We maintain BUY call on Silverlake Axis with revised TP of S$0.82 (Prev S$0.80), implying potential returns of over 18%. Silverlake Axis offers double-digit growth and 4.5% yield. The backlog of ~RM325m at the end of FY13 provides 12-month visibility. The group is also pursuing seven deals at the moment; big order win from a Malaysian bank could be a catalyst.

YangzijiangShipbuilding is launching the first 10k TEU containership on schedule. The on-track construction progress of Yangzijiang's first large containership is a confidence booster.  We have raised FY14F earnings on better margins and order wins; FY15F earnings are expected to benefit from property income. Its investment segment is well managed. Yangzijiang is the best proxy to shipbuilding recovery; maintain BUY on higher S$1.32 TP (Prev S$ 1.02).

Tiger Airways has pulled ahead of the pack, widening the gap between itself and its competitors, according to a latest report on the low-cost carrier (LCC) sector by the Centre for Aviation (CAPA). The group now accounts for 33% of LCC capacity at Changi International Airport - more than the 26% and 23% LCC capacity share of rivals AirAsia and Jetstar, respectively. By year-end, Tigerair, including Tigerair Mandala and Tigerair Philippines, will account for almost 11% of total seat capacity at Changi, compared with just under 8% each for Jetstar and AirAsia, the report said. Tigerair Group attributed the growth in capacity to its own fleet expansion strategy, which will see a total of six A320 aircraft being delivered by year-end.

Global Logistic Properties signs agreement with Vipshop, a leading e-commerce company, to develop 130,000 sqm of new built-to-suit facilities in Kunshan, Eastern China. Construction of the first phase comprising 60,000 sqm (646,000 sq ft) commenced in August 2013

LionGold Corp has signed an ore processing agreement with Australian-listed A1 Consolidated Gold in Victoria which may boost revenues over a three year period. Up to 150,000 tonnes per year of ore from the A1 Gold Mine would be processed at the nearby Ballarat gold plant, wholly-owned by LionGold subsidiary, Castlemaine Goldfields. In conjunction with the agreement, LionGold will subscribe to 34.5m new A1 shares at A$0.116 per share, representing about 19.9% of A1's enlarged share capital, for a consideration of S$4.7m. A1 will use the total proceeds to advance the development of its A1 Gold Mine, which is targeted to begin trial processing at Castlemaine's Ballarat Mine within the next six months. In addition to nearly doubling throughput at the Ballarat plant, the collaboration with A1 represents an opportunity to consolidate gold operations in southeast Australia.

Oceanus Groupreported that Typhoon Usagi has hit Guangdong, coastal Zhejiang and Fujian provinces in China where the majority of its abalone production is sited. The group is assessing the damages caused. The Singapore government is tightening the foreign manpower regime further, with a 10% hike to the minimum salary required to hire a young foreign professional on an employment pass (EP) - the category of work passes not subject to quotas and levies. Also, under new rules to ensure Singaporeans get fair consideration before foreigners are new national jobs bank for two weeks before any applications for EPs for those professional, managerial and executive (PME) jobs will be accepted.

Singapore's consumer price index (CPI) in August rose 2% from a year ago, picking up from July's increase of 1.9% and in line with market expectations of 2%. This slight rise was a result of stronger increases in the costs of accommodation, food and services - though these were partly offset by a smaller gain in private road transport costs. Climbing at a faster pace was the MAS core inflation measure, which excludes costs of accommodation and private road transport. This rose to 1.8% in August from 1.6% in July, due to higher contributions from food and services. Food prices increased 2.4% last month, up from 2.1% in July, mainly due to costlier hawker and restaurant meals. Services inflation picked up to 2.7% in August from 2.5% a month earlier, driven by a stronger rise in cable TV charges and tertiary education fees.

The flash HSBC Purchasing Managers' Index (PMI) for China climbed to 51.2 last month from August's 50.1, hitting a high not seen since March as stronger domestic and foreign demand added to recent signs of a tentative turnaround in the economy. New export orders jumped to a 10-month peak of 50.8, up sharply from August's 47.2. It was the first time in 6 months that exports had shown growth in the PMI. Meanwhile, business activity in the Eurozone also grew faster-than-expected in September as new orders flood in.

Markit's Flash Composite Purchasing Managers' Index (PMI) jumped to 52.1 from last month's 51.5, its highest since June 2011 and beating expectations for 51.9. The pace of growth in the bloc's dominant services sector beat all forecasts in a Reuters poll. The PMI came in at 52.1, well ahead of August's 50.7 and comfortably above median expectations for a more modest rise to 51.0.

US markets fell with investors still uncertain about the timetable for QE cut back and as the democrats and republicans hardened their positions on the stance regarding the federal budget and borrowing limits. In line with Asian bourses starting the Tuesday session lower, STI should begin the current session modestly down but the intra-day direction looks to be up as the index.

Source: DBSV