By Shares Investment

US Stocks Fall On Drop In Durable Goods Orders

The Dow Jones Industrial Average fell 0.4%, after orders for durable goods suffered the biggest drop in almost a year in June, on weaker demand for airplanes and electronic goods. The market was also dragged down after a Federal Reserve report signaled a slowing economic recovery. The Nasdaq slipped 1.04% while the S&P shed 0.69%. The latest batch of earnings was a mixed bag. So far, with nearly half of the companies listed in the S&P reporting earnings, 77% have surpass expectations, according to Thomson Reuters. Meanwhile, oil prices fell to US$76.99 a barrel after a report showed a big rise in crude-oil inventories. Gold prices rose to US$1,160.40 an ounce, steadying after hitting 3-month lows on Tuesday.

SingPost’s 1Q11 Net Profit Increases 3.2%

Singapore Post’s (SingPost) net profit grew 3.2% to $40.7m for 1Q11 while revenue over the period came in at $138.2m, a 13.5% increase YoY. Revenue for the mail and logistics segments showed better performances. Logistics revenue surged 34.4% YoY to $46.3m, primarily due to inclusion of SingPost’s regional outfit Quantium Solutions for the full quarter, versus 2 months in 1Q09. Mail revenue rose 11.4% to $95.7m, on higher domestic and international traffic. Expenses increased 19% to $103.1m, due in part to the consolidation of Quantium Solutions, higher labour costs and reduced benefits from the government’s Jobs Credit Scheme.

Significance: Notwithstanding better results from mail segment and the acquisition of Quantium Solutions, SingPost is looking at ways to expand its non-mail businesses due to the increasing usage of electronic platform for communication purposes, which leads a decline in mail volumes.

FCOT’s DPU For 3Q10 Rises 39%

Frasers Commercial Trust (FCOT) reported a 39% increase YoY to $7.7m in income distributable to unit-holders for 3Q10. Distribution per unit (DPU) for the quarter also rose 39% to 0.25 cent, taking DPU for 9M10 to 0.81 cent, an increase of 21% YoY. FCOT recorded a 29% rise in gross revenue of $29.2m. Total distributable income was up 123% YoY to $12.4m, mainly due to contributions from Alexandra Technopark, a stronger Australian dollar and lower finance costs. FCOT’s portfolio occupancy rate was 93.1% at June 30, up 0.7% from 2Q10, due to a rise in occupancy at its KeyPoint and Galleria Otemae properties. The average occupancy rates for Singapore and Australian properties remained healthy – above 95% – and they contribute more than 90% of portfolio net property income.

Significance: Despite an increase in overall portfolio occupancy, FCOT may have to focus more on operational efficiency as the pace of economic recovery is expected to slow, which may adversely affect its occupancy and rental rates.

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