US markets paused for a breather following last week's rally in reaction to the FED's QE3 announcement. News that EU finance ministers failed to agree on a timetable for a more unified banking sector as well as over the terms of bailout requests were reason for the markets to pause. The STI re-tested mid-Aug high of 3088 yesterday. The current minor pullback can test 3060 before resuming its rise. This is in line with our view that the STI could stutter near the 3100 immediate resistance but pullback should find support at 3035-70 before resuming its rise towards 3200.

Hutchison Port Holdings Trust reported positive August operating statistics. Yantian Port's August throughput grew by a healthy 11.7% y-o-y, which could be partly driven by the typhoon diverting vessels to call at its terminals (volumes at all HK ports fell 4.4% y-o-y in Aug) and also potentially it is gaining market share from Western Shenzhen ports (where volumes grew only 3.7% y-o-y), as larger container vessels are being utilised, which prefer to call at Yantian given its wider access channels. YTD, Yantian's throughput growth stands at 3.2% y-o-y, whilst another of its port, COSCO-HIT's is at 5.6%. Maintain BUY for HPH Trust, TP US$0.85. Yield is attractive at c. 9%.

August primary home sales (incl ECs) dipped 26% m-o-m to 1,539 units. Excluding ECs, the decline was slightly higher 27% m-o-m to 1,421 units. The drop was expected because of the Hungry Ghost Month which also saw slower pace of launches. This brings 8-mth 2012 sales to 15,604 units (ex ECs). The bulk of sales were concentrated in the Outside Central Region with 62% of transactions while the Core Central Region generated another 14% of sales. Looking ahead, with transaction volumes remaining robust amid a low interest rate environment and with the onset of QE3, we expect the government to remain watchful of the market.

Hence, we believe this overhang could dampen market sentiment for property stocks despite investors taking a more risk-on stance. We continue to like stocks with diversified business models or have strong market niches such as Capitaland (TP $3.42) and CapitaMall Asia (TP $2.08).

SIA reported August operating statistics that were mixed. Passenger carriage for the month grew by an encouraging 8.7% y-o-y, on a 6.4% y-o-y increase in capacity, with load factor improving 1.7ppt to 78.3%. Cargo carriage fell 4.3% y-o-y on 1.6% decline in capacity, with load factor declining 1.7ppt to 60.6%. For the first five months of SIA's FYE Mar '13, passenger carriage is up by 8.1% with load factor improving 2.3ppt to 79.4%, whilst cargo carriage is down 4.8% y-o-y with a 1.9ppt slide in load factor. Whilst the passenger carriage growth is encouraging, this was achieved partly through promotional activities, which would put pressure on yields. Meanwhile, cargo continues to operate at a loss. This is in line with our view that whilst SIA will not be losing money, its profitability will continue to be dampened. Maintain HOLD, TP S$10. (0.9x P/B).

Goodpackannounced that Mr David Lam will step down as Managing Director effective from 17 Sep12. He will however remain as the group's Executive Chairman focusing more on strategic aspects of the group's business. Mr Michael Liew Yew Pin who has been Goodpack's Executive Director since 1997 will be appointed as Managing Director. Despite a change in Managing Director we expect no change to Goodpack's strategy as :-

(1) Mr Liew has been integral to Goodpack's success over the last few years in particular the expansion into the synthetic rubber and automotive parts segments

(2) Mr Lam remains involved with the business. While we remain positive on Goodpack over the long term, given the recent share price run up and only 8% upside to our to S$2.00, we recommend investors wait for a better entry point.

Grand Banks Yachts, which has been on SGX's watch-list since Dec 5 last year, is placing 19.2m new shares, which will constitute 16.67% of Grand Banks' post-placement enlarged, capital of 115.3m shares, to two parties, including a trust linked to Genting Group's Lim Kok Thay, at 27.25 cents apiece to raise $5.2m in net proceeds. The price is a 9.98% discount to the volume-weighted average price. Half of the net proceeds from the placement will be utilised for new product development, such as the construction of new yacht moulds, and the other half on enhancing existing manufacturing facilities in Pasir Gudang, Malaysia, opening new retail stores, expanding its distribution network and increasing its inventory of new yachts.

Sing Investments & Finance is proposing a renounceable non-underwritten rights issue of up to 52.5m new shares at an issue price of S$1.20 for each Rights Share, on the basis of one (1) Rights Share for every two (2) existing shares held. The issue price represents a discount of approximately 22.6% to the last closing price. The net proceeds from the Rights Issue of approximately S$62.8m will be used for expansion of business and general working capital purposes.

Scintronix Corporation is placing 814.4m new shares at S$0.0135 per share. The issue price is at a 35.7% discount to the volume weighted average. The placement shares represent 114.16% of the existing issued share capital.

In property news, Green Lodge at Toh Tuck Road has been sold for $191.888m, or $907 psf ppr, the largest freehold residential collective sale so far this year. Green Lodge, located off Jalan Jurong Kechil in Upper Bukit Timah vicinity, has a land area of 151,075 sq ft. The site can be developed into a five-storey condominium at 1.4 plot ratio.

Source: DBSV