China Animal Healthcare (EP4.SG) is +2.5% at $0.41, extending its 12.7% gain so far this week, as interest increases ahead of its HK dual-listing debut targeted for Dec 21.
After stock rose substantially in recent sessions, NRA Capital Chairman Kevin Scully says now may be an ideal time to take profits, especially given the risk of a lukewarm HK reception, judging from the poor performance of other S-chips dual-listed in HK, such as Midas Holdings (5EN.SG).
NRA Capital in a Nov 8 research report says: “Foreland Fabrictech Holdings Ltd (“Forelandâ€), is a vertically integrated manufacturer of functional and normal fabrics. Enquiries by customers have been strong since the beginning of 2010. Now, the company is busy fulfilling customer orders as textile retailers are piling up stocks ahead of Chinese New Year.
Singapore shares mostly higher, with gainers outnumbering decliners by about 1.5 to 1. But gains paltry given slight hesitance by players to buy more shares after recent run-up, according to Dow Jones.
STI +0.1% at 3,078.55, expected to meet resistance at 3,100. “It’s always dicey to try and chase market momentum and we could be looking at a short-term correction or consolidation from recent gains. But this provides the buying opportunity,” says NRA Capital chairman Kevin Scully.
Small caps most active in market, led by Transcu Group (E15.SG) +3.9% at $0.135, China Hongxing Sports (BR9.SG) +2.3% at $0.22, Memstar Technology (5MS.SG) flat at $0.085, DMX Technologies (5CH.SG) +3.5% at $0.44, Beyonics (B19.SG) +2.0% at $0.26.
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Singapore stocks open lower on Wall Street’s retreat driven by renewed concerns over health of European banks, according to Dow Jones.
STI off 0.8% at 3,013.17 at 9:29 a.m., with support at 3,000. Market breadth marginally negative.
“Investors have quickly forgotten the disbelief and skepticism when the US bank stress tests results were released in May 2009,” says NRA Capital Chairman Kevin Scully, noting latest concerns over outcome of stress tests on European banks have been over-rated.
Singapore’s moves to rein in home prices not unexpected as past measures haven’t been successful, says NRA Capital chairman Kevin Scully, says Dow Jones.
Dow Jones expects government intervention to have positive impact on developers in strong cash position and seeking to replenish depleted land banks: “if these measures work and lead to a softening of prices, cash-rich property companies will have an opportunity to rebuild lower-cost land, which will put them in a good stead for the medium term.”
Genting Singapore (G13.SG) off 3.1% at $1.54, but holding near last week’s 52-week high of $1.68, says Dow Jones.
While stock consistently among most active in Singapore, volume has come off substantially since reaching 15-month high of 682.8 million shares on Aug 13, day after gaming group announced return to profitability in 2Q10 with $396.5 million earnings.
Singapore blue chips slightly lower following DJIA’s fall, but shares in broader market faring tad better with gainers outnumbering decliners by small margin, says Dow Jones.
STI off 0.4% at 2,925.63 at 9:33 a.m., expected to hold above 2,900. With P/E valuations of most stock markets worldwide, including Singapore, at low teens, coupled with low interest rates, NRA Capital chairman Kevin Scully says another liquidity-driven rally for rest of 2010 can’t be ruled out: “The catalyst for this re-rating must be some stability in the pace of the economic recovery which I believe the monthly economic data will show, i.e. positive GDP growth for the US and Europe but at a more modest pace.”
CCM Group (5QZ.SG) holding above $0.20 IPO price on SGX debut, last at $0.25 (similar to opening price) although volume modest for new listing, suggesting tame interest, according to Dow Jones.
“Given the current cautious market sentiment, we think investors are more likely to wait for the next set of earnings announcement before re-rating the issue,” says NRA Capital. But notes fundamentals positive as construction demand in Singapore still strong, led by public-sector projects.
The worst may not be over for Singapore banks despite their strong 1Q10 earnings, says NRA Capital analyst Lynn Look, according to Dow Jones.
Look notes 1Q results driven by strong recovery in stock markets, which boosted non-interest income and by lower provisions but says non-performing loans may not have peaked. “NPL rates of less than 3% can’t be the worst to expect from a crisis that has sent the whole world into a tailspin,” she says.
Singapore shares remain weak as investors find no relief from euro zone’s problems, with Germany’s ban on naked short selling aggravating concerns over debt situation, according to Dow Jones.
The STI is down 1.4% at 2,803.37 midday vs low of 2,793.57 at one point, suggesting current month trough of 2,775 may be tested if selling pressure persists in coming days. Market breadth at 7 decliners for each gainer.
Earnings and share prices of Singapore banks may have recovered since outbreak of US subprime crisis, but worst may not be over for lenders, given possibility of double-dip recession in US and potential fallout from withdrawal of government stimulus programmes, says NRA Capital, according to Dow Jones Newswires.
NRA Capital in a Jan 12 research report says: “4Q09 net profit of $1.8 million was in line with 29% ahead of street consensus estimate. Sales inched up 4.4% y-o-y to $23.9 million as all business segments turned in positive growth. Net gearing improved y-o-y from 7% to 4% at end-December 2009.
NRA Capital in a Dec 2 research report says: “2H09 net profit of $1.6 million (+19% y-o-y) was slightly better-than our forecast due to better associates contribution. 2H09 sales were flat y-o-y at $26.4 million but jumped 238% h-o-h from $7.8 million. Gross margins decreased by 1.8% pts y-o-y to 18.6%.
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