Hyflux (600.SG) headed higher this morning as news of contract win provides boost. Its shares gained as high as 1.1% to hit $3.57 this morning with resistance eyed at current 2010 highest close of $3.64.
The water treatment company announces $43.8 million engineering, procurement and construction (EPC) contract for first stage of seawater desalination plant in Singapore. Work scheduled to start immediately and is expected to be completed in approximately 20 months.
Dairy Farm (D01.SG) heads higher as investors digest recent solid FY09 results; shares gain 5.3% at US$6.54 ($9.15) with resistance at 2009’s highest close of US$6.90.
Food retailer’s underlying net profit gained 14% on-year at US$364 million, as company says core business of “selling goods that meet the everyday needs of Asian customers” again proved resilient amid challenging economic conditions, with prospects for coming year remaining “positive”.
Fortune REIT (F25U.SG) succumbs to mild profit-taking after rising to six-month high of HK$3.45 (62.2 cents) in early trade.
The stock is off 0.3% at HK$3.41 but still up 13.3% since last week’s announcement of proposed dual listing in Hong Kong by way of introduction.
Recent uptrend likely to hold on expectation stock will command higher valuation once listed in HK, its main market for business. Fortune will hold EGM March 26 to seek investors’ approval.
Shares of Singapore developers likely to continue underperforming S-REITs for some time given recent government measures to curb property speculation with new tax rules unveiled in Singapore budget favourable to property trusts, says JPMorgan.
SembMarine (S51.SG) looks better placed to win Petrobras drillship orders than rival rig builder Keppel Corp. (BN4.SG) following SembMarine’s announcement it will build new yard in Brazil, says JPMorgan.
“We believe SembMarine is better positioned than Keppel for the phase 1 contract of seven drillships (all awarded to a single yard),” it says.
JPMorgan has raised Singapore Telecom (Z74.SG) target price to $3.40 from $3.05 on back of earnings upgrades, maintains ‘neutral’ rating, says Dow Jones Market Talk.
It has also lifted FY10, FY11 net profit forecasts by 9.7%, 12.8% respectively, to factor in higher assumed associate contributions after incorporating new estimates for Indonesian associate Telkomsel, Philippines associate Globe, Indian associate Bharti.
Shares of Wilmar International rose after JPMorgan Chase & Co. upgraded the stock to “overweight” from “neutral,” saying the company is well- positioned to expand operations in China and India.
UOB (U11.SG) gained 1.3% to $20.16 at 10:12 a.m., the best performer among Singapore banks, as its insurance distribution tie-up with Prudential fuels hopes of higher fee income.
“Instead of succumbing to competitive pressures from larger life insurers, the group’s alliance with Prudential in Asia offers new growth opportunities for its bancassurance business,” says Kim Eng Securities, which has “buy” call with a $23 target.
JPMorgan has raised ST Engineering (S63.SG) target price to $4 from $3.5 after increasing FY10-11 earnings forecasts by 3.2%, 6.0% respectively to factor in recent new contracts, including US$90 million ($125 million) job announced last week to provide airframe maintenance services for fleet of Airbus A320s, Boeing 767s over three years, with option to extend for another two.
As I have repeatedly written (see this and this), the new derivatives legislation is so bad that it probably increases – rather than decreases – the risk to the financial system.William Greider has a great piece in The Nation pointing out: Who drafted…
JPMorgan’s Asia Pacific Equity Research team has called an “overweight” on CapitaLand (CATL.SI, CAPL SP) and upgraded its Dec 10 price target to $5 from $4.30, based on its RNAV estimate of $4.96/share.
JPMorgan Chase has become the second major US bank to report a big rise in profits for the April to June period.
The firm’s net profit for the second quarter totalled $2.72bn (£1.6bn), an increase of 36% from $2bn last year.
Revenues at the company rose 41% to $27.7bn. Its results come two days after rival Goldman Sachs reported a $3.44bn second quarter profit.
Analyst Chris Hossain of ODL Securities said JP Morgan’s results reiterated growing confidence among the banks.
The company’s results were better than market expectations. </p
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