Daily Market Watch - 22 Oct 2012

SINGAPORE

Fraser and Neave Ltd (FNN): While Overseas Union Enterprise (OUE) announced it is negotiating a potential takeover bid for the Co with certain parties, Japan 's Kirin Holdings is among those parties involved, reported Reuters citing sources.

CapitaMall Trust (CT) announced 3Q distribution per unit of S$0.0242, flat compared to a year earlier. 3Q gross revenue rose 5.1% YoY to S$167M while net property income gained 4.3% to S$112M.

Tiger Airways (TGR) said it has obtained from the Civil Aviation Safety Authority of Australia a new air operator's certificate free of restrictions.

US indices dropped on Friday pressured by consumer services and technology hardware & equipment sectors. On the US economic data front, existing home sales fell 1.7% MoM (-1.6% expected) to a 4.75 million annual rate in September according to the National Association of Realtors. Take a look at some major US company releases, Microsoft (MSFT -2.9% to $28.64) posted a 1Q EPS of $0.53 vs $0.56 expected ($0.68 a year ago) on revenue of $16.01B vs $16.39B expected, down 7.8% YoY. Separately, Google (GOOG -1.9% to $681.79) reported 3Q adjusted EPS of $6.53 vs $8.33 a year ago on revenue of $14.10B, up 45% YoY. The stock dropped sharply in the regular session as those results were unexpectedly released and disappointed. In other news, Marvell (MRVL -14.31% to $7.57) revised its guidance and sees its 3Q revenue in the range of $765M - $785M compared with its prior outlook of $800M - $850M. AMD (AMD -16.79% to $2.18) posted a 3Q adjusted LPS of $0.21 vs LPS of $0.15 expected (EPS of $0.05 a year ago) on revenue of $1.27B, as expected, down 25% YoY.

In Europe, euro-zone current account was a surplus of E8.8B in August vs a surplus of E8.1B in July. German producer prices were up 0.3% in September, as expected, vs +0.5% the month before. UK budget deficit ex interventions narrowed to £12.8B in September vs £13.5B in August. Regarding the stocks, Carrefour jumped as the Co sold its Colombian unit. Aggreko plunged after having warned on its FY results. This morning, the Nikkei225 index opened lower with around 1% loss.

CHINA - HK

The Hong Kong Monetary Authority sold HK$4.67B in the forex market on Friday during New York trading, trying to weaken the local currency as the US dollar hit HK$7.75, reported Dow Jones.

China ' average land price edged up 0.78% QoQ to 3,093 yuan per sqm in 3Q according to the Ministry of Land and Resources.

Chinese Vice Premier Li Keqiang said the value-added tax trial, which is in place in certain cities and provinces, should be extended to the rest of the country and to more industries (Xinhua).

Beijing city's GDP grew 7.5% YoY in 1-3Q vs +7.2% in 1-2Q reported the government. The financial and information service industries contributed most to the growth in the city's tertiary sector.

Fitch Ratings said in its latest report: "China's 3Q GDP reading is consistent with real GDP growth slowing to the 7%-8% range that Fitch Ratings expects over 2012-2014. (...) the current slowdown is much less abrupt than during the global financial crisis four years ago, and we still think China 's economy will avoid a hard landing. (...) the stimulus could still be sufficient to help raise growth towards 8% by year-end and support a rate of about 8.2% in 2013."

PICC Property and Casualty (2328) reported January-September premium income of 147.1B yuan, up 10.9% YoY.

PetroChina (857)'s parent group China National Petroleum Corp has signed a 3-year oil exploration & drilling cooperation contract with Colombia's state-controlled oil company Ecopetrol, announced the latter.

China Unicom (HK) Ltd (762) reported its aggregate number of 3G service subscribers rose 3.18M MoM to 66.86M in September and that of broadband subscribers increased 0.67M to 62.65M.

SJM Holdings (880) said the Macau government has approved its plan to develop a casino resort in the Cotai area.

China National Building Material (3323) announced it has agreed to raise its capital contribution to Southwest Cement by 2.0B yuan to a total of 7.0B yuan.

Zhaojin Mining Industry (1818) said it has obtained approval from the China Securities Regulatory Commission to issue at most 1.2B yuan of domestic corporate bonds.

Beijing Enterprises Holdings (392)'s subsidiary Beijing Yanjing Brewery (000729) announced 3Q net income of 355M yuan, up 3.0% YoY, on revenue of 4.5B, up 6.4%.

Shanxi Xinghuacun Fen Wine Factory (600809) announced 3Q net income soared 833.4% YoY to 457M yuan (88.7M yuan expected) on turnover of 1.4B yuan, up 114.6%.

Inner Mongolia Baotou Steel Rare-Earth Hi-Tech (600111) posted 3Q net income down 89.6% YoY to 120M yuan (734M yuan expected) on turnover of 2.0B yuan, down 52.2%.

Inner Mongolia Pingzhuang Energy (000780)'s 3Q net income plunged 69.0% YoY to 72M yuan on revenue of 736M yuan, down 31.5%.

Yonghui Superstores Co (601933) posted 3Q net income up 40.2% YoY to 143M yuan on turnover of 6.2B yuan, up 43.4%.

Shenzhen Overseas Chinese Town (000069) reported 3Q net income up 34.1% YoY to 567M yuan on revenue of 3.7B yuan, up 18.7%.

Henan Shuanghui Investment & Development (000895) said 3Q net income surged 111.2% YoY to 949M yuan on turnover of 10.7B yuan, up 15.0%.

Zhengzhou Yutong Bus (600066), Henan Shenhuo Coal & Power (000933), Beijing Orient Landscape Co (002310), Guangxi Wuzhou Zhongheng Group Co (600252), Tongkun Group Co (601233), vPingdingshan Tianan Coal Mining (601666), Jihua Group Corp (601718), Jinduicheng Molybdenum (601958): 3Q results expected.

Shenzhen Development Bank Co (000001): ex-div CNY0.1 Qingdao Hanhe Cable Co (002498): ex-div CNY0.15