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Singapore stock market and companies daily report (Tiger Airways, CWT, Wilmar International) (February 2, 2010)

Contributed by Shares Investment

By Shares Investment

Asian Stocks Rally Over: Elliott Wave International
According to Elliott Wave International (EWI), Asian stocks may decline for months after forming a ‘top’ that signals the end of a 10-month rally. Benchmark indexes across the region have completed either 3- or 5-wave patterns showing that their gains are over, the researcher said in its February Asian-Pacific Financial Forecast report. The rally’s duration and divergence in both momentum and sentiment also signal a downturn, it said. The MSCI Asia-Pacific Index has lost 7.9% since Jan 15, when it peaked 80% above last year’s March 9 low. The advance, spurred by signs of a recovery in the global economy and corporate earnings, coincided with a March prediction by EWI that a ‘massive rally could ensue in the near future’. ‘With the MSCI Asia-Pacific Index having just broken below an important uptrend line, we have reached March 2009’s polar opposite juncture: the end of the rally,’ EWI said. ‘It’s time to turn bearish.’

Tiger Registers Strong Growth In Passenger Volumes
Tiger Airways Hldgs has announced strong growth in passenger volumes and load factors for the quarter ended Dec 31, 2009 – the number of passengers who flew on the recently listed budget carrier in Asia and Australia surged by 55% on-year in Oct, 59% in Nov and 48% in Dec. Total passenger volume from Oct to Dec 2009 was a record 1.3m people, marking the 21st straight quarter of annual passenger growth. In Dec 09, the company also recorded its single strongest month of passenger carriage since commencing operations.

Tiger also reported robust load factors across both its Asia and Australia operations. The average network-wide load factor for Oct, Nov and Dec 2009 increased to 86%, 87% and 90% respectively, marking an increase of between 3 and 7 percentage points over the corresponding months of 2008.

CWT To Sell And Leaseback 2 Properties Worth $445m
Logistics group CWT has proposed the sale and leaseback of 2 of its logistics facilities in a deal worth $445m. The company will sell to Cache Logistics Trust for the purpose of the latter’s eventual public listing as Asia’s 1st logistics-focused REIT.
CWT will book a one-off gain of $157.7m from the $445m deal, of which $65m will be settled in the form of Cache units while the rest will be paid in cash. CWT will use the sale proceeds to expand its logistics business and to settle its outstanding borrowings early, which it says will result in a significant boost to the company’s financial muscle and competitiveness in the region.

Wilmar’s HK Listing Application Lapses
Wilmar International has called off plans to list its China operations in Hong Kong after it said its application to list in Hong Kong Stock Exchange had lapsed and that it had ‘no current intention to submit a fresh listing application’. Its share fell as much as 2% yesterday before closing at $6.51, down 1.2% for the day.

This article is contributed by Shares Investment. Visit Sharesinv.com for the latest Singapore, Malaysia and China stock market news and reports.