Singapore shares are expected to trade within a tight range, following a tepid session in Wall Street overnight on a mixed bag of results, wighed by some technology giants.
Regional bourses are mixed this morning in Tokyo (+0.35%), Seoul (-0.49%) and Sydney (-0.23%).
From a chart perspective, the STI closed just under its key 200-dma at 3,360 yesterday, and may see further downward pressure on rising momentum from the technical indicators. Next downside support at 3,320.
Stocks to watch:
*Oil: US crude inventory rose 2.5m barrels last week compared to street expectations for a 2.3m barrels fall. Total inventories now at 463.89m barrels, 27% over the five-year seasonal average.
*HPH Trust: 2Q15 net profit of HK$399.9m (+8.5% y/y) beat estimates, primarily as cost of service fell 4.5% from lower fuel price and improved deployment which resulted in operational costs savings, but offset by higher outsourced manpower costs. Revenue inched 2.1% to HK$3.13b from higher throughput at Yantian terminals (+4%) due to growth in US and empty cargoes, mitigated by weaker intra-Asia and transshipment cargoes at Kwai Tsing (-2.5%). Average revenue per TEU for HK grew 5.5% due to tariff increment and favourable throughput mix from liners, while China's average grew 0.7% from tariff increment. Interim DPU of HK$0.157 (1H14: HK$0.187). NAV/unit stood at HK$4.79.
*Frasers Centrepoint Trust: 3QFY15 in line with expectations, with DPU of 3.04¢ (+0.5% y/y, +2.5% q/q), yielding an annualized 5.9%. Gross revenue and NPI improved 14.3% and 12.8% to $47.1m (-0.8% q/q) and $32.9m (-2% q/q), primarily lifted by new contributions from Changi City Point and higher rental (+5.3%) from existing malls. Portfolio occupancy dipped 0.6ppt q/q to 96.5% with WALE of 1.6 years, while aggregate leverage stood at 28.7% (+0.1ppt q/q) with all-in borrowing cost of 2.29%. NAV/unit of $1.85.
*Ascendas REIT: 1QFY16 DPU rose 5.5% to 3.841¢ while distributable income increased 5.6% to $92.5m. Revenue expanded 10.6% to $180m, while NPI grew 6.9% to $124.3m, from the recognition of rental income from The Kendal, positive rental reversions, and higher occupancy rates at Aperia and newly converted multi-tenanted buildings. Occupancy stood at 88.8% (+1.1ppt q/q), with WALE of 3.7 years. Aggregate leverage stood at 34.7% with weighted average borrowing cost of 2.76%. NAV/unit at $2.05.
*Cambridge Industrial Trust: 2Q15 DPU of 1.225¢ (-2.1% y/y) slightly below estimates, weighed by a 56.6% surge in borrowing costs to fund acquisitions. Gross revenue rose 13.2% to $27.8m from new contribution from four recently-acquired properties and the completion of property development at 3 Pioneer Sector 3 and 21B Senoko Loop, while NPI grew slower at 9.9% to $21.6m due to increased costs from multi-tenancy conversions at several properties. Portfolio occupancy improved 0.5ppt to 95.5%, while aggregate leverage grew 0.8ppt to 37.2%. NAV/unit at $0.676.
*Ascott Residence Trust: 2Q15 results missed, with DPU down 5% to 2.09¢, due largely to the absence of a one-off item recognised (FX gain) in 2Q14. Excluding that, DPU would have rose 5%. Revenue grew 12% to $98.7m, while gross profit rose 6% to $49.4m, led by new acquisitions made in 2014, but gross margins fell 2.7ppt to 50.1% due to lower profit contributions from master leases in Europe, as well as management contracts in Indonesia, Philippines, and Singapore. Aggregate leverage lowered 2.9ppt to 35.8% with average debt cost holding at 2.9%. NAV/unit stood at $1.37.
*Keppel T&T/ Mapletree Logistics Trust (MLT): Keppel T&T to buy a light industrial from MLT at $20, to build its fourth data centre in Singapore. The property will be developed to Tier III (carrier-neutral specifications with robust security systems), with construction for the 183,000 sf gfa property expected to be complete by 2016.
*Starhub: 30:70 JV with major shareholder ST Telemedia (55.95% stake), where the latter will invest $36.9m for a stake in MediaHub, a data centre currently being constructed by Starhub. Subsequently, Telemedia will manage the property located at Mediapolis@one-north, while it will be Starhub’s convergence hub for its fixed, mobile and pay TV networks.
*First Resources: To spend US$28.6m to acquire PT Falcon Agri Persada, an oil palm plantation business in West Kalimantan.
*SATS: Acquiring an additional 13% stake in Philippines-based MacroAsia Catering Services for PHP168.8m ($5.1m), lifting its total stake to 33%.
*Noble Group: Substantial shareholder Franklin Resources raised its stake from 7.96% to 8.06% with the acquisition of 6.3m shares via the open market at $0.6807 each, on 20 Jul.
*E2-Capital Holdings: Sought second round of extension for its proposed RTO of Malaysian property developer Astaka Padu, up till 29 Nov ’15.
*NauticAWT: Trading debut for O&G engineering services provider. The invitation for 28m new shares (27m placement shares and 1m public offer) at $0.20 each was 6.1x subscribed. No individual has been allotted 5% or more of the invitation shares.
*Yongmao: Profit warning for 1QFY16 due to lower revenue and profit margins arising from sluggish China market conditions and lower rental revenue contribution from Macau capital goods rental operations following the completion of various casino projects. This is despite a one-time gain on restructuring and unrealised profits from sales of tower cranes.
*Atlantic Navigation: Lodged a report for an unauthorised withdrawal for US$736k and investigations are presently pending. Group intends to make a provision of US$368k in the upcoming 2Q15 results.