DJ MARKET TALK: Singapore's STI Likely To Retake 3000 Resistance
 

0056 GMT [Dow Jones] Singapore's STI appears set to retake levels above the key 3000 resistance amid a slew of positive cues from offshore markets, with rallies on signs of progress on the eurozone debt crisis and as U.S. GDP data came in better than expected. Players are also likely to focus on corporate earnings. The STI ended Friday down 0.2% at 2998.49. The year-to-date high around 3040 will likely offer near-term resistance, while the 2970 zone likely offers support. Among stocks likely in focus, Singapore Exchange (S68.SG) reported its fiscal 4Q12 net profit fell 23.2% on year to S$61.1 million, while Tiger Airways (J7X.SG) reported a fiscal 1Q13 loss of S$13.7 million, its fifth consecutive quarter of losses, narrowing from a S$20.6 million year-earlier loss; CapitalMalls Asia (JS8.SG) bought Olinas Mall in Tokyo's Kinshicho district for Y22.8 billion and it plans to develop its first shopping mall in Qingdao, China. Elsewhere, Jardine Strategic (J37.SG) reported 1H12 net profit fell 66% on year to US$860 million.
 
 
 

DJ MARKET TALK: SGX Shares May Not React Much To Profit Decline
 

0048 GMT [Dow Jones] Singapore Exchange (S68.SG) may not react much to its fiscal 4Q12 net profit falling 23.2% on year to S$61.1 million, on weaker securities-business income and an S$11 million currency-related writedown on its Bombay Stock Exchange investment. A muted quarter was expected, with both CIMB and Citigroup forecasting net profit around S$66 million. Maybank-Kim Eng says the FY12 results met expectations, calling underlying net profit falling only 3% on year to S$304 million "commendable" given challenging conditions as exchanges globally faced trading-activity declines. While securities revenue dropped, derivatives revenue posted another record quarter, it notes. Operating expenses were under control and capex should decline, conducive for generous dividend payouts, the house adds, viewing trading volume at cyclical lows. "An uptick in trading volumes, combined with a growing derivatives business will bring SGX earnings to greater heights." It expects the sustainable dividend yield to remain healthy at around 4%-5%, and rates SGX a Buy with a S$7.50 target. The stock ended Friday +0.5% at S$6.65, and may trade between last week's S$6.52 low and July's S$6.84 peak

 
 

Singapore

Wired Daily

Page 2

Broadway’s 2Q12 core profits in line, 1H12 met 33% of

FY12F earnings. Foam Plastics faring well but HDD

recovery and margin rebound were weaker than

expected; FY12F core profit trimmed by 9%. Maintain

Hold on limited upside to lower TP of S$0.38 (Prev S$

0.44).

2Q12 core profit for GMG Global in line, came in at

S$11.5m (-19% y-o-y) due to 25% fall in rubber ASP.

FY12F-14F rubber price cut by 4-16% on slower thanexpected

demand recovery. As a result, FY12F-14F profit

was adjusted by -36% to +8%, including Siat acquisition.

Maintain HOLD, TP cut to S$0.125 (Prev S$ 0.15). Our

analyst expects rubber prices to remain weak for at least

another quarter given soft demand in the current

uncertain economic climate and seasonal lift in output.

Singapore Exchange’s 4Q12 underlying net profit of

S$73m (ex-one off items of S$12m), with full year

earnings at S$304m, were in line. Lower securities daily

average values from S$1.5bn to S$1.1bn were the key

drag to earnings despite support from derivatives. 15 Scts

final DPS (incl 4 Scts base dividend) was declared. Full

year DPS of 27 Scts was equivalent to 95% of underlying

EPS. Maintain FULLY VALUED and S$5.40 TP.

1Q13 results for SMRT within expectations. Revenue grew

8.8% y-o-y on higher ridership and rental/ advertising,

but costs pressures remain. Valuations are rich with

muted growth. Maintain FULLY VALUED; TP: S$1.50.

Results for Hongkong Land were in line with our analyst’s

estimate. Regional property expansion well underway;

maintain HOLD with US$5.62 TP.

Capital Malls Asia has bought Olinas Mall in Tokyo's

Kinshicho district from a fund linked with Invesco Ltd. for

Y22.8 bn. CMA is also planning to develop its first

shopping mall in Qingdao, China. The mall is expected to

be six storeys and completed in 2015. With the latest

investments, CMA's gearing is expected to rise to 30% by

year end compared to 25% currently. Balance sheet

remains healthy with a gross cash position of $500m as at

2Q12.

