STI: +0.70% to 3188.8                        KLCI: +0.27% to 1787.2
JCI: +1.63% to 4371.9                        SET: +0.91% to 1417.6
HSI: +0.82% to 22649                        HSCEI: +1.11% to 10391
Nifty: +1.13% to 6057.2                      ASX200: +0.68% to 5355.4
Nikkei: +2.12% to 14876                    S&P500: +0.48% to 1790.6


MARKET OUTLOOK:
By Joshua Tan, Head of Research

Regional Market Focus

Singapore

• The benchmark STI closed 24.34 points higher at 3.191.08 (+0.77%). The 2.0bn shares traded were worth S$1.0bn in value.
• The FTSE ST Mid Cap Index gained +0.34% while the FTSE ST Small Cap Index gained +0.23%. The top active stocks were DBS (+0.83%), Hutchison Port Holdings Trust (-2.84%), Wilmar (+2.31%), SingTel (+0.80%) and OCBC (+0.96%).
• We peg key near term support at 3,100 levels.
• Top Picks are DBS (Accumulate, TP: S$17.50), SingTel (Accumulate, TP: S$4.06) and Keppel Corp (Accumulate, TP: S$12.07). Deep Value Plays are Amara (Buy, TP: S$0.74), and Boustead (Buy, TP: S$2.05).

Thailand

• Thai stocks traded in the green throughout the session on Thu on positive external factors after Janet Yellen said QE would be tapered if the US economic data is stronger.  
• In our view, there is scope for further gains in the SET index today after comments from Janet Yellen, the US Federal Reserve Chair nominee suggested the US central bank’s accommodative policies would continue as it would be the best way to get the economy back to normal. QE speculation may likely return.
• Domestic political worries may periodically put pressure on sentiment. Today, former Democrat MP Suthep Thaugsuban has called for a major rally in a bid to escalate protests while the opposition Democrat Party plans to file censure motion against the government between Nov 22 and 24. Foreign selling spree also continued in the Thai stock market. In our view, risk-aversion selling on rise may put a cap on the market’s upside potential. Under this circumstance, ‘sell the rallies and buy the dips’ strategy remains appropriate. Today we expect a trading range of 1400-1430 points for the SET index.
• Today we peg resistance for the SET index at 1420-1430 points and support at 1400-1380 points.

• Indonesian stocks closed mostly higher on Thursday (14/11), after data showed narrowing current account deficit in the third quarter, and as fresh hopes that the US Federal Reserve would maintain its easy monetary policy lifted sentiments in Asia. The Jakarta Composite Index (JCI) advanced 65.480 points, or 1.52%, to 4,367.371.  All major stock sectors finished in green Thursday, led by finance sector with 2.57%-climb, construction sector with 2.43%-gain, and agriculture sector with 1.66%. The LQ45 index added 14.104 points, or 1.97%, to close at 728.902. Indonesia’s current account deficit in the third quarter eased to USD 8.4 billion, or 3.8% of GDP, from USD 9.85 billion or 4.4% of GDP in the previous quarter. Elsewhere in Asia, weakness in the US dollar helped stock indexes to close higher on Thursday, after Federal Reserve chair nominee Janet Yellen released remarks suggesting the central bank should continue supporting the US economy with stimulus. 190 shares advanced, and 69 shares declined Thursday on the Indonesia Stock Exchange, where 3.61 billion shares worth IDR 4.22 trillion traded on the regular board. Foreign investors posted net sale of IDR 139.72 billion.
• The Jakarta Composite Index (JCI) will likely to continue the upward move today, after remarks from the US Federal Reserve chairman nominee Janet Yellen that confirmed market expectations of continued stimulus. We expect the JCI to move higher today, with support and resistance at 4,298 and 4,418, respectively.

• The Bourse gains further. The Colombo bourse ended the trading day on a positive note, adding further to the gains recorded during the previous trading day.  The ASPI extended gains for the second consecutive trading and settled the day at 5,829.05 with a gain of 13.01 points or 0.22%. The S&P SL20 gained 7.68 points or 0.24% to settle at 3,185.96, breaking its streak of losses seen for the past 9 trading days where the index lost nearly 104 points or 3.20%. A total of 92 companies gained during the day whereas 75 companies posted drops in share prices. As at the daily closure, the total market capitalization as at the day’s closure moved up to LKR 2.42Tn, extending the year to date gain to 11.87%. The market PER and PBV were 15.43x & 2.03x respectively. The turnover for the day amounted to record LKR 525.71Mn, indicating a drop of 26.00% from its previously recorded. Under the sectorial round-up, Telecommunications (TLE) sector topped the list providing LKR 136.57Mn and Investment Trusts (INV) sector stood next in line providing LKR 123.29Mn to the daily aggregate turnover.  A total of 37.11Mn shares changed hands during the day resulting in a gain of 62.02% compared to the previous trading day. Foreign participants appeared to be bullish during the day resulting in a net foreign inflow of LKR 36.59Mn, resulted by foreign buying of LKR 186.43Mn and selling of LKR 149.85Mn. This assisted the year to date net foreign inflow to reach LKR 22.58Bn. Looking at the local FOREX markets, the USD is selling at 132.72/- and is buying at LKR 129.46/-.

