DBSV Research is initiating coverage on Mapletree Greater China Commercial Trust (MGCCT) with a BUY recommendation and target price of S$ 1.18. MGCCT offers investors an attractive opportunity to own iconic, best-of-breed commercial assets - Festival Walk and Gateway Plaza. MGCCT also offers attractive yields of 5.1% and 5.7% in FY14F and FY15F respectively, and a total return of 17% derived from strong and resilient operating cashflow with inbuilt earnings growth drivers which will underpin earnings and NAV expansion.

Far East Hospitality Trust (FEHT) is proposing a value accretive acquisition of the 298-room Hotel Rendezvous Grand Singapore Hotel and Rendezvous Gallery, its accompanying retail wing. The combined acquisition price is S$264.5m (all in cost of S$268m) for a 70-year leasehold interest in the property and represents a c2-5% discount to the appraised valuation by independent valuers. FEHT will issue new equity (S$136m or 51% of total acquisition price) to the vendor, Straits Trading Company Limited (STC) and Far East Organization (FEO) to part fund the purchase, which will result in its gearing level remaining fairly stable at c32%, which we believe to be a sustainable structure going forward. Our DPU estimates are raised by c1-2% to account for this acquisition. TP is raised to S$1.21 (Prev S$ 1.13), offering a total return of 11%. Maintain BUY.

Singapore Exchange'ssecurities revenues in 3Q13 recovered, inline with improved trading values. Derivatives overshot estimates with record-high trading volumes and open interest positions. 4 Scts base DPS was declared as usual. Maintain HOLD, TP S$7.15.

Keppel Land and China Vanke Co will undertake a condominium development in Tanah Merah as part of a strategic partnership that will see both companies jointly develop properties in Singapore and China. The 3.2 hectare site in Tanah Merah, which will yield 726 condominium units, was awarded to Keppel Land's Sherwood Development for $434.6m in October last year. The project is expected to be launched in the second half of this year.

Singapore's Land Transport Authority (LTA) will embark on a one-year trial starting from 24 Jun 13 to provide free travel on the rail network for commuters who end their journey before 7.45am on weekdays at 16 designated MRT stations in the city area. In addition, commuters who exit these 16 stations between 7.45am to 8am will be given a discount of up to 50 cents off their train fare. The government will be funding this trial. No immediate impact on SMRT and ComfortDelgro. Maintain FULLY VALUED on SMRT on operational challenges; BUY ComfortDelgro for geographical exposure.

Singapore's non-oil domestic exports (NODX)) fell 4.8% y-o-y in March, though the decline has eased from a 30.6% fall in February. But growth momentum may be picking up as the NODX in March rose a seasonally-adjusted 8.0% from a month ago. The year-on-year fall last month was due to the contraction in electronic NODX which outweighed the increase in non-electronic NODX. Electronic NODX tumbled 17.9% from a year ago, after a 27.4% drop in February. Non electronic NODX edged up 2.3% last month after plunging 32.1% in February. Domestic shipments to all top 10 markets decreased in March, except for Japan and China. The top three contributors to the NODX were the European Union, Malaysia and the United States.

Moody's Investors Service lowered its outlook for China's credit rating to stable from positive, saying the nation has made less progress than anticipated in reducing risks from local government debt and credit expansion.

Better-than-expected corporate earnings by bellwethers Coca Cola and Johnson & Johnson as well as March housing starts (actual 1036k, consensus 930k) and industrial production (actual 0.4%, consensus 0.2%) led to a triple digit rebound in the Dow after Monday's sell-off. A rebound in gold and commodities prices also eased immediate worries about more speculative selling. Market watchers questioned the impact of Cyprus selling its gold reserves as the country owns just a tiny percentage of the global gold holdings.

Source: DBSV