Today's Focus

  

The STI went below the 3150 level last week. We believe further downside should be limited at c.3100 and see bargain hunting opportunities there or slightly above on the presumption that the US does not sink into debt default.

The 3Q results season starts this week with SPH leading the blue chips releases. SPH should interest investors looking for dividend payout; our analyst expects final/special DPS of 16 Scts.

Generally, we are expecting a lacklustre Q3 results season. However there are still potential bright spots. Nam Cheong could deliver positive earnings surprise as the pace of vessel sales has been ahead of expectations YTD. Indofood Agri is a potential earnings recovery play. But we are cautious on Hi-P.

New products and new customers for Venture Corp are spurring growth in 2H13. The higher run-rate also bodes well for margins; we expect net margins to improve to 5.6% in 2H vs 5.2% in 1H. However, while 3Q net profits seem to be on track (DBSV estimate: S$39m), macro uncertainties and customer consolidations could crop upside in 4Q. Hence, we maintain our 2H earnings estimate of S$79.3m (+37% h-o-h), resulting in a flat FY13. Venture is on track for a better 2H but growth is pushed to FY14. No change to BUY rating and S$8.40 TP. 6.5% yield provides good support.

Keppel Offshore & Marine has strengthened its foothold in the offshore and marine industry in Mexico with the signing of an MOU (Memorandum of Understanding) with national oil company, Petroleos Mexicanos (PEMEX). The MOU is to jointly develop, own and operate a yard facility

in Mexico, the first phase of which is to support the construction of six KFELS B class jackup drilling rigs.

Wee Hur Holdings has abandoned the Thomson View collective sale and is requesting for the full refund of the deposit and stamp duty paid.

KS Energy announced its move into Mexico with the signing of a Memorandum of Agreement (MOA) with one of Mexico's renowned conglomerate Empresas ICA (ICA). A jointly controlled entity (JCE) will be formed to tap into Mexico's expanding oil and gas industry by providing drilling services and heavy capital equipment for the offshore oil and gas exploration market.

Singapore Exchange barred short selling and margin trading of three stocks that were suspended after sharp plunges last Friday, declaring them "designated securities" subject to stricter rules and added scrutiny. Trading in shares of Blumont Group, Asiasons Capital and LionGold Corp was halted Friday after their prices tumbled more than 40% early in the day, wiping out a combined S$4.8bn in market value and months of big share-price gains.

Source: DBSV