SG Market

SG Market: Spore shares may rise after the FOMC's unanimous decision to maintain the status quo on its ultra-loose monetary policy, though gains may be capped after the STI's sharp 1.2% gain yday & as traders lighten their positions ahead of the extended holidays in Asia next week. Stochastics indicators are exhibiting signs of a market reversal from oversold positions but the index may need to break past 3250 to trigger a strong buy signal.

KepCorp is likely to remain firm on news that it has bagged another 2 high spec jack-ups plus 2 options from Hercules Offshore valued at US$844m, suggesting that the order flow is accelerating. Tin miner & smelter Malaysia Smelting Corp will be in focus on its SGX debut; Osim may see some interest after posting improved 4Q results. Both CDL Hospitality Trusts & Starhill Global reported 4Q results that were slightly ahead of estimates.

Frasers Commercial Trust 4Q NPI was flat but DPU declined 19% qoq.

Stock highlights:
* Keppel Corp: following yday’s FY10 record earnings announcement, stock may see further momentum as Keppel will build 2 ultra high-spec jackups for Hercules estimated to cost US$208m each, with options for 2 more. Keppel has not yet made an announcement regarding this contract.
* Genting SP: HSBC reiterates Underweight call, lowers TP to $1.95 from $2.05; cautions on the negatives arising from possibility of unlicensed junkets. Deutsche lowers TP to $2.43 from $2.60, believes upside surprises unlikely in 4Q10 earnings, with 1H11 to see moderation. But keeps at Buy.
* Osim: FY10 results largely in-line. Net profit came in at $50m, +117% YoY, the highest in the company’s history, driven by strong margin expansion. Mgt remains optimistic on outlook. Trades at 23.3x P/E vs 27.3x historical avg. Macquarie rates at Outperform with $2.06 target.
* CDLH Trust: following yday’s strong Fy10 results, stock may see further interest as analysts expect the Trust to make further accretive acquisitions. In particular CDLH is tipped to acquire the newly opened Studio M Hotel in the Mohamed Sultan area, as early as this year. Street mainly keeps at Hold / Buy, with targets ranging $2.03-2.40.
* Frasers Commercial Trust: 1Q11 net property income at $22.9m -2.0%yoy, -1.2% qoq. DPU at 0.25cts +4%yoy, -19% qoq.
* Starhill Global Reit: 4Q10 results. Net property income at $36.7m +33% yoy, DPU at 1.04cts +7.2% yoy. Trades at 6% FY10 yield.
* Eratat: lifts halt. 63m share placement at $0.2135, plus options for another 18.9m new shares at $0.30 exercise price. Stock last traded at $0.235.
* Ramba Energy: Indonesian subsidiary, RichLand Logistics Indonesia, clinches 2 contracts to manage domestic transportation of bulk liquids for 2 leading chemical companies in Indonesia.