November 29, 2013 / 6:06 AM / in 4 years

Singapore index eases; CWT snaps 4-week fall on brokerage upgrade

SINGAPORE, Nov 29 (Reuters) - Logistics and warehouse firm CWT Ltd was headed for its biggest weekly rise in over two months, snapping a four-week losing streak, as brokerage CIMB upgraded its call on the stock after it was oversold, while the Singapore index eased.

CWT shares fell to S$1.23 earlier this month, not far from this year’s trough of S$1.205 hit in August, after weak third-quarter results. It was up 0.8 percent at S$1.28 on Friday.

“As the stock is trading even below our appraised value for its stable logistics business, we believe there is a buying opportunity,” said CIMB analysts in a research note.

They upgraded the stock to “outperform”, expecting the company’s logistics operations to offset the weakness in its trading business, and suggested a target price of S$1.49.

Maybank Kim Eng, another brokerage, reiterated its “buy” call on CWT.

CWT has risen over 4 percent so far this year, not far behind a 6 percent gain in Global Logistic Properties Ltd , a larger rival in the logistics and warehouse business. Both have outstripped a negligible 0.2 percent gain in the benchmark Straits Times Index.

The index was down 0.4 percent to 3,172.45 by 0535 GMT, contributing to a 1.2 percent drop in November, its first month in the red after two consecutive months of gains.

The MSCI’s broadest index of Asia-Pacific shares outside Japan lost 0.1 percent, headed for a 0.4 percent decline for the month.

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