We continue to see the risk of an STI pullback off the 3100 resistance back to 3000 followed by 2930 even as it looks set to test the 3100 level with the Wall Street rally on Friday. However, if the STI is able to muster strength above the 3100 mark, the climb can continue till the next resistance point at 3200.

F&N's Board has accepted Heineken's S$50/ APB share offer. Coupled with the sale of F&N's interests in non-APB assets held by Asia Pacific Investment Private Limited (S$163m), the total consideration amounts to S$5.23bn for FNN; we believe a significant portion will be returned to shareholders. Media reports indicate that Kirin and Coca-Cola have expressed interest for FNN's non-beer F&B assets, but we see challenges and believe that sale will not be straight forward.

RNAV raised, but downgrade to HOLD on 6% upside to TP of S$ 8.68 (Prev S$ 7.70). In the immediate term, we may see some weakness on the counter arising from profit taking, disappointment arising from market expectations of a higher offer from Heineken, uncertainty arising from the outcome of shareholders' vote, and earnings volatility ex-breweries contribution.

2Q results for SembCorp Industries were a shade below ours but better than consensus. Utilities partially offsets shortfall in other divisions. High electricity margin in Singapore, full commercial contribution from Salalah underpin stellar Utilities. SCI has raised guidance for Utilities outlook and now sees growth despite maintenance shutdown in Singapore. Our analyst has cut FY12F and FY13F by 4% and 1% respectively to reflect weaker than expected contribution from Marine and Urban Development. Maintain Buy, TP: S$5.90 (Prev S$ 6.00).

CH Offshore'sFY12 in line; final and special DPS of 4.0 Scts declared. Outlook improving, but recent conclusion of two high value charters could pose earnings risk. Maintain HOLD for attractive yield (~11.7%) and undemanding valuations; TP S$0.44.Its balance sheet remains robust with net cash per share of 10.9 US cts, forming 34% of its market cap.

ChinaVision Media Group is expected to record a profit for 1H12 as compared with a loss for 1H11, primarily attributable to significant improvement in the financial performance of the Group's media related businesses resulted from, in particular, the substantial increase in the turnover and gross profit from the television and film business and gain from the disposal of an associate and an intangible asset.

China Haida's 1H12 net financial results are expected to be affected due to lower sales and in particular, lower gross profit margin attributed to the lower selling prices of aluminium panels in the highly competitive markets.

China Great Land Holdings is expected to record a significant loss for HY2012 as a result of: (a) continued slowdown in Hainan construction market in the first year of 2012, leading to low margins for the Group's products and construction contracts; (b) persistently high costs of production, attributed mainly to high fuel costs, raw material prices and increasing of direct labour costs; and (c) high cost of financing.

EMS Energyexpects to report a loss for 1H2012 as a result of lower sales revenue, increase in logistics costs, costs incurred on extra work sites and subcontractor costs due to limitations of its space at its EMS Energy Solutions business segment resulting in lower overall gross profits.

Sinotel Technologiesis expected to record a net loss for 2Q12 and the net profit for 1H12 is expected to be substantially lower than that of the corresponding period last year. This is mainly due to the increase in the subcontractor costs and the costs incurred in facilitating the initial certification of the completion for the projects.

Global air traffic demand continued to slow amid weakness in business and consumer confidence. The latest data released by the International Air Transport Association (Iata) shows that demand for air travel in June expanded by 6.2% y-o-y. Capacity grew by a much more cautious 4.5%, leaving load factors at 81%. Iata added that while this appears to be a healthy growth rate, the growth trend since early 2012 has seen a slowdown.

China's non-manufacturing industries expanded at a slower pace in July as new orders and outlooks for future business slipped. The Purchasing Managers' Index (PMI) fell to 55.6 from 56.7 in June. The report showed the slowdown in China's exports and industrial production may be spreading to services, which would add pressure on Premier Wen Jiabao to introduce more measures to stem the slide.

Source: DBSV