AIO Finance Analysis

Energy-related stocks such as rig-builder SembCorp Marine and palm oil firm Wilmar may be in focus on Tuesday as the price of oil closed in on $100 per barrel due to speculation that OPEC will cut supply at a meeting next week.

U.S. stocks rose more than 1 percent on Monday on signs that the two largest U.S. bond insurers would stabilise, bringing a wave of relief to a market dogged by concerns of further bank write-downs.

Stocks and factors to watch:
- Singapore Telecommunications said that it has entered an agreement with five international telecommunications carriers to build a ultra high-speed cable system worth $300 million.
- JPMorgan has upgraded Chartered Semiconductor to "neutral" from "underweight", citing its recent acquisition of Hitachi Semiconductor Singapore wafer plant as a good move for the firm to diversify its client base.
- Commodities trader Noble said the firm has bought a 19.6 percent stake in a unit of Macarthur Coal worth A$48.5 million ($45 million).
- Chinese shipbuilder Yangzijiang said its full-year net profit rose 91 percent for the year ended Dec 31, 2007.
- Cruise operator Star Cruises posted a loss of $123.5 million for the full-year 2007.
- Coal mining firm Straits Asia Resources said its full-year net profit fell by 40.7 percent for year ended Dec 31, 2007

Source: Reuters

Singapore-listed China stocks rally after signing of QDII investment agreement

Chinese stocks that are traded in Singapore rallied Thursday after the Monetary Authority of Singapore and the China Banking Regulatory Commission signed an agreement to allow Chinese banks to offer their clients investment opportunities in Singapore under China's qualified domestic institutional investor (QDII) scheme

"I think they (Chinese investors) should find it quite attractive to invest in Singapore. Chinese companies listed here are the cream of the crop since they adhere to stricter listing rules," said Kim Eng Securities analyst Gregory Yap

While this should be positive, Yap said he is not expecting an immediate dramatic impact since China plans to sign similar accords with securities regulators in US, Germany and Japan. So far, China has signed QDII pacts with Hong Kong and the UK

UBS also doubts that Chinese banks will rush to buy shares in Singapore

"This is hardly an environment for a rush of Chinese banks' funds into the Singapore market. Having said that, this will likely be a short term catalyst for a big bounce in oversold S-chips (Chinese stocks listed in Singapore)," said UBS research head Tan Min Lan in a note to clients Among big cap Chinese stocks, Tan said she believes that Cosco Corp Singapore, Yangzijiang Shipbuilding, sports shoemaker China Hongxing and Synear Food are oversold considering these shares have fallen between 40 and 50 percent in the last three months. At 12.15 pm (0415 GMT), the FTSE ST China index was up 8 percent at 568.67. The index was introduced on January 10 by the Singapore Exchange as part of a revamp of local stock market indices. The index represents 50 out of the more than 100 Chinese stocks listed in Singapore

Shipbuilder and shipping company Cosco was up 12.4 percent at 4.72 Singapore dollars, Yangzijiang was up 10.4 percent at 1.38 dollars, China Hongxing was 12.7 percent higher at 71 cents and Synear Food was up 15.2 percent at 1.21 dollars

Mobile phone maker Longcheer Holdings rose 14 percent to 48.5 cents