i Develop Stocks Advisory

Singapore hot stocks-S-shares soar after tax cut in China Shares of Singapore-listed Chinese firms or S-shares surged after a share trading tax cut in China, dealers said. "The trading tax cut will start a rebound in the Chinese stock markets. Valuations of Chinese companies will improve and that pulls the S-shares along," a dealer said. The FTSE China Index rose as much as 5 percent to 516.51 points. The index has fallen 32 percent so far this year. Large cap firms such as rig-builders Cosco Corp and Yangzijiang rose as much as 5.4 and 9.8 per cent each. Sportswear maker China Hongxing jumped as high as 6.9 per cent to an intraday high of S$0.70. Analysts said the trading tax cut is likely to end a six-month bear market and could boost Chinese stocks by more than 20 percent in the next few weeks. 0303 GMT - Straits Times Index up 0.86 per cent. Shares of Yanlord Land rose as much as 9.1 per cent to S$2.63 with over 2.4 million shares traded on bargain hunting of stocks that are trading below net asset value. Citigroup analyst Tony Tsang said in a research report that China's property market should start to stabilise and recover after correcting in the last few months. "Yanlord now trades at 48 percent discount to our 2008 NAV (net asset value). With its landbank predominantly located in prime city-centre areas and with its high product quality, we see strong long-term upside for its landbank," Tsang said. The stock has fallen about 40 percent since reaching a high of S$4.40 in October. Straits Times Index up 1.16 percent. Contract electronics firm Venture Corp fell as much as 3.4 percent to S$11.32 after the company an unexpected drop in its first-quarter earnings. Venture, Singapore's second-largest contract electronics maker, said its net profit fell 20 percent, due to slower orders, a weak U.S. dollar and losses in its investment portfolio. For more details, double-click [ID:nSIN94740] Credit Suisse kept its investment rating for Venture at "outperform" with a share price target of S$13.70, citing net profit in line with its estimates, despite collateralised debt obligation provisions. "Share price has rallied from S$10 to S$12 in the last month and may pull back on the negative headline numbers. We would look to accumulate if it falls back closer to S$10," Credit Suisse analyst Keng Hock Lim said in a client note.