Maiden numbers for Mapletree Greater China Commercial Trust ahead of forecast by 8.3%, boosted by strong reversions at Festival Walk and Gateway Plaza. Looking ahead, we expect 2H to be better than 1H. There is a remaining 25% of leases at Festival Walk to be recontracted in FY14 and another 5% at Gateway Plaza with an additional 18% and 10% of leases due in FY15. Maintain Buy, TP S$1.09 (Prev S$ 1.22), after adjusting for the latest risk free rates. We continue to like MAGIC for its earnings resilience backed by robust performance at Festival Walk as well as the growth aspects from organic positive rental reversions.

Bharti's 1Q14 net income of Rs.6.89 bn (-10% yoy, +35% qoq) comprised 20% of our full year estimates and 16% of consensus estimates. The main drag came from higher finance charges. Bharti comprised 10% of SingTel's earnings last year. We expect Bharti to register 35% growth in earnings in FY14F after having declined 54% in FY13. We project SingTelto register 6% growth in earnings in FY14F, which faces downside risks from weak AUD. AUD/SGD is down 10% over last six months which may have 2.5% adverse impact on SingTel's earnings if it continues to remain weak.  

Mark-to-market losses dragged Great Eastern Holdings' 2Q13 earnings, as expected. However, underlying operations remain strong. OCBC will release 2Q13 results on 2 Aug; earnings are expected to drop q-o-q on weaker non-interest income. Maintain HOLD rating on OCBC and S$11.50 TP.

Hiap Hoe has acquired a 14.9% stake in Ley Choon Group for $14.5m. Ley Choon is a locally based underground utilities infrastructure service provider. Hiap Hoe acquired the 88.3m shares at $0.1642 apiece, representing a 10% discount from the weighted average price on July 30.

Civmec has recently been awarded a number of new contracts worth in excess of S$$100m, including the Yandicoogina sustaining project for Rio Tinto, the Mungari gold project for La Mancha Resources and the OneSteel Metalcentre distribution facility upgrade for Arrium. As at the end of July 2013 the company order book is approximately S$$190m.

Europtronic Grouphas entered into an agreement to acquire the entire issued and paid-up share capital of Gold Impact for S$160m to be satisfied in full by the allotment and issuance of 320m new shares at S$0.50 each. Gold Impact are principally engaged in the mining, exploration and processing of gold in the Jiangxi Province, the People's Republic of China. In connection with the proposed acquisition, Europtronic is proposing to dispose of its existing businesses for S$13m and to offset the inter-company debts.

China Great Landrecorded a significant loss for HY2013 mainly as a result of continued slowdown in Hainan construction market, the cessation of two production facilities and persistently high costs of production. 

China Bearing is expected to report a loss for 2Q2013 and 6M2013, mainly attributed to decrease in profit margins and decrease in other operating income.

Sinotel Technologiesis expected to record a net loss for 2QFY2013 and 6MFY2013, mainly attributable to (i) the decrease in contribution from outdoor wireless coverage solutions and emergency mobile communications system; and (ii) a potential impairment of plant and equipment of the Group.

Singapore's bank loans to businesses and consumers rose 17.7% y-o-y to $532.5 bn at the end of June, slightly below May's 18.8% y-o-y growth and the slowest pace of loan growth so far this year. But this was to be expected, given the high loan base last year, new policy curbs on housing and car loans, and the slowdown in China and the region. On a m-o-m basis lending expanded 0.7%, slower than May's 1.2% growth. Business loan growth slowed to 20.4% y-o-y, after May's 22% growth. On the consumer loans front, the impact of property market cooling measures and car loan curbs was clear. Consumer loans grew 0.7% m-o-m, marginally stronger than the 0.6% growth recorded in May. But on a year-on-year basis, consumer loan growth slowed to 13.8%, from May's 14.5%. Housing and bridging loans, which make up the largest slice of consumer loans, grew 14.5% y-o-y, slowing for a third month in a row.

Standard & Poor's Ratings Services said it has affirmed its ratings on the three Singapore banks. DBS Bank, United Overseas Bank and OCBC have the same rating: AA-/Stable, the rating agency said.

The unemployment rate in Singapore went up for a second consecutive quarter, although more jobs were created in the country. Singapore's seasonally adjusted overall unemployment rate went up to 2.1% in June - up from 1.9% in March and 1.8% last December. The resident unemployment rate rose to 3% in June, a slight jump from 2.9% in March and 2.7% in December 2012.

More businesses in Singapore expect a favourable business environment here for 2H13. In the manufacturing sector, a net weighted balance of 8% of manufacturers anticipate a more favourable business situation in the next 6 months ending December 2013 compared to 2Q13, this according to the Economic Development Board (EDB). Firms in the services sector were also generally more upbeat about 2H13. An overall net weighted balance of 9% of firms within the services sector expect positive business prospects for the period of 2H13 compared to 1H13. Within the services sector, all industries except the real estate industry and financial & insurance industry expect positive business prospects for 2H13, with the accommodation industry being the most optimistic in their outlook.

Bad loans at Chinese banks could rise by between RMB70-100bil (US$11-16bil) in 2013 due in part to delinquency risks from industries plagued by overcapacity, this according to the China Banking Association. It warned that steel, photovoltaic and shipping sectors may be at the forefront of a new crop of bad loans.

The FED said persistent low inflation below the 2% objective could hamper economic expansion but it sees inflation returning to its objective over the mid-term. It also pledged to maintain its USD85bil monthly bond purchase, giving no hint as to whether QE tapering will begin in September or beyond. The FED also cited further improvement in the labour market, which could underpin sentiment heading into Friday's job numbers. The ADP employment change rose a better-than-expected 200kversus consensus of 180k.

Source: DBSV