Tuesday, September 15, 2015

ARA, Low Keng Huat, Chiwayland, Novo, China Environmental Resources

Here are some stocks that could move the market this Tuesday morning.

ARA Asset Management, the manager of Suntec REIT ( Valuation: 1.70, Fundamental: 1.15), Fortune REIT ( Valuation: 1.55, Fundamental: 1.20) and Cache Logistics Trust ( Valuation: 2.30, Fundamental: 1.30), says it has raised US$325 million ($458.2 million) in capital commitments for its private real estate funds division. The capital commitments were raised via a new separate platform, of which a premier Asian-based sovereign wealth fund is the anchor investor. ARA closed at $1.425.

Construction and property firm Low Keng Huat ( Valuation: 3.00, Fundamental: 2.80) posted a 106% year-on-year increase in its 2Q earnings to $8.11 million, even as revenue fell 24% to $20.3 million. Construction revenue for the quarter fell to $5.7 million from $10.4 million one year ago due to a decrease in revenue from Genting Hotel. Low Keng Huat ended at 55 cents.

China property developer Chiwayland International says its wholly owned subsidiary, Suzhou Chiwayland, is proposing to sell a 4% stake in Suzhou Xingshang Tiandi Real Estate, an indirect 55%-owned subsidiary of Suzhou Chiwayland Group, to Beijing Chance Capital Management for RMB4 million ($883,000). Chiwayland closed at 5.8 cents.

Novo Group ( Valuation: 0.30, Fundamental: 0.20), the steel trader which is expanding into tin processing and trading to help get it off the SGX Watch-list, narrowed its 1Q loss after tax to US$3.4 million ($4.8 million) from US$5.4 million a year ago as it waits for the resumption of its tinplate manufacturing segment once additional funding comes in. Novo last traded at 26 cents.

China Environmental Resources Group ( Valuation: 0.90, Fundamental: 0.60) is expected to record a loss for the year ended June, led by lower gross profits due to a fall in green technology advisory fee income and losses from changes in fair value less costs of sale of biological assets. China Environmental Resources closed at 35 HK cents (6.4 cents).

Markets

Wall Street fell overnight with commodity-related sectors weighing the most. The combination of worries about slowing Chinese and global growth while others expect the Fed to raise rates as a confirmation that the US economy is in a strong enough position to not warrant emergency measures from the central bank.

The Dow Jones industrial average fell 62.13 points, or 0.38%, to 16,370.96, the S&P 500 lost 8.02 points, or 0.41%, to 1,953.03 and the Nasdaq Composite dropped 16.58 points, or 0.34%, to 4,805.76.

Back at home, the Singapore market closed lower on Monday after China released weaker-than-expected economic numbers over the weekend.

The Straits Times Index ended the day 0.57% lower at 2,871.47. Decliners outnumbered gainers 231 to 173. A total of 1.24 billion shares worth $856.5 million changed hands.

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