BNP Paribas analyst Brenda Lee says the recent rally has come on the back of potential positive news flow from the Oriental University City (OUC) development after RLS said it had identified a property developer to co-develop the OUC land to monetise its $394 million investment.
Credit Suisse says relatively bullish view on global economy augurs well for Singapore, which highly dependant on global economic growth. Expects 2010 global GDP +4.7%, 2011E +4.4%.
Following slowdown in 2H10, expects expansion pace to pick up again early 2011. Key 2011 Singapore themes include more aggressive capital management, another strong year for tourism.
Singapore rig builders rise, outperforming buoyant broad market, regaining most ground lost Tuesday in sharp market selloff as analysts remain bullish on order outlook for 2011.
SembCorp Marine (S51.SG) +1.8% at $5.00, Keppel (BN4.SG) +1.3% at $10.70, SembCorp Industries (U96.SG) +1.5% at $4.91, while STI +0.7%.
Morgan Stanley says “order pipelines for the SG yards have grown again since we last updated them in October,” with SMM, Keppel securing new orders with embedded options for extra future work.
Now expects $9.15 billion 2011 total order intake for Keppel (vs $4.20 billion previously), $11.01 billion for SMM (vs $4.01 billion). Ups SMM’s target to $5.15 vs $4.15, keeps Equalweight rating, ups Keppel’s target to $12.25 vs $11.00, keeps Overweight rating, ups SembCorp Industries’ target to $6.20 from $5.15, keeps Overweight rating.
Prefers laggards Sembcorp Industries, Keppel; says SMM order pipeline very strong, “but multiple is full.”
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Dell posted a third quarter that beat Wall Street estimates and offered assurances that structuring changes regarding its mobile devices represent “progress” it’s pleased about. – PC maker Dell had a better-than-expected fiscal third
quarter, announcing on Nov. 18 profits of 42 cents a share, or $822 million,
and revenue of $15.4 million. The PC maker said the year-to-date revenue has
grown 21 percent to $45.8 billion.
quot;Our strong results demonstrate that we are
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Earnings also higher than CNY14.9 million profit in 2Q10. Cash position strong at CNY716.4 million ($138.4 million). In bid to drive growth further, Fuxing in talks to acquire 3 privately-held companies in China.
ST Engineering, whose biggest business is the maintenance of military and civilian planes, earned $130.2 million in three months ended September, up from $120.3 million in the same period a year ago.
“The market for premium and high-specification jack-up rigs has improved in recent months with strong enquiries for such rigs,” the firm said in a statement on Thursday.
SGX and rivals such as Hong Kong Exchanges and Clearing have seen their share prices and trading volumes surge in recent weeks as global investors allocate more funds to Asia.
Singapore Exchange (SGXL.SI), Asia’s second-largest listed bourse, reported a worse-than-expected 21% fall in quarterly net profit but said it was positive about prospects.
“If the current market conditions prevail, SGX should benefit from a potential increase in capital market activities, both in higher trading activity and more companies seeking to raise capital on our equity and debt listing platforms,” SGX CEO Magnus Bocker said in a statement on Monday.
SingTel (Z74.SG) off 1.0% at 2-week low of $3.07, likely to end down for 4th straight day, continues to underperform most other Singapore blue chips; stock +1.9% in September vs STI +5.0% last month, says Dow Jones.
Being low beta, stock tends to perform less well than higher-risk names when market bullish. But even when market less upbeat, interest in telco generally still subdued given increasingly fierce competition in Singapore, overseas markets, even though headwinds already well flagged by company, analysts.
Hongkong Land (H78.SG) +3.3% at US$6.54, extending last week’s 5.3% gain, as expectations of property group continuing to benefit from Hong Kong’s office market rebound still running high, says Dow Jones.
“Hongkong Land provides the greatest leverage to the core Hong Kong Central office market, which industry contacts suggest has the most attractive fundamentals with little vacancy, limited new supply and strong demand,” says Macquarie; “we are confident the tight supply in Hong Kong central office and recovering demand will drive rents higher.”
Orderbook quotes suggest stock may head up to US$6.80.
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Singapore office rents expected to continue rising on firmer demand, while concerns over oversupply should abate as new space gets taken up and older properties get converted into residential developments, says Credit Suisse, according to Dow Jones.
Outlook for Singapore office landlords bullish as office demand, rental recovery have outstripped expectations, while potential for higher capital values has improved with low interest rates, ample liquidity underpinning prospect of acquisitions by REITs, says Deutsche Bank.
Deutsche Bank notes Singapore office rents inexpensive vs those in other financial centers, still more than 50% below 2007 levels. Says after falling close to 60% over past six quarters, rents bottomed out in 1Q10, now on firm uptrend, driven by financial institutions’ expansion.
Neptune Orient Lines (N03.SG) unable to build on initial gains, flat at $2.03 in light trade vs $2.05 earlier, as improvement in latest operating data not enough to convince investors, says Dow Jones.
“Softening freight rates and sequentially declining volumes in the off-peak months will weigh on stock performance,” says Morgan Stanley; but keeps Overweight call, $2.35 target on view NOL well positioned to ride out volatile demand conditions given its healthy balance sheet.
CIMB, which has Outperform call with $2.25 target, expects freight rates to stabilise in 2011 before resuming uptrend on back of global trade growth, but tips less robust outlook in near term due to winding down of peak season; “while NOL is heading for a bumper 3Q profit, the 4Q outlook is definitely less bullish.”
Orderbook quotes tip $2.00-$2.10 trading range for now. For 4-week period ended August 20, average revenue per box +45% on year, while volume +13%.
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Cosco (F83.SG) is up 1.7% at $1.82, extending recent gains, as investors continue to bet shipbuilder well placed to land more contracts, says Dow Jones.
Indonesia, Thailand and Russia funds topped the league tables in 1Q2010. Looking ahead, investors could consider defensive US equities for capital preservation while maintaining exposure to emerging markets for growth, say experts.
Also in Personal Wealth this week
Lee Westwood was in bullish mood after posting a 6-under 66 at the Earth Course to put himself in pole position to win both the Dubai World Championship and the Race to Dubai. The Englishman leads the season-ending tournament by five shots going into today’s final round, with compatriot Ross
Google Voice rolls out a mobile and wireless application that lets users make calls from devices such as the BlackBerry Storm and the T-Mobile G1 phone based on Android. Experts say the move may be more than a convenience, but a way for Google to insert itself between consumers and wireless carriers such as Verizon and AT T. GigaOm’s Om Malik and IDC’s Rebecca Swensen weigh in.
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Google Voice, which lets users route calls to their home,
office and mobile phones via a single phone number, is in the
process of rolling out to select invitees in the United States. But the Google Voice
programmers aren’t resting on their laurels during the roll out.
Google Voice…
