Ben Bernanke's bazooka is better than thought. The FED will purchase USD40bil of mortgage backed securities every month until unemployment improves and growth returns. This is a more aggressive move than what investors had expected. Risk-on trades and cyclical stocks benefits. Interest among commodities and O&M names that we have mentioned in recent weeks such as Ausgroup, Nam Cheong, Kreuz, STX OSV and Noble Group, should sustain. The same for fixed asset investment (FAI) plays such as Pan-United for building materials and Midas for China railway construction.

For the STI, the positive central banks actions in September mean that the pullback from 3090 in early August has likely ended at the early Sept low at 2980. Immediate support is at 3030. STI should gradually work itself higher towards 3200 in 4Q. In the immediate term, the two STI level to look at are 3050 and 3075. As risk-on trade returns, STI may underperform region indices because the STI had rode on the resilience and yield theme in recent months amid the uncertainties. Even so, opportunities can be found among the cyclical stocks here.

DBSV Research is issuing an Equity Explorer report on Global Premium Hotel with a fair value of S$ 0.29, based on 20% discount to RNAV. Global Premium Hotels is a household name in the Economy hotel space, operating one of Singapore's largest economy /mid-tier hotel chains under the 'Fragrance' brand and one hotel under the 'Parc Sovereign' brand with a total room count of 1,738 as at 20th Jun'12. It has a resilient operating model with portfolio expansion from the development of a new 265-room hotel. Better than expected performance from its hotel segment in the coming quarters or acquisitions not factored in our forecasts are likely to drive profitability and stock price.

IHH Healthcarewill be a constituent of the Straits Times Index (STI) following the conclusion of the half-yearly review. IHH Healthcare replaces Neptune Orient Lines in the STI. Several changes were made to other indices in the FTSE ST Index Series including the FTSE ST Maritime and FTSE ST Catalist. In the FTSE ST China Top Index, CWTwill replace China Minzhong Food. In addition, new quarterly reviews of the indices, including the STI, will be introduced in June and December to fast-track the inclusion of eligible IPO stocks. The first quarterly IPO review will occur in December 2012. All changes from the latest review are effective from the start of trading on 24 September 2012.

Super Group will delist its Taiwan Depository Receipts (STDRs) which are listed on the Taiwan Stock Exchange due to low liquidity. The number of units of the company's STDRs outstanding and in circulation on the Taiwan Stock Exchange has been less than 10m units for three consecutive months since 14 March 2012.

The Liem family that runs Tuan Sing Holdings could be interested in exiting Gul Technologies, market sources told BT, as shares of Gul shot up 35% yesterday amid speculation of a potential general offer. Gul's major shareholders are Tuan Sing's TS Technologies and the Liems' vehicle, Nuri Pacific, which holds a 42.96% stake.

Office rents in Raffles Place are expected to decline by 12-15% in 2012 and 2013, before returning to growth in 2014. While demand has held up well in Singapore, largely thanks to foreign corporates keen to capitalise on growth in South-east Asia, landlords remain under pressure to reduce rents because of still-cautious demand and rising shadow space, according to a report by DTZ Research. Prime rents in Singapore have dipped 3% since the end of last year, despite being still the third highest, at US$945 per square metre (psm) per annum, based on DTZ's survey of 33 markets in the Asia-Pacific.

Source: DBSV