Latest government figures show a 58% or 1,281-unit qo-

q increase in resales or secondary market transactions

of completed private homes to 3,487 units in Q2, while

developer sales decline 17.2% to 5,402 units from the

record Q1 volume of 6,526 units. The number of smallformat

units (up to 50 sq metres/538 sq ft) sold by

developers tumbled from 1,764 in Q1 to 1,038 in Q2.

Their share of the total number of private homes sold by

developers also slipped from 27% to 19%.

Share Buy-Back

Company D.O.T. Buy/Sell No.of shares S$/shr

Ho Bee Investment Limited 25-Jul-12 Share Buy-Back 426,000 1.2138

HG Metal Manufacturing Ltd 25-Jul-12 Share Buy-Back 20,000 0.0820

AEM Holdings Ltd 25-Jul-12 Share Buy-Back 2,500,000 0.0850

San Teh Limited 24-Jul-12 Share Buy-Back 242,000 0.2900

Ho Bee Investment Limited 24-Jul-12 Share Buy-Back 563,000 1.2094

CNA Group Ltd 23-Jul-12 Share Buy-Back 25,000 0.1076

Ho Bee Investment Limited 23-Jul-12 Share Buy-Back 450,000 1.2094

HG Metal Manufacturing Ltd 23-Jul-12 Share Buy-Back 1,071,000 0.0829

KSH Holdings Limited 20-Jul-12 Share Buy-Back 488,000 0.2450

Viking Offshore and Marine 20-Jul-12 Share Buy-Back 40,000 0.1080

Hyflux Ltd 19-Jul-12 Share Buy-Back 240,000 1.4104

Pan-United Corporation Ltd 19-Jul-12 Share Buy-Back 105,000 0.5831

Wee Hur Holdings Ltd 19-Jul-12 Share Buy-Back 260,000 0.2800

Hyflux Ltd 18-Jul-12 Share Buy-Back 661,000 1.4137

Pan-United Corporation Ltd 18-Jul-12 Share Buy-Back 164,000 0.5792

Overseas-Chinese Banking Corp 17-Jul-12 Share Buy-Back 200,000 9.2700

Wee Hur Holdings Ltd 17-Jul-12 Share Buy-Back 625,000 0.2800

SGX Masnet

Singapore

Wired Daily

Page 3

Substantial Shareholders’ Transactions:19 July – 26 July 2012

Stock

Transacted

Date

Substant ial Shareholder/ Director

Buy /Sell

/ Conv

No of

Shares

('000)

