Friday, June 6, 2014

DBSVickers 6 Jun 14

Today’s Focus
 Centurion – Acquisition of land in Johor Bahru, Malaysia
for development of 2 workers’ dormitory
Centurion Corporation has established a 49% associated
company in Malaysia known as Oriental Amber. Oriental
Amber has entered into a sale and purchase agreement (SPA)
to acquire a 7.6 acres freehold land in the Mukim of Jeram
Batu, Johor Bahru, Malaysia for a purchase consideration of
RM11.7m (equivalent to S$4.5m) to be satisfied in cash. The
land is currently zoned for agricultural use and is located in
Nusajaya district, one of the five flagship zones of Iskandar
Malaysia and is in close proximity to several major industrial
hubs. The land, subject to conversion to industrial use, is
planned for a potential development of 2 workers’ dormitory of
approximately 5,000 beds each.
CapitaLand’s wholly-owned serviced residence business unit,
The Ascott Limited (Ascott), has entered into a strategic alliance
with Beijing Vanke to drive Ascott’s expansion plans in China.
Vanke is one of the largest property developers in the country.
Beijing Vanke will leverage its significant presence and expertise
to develop serviced residences in China. Ascott will in turn
provide its leading capabilities in managing award-winning
serviced residences.
QT Vascular received notification from the United States Food
and Drug Administration (FDA) for clearance to market the
Chocolate® PTCA Balloon Catheter (Chocolate PTCA) in the
United States, for balloon dilatation of the stenotic portion of
coronary artery or bypass graft stenosis for the purpose of
improving myocardial perfusion.
Banyan Tree launched its third brand, Cassia, to signal its foray
into what it regards as the "under-innovated" serviced
apartment market. Five projects are in development in Phuket,
Bintan, Beruwala in Sri Lanka, the Gold Coast in Australia and
Lijiang in China, with the Phuket one slated to be the first to
open next year; the rest will follow in the next 11/2 to two
years. The Banyan Tree Group's Banyan Tree hotel brand
follows an all-villa concept while its Angsana brand markets
contemporary, chic and ecologically-sensitive hotels and
resorts. Cassia, on the other hand, will provide business and
leisure travellers fully-furnished apartments for extended stay.
US Indices Last Close Pts Chg % Chg
Dow Jones  16,836.1 98.6 0.6
S&P  1,940.5 12.6 0.7
NASDAQ  4,296.2 44.6 1.0
Regional Indices
ST Index  3,279.6 (0.5) (0.0)
ST Small Cap  558.4 2.3 0.4
Hang Seng  23,109.7 (42.0) (0.2)
HSCEI  10,364.6 46.8 0.5
HSCCI  4,273.2 (9.7) (0.2)
KLCI  1,869.0 3.8 0.2
SET  1,453.2 3.8 0.3
JCI  4,935.6 3.0 0.1
PCOMP  6,772.4 5.9 0.1
KOSPI  1,995.5 (13.1) (0.7)
TWSE  9,140.7 20.8 0.2
Nikkei 

STI Index Performance
Singapore
1,000
2,000
3,000
4,000
2006 2007 2008 2009 2010 2011 2012 2013 2014
100-Day MA
Index
STI
Total Market cap (US$bn) 611
Total Daily Vol (m shrs) 2,212
12m ST Index High 3,302
12m ST Index Low 2,960
Source: Bloomberg Finance L.P.
Stock Picks – Large Cap
Rec’n Price (S$)
5 Jun
Target Price
(S$)
ComfortDelgro Buy 2.410 2.50
Global Logistic Properties Buy 2.710 3.42
Mapletree Greater China
Commercial Trust
Buy 0.880 1.02
Thai Beverage Public Buy 0.635 0.68
Stock Picks – Small Cap
Rec’n Price (S$)
5 Jun
Target Price
(S$)
Vard Holdings Buy 1.110 1.34
Nam Cheong Buy 0.385 0.47
Centurion Corporation Buy 0.715 0.86
Source: DBS Bank
Singapore
Wired Daily
Page 2
ES Group was awarded repeat orders for jack-up drilling rig
blocks worth approximately S$17m from a major shipyard in
Singapore. This order is expected to contribute to the
Group’s financial performances in the second half of FY Dec
14 and in FY15.
Both HDB resale prices and transaction volumes slipped in
May compared to a month ago, weighed down by the
mortgage limit for public housing and greater supply of
housing units. In a fourth straight monthly decline, HDB
resale prices slipped 1.2% in May to a two-year low as
resale prices of all flat types fell last month. The decline was
sharpest for HDB executive flats that saw a 2.8% fall in
resale prices, according to the HDB flash report by SRX. The
number of resale transactions also shrank by 11.1% from
April to 1,320 flats in May, SRX data shows, suggesting that
the 4.4% month-on-month rise in April was a blip.
The International Monetary Fund (IMF) cut its 2015
economic growth forecast for China to about 7%, but
urged authorities to avoid further stimulus measures and
concentrate on curtailing financial risks instead.
U.S. equity benchmarks rose ahead of tonight’s May jobs
numbers and after the ECB’s stimulus boosted optimism in
the global economy. ECB President Mario Draghi reduced
the deposit rate to a negative 0.1% from zero. The
benchmark rate is also lowered to 0.15% from 0.25%. The
ECB also opened a 400bil euro liquidity channel tied to bank
lending and officials will start work on an asset-purchase
plan. In US, May’s employment numbers will be released
tonight. Expectations are for non-farm payrolls to rise 210k
following the 273k gain the previous month

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