DJ MARKET TALK: S'pore Shares May Rise Tracking Wall Street's Gains  

0035 GMT [Dow Jones] Singapore's STI may open higher Thursday, tracking Wednesday's gains on Wall Street where readings on private-sector hiring and service-sector activity in the U.S. beat expectations and pushed stocks higher. "Although it is still early days, this week traders have seen more positive numbers out of the world's largest economy that suggest it could be turning a corner at last, a momentum it would hope to continue with the impact of QE3," says Justin Harper, market strategist at IG Markets Singapore. Late Wednesday, Singapore announced plans to offer dual-class shares to listing companies. That plans come too late for Manchester United (MANU) which wanted such a facility and ultimately listed in the U.S. but it may attract some international companies to list in Singapore. The STI may face resistance near 3088 and find support at 3038.
 
 

Daily Review, 04 October 2012 Page 1 of 2

SGX-ST Member, SGX-DT (CNCM)

Daily Review

04 October 2012

LIM & TAN SECURITIES PTE LTD

20 CECIL STREET

#09-00 EQUITY PLAZA

SINGAPORE 049705

TEL: 65330595 FAX: 65332368

www.limtan.com.sg

RCB Reg No. 197301030W

SUMMARY

1. Adjusted for the strength / weakness of S$ / US$ in

the last 5 years (S$1.23 currently vs $1.46 when the

STI peaked in 2007), the STI would be only about

5% below the record high, rather than 20% if

measured in S$. Interestingly, Singapore has trailed

significantly its Asean neighbors, especially

Thailand (where many stocks have been surging),

Indonesia and the Philippines (today a creditor

nation!). This also suggests why the STI has been

going sideways in the 3100-3200 range, despite

changes to the composition, eg knocking out underachievers

like NOL and substituting with IHH, a

recent IPO favorite.

2. BOUSTEAD (96 cents, down 1) bought back

3,964,000 shares yesterday at 95 cents, first under the

current mandate to buy up to 50.54 mln shares.

(Boustead bought back a total of 1.505 mln shares in

2011, between a high of 88¢ and low of 80¢.) Boustead,

one of a handful of locally listed companies with a long

history, has a strong balance sheet, with cash of $228.6

mln, available-for-sale investments of $53.2 mln and

borrowings of $81.9 mln. Its NAV at end Jun ’12 was

52 cents. Yield is 5.2% based on 5 cents paid in respect

of year ended Mar ’12. We do not have a rating on

Boustead.

3. F&N ($8.89, down 1): M&G Investments, part of

Prudential PLC, sold 149,000 shares at $8.90 a share,

reducing group holding to 102.635 mln shares or

7.19%.

Exhibit 1: Relative Performance

In Domestic Currencies In US$

28.09.12 vs 2007 High

Market %

Indices Change

Nasdaq 9.0

Dow -5.1

S&P500 -8.0

Stoxx600 -32.9

Jakarta 50.6

Bangkok 41.9

Manila 38.0

KLCI 7.9

Seoul -3.3

Bombay -10.1

STI -20.1

Taipei -21.4

MSCI Asia Pacific -28.9

Hang Seng -34.1

Tokyo -51.4

Shanghai Composite -65.8

28.09.12 vs 2007 High

Market %

Indices Change

Nasdaq 9.0

Dow -5.1

S&P500 -8.0

Stoxx600 -35.9

Jakarta 47.8

Manila 47.2

Bangkok 45.5

KLCI 15.1

STI -4.7

Taipei -13.2

Seoul -20.4

Tokyo -23.1

MSCI Asia Pacific -28.9

Bombay -33.4

Hang Seng -34.1

Shanghai Composite -59.1

4 October 2012

Disclaimer:

DMG & Partners Securities Pte Ltd may have received compensation from the companies covered in this report

for its corporate finance or its dealing activities; this report is therefore classified as a non-independent report.

Please refer to important disclosures at the end of this publication.

g

Morning Matters

Figure of the Day

Source: google.com

We are inviting TTJ, which provides the steel

structures for the Helix Bridge at Marina Bay

and the SuperTrees of Gardens by the Bay,

for a luncheon presentation today. See

Scoop of the Day.