• The Australian share market on Thursday closed higher due to indications economic stimulus in the US is likely to run into next year. The benchmark S&P/ASX200 index added 36.2 points, or 0.68 per cent, to 5,355.4.
• Today (15/11/13), the Australian market looks set to open flat after international markets rose amid optimism prospective Federal Reserve chief Janet Yellen will continue economic stimulus measures.
• In economic news on Friday, the Reserve Bank of Australia holds its Payments System board meeting.
• In equities news, Lend Lease Group, MacMahon Holdings, Automotive Holdings and Perseus Mining have annual general meetings scheduled.

• HSI climbed 185 points or 0.82% to 22,649. CEI gained 114 points or 1.11% to 10,391. Trading volume was HKD54.2 billion.
• HK market was firmer after Dow Jones and S&P 500 reached historical high. Tencent (700.HK) gained 4.6% after third quarter results and led HSI up.
• Pharmaceutical sector out-performed with Sino Biopharm (1177.HK), CSPC Pharma (1093.HK) and Fosun Pharma (2196.HK) up 2.9-5%.
• China Auto sector out-performed. GAC Group (2238.HK), Power Xinchen (1148.HK) and Brilliance China (1114.HK) gained 6.1%, 5.6% and 3.2% respectively.
• CEC Int’l Hold (759.HK) climbed 15.3% to reach historical high. Esprit Holdings (330.HK) gained 3.7% to year-high.
• Utility sector under-performed with CLP Holdings (2.HK) and Power Assets (6.HK) lost 0.7% and 0.6% respectively.
• Technically, the next resistance and support for HSI are 22,978 and 22,230 respectively.

Morning Note
Company Highlights

Cosco Corporation Ltd announced that shipyards, which are subsidiaries of the Company’s 51% owned subsidiary COSCO Shipyard Group Ltd, have secured contracts totaling over USD380 million to build two jackup drilling rigs and one bulk carrier as follow: 1) COSCO (Dalian) Shipyard Co. Ltd Contracts from a Bermuda company for two LeTourneau Super 116E jackup drilling rigs, scheduled for delivery in 1H2016 and 2H2016 respectively. The buyer has also secured options for two additional jackup drilling rigs. 2) COSCO (Zhoushan) Shipyard Co. Ltd The contract under the first option, cited in our announcement dated 12 Sept 2013, to build one dry bulk carrier of 64,000dwt for a European buyer has been rendered effective. The bulk carrier is scheduled for delivery in 2H2014. (Closing Price S$0.710, -)

Global Logistic Properties Limited announced that it has launched CLF Fund I, L.P. (the “Fund”), a platform focused on the development of modern logistics facilities in China. At the inception of the Fund, properties owned by the Company that satisfy the Fund’s investment and diversification criteria will be injected into the Fund as the seed portfolio (the “Seed Portfolio”). The consideration for the sale to the Fund of the undeveloped land or pre-stabilized buildings within the Seed Portfolio is the sum of approximately US$350 million, which is the lower of (i) the fair market value of the Seed Portfolio as determined by a third party appraisal, and (ii) the Company’s equity cost basis for the Seed Portfolio plus a cost of carry thereon equivalent to a 10% annual rate of return, as calculated on the earlier of 3 December 2013 or the completion date of the sale to the Fund. The final consideration will be determined upon the completion of the transfer of the Seed Portfolio. (Closing Price S$3.000, 2.7%)

SingHaiyi Group Ltd. announced that it has been included in the listing of the MSCI Singapore Small Cap Index. SingHaiyi is among the 13 companies added to the MSCI Singapore Small Cap Index, following an announcement on the November 2013 Semi-Annual Index Review for the MSCI Equity Indices, made on 7 November 2013. (Closing Price S$0.023, 4.5%)

Oxley Holdings Limited announced that the Group’s wholly-owned subsidiary, Oxley Rising Sdn. Bhd. (the “Purchaser”), had on 14 November 2013 entered into a sale and purchase agreement for the acquisition of all that parcel of freehold land held under Grant No. 27706, Lot 99, Section 0058, Mukim Bandar Kuala Lumpur, Daerah Kuala Lumpur, at the purchase price of RM446,670,000, from the executors of the estate of Leong Mai Leng. (Closing Price S$0.475, 9.2%)

Source: PhillipCapital Research - 15 Nov 2013