Market Morning Wrap by broker – 27 Nov 12

DOW-0.33%, SPX-0.20%, NDX+0.33%, OIL-0.56%, GOLD-0.22% The FSSTI saw a decent move higher yesterday to close above 3000 in very thin vols as Properties, Commodities and Jardines led. US overnite saw some cooling off despite solid Black Friday sales numbers. Today we can expect another day of muted volumes here in Sg from lack of newsflow and catalyst.

* PROPERTY: Tender for Bukit Timah Saddle club site attracts 6 bids since the government put it up for public tender. The highest bidder of S$68,850 came from none other than the Saddle Club. This is nearly four times the amount of rent it is paying for the land currently.

* MRT: Talks between SMRT management and its 102 bus drivers who refused to report for work on Monday have concluded. SMRT management has indicated that the company will come back with a reply in approximately a week’s time.

* GENS: RWS is facing indirect contempt charges in a Philippine court over exporting dolphins.

* FEOR (Far East Orchard)/ STC (Stamford Tyres)/ WBL: entered into a non-binding MoU with The Straits Trading Company Limited to acquire STC’s entire hospitality management business.

– STC is making a general offer for WBL Corp in shares or cash worth over $500m.

Results of Genting/Noble/Golden Agri/Singtel – 14 Nov 12

A Lot of numbers to digest, mostly negative reporting.

* GENS 3Q Missed expectations EBITDA $303m vs our expected $325m however we   think we that the incremental revenues generated (Marina Life Park in Dec)   will lift margins and EBITDA meaningfully in 2013. Sing Gamimg mkt is stagnant but GENS fared better in mass mkt and VIP vs MBS. TP $1.60 – GENHK AGI saw decline in its RWM (Travellers Casino) 17% YoY

* ST: 2Q NPAT of $867m(-1.5%yoy) with 1H earnings forming 47% fo FY consensus. At a first glance this will likely be driven by lower Bharti estimates and currency revisions.

* NOBLE does small $200m placement @ 225m shs @ 1.10 5.6% discount bottom of the range. Banga now locked up for 90 days more concerning to my why selling it here. Some of the other deals onight CPF traded near deal levels.

* GGR We cut last week ahead of numbers – they MISSED – should have been expected given everything else did except FR. 3Q NP $85m vs $109m on the +ve   is adding 1m tons of refining capacity in next 2 yrs, 2013 capex $500m – same   as 2012. Expect more cuts to street circa 40%! They tried to talk up outlook but lack substance. Inventories continue to build.

* PROPERTY News that China may expand property tax trials and that there is no plan to lift current restrictions so weighing on Property Co’s in HK –   CAPL/CMA our best recent gainers may see profit taking.

* SINGTEL NP $868m vs $882m YoY – mkt $950m – Currency impact with SGD strength   and lighter earnings from Bharti/Optus. Sees FY13 sales falling by low single   -digit level vs guidance of low single-digit growth. Blaming Australia –   Optus 2Q sales fell 4% on price competition, reduced mobile termination rates * CD GOOD. 3QNP S$72.8m +5.4%. Rev growth broad-based. Overseas biz 40% of   group rev. And seeing growth in the bus business

* WP 3Q -60% $32.38m. Turnover -77% $37.65m blamed on further progressive recognition from sold units in Scotts Square & lower sales.

Reports today:

* CIT: 3Q results; sales est. S$804.67m (3 analysts)

* Olam / GLP / STX OSV Holdings SOH

GENTing Spiked up following this announcement

Sept. 19 (Bloomberg) — Genting Singapore selling shrs through Citigroup, Australian Financial Review reports, without saying where it got the information.

●    Citigroup contacted investors to sell shrs at A$3.99 each, a 2.7% discount to closing price: AFR

I thought they have been loading up the shares of Echo Grp aggressively to compete in the gambling space in Australia against Crown? Why are they selling them now? Strange…

Genting SP and HK now holds around 8.24% in EGP AU…Take alook below: