Daily Market Watch - 16 October 2012

SINGAPORE

Singapore Airlines (SIA) said it carried 1.50M passengers in September, up 6.1% YoY. September passenger load factor gained 1.0 percentage point YoY to 80.6%, while cargo load factor rose 0.4 percentage point to 64.1%. The Co's overall load factor for September was up 0.9 percentage point to 69.8%.

Fraser & Neave Ltd (FNN) price target was raised to S$10.48 from S$10.19 at Nomura.

US indices closed higher on Monday helped by diversified financials and pharm biotech & life sciences sectors. On the US economic data front, the Empire Manufacturing index for October rose to -6.16 (-4.00 expected and -10.41 in September). Also, advance retail sales for September rose 1.1% (+0.8% expected) and the US business inventories rose 0.6% (+0.5% expected) in August. Looking at some major US company news, Citigroup (C US +5.5% to $36.66) said that for its 3Q, excluding CVA/DVA, the loss on Morgan Stanley Smith Barney and the tax benefit, earnings were $1.06 per diluted share, up 26% YoY. Separately, Charles Schwab (SCHW +0.62% to $13.03): 3Q EPS was $0.19 vs $0.17 expected and $0.18 a year ago on revenues up 1% YoY to $1.19B. In other news, Abbott (ABT +4% to $72.05) reported positive phase 2b results from its "Aviator" study of its interferon-free, investigational regimen for the treatment of hepatitis C (HCV).

From a chartist view, the share price remains capped by a bearish trend line since early May 2012, and seems likely to accelerate on the downside in the coming days. As the stock has just broken below its support at 0.96, and the RSI is negatively oriented below 50%. This morning, the Nikkei225 index opened higher with a bullish gap.

CHINA - HK

Sinopec (386) and ENN Energy (2688) jointly announced they have dropped their takeover offer for China Gas Holdings (384).

China Shenhua Energy (1088) posted September commercial coal production up 7.0% YoY to 24.3M tons, coal sales up 12.6% to 36.7M tons and power output dispatch down 5.4% to 14.43B kWh. For January-September, commercial coal production rose 10.0% YoY to 230.9M tons, coal sales climbed 15.1% to 329.9M tons and power output dispatch increased 9.9% to 144.80B kWh.

China Coal Energy (1898) reported September commercial coal production up 17.4% YoY to 9.3M tons, coke production down 47.4% to 100K tons and coal sales up 7.5% to 13.4M tons. January-September commercial coal production grew 6.7% YoY to 82.4M tons, coke production fell 20.5% to 1.3M tons and coal sales increased 4.7% to 106.1M tons.

Huaneng Power International (902) said 9-month total power generation within China declined 5.4% YoY to 223.7B kWh and electricity sales fell 5.3% to 210.9B kWh.

Ping An Insurance (2318) reported January-September gross premium income of 179.7B yuan, up 12.5% YoY.

China Pacific Insurance (2601) posted gross premium income up 4.6% YoY to 126.8B yuan in the January-September period.

Tingyi Cayman Islands Holding (322) is placing 38.3M shares at HK$23.75-24.00 per share to raise up to HK$918M, reported the Hong Kong Economic Journal citing a term sheet.

Kingboard Laminates Holdings  (1888) announced the purchase of a commercial building in London for £53M.

Haitong Securities (6837) posted September net income of 53.8M yuan vs 169M yuan in August on operating income of 454M yuan, down 6.4% MoM.

Chenzhou Mining Group (002155), Zhengzhou Coal Mining Machinery Group Co (601717): 3Q results expected.

Google Trend HK - popular searches: CLP Holdings (2)

Shandong Weigao Group Medical Polymer Co (1066): ex-div HK$0.0297