Price Per

Share $

%Issued

Cap Before

Change

%Issued

Cap A f ter

Change

C&G Env Protect 26-Jul-12 C&G Hldgs (HK) Ltd Buy 18000 na 76.02 77.87

C&G Env Protect 26-Jul-12 Lam Chik Tsan * Buy 18000 na 76.02 77.87

C&G Env Protect 26-Jul-12 Lin Yan * Buy 18000 0.12 76.02 77.87

C&G Env Protect 25-Jul-12 C&G Hldgs (HK) Ltd Buy 19300 na 74.04 76.02

C&G Env Protect 25-Jul-12 Lam Chik Tsan * Buy 19300 na 74.04 76.02

C&G Env Protect 25-Jul-12 Lin Yan * Buy 19300 na 74.04 76.02

Popular Hldgs 24-Jul-12 Chou Cheng Ngok * Buy 900 0.22 56.67 56.78

Popular Hldgs 24-Jul-12 World Hldgs Buy 900 na 56.67 56.78

C&G Env Protect 23-Jul-12 C&G Hldgs (HK) Ltd Buy 19246 na 72.06 74.04

C&G Env Protect 23-Jul-12 Lam Chik Tsan * Buy 19246 na 72.06 74.04

C&G Env Protect 23-Jul-12 Lin Yan * Buy 19246 0.11 72.06 74.04

M Dev 23-Jul-12 Value Capital Asset Mgt Sell 37791 na 14.88 9.54

Oxley Hldgs 23-J ul-12 Tee Wee Sien Buy 254 na 12.52 12.54

SingTel 23-J ul-12 Chua Sock Koong * Buy 788 3.44 0.05 0.06

Ecowise Hldgs 20-J ul-12 Chu Sai Keaw * Sell 12034 na 7.58 6.28

Ecowise Hldgs 20-J ul-12 Lee Moi Sung * Sell 12034 na 7.58 6.28

Ecowise Hldgs 20-J ul-12 Sun Organization Sdn Bhd Sell 12034 na 7.58 6.28

Oxley Hldgs 20-J ul-12 Tee Wee Sien Buy 200 na 12.51 12.52

Oxley Hldgs 20-J ul-12 Ching Chiat Kwong Buy 952 0.4 14 14.06

HG Metal 20-Jul-12 Tan Kim Seng Buy 300 na 0.3 0.57

Pteris Global 20-J ul-12 Amy Lim * Buy 260 na 11.66 11.71

Pteris Global 20-J ul-12 Winmark Investments Buy 260 na 11.66 11.71

Pteris Global 20-J ul-12 Tan Tien Hin Winston * Buy 260 0.12 11.66 11.71

Hanwell Hldgs 20-J ul-12 John Chen Sell 835 0.28 15.02 0

SingTel 20-J ul-12 Chua Sock Koong * Buy 1571 3.46 0.07 0.08

San Teh 20-Jul-12 Poh Choo Bin Buy 162 na 6.69 6.73

HG Metal 20-Jul-12 Tan Kim Seng Buy 300 na 0.3 0.33

Oxley Hldgs 19-J ul-12 Ching Chiat Kwong Buy 371 0.4 13.97 14

Samko Timber 19-J ul-12 Sampoerna Forestry Buy 219 na 39.78 39.79

*Deemed Interest

Source: Business Times; SA: Share Allotment; ST: Share Transfer, B/R: Bonus/Rights Issue; OE: Option Exercise; PL: Placement Shares

Singapore

Wired Daily

Page 4

Announced Dividends and Capital Issues: 30 Jul 2012 – 23 Aug 2012 (by Ex-Date)

