May has been a down month for the STI in the past 3 years. But we see only a 33% chance for a repeat this year. The common cause of the May decline in the past 3 years had been the fear of the Eurozone break-up. One good reason we think May can hold up this year is that through the OMT, the ECB has effectively snuffed out the opportunity for speculators to create havoc and fear in financial markets by driving up bond yields. Liquidity from QE and Yen carry trades can also underpin equities even as the already tepid global recovery looks to slow further. Unless the upcoming economic data from major economies continue to tumble down the cliff, this May looks to be different.

1Q13 DPU of 2.46 Scts for Capitamall Trust was 7% higher y-o-y. Steady organic growth profile and strategic enhancement programs are expected to create value. Maintain HOLD, TP raised to S$2.36 (Prev S$ 2.15) to account for additional capex and our reversionary estimates for its various malls. Distribution yield for FY13F to FY14F is about 4.5% to 5.0%.

CapitaCommercial Trust's 1Q13 topline of S$96m was up 10% y-o-y, on growth from rental renewal upside and 20 Anson contributions. We expect earnings to trough this year. CCT would continue to benefit from positive reversions for its renewal leases as well as value add created from its AEI at 6 Battery Rd and Raffles City. Low gearing and strong balance sheet gives room for inorganic growth potential. Maintain HOLD, TP raised slightly to S$1.72 (Prev S$ 1.53), on lower beta assumption of 0.82x, given the relatively long WALE of leases. At the current price, the stock offers FY13/FY14F yields of 4.7-4.9%.

1Q13 results for CapitaRetail China Trust in line. Gross revenue and net property income (NPI), in Rmb terms grew 6.6% and 4.6% respectively to Rmb200.7m and Rmb132m, on positive rental reversions on higher tenant sales and shopper traffic. The income vacuum from MZLY due to AEI is expected to be offset by rental expansion from other malls. Maintain HOLD, TPS$1.78 (Prev S$ 1.77). The trust is currently trading at 1.4xP/BV and 5.3-5.6% FY13/14F yields.

Keppel Corp is seeking a seabed-minerals exploration license in partnership with a unit of Lockheed Martin Corp and private-investment firm Lion City Capital Partners. Their joint venture, Ocean Mineral Singapore where Keppel Corp has a 78.1% stake, intends to explore for copper, nickel, cobalt, manganese and rare earth minerals several kilometers beneath the ocean surface. The application will be considered in July. The project is still in preliminary stage. Even if successful, commercial production may only come in a few years later.

Sembcorp Industrieswill be developing a new energy-from-waste facility in Teesside, the UK, which will be the Group's first energy-from-waste facility outside Singapore. The new energy-from-waste facility will be capable of producing up to 49 megawatts of gross power or 190 tonnes per hour of steam, using municipal and commercial waste. The waste supply is secured under a 30-year contract.

Noble Group plans to issue bonds in Thai baht denomination. The proceeds will go toward refinancing and meeting general corporate needs.

China Bearing is proposing to place up to 46m new shares at the placement price of S$0.0297 each. The placement price represents a discount of 10% to the last weighted average price. The estimated net proceed of about S$1.3m will be utilised for its working capital requirements.

TEE Internationalannounced that its wholly-owned subsidiary and the investment holding company for its real estate businesses, TEE Land, has obtained a letter of eligibility-to-list on the SGX.

Source: DBSV