June 5, 2012 / 2:06 AM / 6 years ago

STOCKS NEWS SINGAPORE-Maybank cuts Keppel Land target price

Maybank Kim Eng lowered its target price on shares of Keppel Land Ltd to S$3.65 from S$4.04 as it pegs the property developer’s valuations at a higher discount to its restated net asset value.

The broker, which kept its ‘buy’ rating on the stock, now expects Keppel Land to sell units at its high-end residential project Marina Bay Suites at a lower average price of S$2,400 per square foot (psf), compared to its prior assumption of S$2,750 psf.

Keppel Land is expected to defer the divestment of its Marina Bay Financial Centre Tower 3, until it receives committed leasing of at least 90 percent, up from 67 percent now, Maybank said.

The broker noted Keppel Land has a strong cash position of about S$1.6 billion, but has not been actively bidding for land in Singapore and China.

“As uncertainties continue to plague global markets, Keppel Land is in a position of strength to navigate through the medium-term volatilities and possibly pick up attractive assets for future growth, which could be a positive catalyst,” said Maybank.

Shares in Keppel Land were up 1.1 percent at S$2.85, and have jumped 28 percent since the start of the year, more than the Straits Times Index’s 3 percent rise.

0140 (0140 GMT)

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


9:17 STOCKS NEWS SINGAPORE-OCBC downgrades public transport sector

OCBC Investment Research has downgraded Singapore’s public transport service sector to neutral from overweight, saying operational challenges in the city-state are likely to put pressure on margins.

The broker has hold ratings for both public transport operators SMRT Corp Ltd and ComfortDelGro Corp and target prices of S$1.71 and S$1.53 respectively.

Although fuel prices have fallen recently, this will be offset by greater fuel consumption due to greater frequency of bus and train services to satisfy growing demand, said OCBC.

It said the lack of any fare increments this year is also likely to hurt margins for SMRT and ComfortDelGro and more staff will be needed to meet service standards for higher usage.

Shares of SMRT were unchanged at S$1.62 and have fallen 8.5 percent since the start of the year, underperforming the Straits Times Index’s 3 percent gain. ComfortDelGro was up 0.3 percent at S$1.455 and has risen 2.8 percent so far this year.

0911 (0111 GMT)

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


8:45 STOCKS NEWS SINGAPORE-Index futures up 0.6 pct

Singapore index futures were up 0.6 percent on Tuesday, indicating the benchmark Straits Times Index may open higher.

Asian shares and commodities staged a mild recovery on Tuesday, with stocks holding at around 2012 lows, as investors looked to European policymakers and the wider G7 to take decisive action to address the worsening euro zone crisis.

0843 (0043 GMT)

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

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