Search

IN FOCUS
MARKETS & INVESTING | Krisana Gallezo, Singapore
Published: 18 Apr 11
1076 views


Singapore Stock Market to trade range this week

EXCLUSIVE: The market will more likely to trade range this week as US strong economic performance may not be able to offset lingering concerns over China’s another round of policy tightening, according to experts.

 Technical-wise, a push beyond either of last week’s Wednesday high and low Straits Times Index (STI) at 3,179 and 3,133 respectively must first be seen before the market sees more directional impetus, said Phua Ming-weii, analyst at Phillip Securities Research.

Singapore fell 0.18 per cent, or 5.62 points, to close 3,153.30 last Friday amid news that China's consumer price index rose 5.4 per cent in March - the fastest pace since July 2008. It fell within last Wednesday’s trading range for the past two sessions.

Phillip's Ming-weii said that a push beyond last Wednesday’s high and low will take the STI to resistance at 3,187 and support at 3128, breakout levels seen on April 4-8 trading.

“Until we see a push past the breakout levels of high and low STI at 3,179 and 3,133, respectively, technicals tell us that price is likely to continue ranging,” said the analyst.

“In the short term, a strong directional move in the S&P 500 or Shanghai Composite could serve as catalysts to give the STI more direction,” added Ming-weii.

Shanghai gained 0.26%, or 7.89 points, to close at 3,050.53 despite China's inflation at its highest for more than two and a half years

STOCKS TO WATCH THIS WEEK:

Capitaland Development: Buy

CapitaLand (CAPL) announced it would acquire a 40% stake in Surbana for S$360m to accelerate the growth of its value-housing segment. Surbana has deep expertise in mass-market residential developments and runs two core business segments: consulting and Chinese township development. For this acquisition, Surbana’s consulting business was valued around 6x earnings and its townships at an average RMB1.1-1.2k per sqm per pr, which are reasonable prices in our view. We view this acquisition as a positive one as it would bring Surbana’s experienced team into CAPL’s framework. This acquisition also underlines CAPL’s ambition for its value-housing business; we think a sizable component of CAPL’s planned growth in Chinese exposure to 45% of assets will come from CapitaValue Homes. We update assumptions and add S$0.02 to CAPL’s RNAV due to these four townships. Maintain a BUY rating with a revised fair value of $4.12 (at parity to RNAV) versus $4.10 previously. – OCBC Investment Research

Lian Beng Group: Buy

Lian Beng Group’s (LBG) 3QFY11 earnings were in-line with our estimates after stripping away one-off gains. We raise our FY11 and FY12 earnings by 7.5% and 12.4% respectively, on the back of higher other income and gain from sale of investment property. LBG is set to ride on Singapore's current building boom, from both public and private projects and its ventures in private residential and industrial developments will help boost its bottom line. Despite the 14% run up in price since our initiation last week, it still trades at 4x prospective P/E - way cheaper than its peers. Maintain BUY on a higher TP of S$0.67 (86% upside), based on a target P/E of 7x FY11/12 blended earnings. – DMG Research

Overseas Union Enterprise: Buy

OUE adds another iconic 320-room hotel into its hospitality portfolio in Singapore with an acquisition of 100% stake of L.C. Airport Hotel Pte Ltd, the owner of the Crowne Plaza Changi Airport Hotel, for S$250 mil, or $781k per room. We believe the property, completed in 2008, is of good quality given the relatively new building structure, quality furnishing, as well as an established hotel operator. There is little competition in the vicinity, with Ambassador Transit Hotel being the only other hotel available in the airport compound, which is targeting only the transitory travelers within the transit lounge. We factor in the value of the new acquisition and increase its total debt following the issuance of $300 MTN on 15 April 2011. As a result, RNAV remains unchanged at $4.13. We have not included the potential value accretion from the proposed extension plan to the new acquisition pending concrete building plan and the relevant planning approvals. We maintain our Buy recommendation with fair value at $4.13, representing a potential upside of 30.7% from its latest closing price. – Phillips Securities Research

To contact the journalist, send your message to krisana@charltonmediamail.com
 



Sign up for our newsletter

 

Do you know more about this story? Contact us anonymously through this link.

Click here to learn about advertising, content sponsorship, events & rountables, custom media solutions, whitepaper writing, sales leads or eDM opportunities with us.

To get a media kit and information on advertising or sponsoring click here.

Tags: singapore stock market, STI, capitaland, Lian Beng Group, Overseas Union Enterprise

LATEST MARKETS & INVESTING JOBS »
PRINT ISSUE »

Subscribe Now
What factors are keeping expats rooted in Singapore?

1005 views

What factors are keeping expats rooted in Singapore?

579 views

Can Asian private equity outgrow the west?