Company Ty pe Part iculars Ex Date

Paid/

Pay able

AIMS AMP CAP INDUSTRIAL REIT DIVIDEND 1APR-30JUNE,DRP SGD 0.025 LESS TAX 30-Jul-12 18-Sep-12

FIRST REAL ESTATE INV TRUST DIVIDEND 010412 - 300612 SGD 0.0033 30-Jul-12 29-Aug-12

FIRST REAL ESTATE INV TRUST DIVIDEND 010412 - 300612 SGD 0.0007 LESS TAX 30-Jul-12 29-Aug-12

FIRST REAL ESTATE INV TRUST DIVIDEND 010412 - 300612 SGD 0.0119 TAX EXEMPT 30-Jul-12 29-Aug-12

FIRST REAL ESTATE INV TRUST DIVIDEND 010412 - 300612 SGD 0.0034 30-Jul-12 29-Aug-12

K-GREEN TRUST DIVIDEND 010112 - 300612 SGD 0.0313 TAX EXEMPT 30-Jul-12 16-Aug-12

MAPLETREE INDUSTRIAL TRUST DIVIDEND 010412 - 300612 SGD 0.0018 30-Jul-12 29-Aug-12

MAPLETREE INDUSTRIAL TRUST DIVIDEND 010412 - 300612 SGD 0.0208 LESS TAX 30-Jul-12 29-Aug-12

MERCATOR LINES (SINGAPORE) LTD DIV IDEND SGD 0.002 ONE-TIER TAX 30-Jul-12 16-Aug-12

SINGAPORE AIRLINES LTD DIV IDEND SGD 0.1 ONE-TIER TAX 30-Jul-12 15-Aug-12

STARHILL GLOBAL REIT DIVIDEND 010412 - 300612 SGD 0.0027 TAX EXEMPT 30-Jul-12 28-Aug-12

STARHILL GLOBAL REIT DIVIDEND 010412 - 300612 SGD 0.0081 LESS TAX 30-Jul-12 28-Aug-12

TECHNICS OIL & GAS LIMITED DIVIDEND SGD 0.05 ONE-TIER TAX 30-Jul-12 24-Aug-12

TECHNICS OIL & GAS LIMITED DIVIDEND SGD 0.03 ONE-TIER TAX 30-Jul-12 24-Aug-12

BUKIT SEMBAWANG ESTATES LTD DIV IDEND SGD 0.14 ONE-TIER TAX 31-Jul-12 15-Aug-12

BUKIT SEMBAWANG ESTATES LTD DIV IDEND SGD 0.04 ONE-TIER TAX 31-Jul-12 15-Aug-12

COUGAR LOGISTICS CORPN LTD DIV IDEND SGD 0.025 ONE-TIER TAX 31-Jul-12 23-Aug-12

FRASERS CENTREPOINT TRUST DIVIDEND 010412 - 300612 SGD 0.026 LESS TAX 31-Jul-12 29-Aug-12

JAPAN FOODS HOLDING LTD. DIVIDEND SGD 0.007 ONE-TIER TAX 31-Jul-12 15-Aug-12

SATS LTD. DIVIDEND SGD 0.15 ONE-TIER TAX 31-Jul-12 15-Aug-12

SATS LTD. DIVIDEND SGD 0.06 ONE-TIER TAX 31-Jul-12 15-Aug-12

SINGAPORE SHIPPING CORP LTD DIV IDEND SGD 0.01 ONE-TIER TAX 31-Jul-12 23-Aug-12

STAMFORD LAND CORPORATION LTD DIV IDEND SGD 0.02 ONE-TIER TAX 31-Jul-12 23-Aug-12

STAMFORD LAND CORPORATION LTD DIV IDEND SGD 0.02 ONE-TIER TAX 31-Jul-12 23-Aug-12

AEM HOLDINGS LTD DIVIDEND SGD 0.0035 ONE-TIER TAX 01-Aug-12 17-Aug-12

BAN LEONG TECHNOLOGIES LIMITED DIVIDEND SGD 0.01 ONE-TIER TAX 01-Aug-12 16-Aug-12

BROTHERS (HOLDINGS) LIMITED DIVIDEND SGD 0.004 ONE-TIER TAX 01-Aug-12 23-Aug-12

FORTUNE REAL ESTATE INV TRUST DIVIDEND 010112 - 300612 HKD 0.1582 TAX EXEMPT 01-Aug-12 29-Aug-12

JASON MARINE GROUP LIMITED DIV IDEND SGD 0.002 ONE-TIER TAX 01-Aug-12 21-Aug-12

KSH HOLDINGS LIMITED BONUS OFFER OF 1 FOR 10 01-Aug-12

KSH HOLDINGS LIMITED DIVIDEND SGD 0.005 ONE-TIER TAX 01-Aug-12 23-Aug-12

MTQ CORPORATION LIMITED DIV IDEND SCRIPDIVSCHEME SGD 0.02 ONE-TIER TAX 01-Aug-12 19-Sep-12

BOUSTEAD SINGAPORE LIMITED DIV IDEND SGD 0.03 ONE-TIER TAX 02-Aug-12 21-Aug-12

TAT HONG HOLDINGS LTD DIVIDEND SGD 0.015 ONE-TIER TAX 02-Aug-12 22-Aug-12

TOTAL ACCESS COMM PUB CO LTD DIV IDEND THB 2.27 LESS TAX 02-Aug-12 22-Aug-12

GLOBAL YELLOW PAGES LIMITED DIV IDEND SGD 0.002 ONE-TIER TAX 03-Aug-12 28-Aug-12

KING WAN CORPORATION LIMITED DIVIDEND SGD 0.01 ONE-TIER TAX 03-Aug-12 17-Aug-12

METRO HOLDINGS LIMITED DIVIDEND SGD 0.02 ONE-TIER TAX 03-Aug-12 17-Aug-12

METRO HOLDINGS LIMITED DIVIDEND SGD 0.04 ONE-TIER TAX 03-Aug-12 17-Aug-12

PAN HONG PROPERTY GROUP LTD DIV IDEND SGD 0.01 03-Aug-12 30-Aug-12

UNITED ENVIROTECH LTD DIV IDEND SGD 0.003 ONE-TIER TAX 03-Aug-12 17-Aug-12

SINGTEL DIV IDEND SGD 0.09 ONE-TIER TAX 06-Aug-12 24-Aug-12

WILLAS-ARRAY ELEC (HLDGS) LTD DIVIDEND HKD 0.06088 06-Aug-12 21-Aug-12

WILLAS-ARRAY ELEC (HLDGS) LTD DIVIDEND HKD 0.01826 06-Aug-12 21-Aug-12

ZAGRO ASIA LIMITED OFFER OFFER OF 32 FOR 100 @ SGD 0.15 06-Aug-12

HIAP SENG ENGINEERING LTD DIV IDEND SGD 0.005 ONE-TIER TAX 07-Aug-12 28-Aug-12

POWERMATIC DATA SYSTEMS LTD DIV IDEND SGD 0.01 ONE-TIER TAX 07-Aug-12 27-Aug-12

