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Singapore stock market and companies daily report (The Dow Jones Industrial, MapleTree Logistics Trust,Raffles Medical Group ) (July 26, 2010)

Contributed by Shares Investment

By Shares Investment

US Stocks Advance On Encouraging Earnings Reports

The Dow Jones Industrial Average gained 1% on Friday, led by industrials, after better-than-estimated earnings from companies lifted confidence the economy is recovering. For the week, the Dow finished 3.2% higher. The S&P gained 3.6% and the Nasdaq rose 4.2% for the week. There was also some relief after the results from the European Union bank stress tests came out. Fewer banks failed than expected but there was some question about the methodology – that it went too easy on sovereign debt. Meanwhile, gold finished the week fairly flat at US$1,187.80 an ounce and oil dropped more than 3% this week, settling at US$78.98 a barrel. The euro finished slightly higher against the US dollar, after see-sawing following the stress-test results.

MapleTreeLog’s 2Q10 DPU Rises 1.4%

MapleTree Logistics Trust (MapleTreeLog) posted improved results for 2Q10 on the back of lower property and other expenses as well as borrowing costs. Amount distributable to unitholders in 2Q10 was $30.9m, up 8% YoY. Distribution per unit (DPU) rose 1.4% to $0.015. This was despite revenue staying relatively flat at $52m. The top line was affected by a repositioning exercise at some of MapleTreeLog’s properties. The trust converted 3 from single-user to multi-tenanted buildings for better rental revenues, but that caused the portfolio occupancy rate to dip slightly to 97% as at June 30. Meanwhile, recent acquisitions, 3 of 5 completed only in 2Q10, have yet to boost results. In 2Q10, MapleTreeLog financed its purchases fully through debt, causing its leverage ratio to increase slightly to 38.8% as at June 30.

Significance: Though with the recent acquisition of 3 properties, which offer a higher net property income yield than MapleTreeLog’s existing portfolio, and also 1 of which represents the company’s 1st foray into Vietnam’s growing logistics market, market sentiments which remain cautious in the geographies MapletreeLog operates, should be noted.

Raffles Medical Recorded 20.4% Increase In Net Profit

Raffles Medical Group registered a 20.4% increase in net profit at $10.6m for 2Q10, boosted by stronger contributions from its hospital and healthcare segments. Raffles Medical attributed the improved results to improved operating efficiencies, the recruitment of more specialist consultants, higher patient load and wider range of medical specialities. Its revenue rose 8.7% to $58.6m as its hospital services grew 11.2% and healthcare services increased 3.7%. As at June 30, the group had a net cash position $61.6m. For the half year, net profit was up 18.5% at $19.7m while revenue increased 9.4% to $114.8m.

Significance: With the grant of outline permission received from the Urban Redevelopment Authority for additional area for Raffles Hospital and the encouraging reception at Raffles Medical Shanghai, the group is expected to benefit from the continuing demand for high quality healthcare services locally and regionally.

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