Singapore’s main index was slightly lower at midday despite encouraging Chinese manufacturing data, as investors remained risk averse ahead of more corporate earnings announcements.
By 2:04 p.m., the benchmark Straits Times Index was down 0.07% at 3,048.80 points, while the MSCI index of Asia-Pacific shares outside Japan was 0.4% down.
The China HSBC Flash Manufacturing Purchasing Managers Index (PMI) rose to a three-month high of 49.1 in October, also registering the most robust order books since April, signalling a strengthening recovery.
Thai Beverage PCL shares rose as much as 3.5% to $0.445 on speculation that it could benefit from substantial gains if it decides to sell its stake in Fraser and Neave to other potential bidders such as property developer Overseas Union Enterprise.
ThaiBev, together with other companies linked to a Thai billionaire, is making a US$7.2 billion ($8.8 billion) bid for F&N. But OUE said last week it was seeking partners in a potential takeover bid for F&N that would rival ThaiBev’s, without identifying the parties.
Singapore-listed real estate investment trusts have reported earnings mostly in line with estimates, DBS Vickers said, but noted that several STI component stocks have suffered earnings downgrades during analysts’ third-quarter results previews.
Keppel Corp, the world’s largest oil rig builder, has seen its 2013 earnings estimates cut by 3.5%, while Oversea-Chinese Banking Corp’s earnings were lowered by 7% and Singapore Press Holdings revised down by 4.6%, DBS said.
If the trend of downward revision for 2013 earnings forecasts continues for the rest of the STI component stocks,the STI could be pulled lower, the brokerage said.
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