GP BATTERIES INT LTD DIV IDEND SGD 0.015 ONE-TIER TAX 08-Aug-12 28-Aug-12

FISCHER TECH LTD DIVIDEND SGD 0.006 ONE-TIER TAX 13-Aug-12 30-Aug-12

RAFF LES MEDICAL GROUP LTD DIV IDEND SGD 0.01 ONE-TIER TAX 13-Aug-12 31-Aug-12

TRANSIT-MIXED CONCRETE LTD DIVIDEND SGD 0.01 ONE-TIER TAX 17-Aug-12 07-Sep-12

CSC HOLDINGS LTD DIVIDEND SGD 0.0009 ONE-TIER TAX 23-Aug-12 07-Sep-12

NY01100F 160901 INTEREST 3.75% 23-Aug-12 03-Sep-12

NY03100A 180901 INTEREST 0.04 23-Aug-12 03-Sep-12

NY05100N 200901 INTEREST 0.0325 23-Aug-12 03-Sep-12

NY07100X 220901 INTEREST 0.03125 23-Aug-12 03-Sep-12

NY09100H 240901 INTEREST 0.03 23-Aug-12 03-Sep-12

NZ07100S 270301 INTEREST 0.035 23-Aug-12 03-Sep-12

NZ10100F 300901 INTEREST 0.02875 23-Aug-12 03-Sep-12

Source: SGX

§        Eyes on ECB policy meeting – STI immediate resistance 3025, key at 3100

§        Technicals of SCI and SMM still good; limited upside for Capitaland, UOB and OCBC, downside risk for Venture Corp

Wired Weekly

Wall Street’s rise on Friday should give the STI an early week lift but our view is little change. Even if the immediate resistance at 3025 gets taken out, the index will soon have to face the important resistance around 3100. Short-term support level stays at 2900-2930. Expectations have built up on the August 2^ndECB policy meeting after ECB President Mario Draghi said the ECB will do whatever it takes to preserve the Euro. If the ECB disappoints, financial markets could react again, this time in the opposite direction.

As of last Friday, only 20% of the stocks in our DBSV portfolio have released their quarterly results. 65% were in line with our analysts’ expectation and 17% came in above and below expectations. The majority are REITS.

Of the companies that will release results over the next 2 weeks, from a technical perspective, we still see upside potential for SembCorp Industries and SembCorp Marine. We see limited upside potential for Capitaland, UOB and OCBC in the short-term and prefer to re-look if there is a pullback. There is downside risk for Venture Corp shares. Meanwhile, Cosco Corp, NOL and Hi-P shares could continue their dull directionless trend.

Singapore Traders Spectrum

Wired Weekly

Page 2

An eventful week ahead

Hopes pinned on ECB action

The roller coaster ride that split last week into two

halves centred on the hope that the ECB will

announce policy measures that can effectively stem

the worsening of the Eurozone crisis. Optimism was

rekindled after ECB President Mario Draghi said the

ECB will do whatever it takes to preserve the Euro.

Draghi’s comments led to a drop in Spanish and

Italian bond yields, the Euro’s rebound and the rally in

equities.

According to Bloomberg, Draghi seeks to win over

ECB policy makers for a multi-pronged approach to

reduce bond yields in countries such as Spain and Italy.

Citing ECB officials, the proposal could

involve Europe’s rescue funds buying government

bonds on the primary market flanked by ECB

purchases on the secondary market. Further ECB rate

cuts and long-term loans to banks are also up for

discussion, one of the officials said. Expectations are

now lifted on the August 2nd ECB meeting to review

monetary policy.

The FOMC policy meeting will occur mid-week. With

clear signs of a weakening in the US employment

market from 2Q, investors will also be watching for

any indication that the FED might be closer to

announcing additional stimulus programs.

Between the ECB and the FED, the pressure is

weighed on the former given financial market’s sharp

reaction last week following Draghi’s comments. If

Draghi does not live up to the expectations that have

built up last week, financial markets could react again,

this time in the opposite direction.

