Stock Trading Counter:Ringgit, Won join relief rallies driving gains in global stocks

Malaysia's ringgit and the South Korean won rose for a third day as a rally in emerging-market assets continued after last week's selloff in the wake of the U.K. decision to leave the European Union.

The ringgit is less than half a percent away from wiping out losses since the close of trade on June 23 before the Brexit vote rattled markets.

Crude prices climbed back above $50 a barrel on Wednesday, quelling concern about a loss of revenue for Malaysia as Asia's only major net oil exporter.

The won extended its gains as factory output data on Thursday beat all forecasts in a Bloomberg survey, days after the government announced a 20 trillion won ($17 billion) stimulus package.
“I’m looking at the rebound in risk and the firming in oil prices and those factors are very supportive,” said Stephen Innes, a senior trader at Oanda Asia Pacific Pte Ltd. in Singapore. “The global central bankers are in the background and the markets realize that the central bankers are going to stand in front of any capitulation.”

The ringgit strengthened 0.6 percent to 4.0183 per dollar as of 8:43 a.m. in Kuala Lumpur, according to prices from local banks compiled by Bloomberg. The currency has gained more than 2 percent in three days. The won appreciated 0.6 percent to 1,153.60, and is 0.3 weaker than its closing price on June 23

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Stock Trading Counter:ComfortDelGro to 'remain resilient' against Brexit, private hire car services OCBC

OCBC Investment Research on Wednesday said ComfortDelGro is likely to "remain resilient" in the

face of Brexit and private car hires services such as GrabCar and UberX.

The research house maintained its "buy" recommendation on ComfortDelGro with an unchanged $3.40 fair value.

OCBC lead analyst Eugene Chua says ComfortDelGro's price levels are attractive to "buy".

"At the current price levels, we think market has overpriced-in the potential impacts from both Brexit and threat of private hire car services," Chua says.

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Stock Trading Counter:2 STOCKS TO CONSIDER AS CHANGI AIRPORT GETS BUSIER

Ever since budget airlines came into the region, air travel has been increasingly affordable and at times hard to resist the promotion newsletter that they send to your email. This increase is significant as Changi Airport’s passenger traffic is up by 9.2 percent in April as the airport handled 4.79 million passengers.

Aircraft movements also increased as they are 4.3 percent higher with 29,460 landings and takeoffs. Supporting the air movement, cargo shipments increased by 7.2 percent and reached 164,530 tonnes. A further growth can be expected from Singapore air travel movement as Terminal 4 opens next year.

This will lead investors to the important question: How can we benefit from it?

Should We Buy The Airlines?

The first thing that comes to our minds when we talk about air travel will be Singapore Airlines (SIA). However, SIA might not be profiting the most from the increase in air travel as budget airlines have been giving it a run for its money. Profit margin has been under pressure falling over the past five years, only to hold their grounds after oil prices fell sharply.

Regarding airlines, you can look at CoffeeTalk’s coverage on SIA feature here, and Air Asia’s article here.

Who Will Truly Benefit From It?

More aeroplanes will be landing in Singapore as it gains prominence as a hub for air logistics. Earlier this year, DHL Supply Chain has opened a new $160 million logistic facility in Singapore as an anticipation of higher traffic. Investors should be looking at the service providers in Changi Airport whose business will increase along with the traffic and not get squeezed by the budget airlines.

The below two stocks are highlighted by us as the potential companies that are well-positioned to reap from the increase in air travel.

1. SATS
SATS is the main ground handling and catering company at Singapore Changi Airport which makes it best positioned to gain from the air travel growth. The company provides a large range of services from airport security to catering for airlines. An earlier coverage by Aspire on the stock can be found here.

Analysts from Citi Research reiterated their “Buy” call on SATS with a target price of $4.61.

2. SIA Engineering
Not limited to what its name suggests, SIA Engineering (SIE) does more than providing engineering services to SIA. It also provides maintenance services in Changi Airport for different companies and is one of the companies that will see more business opportunities when air traffic increase.

As a well-known dividend stock in Singapore, SIE is trading at an indicative yield of 3.62 percent. However, analysts from DBS Research are not very bullish on the stock as they gave it a “Hold” call with a target price of $3.84. They cited overvaluation due to a lower payout ratio.

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Stock Trading Counter:Stock picks for investors seeking shelter from Brexit UOB

UOB is recommending investors seek shelter in dividend-yielding stocks such as Singtel, ST Engineering, SPH, SATS, REITs and plantation companies on the back of continuing market

volatility in the aftermath of Brexit, according to a report issued on Monday.

Within the REIT space, UOB recommends investors seek refuge in defensive REITs that have no exposure to Europe. These include Parkway Life REIT, Frasers CT and

Mapletree Industrial Trust, with target prices of $2.38, $2.15 and $1.61 respectively.

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Stock Trading Counter:Singapore-listed companies with UK exposure among worst hit

Singapore-listed companies with exposure to the UK market are getting pummelled early Friday as early referendum counts show the UK leaning towards a break up with the European Union.

City Developments, which has a 35% exposure to the British pound according to DBS, falls 5.6% to $8.20. ComfortDelGro (with 17% exposure), Ascott Residence (12%) and CDL Hospitality Trusts (8%), fall 3.3%, 2.2% and 1.7%, respectively.

Sembcorp Industries, which has a 5% exposure, DBS says, is down 3.8%.

In comparison, the benchmark Straits Times Index is 2.4%.

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Stock Trading Counter:Starhill Global still shines among Singapore's retail & office REITs: UOB

UOB Kay Hian is maintaining its "buy" call on Starhill Global REIT (SGREIT) with a higher target price of 92 cents from its previous price target of 91 cents.

To recap, UOB Kay Hian has singled out SGREIT as the sole candidate that "is likely to display more resilience" within the retail sector's challenging climate.

The research house has also identified this particular REIT as a "potential beneficiary of international tourist pick-up", as its Orchard properties Wisma Atria and Ngee Ann City make up 66.5% of its overall portfolio value.

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Stock Trading Counter: 5 companies that may be affected by Brexit: OCBC

OCBC Investment Research is advocating a cautious stance ahead of the UK referendum taking place this Friday, especially toward companies with significant UK exposure.

The research house also maintains its 'overweight' rating on the Singapore market.

"While our base case is for a non-Brexit scenario, we emphasise that the results of the Brexit referendum remain uncertain, and market jitters may yet trigger volatility before the referendum on 23 June," says the research team in a Tuesday report.

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