STOCKS NEWS SINGAPORE-DBS downgrades MIIF to 'hold' from 'buy'

DBS Vickers downgraded Macquarie International Infrastructure Fund Ltd (MIIF) to 'hold' from 'buy' and cut its target price to S$0.58 from S$0.62, citing unsustainable dividends beyond 2013.

By 0349 GMT, MIFF shares rose 1.9 percent to S$0.55, and have gained 3.8 percent since the start of the year.

MIIF declared dividends of 2.75 Singapore cents for the first half and guided for a similar payout in the second half, which DBS said was unsustainable as income from its asset Hua Nan Expressway (HNE) is set to reduce substantially.

DBS also revised down its valuation for HNE to account for potential loss of revenue from a recently proposed regulation which will allow free use of toll roads during major public holidays in China, thus reducing its earnings.

As a result, DBS expects HNE's earnings to decline by 20 percent this year and 30 percent in 2013.

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1156 (0356 GMT)

(Reporting by Charmian Kok in Singapore; charmian.kok@thomsonreuters.com)

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10:12 STOCKS NEWS SINGAPORE-Maybank raises Ezion target price

Maybank Kim Eng raised its target price for offshore services firm Ezion Holdings to S$1.42 from S$1.38 and kept its 'buy' rating, on expectations of a stronger performance in the second half due to deployment of more rigs and contribution from a LNG project.

By 0203 GMT, Ezion shares were up 2.5 percent, and have jumped 53 percent so far this year, compared to the FT ST Oil & Gas Index's 26.3 percent gain.

Maybank expects Ezion's earnings to grow by a compounded rate of 36 percent a year over the next three years, boosted by strong project pipelines.

Ezion also has the financial resources to fund its current projects, as it established a S$500 million debt issuance programme earlier this year, Maybank said.

Although this would increase Ezion's net gearing up to nearly 100 percent by the end of the year, Maybank expects the company to see positive free cashflow by 2014.

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1006 (0206 GMT)

(Reporting by Charmian Kok in Singapore; charmian.kok@thomsonreuters.com)