A heavy week for US economic data releases

Policy meetings aside, investors head into a hectic

week for US economic data releases. The week starts

with the S&P/CaseShiller home price index, Chicago

PMI, ISM manufacturing and culminates with July’s

jobs data. Consensus expects a modest improvement

in non-farm payrolls to 100k from 80k in June while

unemployment rate stays at 8.2%. Ahead of this, the

ADP employment change is expected to decline to

120k from June’s 176k.

Table 1: US economic data releases this week

Date Time Event Survey Prior

07/31/2012 S&P/CaseShiller Home Price Ind May -- 135.8

07/31/2012 Chicago Purchasing Manager Jul 52.5 52.9

07/31/2012 Consumer Confidence Jul 61.5 62

08/01/2012 ADP Employment Change Jul 120K 176K

08/01/2012 ISM Manufacturing Jul 50.5 49.7

08/02/2012 FOMC Rate Decision 01-Aug 0.25% 0.25%

08/02/2012 Total Vehicle Sales Jul 14.00M 14.05M

08/02/2012 Domestic Vehicle Sales Jul 11.00M 11.05M

08/02/2012 Challenger Job Cuts YoY Jul -- -9.40%

08/02/2012 Initial Jobless Claims 28-Jul 378K 353K

08/02/2012 Bloomberg Consumer Comfort 29-Jul -- -38.5

08/02/2012 Factory Orders Jun 0.30% 0.70%

02-03 AUG ICSC Chain Store Sales YoY Jul -- 0.20%

08/03/2012 Change in Nonfarm Payrolls Jul 100K 80K

08/03/2012 Change in Private Payrolls Jul 108K 84K

08/03/2012 Change in Manufact. Payrolls Jul 10K 11K

08/03/2012 Unemployment Rate Jul 8.20% 8.20%

08/03/2012 ISM Non-Manf. Composite Jul 52.5 52.1

Source: Bloomberg

Singapore Traders Spectrum

Wired Weekly

Page 3

2Q results season update

The going thus far…

As of last Friday, only 20% of the stocks in our DBSV

portfolio have released their quarterly results. 65%

were in line with our analysts’ expectation and 17%

came in above and below expectations. Most of those

released so far are REITS. The REITS have done well,

only Ascendas India Trust came in below our analyst’s

expectation, due to the 20% strengthening of the

SGD/INR exchange rate and our analyst has

downgraded it to Hold. Both Ascendas REIT and

Frasers Centrepoint Trust reported results above

expectation. A REIT was boosted by an expanded

portfolio. Post intensive phase of its asset

enhancement program of Causeway Point and

contribution from Bedok Point enabled FCT to register

strong growth in revenue.

Other stocks that reported results above expectations

include Keppel Corp and Keppel Land while results for

SIA, SIA Engineering and SATS were all in line. Only

minimal impact of 0.3% and 0.8% cut to our FY12F

and FY13F earnings, respectively. However, our

analysts have raised target prices for most of the

counters that have released their quarterly results so

far.

Table 2: Results reported above and below expectation

Source: DBS Research

Over the next 2 weeks…

Table 3 lists some of the companies that will release

results over the next 2 weeks, our fundamental

recommendation and comments as well as technical

views.

We classify the stocks into 4 different groups, based

on their technical behaviour:

1. Rising trend still offers upside, ride the trend –

SembCorp Industries and SembCorp Marine.

Both stocks could gain a further 9% (SCI to

$5.77, SMM to $5.25) before encountering

resistance.

2. Trend is still up but gains limited, look to take

profit into strength – Capitaland, UOB and OCBC.

Currently, there is no sign that the recent rising

trend has reversed down on these 3 stocks.

However, we note Capitaland approaching

$3.10-3.14 resistance (4.7% upside). OCBC

touched and retreated from $9.52 resistance last

week. UOB reached our fundamental $19.50 TP

and twice, the stock was unable to rise above

$19.90.

3. Downside risk – Venture Corp shares have

weakened below the May low of $7.62. Volume

in the past 2 weeks has also edged up.

Resistance $7.70. Downside to next support @

$7.15 first. Below that, the next support is @

$6.8.

4. Dull sideways or downward drift – Cosco Corp,

NOL and Hi-P fallinto this category. For many

months, NOL and Cosco Corp shares have

suffered under their weak industry backdrop

such that now, disinterest has set in. While prices

may have fallen substantially (e.g. NOL declined

from $2.38 to $1.09 since Jan11, Cosco Corp

declined from $2.35 to $0.95 since Apr11),

investors’ apathetic attitude to these stocks could

continue until industry or company dynamics

improve.

