STOCKS NEWS SINGAPORE-Tiger rises on partnership with SIA's Scoot
Shares of Tiger Airways Holdings Ltd rose more than 3 percent after the budget carrier signed a partnership agreement with the low-cost unit of Singapore Airlines Ltd
to offer joint itineraries from Oct. 2.
Tiger shares rose as high as S$0.785, the strongest level since March 20. More than 7.2 million Tiger shares were traded, 2.6 times the average full-day volume over the past 30 days. SIA shares were up 0.5 percent at S$10.76.
Some analysts had called Tiger a turnaround play, citing the carrier's improving operations after some of its flights were grounded in Australia due to safety issues.
"We view the news positively as this will increase traffic flow to Tiger Airways," said DMG & Partners Securities, which has a 'neutral' rating and S$0.76 target price on the stock.
"However, we believe that any earnings impact will be minimal at this point in time as the slight boost to load factor is offset by our lower yield assumptions in the light of the highly competitive landscape Down Under," the broker said.
The initial phase of the partnership will see each carrier marketing joint itineraries between Phuket, Ho Chi Minh City and Kuala Lumpur - destinations served by Tiger - as well as Sydney and Gold Coast, served by SIA's budget unit Scoot.
Customers may purchase a single itinerary for travel from Australia, via Singapore, to Tiger's destinations.
1101 (0301 GMT) (Reporting by Eveline Danubrata in Singapore; email@example.com; Editing by G. Ram Mohan) ************************************************************
11:09 STOCKS NEWS SINGAPORE-OCBC ups Frasers Centrepoint target price
OCBC Investment Research raised its target price on Frasers Centrepoint Trust to S$1.97 from S$1.89 and kept its 'buy' rating, on expectations of better portfolio occupancy and higher rents.
At 0253 GMT, Frasers Centrepoint units were up 0.28 percent at S$1.82. They have gained 26.4 percent so far this year, compared with the FTSE ST Real Estate Investment Trust's
30.6 percent rise.
Frasers Centrepoint said on Friday it had raised its stake in Hektar REIT to 31.17 percent from 31.06 percent, which OCBC said will give it greater opportunity to participate in the growing retail market in Malaysia. Hektar is planning acquisitions of two retail mall properties for 181 million ringgit.
"While the acquisitions are not expected to have any immediate material effect on FCT's distributable income, we expect Frasers Centrepoint to benefit from Hektar REIT's repositioning and upgrading plans," OCBC said in a report.
The brokerage also said it likes Fraser Centrepoint for its pure suburban exposure and strong financial position.
1056 (0256 GMT) (Reporting by Charmian Kok in Singapore; firstname.lastname@example.org; Editing by Prateek Chatterjee)
Keywords: MARKETS SINGAPORE STOCKSNEWS/TIGER