Market Indices

Value Chg % Chg

Dow Jones 13,494.6 +12.25 +0.09

S&P 500 1,451.0 +5.24 +0.36

Nasdaq 3,135.2 +15.19 +0.49

FTSE 100

5,825.8 +16.36 +0.28

Nikkei 8,746.9 -39.18 -0.45

Hang Seng 20,888.3 +47.90 +0.23

Shanghai 2,086.2 - -

KOSPI 1,996.0 - -

STI 3,077.1 -2.00 -0.06

KLCI 1,649.8 -1.28 -0.08

Key Indicators

Value Chg % Chg

Oil Price*

(US$/bbl)

88.14 -3.75 -4.08

Gold Price**

(US$/oz)

1778 +3.30 +0.19

US$/S$ 1.2317 +0.00 +0.09

* WTI Crude Future

** Gold Spot

While You Were Sleeping

US markets: Positive

Dow futures: +18 (as at 8am Singapore Time)

US Wrap: U.S. stocks finished with mild gains Wednesday as better-thanexpected

services sector and payrolls data offset a sharp decline in Dow

component Hewlett-Packard (HPQ). HP was by far the biggest loser in the

Dow, falling nearly 13% as CEO Meg Whitman, at a her first analyst meeting

Wednesday since taking over at the helm in September 2011, warned that

earnings are expected to weaken in 2013 before her efforts at improving the

company begin to kick in. The Dow Jones Industrial Average rose more than

12 points, or 0.09%, to finish at 13,495. The blue-chip index, which briefly

dipped below the flat line in the final hour, has now risen in two of the past

three sessions and is up 10.45% so far in 2012. The S&P 500 gained more

than 5 points, or 0.36%, to settle at 1451, while the Nasdaq rose in excess

of 15 points, or 0.49%, to close at 3135. November crude oil futures slipped

$3.75 to settle down $88.14 a barrel, while December gold futures rose

$4.20 to settle at $1,779.80 an ounce. The benchmark 10-year Treasury

rose 1/32, diluting the yield to 1.620%. The greenback was up 0.26%,

according to the dollar index.

The Day Ahead…

Scoop of the Day: TTJ Holding’s key business activities are in the design,

supply and fabrication of structural steelworks for use in the construction of

buildings, factories, plants and infrastructure. It also operates two

dormitories in Singapore with a total capacity of 5,700 persons at Jalan

Papan. Its existing factories at Pioneer Road, Singapore and Keluli, Johor,

have a combined fabrication capacity of 42,000 tons per annum. Riding on a

strong pipeline of contract works for major infrastructural and industrial

projects such as the LNG Terminal on Jurong Island and the SuperTrees at

Gardens by the Bay, the group reported a strong set of results for FY12

(ending July), with net profit rising 15% to S$16.6m. This was underpinned

by a 54% surge in revenue to $129m for the structural steel division, while

the dormitory brought in revenue of $14m. With an existing orderbook of

$126m to be fulfilled over the next 2 years and a steady earnings stream

from the dormitory division, we see good earnings visibility for the group.

Contract opportunities in Singapore is underpinned by developments such

as Ophir-Rochor project, Marina One@ Marina Bay, GuocoLand Tanjong

Pagar, SUTD University, MRT DTL3, MRT Thomson Line and Changi

Airport Terminal 4, amongst others. Meanwhile, the group is pursuing a

number of potential projects in Malaysia to further diversify and grow its

revenue pie. at 4.4x P/E, the stock remains attractively priced and offers a

yield of 3.8%. (Goh Han Peng)

WHAT’S INSIDE?

Insider Trade Highlights 3 Oct 12

Diary of Events

4 October 2012

See important disclosures at the end of this publication

2

DMG Research

Company Insider No. of Shares

Share Price

(S$)

% Stake before

transaction

% Stake after

transaction

8TELECOM INTL HOLDINGS YEO SEE MENG 100,000 0.130 2.607 2.629

BLUMONT GROUP LTD. Ng Su Ling 732,000 0.091 3.120 3.160

TA CORPORATION LTD Koh Wee Seng 4,653,000 na 6.830 7.830

TECKWAH INDUSTRIAL CORP Chua Thian Poh 2,490,000 na 12.030 13.100

AUSGROUP Share Buy-Back 3,970,554 0.540 na 0.830

BOUSTEAD SINGAPORE Share Buy-Back 3,964,000 0.950 na 0.780

GLOBAL TESTING CORPORATION Share Buy-Back 439,000 0.066 na 1.906

HG METAL MANUFACTURING Share Buy-Back 1,047,000 0.081 na 1.544

KSH Share Buy-Back 300,000 0.340 na 0.812

MIIF Share Buy-Back 950,000 0.531 na 2.450

OCBC Share Buy-Back 100,000 9.420 na 0.374

SAIZEN REIT Share Buy-Back 330,000 0.165 na 0.071

Company Insider No. of Shares

Share Price

(S$)

% Stake before

transaction

% Stake after

transaction

Sale

GLOBAL INVACOM GROUP Prospect China Limited 846,000 na 5.110 4.780

SKY ONE Lau Hon Kit 2,000,000 0.325 11.440 10.800

SRI TRANG AGRO-INDUSTRY PCL Prasit Panidkul 300,000 0.635 0.525 0.501

# Exercise of Rights issue / Share Options / Convertibles / Warrants / Share Issuance.

## Married deal.

Purchase

INSIDER TRADES HIGHLIGHT FOR 3 Oct 12