STOCKS NEWS SINGAPORE-Shares at 4-month low, GLP drags

Last Updated: Thu, Nov 15, 2012 05:20 hrs

Singapore's main index dropped to a four-month low, weighed by a fall in Global Logistic Properties Ltd shares and on concerns of the possibility of drawn-out negotiations to resolve the U.S. 'fiscal cliff'.

By 0504 GMT, the Straits Times Index fell 0.8 percent to 2953.39 points, while the MSCI's broadest index of Asia Pacific shares outside Japan fell 0.9 percent.

GLP shares fell 4 percent to S$2.61 after it said it plans to raise S$414.4 million ($339 million) by issuing new shares in a private placement to fund acquisition of Brazilian assets.

CIMB Research raised its target price for GLP to S$2.69 from S$2.55 and kept its 'neutral' rating to reflect the warehouse operator's foray into Brazil.

GLP said on Wednesday it will form joint ventures with the Canada Pension Plan Investment Board (CPPIB), China Investment Corp and Government of Singapore Investment Corp to buy $1.4 billion of assets in Brazil as it looks to sustain its strong pace of growth.

CIMB increased its core earnings per share estimates for GLP for 2013-2015 by 8-12 percent.

1306 (0506 GMT) (Reporting by Charmian Kok in Singapore; Editing by Sunil Nair;


10:48 STOCKS NEWS SINGAPORE-Maybank cuts CityDev target price

Maybank Kim Eng cut its target price for property developer City Developments Ltd to S$9.70 from S$10.30 and kept its 'sell' rating, citing growing headwinds in its hotel operations and increased exposure to the mass market segment.

By 0242 GMT, CityDev shares fell 0.7 percent to S$11.25. The shares have gained 26 percent since the start of the year, outperforming the Straits Times Index's 11 percent rise.

CityDev said its third-quarter net profit rose 1.8 percent to S$134.5 million from a year earlier. Excluding divestment gains, its underlying profit would have fallen 38 percent from a year ago, Maybank said, due mainly to the timing of profit recognition.

Millennium & Copthorne, which is 55 percent owned by CityDev, saw revenue per available rooms at its Singapore hotels fall in the third quarter, due to weak economic conditions, Maybank said.

The brokerage also said it expects residential sales in the mass market segment to be less robust next year with marginal buyers staying out of the market on the back of the latest government measures to cap home loans at 30 years.

1041 (0241 GMT) (Reporting by Charmian Kok in Singapore; Editing by Jijo Jacob;


10:15 STOCKS NEWS SINGAPORE-STX OSV falls to 5-month low, earnings disappoint

Shares of offshore vessel builder STX OSV Holdings Ltd dropped as much as 8.3 percent to a five-month low after it posted weaker-than-expected quarterly earnings.

By 0203 GMT, STX shares were down 7.3 percent at S$1.39, but have risen 19.8 percent since the start of the year, compared to the FTSE ST Oil & Gas Index's 14.4 percent rise.

STX said its third-quarter net profit dropped 39 percent to 228 million Norwegian crowns ($39.6 million), hurt by a fall in sales.

OCBC Investment Research cut its target price for STX to S$1.69 from S$2.00 but kept its 'buy' rating. It said STX's poor performance was mainly due to slower pace of revenue recognition during the end of the shipbuilding phase.

The brokerage noted that STX's order intake slowed down with only two new vessel contracts secured in the third quarter, insufficient to replenish its orderbook.

"The group reported generally stable operations, but the slowdown in new orders may lead to under-utilization in the Norwegian yards in 2013," OCBC said.

1006 (0206 GMT) (Reporting by Charmian Kok in Singapore; Editing by Anand Basu;


10:05 STOCKS NEWS SINGAPORE-Olam shares jump 4.8 pct after Q1 results

Shares of commodity trader Olam International Ltd jumped as much as 4.8 percent, recovering from Wednesday's losses, after it reported a 26 percent rise in its quarterly profit.

By 0133 GMT, Olam shares were up 4 percent at S$1.83, after falling 4.4 percent on Wednesday. Olam has lost 14 percent since the start of the year, compared to the Straits Times Index's 11.6 percent rise.

Olam shares had fallen 7.9 percent since its competitor Noble reported disappointing third-quarter earnings earlier this month, fuelling concerns about a tough business environment for commodity traders.

"Olam's results were pretty good, lifting concerns about the company after Noble posted poor results," said a local trader.

Olam said its first-quarter net profit rose 26 percent to S$43.2 million from a year earlier, which Citigroup said was boosted by strong volume growth in its food staples or packaged food segment. The brokerage tipped 2013 to be a year of recovery for the company.

However, CIMB Research downgraded Olam to 'neutral' from 'outperform' and cut its target price to S$2.08 from S$2.61, citing potentially weak margins, negative cash flows and higher gearing.

CIMB cut its 2013-2015 earnings per share estimates for Olam to reflect margin pressure from new acquisitions.

The brokerage was surprised at Olam's aggressive S$1.7 billion capital expenditure budget for 2013 and the first half of 2014, which it said would result in negative free cash flow over the next two years.

0933 (0133 GMT)

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