Singapore's visitor arrivals in 2013 is expected to continue rising, with the opening of new major attractions like the Marine Life Park, River Safari and the International Cruise Terminal, anchoring Singapore as a regional holiday destination. We expect visitor arrivals to grow 7.7% to15.3m in 2013 vs the expected 14.2m visitors in 2012. However, the operating environment is expected to remain competitive, with 4,028 new rooms coming onstream. We expect hoteliers to focus on maintaining occupancies and see limited opportunities in raising average daily rates (ADRs). We expect the industry to record a 3% y-o-y growth in Revenue per Available Room (RevPAR) (vs 5% before) in 2013. In terms of stock pick, Far East Hospitality (TP: S$1.09) is our pick given its superior earnings profile.

Gallant Ventureis acquiring a 52.35% stake in PT Indomobil Sukses Internasional Tbk (IMAS), a company listed on the Indonesia Stock Exchange with a market capitalisation of approximately S$1.8 bn, for about US$809.3m. Gallant is proposing a renounceable non-underwritten rights issue of 2,412.5m new shares at an issue price of S$0.280 per Rights Share, on the basis of one (1) Rights Share for every one (1) existing Share, to raise proceeds of approximately S$675.5m. The rest of the purchase consideration will be funded through debt - S$80.0m Convertible Bonds, S$104.7m non-convertible bonds and S$128.2m from borrowings from financial institution(s). IMAS and its subsidiaries are an integrated automotive business group and is one of the two largest automotive groups in Indonesia.

Global Logistic Properties has recently signed new leasing agreements totaling approximately 44,000 sqm in Eastern China. These new leases, at three separate parks, demonstrate the continuing strong demand for GLP's modern logistics facilities.

Boustead Singaporehas been awarded a S$23m contract to build Oxley's 20-storey commercial development at Robinson Road. The latest contract has raised the Group's order book backlog to S$335m.

Elektromotive is proposing to sell its 55% stake in UK subsidiary for S$10.8m cash to Chargemaster Plc. The proceeds will be mainly used to fund the recharging business opportunities in fast-growing Asian markets.

Global airlines are expected to turn in a cumulative profit of US$6.7bn, up from the US$4.1bn forecast in October, thanks to strong airline performance in the second and third quarters. This figure is expected to rise to US$8.4bn in 2013, topping the US$7.5bn projected in October. International Air Transport Association (Iata) said overall performance had been helped by strong passenger traffic growth of 5.3% and a 3% improvement in yields. Iata also noted that industry net post-tax margin will nevertheless remain weak at one per cent in 2012 and 1.3% next year.

In the biggest CBD office leasing deal so far this year, German financial services provider Allianz Group is leasing around 90,000 sq ft at Asia Square Tower 2. The space is on levels 13, 14 and 15 of the 46-storey building, but it is possible that Allianz may also take up the 12th floor, which would expand its footprint in the building to 120,000 sq ft.

A 99-year leasehold executive condominium (EC) site at the junction of Sembawang Crescent and Sembawang Drive has received a top bid of $211.9m, or $323.76 psf ppr. The top bid came from boutique property developer JBE Holdings, which beat seven other bidders. The second highest bid came from Frasers Centrepoint unit and Hytech Builders; it was for $210.1m, or $321.00 psf ppr.

US stocks fell as uncertainty over the fiscal policy offset encouraging data on retail sales and jobless claims, and moves by global central banks to extend an existing policy that makes it cheaper for banks to borrow US dollars. Initial jobless claims fell more than expected during the latest week, while retail sales bounced back in November. Producer prices fell 0.8% last month. The Fed, along with four other central banks, extended an existing policy that makes it cheaper for banks around the world to borrow US dollars through February 2014. Previously, the policy was set to expire in February 2013.

Source: DBSV