MARKET NEWS

US stocks were higher after the close on Tuesday, as gains in the health, utilities and energy sectors led shares higher. At the close of the NYSE, the DJIA rose 0.56% while the S&P 500 index gained 0.74%, and the NASDAQ Composite index advanced 0.71%.
Advancing stocks outnumbered falling ones on the NYSE by 1,873 to 1,404 and 157 ended unchanged; on the Nasdaq Stock Exchange, 2,803 advanced and 1,648 declined, while 247 ended unchanged. (Source: WSJ, CNBC)

During the last trading session, the FSSTI index gained 25.19pt to 3,199.01. Among the top active stocks were Yangzijiang Shipbuilding (-0.7%), ComfortDelGro (-1.3%), Genting Singapore (+0.6%), Jiutian Chemical (-2.2%) and Rex International (+7.7%). The FTSE ST Mid Cap index was up 0.1% while the FTSE ST Small Cap Index rose 0.3%. The broader market saw 286 gainers and 216 losers with total trading value of S$1.25b.

Ascendas REIT – 3Q21: Outlook brightens, redevelopment opportunities beckon.
(AREIT SP/BUY/S$3.01/Target: S$3.83)

AREIT provided a positive business update for 3Q21 as outlook brightens. It achieved positive rental reversion of 3.7% driven by Singapore and the US. Occupancies for Singapore and Australia edged higher by 0.6ppt and 1.7ppt qoq respectively to 88.5% and 97.5%. Having completed the development of Grab HQ, AREIT could move on to redevelop TÜV SÜD PSB Building at Science Park I. AREIT provides resilient 2022 distribution yield of 5.5%. Maintain BUY. Target price: S$3.83…

Sembcorp Industries – 1QFY22: Towards a brighter and greener future.
(SCI SP/BUY/S$1.96/Target: S$2.59)

SCI presented at our Asian GEMS conference and highlighted its medium-tolong term plan to transition towards being a greener and more sustainable business. Near-term issues such as India’s power crisis and maintenance shutdowns at some power assets appear to be well understood by the market. Maintain BUY. Target price: S$2.59…

Property – Marginal easing from policy fine-tuning; headwinds persist.

Sep 21 property FAI further slowed to 8.8% yoy. Property sales remained subdued during traditional peak season, Sep 21 sales value/area were 16%/13% lower yoy. More marginal easing from lower tier cities are expected while relaxation of loan restrictions could help in containing the sector’s default risk. Potential introduction of property tax could again derail the market sentiment. We prefer property management companies over developers. Maintain UNDERWEIGHT…

AEM Holdings (AEM SP) – Trading BUY

Price broke and closed above the cloud on 15 Oct. It managed to stay above the cloud since then, keeping the bullish trend intact…

China Aviation Oil (CAO SP) – Trading BUY

Price managed to stay above the cloud, keeping the bullish trend intact. There is a bullish conversion and base line crossover that hints at potential upside ahead…