OCBC Report 11 Mar 14

KEY IDEA Frasers Commercial Trust: Growth catalysts in sight Frasers Commercial Trust (FCOT) has recently delivered a strong set of 1QFY14 results, on the back of distribution savings from its convertible perpetual preferred units (CPPUs). For the rest of FY14, we expect FCOT to continue to benefit from the positive flow-through on its DPU. Operationally, we are also positive on FCOT’s performance. According to CBRE MarketView report, CBRE anticipates continued rental growth in the office market for the next two years amid limited office supply and tightening of available office space. We see FCOT as the beneficiary of this potential market upturn, in view of its exposure to the Singapore office space. We maintain BUYand S$1.45 fair value on FCOT. (Kevin Tan) MORE REPORTS Yoma Strategic Holdings: Seizing opportunities in Myanmar Yoma Strategic Holdings (Yoma) made a series of announcements this morning. First, it reported a definitive shareholders agreement with Hongkong and Shanghai Hotels to redevelop the former Myanmar Railway Company headquarters on the Landmark site into The Peninsula Yangon hotel. We believe this is subject to the successful acquisition of the Landmark site, which currently has a deadline in end June 2014. Secondly, Yoma will take a 80% stake in developing two sites near FMI City in Hlaing Tharyar Township, Yangon into a development with 90 residential units and 19.9k sq ft of commercial leasing space. Thirdly, the company has entered into agreements with ED&F Man Holdings Ltd and PMM Partners Ltd, separately, to invest in coffee planting at the Maw Tin Estate in Ayeyarwaddy and supplying UHT dairy products in Mayanmar, respectively. Finally, Yoma also announced plans to develop educational facilities with Harrows International Management Services and Dulwich College International in Pun Hlaing Golf Estate and Star City, respectively. We will meet with management to discuss these developments later this morning and, in the meantime, maintain BUY with our fair value estimate of S$0.97 under review. (Eli Lee)

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NEWS HEADLINES - US stocks recovered most of their losses but still finished Mon generally lower as weak data from China reignited worries about a global economic slowdown. - Cooling measures and the TDSR framework continued to send non-landed private home resale volume down to a level not seen since Dec 2008 during the global financial crisis. - From 17 Mar, customers of 14 banks can do instant fund transfers between accounts held in different banks. - International Healthway Corp is expanding into Australia with the acquisition of a freehold, commercial property in Melbourne for A$45m (S$51.7m). - United Overseas Bank is planning a sale of dollar-denominated bonds as Asia's investment-grade issuers pay the least for debt in the US currency in almost three years. - WBL Corporation Limited is selling its 78% stake in Suzhou Industrial Park Jian Wu Heng Ye Property Development Co Ltd to Genway Group for 490m yuan (S$101.2m). - Ascendas Pte Ltd has signed a MOU with a wholly owned subsidiary of Ping An Insurance for a strategic partnership to cooperate in the real estate sector in China and other key Asian markets.