STOCKS NEWS SINGAPORE-Shares up at midday as Genting leads

Thu Aug 16, 2012 12:17am EDT

Singapore shares rebounded from two sessions of losses, lifted by gains in casino operator Genting Singapore after a brokerage upgraded its rating on the stock to 'outperform'.

The benchmark Straits Times Index was up 0.5 percent at 3,077.25 points. By 0402 GMT, Genting shares gained 5 percent to S$1.375 to a one-month high, after it fell as much as 3.5 percent on Aug 13 following a poor second-quarter earnings.

Macquarie upgraded Genting to 'outperform' from 'neutral' and raised its target price to S$1.70 from S$1.55, citing a better outlook for the company.

The brokerage said Genting's weak second-quarter results were dragged by a few factors, such as operating costs from its new Marine Park, which should start to get resolved from the fourth quarter, driving a recovery in profitability.

Shares of commodity trader Noble Group also rose 4 percent to S$1.28, extending its gains to its highest level in four months, after it posted stronger quarterly earnings on Tuesday.

1132 (0332 GMT)

(Reporting by Charmian Kok in Singapore; charmian.kok@thomsonreuters.com)

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11:44 STOCKS NEWS SINGAPORE-DMG ups target price for Kingsmen

DMG & Partners raised its target price for Kingsmen Creatives to S$0.83 from S$0.76 and kept its 'buy' rating, citing a healthy pipeline of contracts and strong net cash position.

By 0326 GMT, Kingsmen shares were up 1.4 percent at S$0.73, and have gained 27 percent so far this year, compared to the FT ST Fledgling Index's 15.3 percent rise.

Kingsmen posted a 15 percent rise in its second quarter net profit to S$5.2 million, due to an increase in theme park and MICE (meetings, incentives, conventions, exhibitions) contracts. [ID:nSNZR65SZ}

"We remain positive on Kingsmen, given its pipeline of contracts, supported by relatively strong consumerism in Asia, Singapore as one of the top MICE destinations in Asia and healthy growth of Asia's amusement industry," said DMG.

1132 (0332 GMT)

(Reporting by Charmian Kok in Singapore; charmian.kok@thomsonreuters.com)

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11:04 STOCKS NEWS SINGAPORE-Cordlife up on deal with China Cord Blood

Shares of Cordlife Group jumped as much as 8.2 percent after the cord blood banking provider said it plans to buy 10 percent of China Cord Blood Corporation, China's largest cord blood bank operator.

By 0255 GMT, shares of Cordlife were up 7.2 percent at S$0.52 with 7.7 million shares traded, more than 3.6 times its full-day average trading volume over the last five sessions.

Cordlife has agreed to buy 10 percent in China Cord, in return it will sell an indirect stake in China Stem Sells (South) Co Ltd back to the company, which is an indirect subsidiary of China Cord.

The acquisition will help Cordlife expand its reach in China and boost its earnings per share to 5.85 Singapore cents from 3.64 cents before, it said.

"The deal should help it get a better hold of the China market, and Cordlife will also see an increase in its asset value after the acquisition," said a local trader.

1056 (0256 GMT) (Reporting by Charmian Kok in Singapore; charmian.kok@thomsonreuters.com)

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10:20 STOCKS NEWS SINGAPORE-OCBC upgrades Midas to buy from hold

OCBC Investment Research upgraded Midas Holdings, which makes aluminium parts for trains, to 'buy' from 'hold' and raised its target price to S$0.41 from S$0.30, citing an expected pick-up in its orders.

By 0132 GMT, Midas shares were up 2.9 percent at S$0.35, and have gained 6 percent so far this year, compared to the FT ST China Index's 1.2 percent gain.

Midas reported a 97.5 percent drop in its second quarter earnings to 1.6 million yuan from a year ago, which was below OCBC's expectations due to higher costs.

However, OCBC has turned more positive on Midas' outlook as China's Ministry of Railways recently raised its railway infrastructure investment target for 2012 by 16 percent, adding to growing optimism on the country's high-speed rail transport industry.

"We position our 'buy' rating on the premise of an expected recovery in its orders win momentum and the likelihood of a resumption of high-speed railway passenger train car contracts by the Ministry of Railways in the near future," said OCBC.

0937 (0137 GMT) (Reporting by Charmian Kok in Singapore; charmian.kok@thomsonreuters.com)