June 5, 2012 / 4:36 AM / 6 years ago

STOCKS NEWS SINGAPORE-DBS ups Starhill Global target price

DBS Vickers has raised its target price for Starhill Global Real Estate Investment Trust to S$0.75 from S$0.71 and has retained its ‘buy’ rating, citing higher rents from its Singapore and Malaysian shopping malls.

Starhill Global units were 0.8 percent higher at S$0.62, and have risen 11 percent since the start of the year, compared to the FT ST Real Estate Investment Trust’s 10 percent gain.

After upgrading works are completed on Starhill’s Singapore mall Wisma Atria in the third quarter, DBS expects about 20 percent of the property’s net leaseable area to see a 50 percent rise in rents.

Starhill’s master lease with Malaysia’s Katagreen Development Sdn Bhd, which makes up 17 percent of its gross revenue, is expected to see a rent increase of 7 percent next year, which should help lift the REIT’s distribution per unit, DBS said.

1213 (0413 GMT)

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


STOCKS NEWS SINGAPORE-STX OSV jumps on renewed sale chatter

Shares of STX OSV Holdings Ltd jumped as much as 5.7 percent after Maybank Kim Eng highlighted a likely sale price of the offshore vessel builder and noted a possible rebound in its order activities.

Maybank cited market speculation that STX OSV’s parent South Korea’s STX Corp may sell its 50.75 percent stake in STX OSV for about S$1.60 per share. A spokeswoman for STX OSV declined to comment on market speculation.

STX OSV was up 3.8 percent at S$1.36, and has jumped 17 percent this year versus an 8 percent gain for the FT ST Mid Cap Index.

“STX OSV anticipates a rebound in order activities for high-end offshore support vessels on the heels of increased activities in the subsea area,” Maybank said in a report.

STX Corp has hired J.P. Morgan and Standard Chartered to find a buyer, and Italian government-owned ship builder Fincantieri SpA is among the bidders, a source familiar with the matter told Reuters in April.

1058 (0258 GMT)

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


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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