SG Market

SG Market: Spore shares may rebound after yday's sharp fall as Wall Street's lift on Mon & a calmer situation in Egypt ease some concerns ahead of the shortened week. The STI closed at its 3180 support, which should hold for the time being & with a firmer opening on the Asian bourses, we might see a slight lift today to narrow the gap at 3211 but do not expect the resistance at 3230 to be breached.

NOL may be in focus after reporting another sequential decline in freight rates for the last period of 2010. Yanlord Land may also grab some attention after jointly acquiring a prime residential site in Tianjin for Rmb1.16b with GIC’s real estate unit. Wing Tai posted 2Q earnings that were in line but Mercator Lines reported 32% decline in 3Q earnings while United Environ 3Q results missed estimates.

Stock highlights:
* Wing Tai: no surprises in 2Q11 results. Net earnings of $53.9m, +142% yoy. Deutsche maintains at Hold with $1.81 target, Macquarie keeps at Outperform but lowers target to $2.03 from $2.14.
* United Envirotech: disappointing 3Q11 results. Revenue at $12.8m, -32% YoY, -44%QoQ. Net profit at $4.1m, -21% YoY, -32% QoQ.
* Genting HK: 50% owned NCL reports strong FY10 results. EBITDA at US$400m, +24% yoy. Net revenue increased to US$1.5b from US$1.3b, driven by +7.7% in net yield and +4% increase in capacity days.
* NOL: operating data for Period 12 (7wks to Dec ’10). Volumes stronger, +2% qoq, +8% on adjusted basis. But avg freight rates off 5% qoq due to seasonality. Remains Morgan Stanley’s top pick amongst container shipping stocks. Macquarie keeps at Neutral with $2.25 target.
* Banks: Dec loan growth +1.3% m-o-m to $322.7b, bringing full year loans growth to 14.7%.
UOB: DMG, HSBC top picks, expect underperformance in 2010 to reverse as NIMs bottom out.
DBS: Morgan Stanley’s top pick for an undervalued recovery.
OCBC: Nomura recommends for strong Asean presence, and broad integrated platform.
* Yanlord: and an affiliate of GIC Real Estate jointly acquire a 365k sm residential site in Tianjin Jinnan district for Rmb 1.16b, in a 60/40 JV.
* Renewable Energy: receives go-ahead from the govt of Inner Mongolia to construct a 10MW solar energy farm. If the feasibility study works out, the total est cost of invmt amounts to Rmb 190m.