SINGAPORE, Oct 10 (Reuters) - Singapore Airlines may be in focus on Friday after Nomura cut its fair value estimate for the stock, citing lower demand for air travel on the back of the deepening global financial crisis.
U.S. stocks plummeted for a seventh straight session on Thursday as investors bet recent moves by authorities worldwide to thaw frozen credit markets would not be enough to avert a global recession.
-----------------------MARKET SNAPSHOT @ 2329 GMT ------------
INSTRUMENT LAST PCT CHG NET CHG DOW JONES 8579.19 -7.33% -678.91 S&P 500 909.92 -7.62% -75.020 USD/JPY 99.21 -0.28% -0.280
10-YR US TSY YLD 3.7831 -
0.128 SPOT GOLD 913 0.16% 1.500 US CRUDE 84.85 -2.01% -1.740 ASIA ADRS 94.29 -6.14% -6.17
>US STOCKS-Recession fear plunders Wall St, Dow dives 678.91[.N] >FOREX-US dollar up as cash is hoarded, market looks to G7[USD/] >TREASURIES-Bonds recoil as supply outweighs panic in stock[US/] >Gold ends down on cash run as stocks decline >Oil hits 12-month low, demand outweighs OPEC
Stocks and factors to watch:
- Nomura said it has cut its fair value estimate for Singapore Airlines to S$13.95 from S$17.28 to reflect lower earnings as the global financial crisis reduce air travel for passengers and cargo.
Nomura kept its 'neutral' investment rating for the stock. The revised fair value estimate represents a 8.6 percent upside from the stock's last traded price on Oct. 9.
- Nomura said it has cut its 2008 forecast earnings for water treatment firm Hyflux by 44 percent to S$69.1 million ($46.9 million) to account for higher funding costs on the back of the sharp rise in LIBOR rates.
However Nomura kept its 'buy' investment rating on the stock because it said the recent sell-off in the stock was overdone.
Nomura has a fair value estimate of S$1.79 for Hyflux, representing a 19.3 percent upside to its last traded price on Oct. 9.
- Singapore yacht maker Grand Banks Yachts warned it may face cancellations and a drop in orders.
- Singapore's labour chief said on Thursday retrenchments and wage cuts in the city-state are likely if the global downturn continues.
- Singapore's benchmark Straits Times Index rose 3.4 percent to 2,102.71 points on Thursday.
- The Dow Jones Industrial Average sank 7.33 percent to 8,579.19 points, and the Nasdaq Composite Index slipped 5.47 percent to 1,645.12 points on Thursday.
(Reporting by Koh Gui Qing; Editing by Kevin Lim) . ng COPYRIGHT Copyright Thomson Financial News Limited 2008. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
U.S. stocks plummeted for a seventh straight session on Thursday as investors bet recent moves by authorities worldwide to thaw frozen credit markets would not be enough to avert a global recession.
-----------------------MARKET SNAPSHOT @ 2329 GMT ------------
INSTRUMENT LAST PCT CHG NET CHG DOW JONES 8579.19 -7.33% -678.91 S&P 500 909.92 -7.62% -75.020 USD/JPY 99.21 -0.28% -0.280
10-YR US TSY YLD 3.7831 -
0.128 SPOT GOLD 913 0.16% 1.500 US CRUDE 84.85 -2.01% -1.740 ASIA ADRS 94.29 -6.14% -6.17
>US STOCKS-Recession fear plunders Wall St, Dow dives 678.91[.N] >FOREX-US dollar up as cash is hoarded, market looks to G7[USD/] >TREASURIES-Bonds recoil as supply outweighs panic in stock[US/] >Gold ends down on cash run as stocks decline >Oil hits 12-month low, demand outweighs OPEC
Stocks and factors to watch:
- Nomura said it has cut its fair value estimate for Singapore Airlines to S$13.95 from S$17.28 to reflect lower earnings as the global financial crisis reduce air travel for passengers and cargo.
Nomura kept its 'neutral' investment rating for the stock. The revised fair value estimate represents a 8.6 percent upside from the stock's last traded price on Oct. 9.
- Nomura said it has cut its 2008 forecast earnings for water treatment firm Hyflux by 44 percent to S$69.1 million ($46.9 million) to account for higher funding costs on the back of the sharp rise in LIBOR rates.
However Nomura kept its 'buy' investment rating on the stock because it said the recent sell-off in the stock was overdone.
Nomura has a fair value estimate of S$1.79 for Hyflux, representing a 19.3 percent upside to its last traded price on Oct. 9.
- Singapore yacht maker Grand Banks Yachts warned it may face cancellations and a drop in orders.
- Singapore's labour chief said on Thursday retrenchments and wage cuts in the city-state are likely if the global downturn continues.
- Singapore's benchmark Straits Times Index rose 3.4 percent to 2,102.71 points on Thursday.
- The Dow Jones Industrial Average sank 7.33 percent to 8,579.19 points, and the Nasdaq Composite Index slipped 5.47 percent to 1,645.12 points on Thursday.
(Reporting by Koh Gui Qing; Editing by Kevin Lim) . ng COPYRIGHT Copyright Thomson Financial News Limited 2008. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.