SG Market

SG Market: Spore shares may open with a weak tone after a tepid finish for the DJIA. The STI closed flat yday, well off its intraday high, suggesting a lack of conviction over the market's near term direction ahead of the Lunar New Year holidays. Near term support is at 3180 & if this level holds firm, the market could resume its upward momentum. GLP could face some knee-jerk reaction to news that rival ProLogis is gearing up to re-enter China.

STATS ChipPac posted 44% decline in 4Q earnings on weaker USD & higher costs. GuocoLand 2Q profit dropped 64% yoy but rose 30% qoq on lower devt rev from China. Li Heng may face selling pressure on warning that Chinese anti-dumping duties will hurt the company. China Fishery has obtained SGX in-principle approval for HK dual-list plan. Armarda to list 119m placement shares priced at 3.6¢, a significant discount to last close at 9¢.

Stock highlights
* Armarda: 114m placement shares issued at $0.036 each (10.6% of shares out) will begin trading from today, 9am. Last closed at $0.09.
* GLP: the potential merger btwn Prologis and AMP Property spells greater competition for GLP in China’s logistics market. Near term, mkt may react on this negative surprise, as GLP previously said the chances of ProLogis re-entering China was remote. Still, JPM, UBS maintain at Buy based on longer term outlook.
* SATS: Deutsche reinstates Buy rating with $3.80 target, underpinned by strong growth, attractive dividends and potentially accretive M&A.
* SingTel: BNP upgrades to Buy from hold, has $3.75 target.
* Genting SP: Daiwa lowers TP to $2.78 from $2.93.
* Stats Chippac: 4Q10 net profit slumps 44% to US$19m, due to a combination of the weakening US dollar and higher costs of materials such as substrate and gold. But still delivers record full yr of net profits of US$108m (up 11-fold yoy).
* Cache Logistics Trust: 4Q10 results in line. Ytd net property income at $41.3m, DPU of 5.59cts gives annualized yield of 7.8%. Macquarie keeps at Outperform with $1.09 target.
* Guocoland: 2Q11 results. Revenue of $162.8m -55.0%yoy +32.5%qoq; net profit $21.6m -64% yoy +60.3%.
* SIA: cancelled two flights to and from Bali to avoid ash. Said more flights would be delayed on Thursday and Friday. Separately, Tiger Air does not offer flights to Bali, based on a check on its website.
* Li Heng: said it would be hit by China's move to impose anti-dumping duties on caprolactam imports from the US and EU. Caprolactam is a major raw material used in the pdtn of polyamide chips that Li Heng needs for its nylon yarn products.
* Capitaland: buys Marine Point for S$100.7m to be developed into a 150unit condo. The total acqn cost works out to $1,056 psf ppr.
* China Fishery: obtained SGX approval for its proposed dual listing in HKEx.