STOCKS NEWS SINGAPORE-Index extends losses at midday

Last Updated: Thu, Sep 20, 2012 13:41 hrs

Singapore's main index extended its losses at midday, along with other Asian bourses, after manufacturing data from China showed little signs of a quick turnaround.

Commodity trader Olam International was one of the biggest losers on the Straits Times Index, falling as much as 2.4 percent to an intraday low of S$2.02, while property developer City Developments Ltd lost 1.9 percent to S$11.47.

The STI fell 0.5 percent to 3,060.17 points, while the MSCI's broadest index of Asia-Pacific shares outside Japan lost 0.9 percent.

Manufacturing activity in China stabilised in September after hitting a nine-month low in August, even though output dipped to its lowest level in 10 months, a survey of factory managers showed on Thursday.

Aussino shares rose 5.9 percent to S$0.143, after Mynamar tycoon Zaw Zaw told Reuters in an interview that a planned S$70 million reverse takeover of the bed-linen maker was moving forward.

Zaw Zaw said he expects Singapore regulators to complete a review of his books in three to six months, clearing the way for Aussino's transformation into a Myanmar-backed company harnessed to Zaw Zaw's energy division.

1155 (0355 GMT)

(Reporting by Charmian Kok in Singapore;


11:39 STOCKS NEWS SINGAPORE-DBS downgrades China Fishery to 'hold'

DBS Vickers downgraded China Fishery Group Ltd to 'hold' from 'buy' and cut its target price to S$0.72 from S$1.15, citing greater regulatory risks for its North Pacific operations.

By 0326 GMT, shares of China Fishery were down 2.6 percent at S$0.75, and have fallen 17.6 percent so far this year, compared to the FTSE ST Consumer Goods Index's 16.4 percent decline.

A Russian regulator has expressed concerns over foreign companies establishing control over Russian fishery companies and intends to implement measures to address the issue, which could have an impact on supply of fishes to China Fishery, said DBS.

The brokerage estimated that a 10 percent drop in the company's fish volumes or sales could have a 9.5 percent impact on its 2013 earnings.

"We believe regulatory concerns could cap share price performance, at least in the near term," DBS said.

1129 (0329 GMT)

(Reporting by Charmian Kok in Singapore;


DBS Vickers raised its target price for Genting Singapore PLC to S$1.45 from S$1.17 and kept its 'hold' rating after the casino operator said it was selling a 4.8 percent stake in Australia's Echo Entertainment Group Ltd.

By 0253 GMT, Genting shares were down 0.4 percent at S$1.405 and have dropped 7 percent so far this year, compared with the Straits Times Index's 15.7 percent rise.

The development is positive as Genting's stock was sold down on concerns about Genting getting entangled in an expensive takeover tussle against Crown Ltd, which owns 10 percent of Echo, DBS said.

However, DBS said it expects softness in Singapore's gaming business to continue, given the cautious lending to VIPs and slower growth in tourist arrivals.

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1058 (0258 GMT)

(Reporting by Charmian Kok in Singapore;


10:21 STOCKS NEWS SINGAPORE-CIMB ups target price for Overseas Union Enterprise

CIMB Research raised its target price for property developer Overseas Union Enterprise Ltd to S$3.38 from S$2.98 and kept its 'outperform' rating, citing expected gains from the potential sale of its hotel and shopping mall assets.

By 0206 GMT, OUE shares were down 0.7 percent at S$2.93, having surged 39.5 percent so far this year, compared with the FTSE ST Mid Cap Index's 25 percent rise.

OUE said on Wednesday it has offered a potential buyer exclusivity to do due diligence Marina Orchard hotel and Marina Orchard shopping mall in Singapore, which CIMB said could fetch higher-than-expected prices and special dividends from the disposal gains.

"Divestment of Mandarin Orchard at this stage of the cycle when room rates and occupancy are at historical highs will allow OUE to extract near maximum value from this asset," said CIMB in a report,

Sale of OUE's Mandarin Orchard hotel, which is valued at S$1.18 billion, would lead to a divestment gain of about S$1.06 billion and an increase in OUE's book value by 27 percent.

1009 (0209 GMT)

(Reporting by Charmian Kok in Singapore;


9:55 STOCKS NEWS SINGAPORE-OCBC downgrades Tiger Airways to 'hold'

OCBC Investment Research downgraded budget carrier Tiger Airways Holdings Ltd to 'hold' from 'buy' and cut its target price to S$0.81 from S$0.83, citing a challenging outlook in Australia.

At 0132 GMT, Tiger shares were down 0.7 percent at S$0.755. They have gained 18.9 percent this year, compared with the FTSE ST Consumer Services Index's 4.1 percent rise.

As Tiger ramps up its Australian operations, it faces an influx of capacity from competitors such as Qantas and Virgin, which will impact the prices Tiger can command and its profitability, OCBC said.

Although the brokerage expects Tiger to turn profitable by the third quarter of 2013, its estimate for earnings before interest, taxes, depreciation and amortisation fell to S$35.8 million from S$48.9 million for the year ending March 2013.

0934 (0134 GMT)

(Reporting by Charmian Kok in Singapore;

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