Kim Eng Daily Report

China raises the price of retail diesel and petrol by 3~5%, bringing the total increase to about 20% since 2005. The increase still leaves refiners in the red and is not likely to deter demand for fuel. The latest fuel increase highlights the issue of fuel shortage in China. Energy related China plays could rise. Average housing prices in Beijing rose US$124.6 psm during the January to February period or a 17.3% YoY increase. However, the rise is deterring buyers. 1.17mil square meters of commercial housing were sold in Beijing during the same period, which represents a 24.5% YoY fall. Launch of the request for proposals for the Sentosa integrated resort has been pushed a month back to 28th April. This will enable the Singapore Tourism Board and relevant agencies to review all the feedback received from the various contenders of the Sentosa IR. These contenders include Genting International and Star Cruise; Eight Wonder and Starwood; Harrah's Entertainment and Keppel Land; Kerzner International and Capitaland; and Sun International.
Singapore companies are expected to buy 45% more disk storage capacity this year compared to 2005, this according to IT research firm IDC. Our IS research has downgraded Jurong Technologies from Buy to Hold amid growing near-term uncertainty surrounding the stock. Target price has been reduced from $2.30 to $1.79. On charts, we highlighted last week potential weakness in Jurong Technologies last week. We have technical Trading Buy recommendation on Sky China Petroleum with an upside
objectiveof $0.585 followed by $0.645.