248 views

MOST READ EXCLUSIVES

16 items that are a tad cheaper in Singapore than in Hong Kong

16 items that are a tad cheaper in Singapore than in Hong Kong

Coffee lovers need not go farther for a cheaper cup of cappuccino.

by KRISANA GALLEZO
20 Mar 2015 | 99425 views
 

The 10 richest Singaporeans

The 10 richest Singaporeans

Altogether, their total amount of wealth dropped by 20% to US$32.5 billion.

by KRISANA GALLEZO
13 Apr 2015 | 98410 views

Singapore’s 8 hottest 40 and under hotel chefs

Singapore’s 8 hottest 40 and under hotel chefs

Check out and be inspired from their humble beginnings before rising the ranks.

by KRISANA GALLEZO
27 Mar 2015 | 13458 views
 

Chow Tai Fook opens second store in Singapore

Chow Tai Fook opens second store in Singapore

It's a 1,000-square feet new jewellery shop on Orchard Road.

by KRISANA GALLEZO
26 Feb 2015 | 12284 views

This is a woman’s world: CRIB launches Singapore’s first business and lifestyle incubator for women

This is a woman’s world: CRIB launches Singapore’s first business and lifestyle incubator for women

Find out what the three key platforms of CRIB are.

by KRISANA GALLEZO
10 Mar 2015 | 8191 views
 

The New Black hits Singapore with rarest green coffee

The New Black hits Singapore with rarest green coffee

It also boasts of its Impossible Collection curated by the ‘world’s rockstar roasters'.

by KRISANA GALLEZO
5 Mar 2015 | 4812 views

Too many business cards? Why don’t you try Sansan’s business card management service?

Too many business cards? Why don’t you try Sansan’s business card management service?

After Singapore, this contract management company plans to expand in the APAC region.

by KRISANA GALLEZO
12 Feb 2015 | 4430 views
 

Check out this integrated office cum lab of Friesland Campina in Singapore

Check out this integrated office cum lab of Friesland Campina in Singapore

A curved glass wall resulted in a 90% open-plan office.

by KRISANA GALLEZO
17 Feb 2015 | 4392 views

Spencer Ogden gets funky with its newest trademark space in Singapore

Spencer Ogden gets funky with its newest trademark space in Singapore

The company invested over $1M to make this signature office possible.

by KRISANA GALLEZO
5 Feb 2015 | 3513 views
 

Want to be hands-on with your ideal home setting?

Want to be hands-on with your ideal home setting?

Commune is opening an Experience Centre for meticulous homeowners.

by KRISANA GALLEZO
23 Mar 2015 | 2934 views

Office in the sky: How’s having a meeting in the clouds?

Office in the sky: How’s having a meeting in the clouds?

Check out ACL Asia Pacific’s Cumulonimbus, Altostratus and Cirrus rooms.

by KRISANA GALLEZO
1 Apr 2015 | 2795 views
 

Lazada Singapore CEO Martell Hardenberg talks about his “Happy Customer” philosophy

Lazada Singapore CEO Martell Hardenberg talks about his “Happy Customer” philosophy

Find out what other goals the 27-year-old has for the company.

by KRISANA GALLEZO
27 Mar 2015 | 2428 views

Take a look inside INSEAD’s $55m leadership development centre in Singapore

Take a look inside INSEAD’s $55m leadership development centre in Singapore

It marks the fulfillment of a vision too ambitious to achieve 15 years ago.

by KRISANA GALLEZO
1 Apr 2015 | 2345 views
 

LawCanvas saves the day: Easy legal documents in under a minute

LawCanvas saves the day: Easy legal documents in under a minute

The founders revolutionized the legal industry despite having different backgrounds.

by KRISANA GALLEZO
2 Mar 2015 | 2330 views

All the single ladies: Here’s Singapore’s first female-centric dating app for you

All the single ladies: Here’s Singapore’s first female-centric dating app for you

Its female-friendly features help women find serious daters.

by LEE ANNE BABIERRA
20 Apr 2015 | 2195 views
 

PocketMath makes buying mobile ad impressions easier

PocketMath makes buying mobile ad impressions easier

It integrates over 20 ad exchanges and offers over 20B impressions a day.

by KRISANA GALLEZO
9 Feb 2015 | 1782 views

#OnTheContrary campaign reveals the ‘real struggles’ of entrepreneurs

#OnTheContrary campaign reveals the ‘real struggles’ of entrepreneurs

Rags to riches stories are fabulous, but here’s the real deal.

by KRISANA GALLEZO
27 Mar 2015 | 1052 views
 

Find out what it’s like going into business with your in-law

Find out what it’s like going into business with your in-law

A young entrepreneur teamed up with his father-in-law to redefine home entertainment needs.

by KRISANA GALLEZO
27 Mar 2015 | 789 views

What is the future of the sports business in Singapore?

What is the future of the sports business in Singapore?

Can a new billion-dollar stadium give Singapore the edge it needs to compete for world-class sporting events?

by STAFF REPORTER
20 Mar 2015 | 705 views
 

Fragrance Du Bois to launch a new scent this year

Fragrance Du Bois to launch a new scent this year

Also, check out its pop-up boutique at TANGS Orchard open until April 26.

by KRISANA GALLEZO
17 Apr 2015 | 443 views

Megafash sets the stage for local entrepreneurs to introduce indie brands

Megafash sets the stage for local entrepreneurs to introduce indie brands

It plans to expand in Malaysia and Indonesia.

by KRISANA GALLEZO
20 Apr 2015 | 302 views
 
close Don't Show Again

STAY INFORMED! Get our free weekly newsletter