STOCKS NEWS SINGAPORE-DMG says more downgrades after Q2 earnings

DMG & Partners Securities said while the second-quarter

corporate earnings were mostly in line with expectation, there

were more earnings and recommendation downgrades than upgrades,

reflecting the managements' guidance of weaker growth ahead.

DMG said it has a 12-month target of 3,168 points for the

Straits Times Index, though it sees greater volatility

before this target is reached. On Tuesday, the STI was up 0.1

percent at 3,065.68 points.

Sectors that are likely to outperform are commodity plays,

consumer, offshore and marine, as well as real estate investment

trusts, DMG said.

Its stock picks include commodities firm Noble Group

, as its earnings are likely to be driven by

agriculture recovery, and massage chair maker OSIM International

due to new stores and products driving growth.

The broker said it also likes Keppel Corp, the

world's largest rig builder, because of strong revenue

visibility from record order book, and CapitaCommercial Trust

on the back of high occupancy and low gearing.

1446 (0646 GMT)

(Reporting by Eveline Danubrata in Singapore;

eveline.danubrata@thomsonreuters.com)

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12:52 STOCKS NEWS SINGAPORE-SingTel leads gain in shares at

midday

Singapore shares edged higher on Tuesday, led by Singapore

Telecommunications and in line with other Asian

bourses, buoyed by hopes that the European Central Bank will be

able to cut borrowing costs.

SingTel shares, which have fallen 8 percent this month, rose

2.7 percent to S$3.38 by midday, supported by demand for

dividend stocks.

The benchmark Straits Times Index was up 0.2

percent at 3,066.65 points, while the MSCI's broadest index of

Asia-Pacific shares outside Japan rose 0.6

percent.

Asia Pacific Breweries Ltd was the top-traded

stock by value on the Singapore exchange, and rose 4.8 percent

to S$53 after Heineken raised its offer for control of

the Singapore brewer to $6.35 billion.

1240 (0440 GMT)

(Reporting by Charmian Kok in Singapore;

charmian.kok@thomsonreuters.com)

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12:23 STOCKS NEWS SINGAPORE-Ascendas Hospitality seen

falling after price stabilisation ends

Units in Ascendas Hospitality Trust, which have

been supported by its stabilising manager, may fall after the

manager stops buying its units from the market, traders said.

Nomura Securities Singapore Pte Ltd has bought around 10

million Ascendas' stapled securities from the open market at a

range of S$0.86 to S$0.88 since the trust's listing on July 27.

Ascendas was trading at S$0.875, slightly below its initial

public offering price of S$0.88.

The over-allotment option is set to expire 30 days fom

Ascendas' listing date or when the stabilising manager has

bought 73.4 million units, representing 16.8 percent of the

total number of stapled securities in the offering.

"There's always a geographic bias. Usually for REITs, if

they have primarily Singapore assets, people might be more

familiar with them. In Ascendas's case, they have no assets in

Singapore," said Ong Kian Lin, an analyst at Maybank Kim Eng.

Ascendas has 10 properties in Australia, China and Japan.

Some traders however said the downside could be limited due

to the trust's relatively attractive yield. At S$0.88 per unit,

the trust would offer a yield of about 7.9 percent in the year

ended March 2013, Ascendas said.

"If the price falls, it might be limited because their

projected yield is about 8 percent, which is fairly high," said

a trader.

The weakness in Ascendas comes after a strong showing by Far

Far East Hospitality Trust, which priced its initial public

offering at the top end of an indicative range.

1210 (0410 GMT)

(Reporting by Eveline Danubrata in Singapore;

eveline.danubrata@thomsonreuters.com)

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11:57 STOCKS NEWS SINGAPORE-OCBC prefers office to retail

REITs

With Singapore real-estate investment trusts (REIT)

outperforming the broader market this year, OCBC Investment

Research said investors should switch to office REITs instead of

domestic retail ones.

The FT ST Real Estate Investment Trust Index

has gained 23.4 percent so far this year, compared to the

Straits Times Index's 15 percent gain.

OCBC upgraded office REITs to 'overweight' as they are

likely to benefit from limited new supply in the pipeline and

better-than-expected demand in the second quarter. The brokerage

prefers CapitaCommercial Trust, on which it has a 'buy'

rating and a target price of S$1.53.

However, OCBC downgraded local retail REITs to 'neutral',

citing rich valuations as most positives have been priced it. It

has a 'hold' on CapitaMall Trust and a target price of

S$2.04.

OCBC also likes industrial REITs, due to firm growth drivers

and financial positions, and Cache Logistics Trust is

its top pick with a 'buy' rating and target price of S$1.18.

With forward distribution per unit yields at 7.7 percent,

the sector offers one of the highest yields amongst REITs, the

brokerage said.

1150 (0350 GMT)

(Reporting by Charmian Kok in Singapore;

charmian.kok@thomsonreuters.com)

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10:53 STOCKS NEWS SINGAPORE-CIMB cuts F&N target price

CIMB Research cut its target price for Singapore

conglomerate Fraser and Neave to S$9.85 from S$10, and

kept its 'outperform' rating, after taking into account a 15

percent discount to its property assets.

F&N's board last week approved a sweetened $6.35 billion

offer from Dutch brewer Heineken for Asia Pacific Breweries Ltd

, the maker of Tiger Beer.

If the sale of F&N's beer affiliate APB is successful,

property will account for more than 80 percent of F&N, CIMB

estimated, thus it is now applying a 15 percent discount to

F&N's property restated net asset value.

"This deal looks set to go through if Thai Bev and Kirin

play ball. The potential for special dividends, reinvestment

upside and more corporate actions are the expected catalysts for

the stock," said CIMB in a note.

To read a related story, click

1045 (0245 GMT)

(Reporting by Charmian Kok in Singapore;

charmian.kok@thomsonreuters.com)

Source: http://news.yahoo.com/stocks-news-singapore-dmg-says-more-downgrades-q2-065123097--sector.html

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