Tiger Airwaysreported 1QFYMar14 operating loss of S$6.2m, lower than our expectations of a small profit. Yield erosion in Singapore led to disappointing operating results. FY14/15F earnings cut by 32%/22% to reflect higher losses from associates. The group should report stronger operating profits hereon, with Tigerair Australia moving to the associate line from 2Q14, and Tigerair Singapore expanding its fleet by almost 25% in FY14. We still remain positive on Tigerair's ongoing transformation, and its niche focus on the booming Singapore-Indonesia routes should bear fruit. Maintain BUY with lower TP of S$0.74 (Prev S$ 0.79).

SIA Engineeringreported 1QFYMar14 net profit of S$69m, largely in line. Weaker core operating margins were offset by stronger contributions from JV/ associates. Near term outlook is steady but unexciting. Maintain HOLD while revising our TP higher to S$5.10 (Prev S$ 4.80), as we benchmark valuations to listed peers.

Ascendas India Trust's 1Q14 performance was stable, with revenue coming in flat at INR1,392m. Available distribution per unit (DPU) of 1.27 cents for 1Q14 was down 5% compared to the 1.33 cents posted a year ago. A-iTrust remains operationally robust as India continues to be an important hub for IT services. But the weakening INR means that the strong growth in income has not been translated into a stronger DPU growth in SGD. Given that acquisitions in its current pipeline are more a medium term event, we maintain HOLD, with TP unchanged at S$0.82. 

2Q13 result for Raffles Medical in line, net profit up 16% y-oy. A 1 Sct interim DPS was declared; group remains in healthy net cash position. Its plan to divest Thong Sia Building is underway. Maintain HOLD, TP is intact at S$3.15.

Courts Asia has entered into a Memorandum of Understanding (MOU) with Sinar Mas Land, the property development part of the Indonesian Conglomerate, Sinar Mas Group, to build two "Big-Box" outlets in Indonesia. One includes the previously announced 140,000 sq ft Bekasi store located in eastern Jakarta. The second development will be located at BSD City, Serpong, Tangerang, 25km S-W of Jakarta. The BSD City site will have 130,000 sq ft of retail space, a regional distribution centre and a support office. This is expected to open six months after the Bekasi store opens. The first development in Bekasi Indonesia is expected to start contributing to earnings in 2014. We have factored in modest contribution in FY15F. We expect minimal contribution the BSD City store in FY15F since it will open later than the Bekasi store. Maintain BUY, TP S$1.13.

Global Logistic Properties has signed a new lease agreement of approximately 13,000 sqm in Fukuoka, Japan. This lease is the first signed between GLP and CL Co, an expanding third-party logistics company dealing with consumer and pharmaceutical products.

F J Benjamin Holdingshas signed 10-year exclusive distribution agreements for the British Label "Superdry" for Singapore and Malaysia with UK-based SuperGroup. FJ Benjamin will open 3 stores in Kuala Lumpur, Malaysia by early 2014. The group is looking for appropriate locations for Singapore.

Manufacturing Integration Technology is expected to incur a net loss for the six months ended 30 June 2013. The net loss is mainly caused by the current weak market for the semiconductor equipment worldwide.  A growing number of economists surveyed by Bloomberg say the FED will begin trimming its USD85bil in monthly bond purchases in September. That was the view of half of those who participated in the July 18-22 survey, up from 44% in last month's poll. Even as expectations of a September taper rose, 10-year Treasury yields continued to fall last week from an almost 2-year high after Fed Chairman Ben S. Bernanke said reducing bond-buying wouldn't constitute policy-tightening. In its first trim, the FOMC will probably cut monthly bond buying to USD65bil. The economists see purchases divided between USD$35bil in Treasuries and USD30bil in mortgage backed securities, this according to the median estimate of economists. The central bank will probably halt the asset purchases in 2Q 2014, according to half of the economists. 20% forecast the FOMC will end so-called quantitative easing in the third quarter of 2014. 

We think market rationality has returned with regards to QE tapering. Investors understand that its timing and pace is not cast in stone but depends on the unemployment and inflation numbers while keeping a watchful eye on housing. 

US markets were marginally firmer on June weak-thanexpected existing home sales (actual 5.08mil, consensus 5.26mil) and McDonald's Corp disappointed on revenue. The 10-yr Treasury yield was flat at 2.48%.

Source: DBSV