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MARKET NEWS

US stocks were higher after the close on Tuesday, as gains in the financials, communication services and technology sectors led shares higher. At the close of the NYSE, the DJIA rose 0.92% while the S&P 500 index gained 1.05%, and the NASDAQ Composite index advanced 1.25%. Advancing stocks outnumbered falling ones on the NYSE by 1,913 to 1,380 and 140 ended unchanged; on the Nasdaq Stock Exchange, 2,604 advanced and 1,831 declined, while 229 ended unchanged. (Source: WSJ, CNBC)

During the last trading session, the FSSTI index slid 21.53pt to 3,068.12. Among the top active stocks were Sembcorp Marine (-1.2%), Thai Beverage (+0.8%), ComfortDelGro (- 0.7%), Thomson Medical (+4.9%) and Rex International (+2.3%). The FTSE ST Mid Cap index was down 0.4% while the FTSE ST Small Cap Index fell 0.8%. The broader market saw 206 gainers and 271 losers with a total trading value of S$1.32b.

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Singapore Company Update:

Propnex – Property market remains robust; upgrade to BUY.
(PROP SP/BUY/S$1.69/Target: S$1.97)

With a 14% retracement in Propnex’s share price since its 1H21 results, we believe the company’s fundamentals, valuation multiples and net cash position now warrant a more bullish stance. The Singapore property market remains robust and we believe the company’s 3Q21business update will be a strong one. In the next 6-12 months, earnings surprises could come from successful en- bloc projects. Upgrade to BUY. Target price: S$1.97 (previously $2.09)…

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HK/ China Economy Update:

Kingboard Laminates – Orders picking up, but outlook visibility remains low.
(1888 HK/BUY/HK$12.74/Target: HK$19.00)

KBL’s new orders have picked up since August, and capacity utilisation remains full throughout Sep-Oct. However, the current weak end-demand in China is likely an indicator of its weak sales during the low months of Jun-Jul, while the chip shortage and weak property market will continue to add uncertainty to KBL’s business outlook throughout 2H21. We cut 2021-22 earnings by 6.0%/5.5% to reflect the weaker-than-expected demand, and cut target price to HK$19.00. Maintain BUY…

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Singapore Technical Analysis:

DBS Group Holdings (DBS SP) – Trading BUY

Price is supported by both the conversion and base lines. There is a bullish conversion and base line crossover that hints at potential upside ahead…

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Genting Singapore (GENS SP) – Trading BUY

Price could be forming a potential double bottom chart pattern. There is divergence warning given from the MACD histogram that hints at a possible low…