FYE

Company FY12F FY13F Current Prev % chg Current Prev Comment

Above

Keppel Corporation Dec 0 (5) 13.20 - - Buy - Strong Property contributions

Ascendas REITS Mar 2 3 2.23 2 .15 3.7 Hold - positive

Frasers Centrepoint

Trust

Sep 6 4 1.93 1 .76 9.8 Buy - enhancement program of Causeway Point and

contribution from Bedok Point

Keppel Land Dec 16 16 3.75 3 .67 2.1 Buy - Tracking project completions and recognition

Below

Sheng Siong Group Dec (8) (7) 0.47 - - Hold - Lower margins, higher operating expenses

Ascendas India Trust Mar (16) (16) 0.84 0 .91 (7.7) Hold Buy exchange rate

OKP Holdings Dec (26) (3) 0.54 0 .65 (16.7) Hold - Slow earnings execution

Raffles Medical Dec (2) (1) 2.59 2 .48 4.4 Hold - Impacted by higher costs

% Revised Target Price (S$) Rcmd

Cosco Corp 1-Aug 2Q12 0.95 0.88 -7.1 FV Shipbuilding industry faces

multiple headwinds from down

cycle, weak freight rates &

stretched balance sheets. Order

flow is expected to be slow while

margin contraction persists

Near-term resistance is at 0.97. The

current trend is one of 'downward drift'

with next support @ 0.915. If earnings

disappoint, this level could fail that

should see the stock testing and even

declining below the May closing low of

$0.885.

Capitaland 1-Aug 2Q12 2.98 3.39 13.8 Buy Attractive valuations at 43%

discount to asset backing of

$5.21. Divestment strategy in

recent years enables it to reap

gains when these developments

are completed over next few

years.

23% gain late May outperformed STI's

11% gain. While the rebound trend still

appears intact, further upside looks cap

around $3.10-3.14. Take profit into

strength towards $3.10, look to buy

back near $2.80.

SMM 2-Aug 2Q12 4.82 5.85 21.4 Buy Watch for possible margin

pressure. Otherwise, the stock is a

key beneficiary to ride on the

tightening rig market.

Upside potential to $5.25 before

correcting. Near-term support @ $4.72

& $4.40.

OCBC 2-Aug 2Q12 9.41 10.50 11.6 Buy Lower q-o-q from dip in trading &

investment income, NIM flat at

best. Prefer OCBC over UOB.

Rising trend still intact but rise lifted

stock to test a major correction trend

resistance @ $9.52. Pullback to $9

support possible.

Hi-P 2-Aug 2Q12 0.73 0.86 17.8 Hold Company recently warned it could

only achieve breakeven at

operating level in 2Q due to lower

orders

Near-term gap resistance @ $0.76-

0.785, support @ $0.66, $0.60.

SCI 3-Aug 2Q12 5.30 6.00 13.2 Buy Utilities division should post

decent growth with next year's

performance even outpacing

regional utilities peers.

Rising trend still intact despite current

pullback from $5.50. Upside bias to

$5.77-6. Ride the trend till $5.77.

Support @ $5.13-5.20.

UOB 7-Aug 2Q12 19.50 19.50 0.0 Hold Lower q-o-q from dip in trading &

investment income, NIM flat at

best.

Stock has reached our FA TP. twice; the

stock was unable to break $19.90. Even

if it can, the rise looks like the tail-end

of the rally that started early June. Take

profit into strength if you haven't.

Support at $19 & $18.50.

NOL 8-Aug 2Q12 1.10 1.00 -8.7 FV Freight rate hikes since March

ensure better profitability

sequentially but this is likely shortlived.

Sector sentiment still weak

from global economic

uncertainties, high fuel price and

renewed market share war.

In either a flat or gradual downward

drift (dead money trend). Support @ $1.

Venture

Corp

8-Aug 2Q12 7.52 8.15 8.3 Hold Q2 and FY growth tempered by

overall weak macro demand.

Extended macro weakness is likely

to cap earnings growth. However,

the stock offers an attractive yield.

Resistance $7.70. Downside to next

support @ $7.15 first. Below that, the

next support is @ $6.80.