surprise & is quite routine biz. CPO stocks may come under a little pressure on news that Indon may move to raise export tariffs for the 2nd time this yr. Dukang may gain after obtaining regulatory approval for its 130m TDR listing.

Stock highlights:
* Ascott Residence Trust: 4Q10 results generally in line.
* Mapletree Logistics Trust: 4Q10 results generally in line. Deutsche, Morgan Stanley maintain at Buy/ Overweight with $1.06, $0.97 targets r’ptively.
* K-Reit Asia: 4Q10 results slightly below consensus estimates. Citi maintains Sell rating and $1.18 target. Credit Suisse however, maintains at Outperform with $1.75 target.
* Keppel T&T: FY10 net profit at $57.6m +29.1% yoy, revenue at $107.8m -4.9% yoy. Declared first and final div of 3.5cts.
* Sabana Reit: HSBC initiates at Overweight with $1.12 target. Says the Shariah-compliant Reit is low risk and offers high yield at 8.2% pa.
* Comfort Delgro: Nomura upgrades to Buy from neutral, raises target to $1.98 from $1.70.
* Tiger Air: Macquarie downgrades to Underperform from neutral, lowers target to $1.50 from $1.80 on higher fuel jet prices.
* Rig builders: Deutsche the latest addition to the Street in upgrading the sector. Sees consumer confidence rising with new orders to follow.
Keppel Corp TP raised to $13.50 from $12.50.
SMM TP raised to $6.90 from $6.30.
SCI TP raised to $7.00 from $6.60.
All 3 counters maintained at Buy.
* ST Engrg: said its aerospace unit secured $320m worth of contracts in 4Q10.
* Dukang Distillers: to lift trading halt at 9am. Has obtained approval from the Taiwan authorities for the dual listing of 130m TDRs on the TSE. Pricing of the TDRs has yet to be fixed.