Shares up as CapitaLand leads gains

Date: 
2011-09-07
Firm: 
Citigroup
Stock: 
C31
Price Target: 
3.53
Price Call: 
BUY
Last Price: 
Upside/Downside: 
+3.53 (∞%)
Singapore shares climbed 1.12% higher by midday on Wednesday amid some bargain hunting as other Asia bourses also rose and led by gains in property developer CapitaLand (CATL.SI) after its maiden share buyback exercise.
 
At 1:00 p.m., the Straits Times Index (STI) <.FTSTI> was up 1.12%, or 31.02 points, at 2,805.35. The total volume of shares traded by then was 737 million shares and turnover was$620.6 million.
 
This compares with the volume of 577.4 million shares and turnover of $500.6 million on Tuesday.
 
“Stocks have dropped quite a bit so you see bargain hunters coming in, especially in blue-chip dividend plays. Some of them are looking very cheap,” said Tey Tze Ming, a market strategist at Saxo Capital Markets..
 
Tey said he expects Singapore shares to see further upside and test 2,900 over the next few sessions.
 
“Some of the gains today could be due to the effect of the Swiss National Bank’s move yesterday to intervene in their currency,” he said.

 
The Swiss central bank said on Tuesday it would buy foreign currencies in “unlimited quantities” to enforce a limit of 1.20 francs to the euro.
 
He added that the devaluing of the Swiss franc against the euro could cause fund inflows into other appreciating currencies, such as the Singapore dollar.
 
That could prompt the Singapore central bank to reduce the pace of its appreciation of the currency, which will be positive for stocks and for many of the city-state’s export-dependent companies, Tey said.
 
CapitaLand shares were 5.3% higher at $2.59 with over 12.7 million shares changing hands.
 
CapitaLand said on Tuesday it had bought 1.5 million of its shares for between $2.42 and $2.45, representing 0.035% of its issued share capital.  
 
“Despite the relatively small buyback, we view the move to be positive and reflective of management’s confidence in its business model and current stock valuation,” Citigroup said in a report.
 
The brokerage, which has a buy rating and target price of $3.53 on CapitaLand, said the shares were trading at an over 40% discount to restated net asset value.
 
Discussions
1 person likes this. Showing 2 of 2 comments

ozee1088

Go! Go! Go! Up! Up! Up!

2011-09-07 16:20

Ad Edward

????????????????????

2011-10-23 23:49

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