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STOCKS NEWS ASEAN-Singapore's Mencast gains after fund raising
March 20, 2012 / 4:22 AM / 6 years ago

STOCKS NEWS ASEAN-Singapore's Mencast gains after fund raising

Shares of Mencast Holdings Ltd rose as much as 8 percent in strong volume after the Singapore sterngear equipment manufacturer and supplier said it would raise S$11.9 million from investors including state investor Temasek.

The issuance of 22.5 million new shares, which represent about 11.8 percent of the company’s existing share capital, will be to SME-Co Investment Fund, Dymon Asia Special Opportunities Fund and two private investors, Gay Chee Cheong and Wong Chee Herng.

“Gay Chee Cheong is well-known in the business community, so that is a vote of confidence. Temasek is also involved, and that is good,” a local trader said.

The SME-Co Investment Fund is a private equity fund managed by Heliconia Capital Management Pte Ltd, an investment firm wholly-owned by Temasek.

Mencast’s shares were up 5.36 percent at S$0.59, with more than 3.4 million shares traded, 4.6 times the average full-day volume traded over the past 30 days. As of Monday, the stock had gained about 14 percent this year.

For the company statement:

1200 (0400 GMT)

(Reporting by Mark Tay in Singapore)

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11:27 STOCKS NEWS ASEAN-Kim Eng sees Singapore Air load factor bottoming

Maybank Kim Eng said latest monthly data from Singapore Airlines Ltd (SIA) indicated that load factors might have bottomed, although stubbornly high fuel prices would hurt the company’s earnings.

“On balance, the ongoing operating data shows that both passenger and cargo load factors seem to be bottoming out, which supports our view for a recovery. However, this is not expected to lead an earnings recovery until an anticipated inflection point from fiscal year March 2014 onwards,” the broker said.

It maintained its buy rating on SIA and a target price of S$14.40 versus Tuesday’s price of S$10.96. Kim Eng is among five brokers with a buy or strong buy rating out of 23 analysts covering the stock.

Kim Eng said high jet fuel prices were still a major drag on SIA’s earnings. “While we do not anticipate a further sharp spike, the current price level still poses a significant threat to profitability,” it said.

It cut SIA’s earnings forecast by 25 percent for the year ending March 2013 after raising its estimate for jet fuel prices to $135 a barrel from $128.

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1110 (0310 GMT)

(Reporting by Harry Suhartono in Singapore)

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10:33 STOCKS NEWS ASEAN-STX OSV rises on order wins

Shares of Singapore-listed STX OSV Holdings Ltd rose as much as 2.8 percent after it won two contracts worth about 1.15 billion Norwegian Crown ($201 million) to build subsea vessels.

“We believe orders could gush back in the second half when positive oil & gas dynamics pips credit concerns,” brokerage CIMB said in a report, adding that STX OSV’s order pipeline had become more diversified.

STX OSV’s orders so far this year only accounted for 9.5 percent of broker DMG & Partners’ full year forecast, but it expects “the tight availability of high-end vessels in the market will continue to drive more orders”.

DMG & Partners has a buy rating on STX OSV and a target price of S$2.00.

STX OSV is favoured by markets as reflected by Thomson Reuters’ StarMine giving it a percentile ranking of 98 out of 100 for analysts’ upgrades in earnings estimates and changes in their recommendations.

STX OSV was up 2 percent at S$1.79 after hitting a record S$1.81 on Monday. The shares have surged 60 percent this year.

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1020 (0220 GMT)

(Reporting by Charmian Kok in Singapore)

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09:59 20Mar12 RTRS-STOCKS NEWS ASEAN-OCBC upgrades Singapore’s Roxy Pacific to buy

OCBC Investment Research raised its rating on Singapore property firm Roxy Pacific Holdings Ltd to buy from hold, citing the company’s strong sales last month.

It raised its price target on Roxy S$0.62 from S$0.45.

“At the current juncture, we judge that Roxy now warrants a lower restated net asset value discount at 30 percent, versus 40 percent previously, due to its more favorable risk profile,” the brokerage said.

Roxy’s shares were up 0.9 percent at a record S$0.56. The stock has gained 42 percent so far this year.

“From our discussions with Roxy, we also understand that it is currently seeking to add to its hotel portfolio going forward, which we believe reflect management’s propensity to seek out high-return risk-adjusted opportunities through changing property cycles,” OCBC said.

For Singapore February private unit sales, click:

0930 (0130 GMT)

(Reporting by Mark Tay in Singapore)

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09:34 STOCKS NEWS ASEAN-Singapore industrial REITs to see firm earnings

Singapore’s industrial real estate investment trusts (REITs) are set to report healthy year-on-year growth in distributable incomes for the three months ended March, OCBC Investment Research said.

Their financial results will be driven by completion of acquisitions, firm occupancy rates and potentially positive rental reversions, the broker said in a report.

OCBC maintained its overweight rating on the industrial REIT sector, with Cache Logistics Trust as its preferred pick, given its attractive distribution per unit yield of 8.5 percent for 2012.

It expects AIMS AMP Capital Industrial REIT, Ascendas REIT, Mapletree Industrial Trust and Mapletree Logistics Trust to see revaluation gains.

0915 (0115 GMT)

(Reporting by Charmian Kok in Singapore)

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08:46 STOCKS NEWS ASEAN-Singapore index futures higher

Singapore MSCI March futures rose 0.6 percent on Tuesday, indicating the benchmark Straits Times Index is likely to head for a higher start.

Asian shares were steady, with the MSCI Asia Pacific ex-Japan Index up 0.07 percent as investors sought further evidence of U.S. economic recovery before pushing higher.

0842 (0042 GMT)

Reporting by Charmian Kok in Singapore

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