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STOCKS NEWS SINGAPORE-K-REIT up on results; CIMB upgrades stock
April 17, 2012 / 2:45 AM / in 6 years

STOCKS NEWS SINGAPORE-K-REIT up on results; CIMB upgrades stock

The unit price of real estate investment trust K-REIT Asia rose 3.2 percent after the company’s distribution per unit nearly doubled in the first quarter to S$1.90 cents.

The strong results prompted CIMB Research to upgrade its rating to outperform from neutral and raise the target price to S$1.11 per unit from S$0.93.

K-REIT units rose to S$0.97 in a weak broader market, with more than one million units traded, 1.3 times the average full-day volume traded over the past 30 days. Units in peer CapitaCommercial Trust were down 1.1 percent.

“Backed by attractive yields of 8 percent and improving office indicators, we think its risk-reward now favours a positioning for a bottom,” CIMB said in a report.

Out of 16 brokers tracking the stock, three have a buy, nine have a hold and 4 have a sell or strong sell rating. K-REIT units have risen nearly 17 percent this year.

For the company’s results, click:

1015 (0215 GMT)

(Reporting by Harry Suhartono in Singapore;harry.suhartono@thomsonreuters.com)

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09:27 STOCKS NEWS SINGAPORE-Barclays trims M1’s forecasts, target price

Barclays trimmed its profit forecasts for M1 Ltd by 6 to 7 percent for the fiscal years 2012 and 2013 after weaker than expected first quarter results by Singapore’s number three mobile phone operator.

The broker also lowered its share price target to S$2.65 from S$2.70 but kept its “equal weight” rating on M1’s stock.

M1, which also provides high-speed broadband home Internet, reported a 5.3 percent fall in first quarter net profit to S$40.3 million ($32.24 million) as growth in operating expenses outpaced a rise in revenues.

Its earnings margin before interest, tax, depreciation and amortisation slipped to 40.1 percent in the first quarter from 42.2 percent a year earlier, partly due to higher mobile phone handset subsidies and spending on broadband subscriptions.

“The expectation is for margins to improve from here into the year given the stable earnings guidance on a year-on-year basis,” Barclays said in a report.

M1 shares were down 0.41 percent in early trade at S$2.43, underperforming a relatively flat Singapore Straits Times Index .

(Reporting by Harry Suhartono in Singapore; harry.suhartono@thomsonreuters.com)

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08:44 STOCKS NEWS SINGAPORE-Index futures lower

Singapore index futures fell 0.12 percent early on Tuesday, indicating the benchmark Straits Times Index would open lower.

The euro eased early on Tuesday as soaring Spanish borrowing costs underscored the fading impact of the European Central Bank’s bond purchases and stoked investor nervousness over euro zone debt.

Reporting by Harry Suhartono in Singapore; harry.suhartono@thomsonreuters.com

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