May 10, 2012 / 2:20 AM / 6 years ago

STOCKS NEWS SINGAPORE-CIMB cuts Perennial China target

CIMB Research lowered its target price for Perennial China Retail Trust to S$0.59 from S$0.65, citing lower rents and slower-than-expected leasing activity.

Units of Perennial China, which owns shopping centres in China, shed 2 percent to S$0.495, but have gained about 4 percent so far this year.

Perennial China reported that its distribution per unit for the first quarter was 3.81 Singapore cents, but CIMB said the trust’s profits from its joint entities came in below expectations due to weaker rental contributions.

The repositioning and leasing of Perennial China’s shopping malls in Shenyang, China, are likely to take effect in the fourth quarter and the start of 2013, CIMB said and retained its outperform rating on the stock.

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1013 (0213 GMT)

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

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10:03 STOCKS NEWS SINGAPORE-Neptune Orient at 4-mth low after Q1 loss

Shares of Neptune Orient Lines Ltd (NOL) fell as much as 3 percent to a four-month low after the container shipping firm reported a disappointing first-quarter net loss and warned of a bleak outlook.

NOL, around two-thirds owned by Singapore state investor Temasek Holdings, reported January-March net loss of $254 million, much wider than a loss of $10 million a year ago.

The poor results prompted Maybank Kim Eng to cut its target price for NOL to S$0.85 from S$1.20, and keep its sell rating.

“The perfect storm of global economic uncertainties, mixed with persistently high bunker costs and overcapacity concerns have seemingly ended NOL’s hope of a quick recovery,” Kim Eng said in a report.

“NOL has a combination that we find unappealing- highest financial leverage, worse operating results and most expensive share valuation,” Barclays said in a report and retained its underweight rating on NOL with a target price of S$1.06.

It said NOL trades at one times its price-to-book valuation, for the first quarter versus 0.9 times for China Shipping Container Lines Co Ltd (CSCL), despite the latter’s stronger operating performance. It has an overweight rating on CSCL.

NOL shares were down 2.2 percent at S$1.135, and are little changed so far this year, underperforming the market.

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0951 (0151 GMT)

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

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08:41 STOCKS NEWS SINGAPORE-Index futures down 0.2 pct

Singapore index futures fell 0.2 percent early on Thursday, signaling a lacklustre start for the Straits Times Index as weak corporate earnings from heavyweights like Singapore Airlines looked set to weigh.

Asian shares were also down as sentiment took a hit from mounting worries about the health of Spanish banks and deepening political chaos in Greece that put the country at risk of insolvency and an exit from the euro.

0836 (0036 GMT)

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

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