Stock News from UOB Kay Hian

Chartered Semiconductor Manufacturing Ltd may gain after the Semiconductor Industry Association said global chip sales rose 6.8 pct year-on-year in February as the industry started building inventory. The industry group also maintained its forecast for 2006 global chip sales of 246 bln usd, an increase of nearly 8 pct from 2005. A strong holiday sales season for consumer electronic goods is fueling inventory replenishment and potential double ordering by electronics suppliers, analysts say. Besides Chartered Semiconductor, the robust February chip data also bodes well for chip testing and packaging firms STATS ChipPAC Ltd and United Test and Assembly Center Ltd.

Keppel Corp Ltd may rise after its unit Keppel FELS secured a contract with Diamond Offshore Drilling Inc to upgrade a semi-submersible rig for 102 mln usd. At present, Keppel FELS is constructing one jack-up rig for Diamond Offshore. Its sister company, Keppel AmFELS is building another jack-up rig for the same customer. Diamond Offshore provides contract drilling services to the global energy industry. Keppel Corp closed up 0.10 sgd at 13.90 yesterday.

Neptune Orient Lines Ltd (NOL) may see brisk trading after its freight volumes in the four weeks to March 10 rose 20 pct year-on-year to 156,200 40-foot equivalent units (FEUs). The company also said it plans to invest over 400 mln usd this year to expand its container shipping fleet and acquire terminal equipment, logistics infrastructure and new information technology capability. In the Feb 11-March 10 period, average freight rates rose 1.0 pct year-on-year to 2,640 usd per FEU, NOL said. NOL said its logistics revenue increased 4.0 pct to 97.7 mln usd. The stock closed flat at 2.18 sgd yesterday.

STX Pan Ocean Co Ltd said it has entered into a shipbuilding contract with South Korea's Hanjin Heavy Industries and Construction Co for the construction of a liquefied natural gas (LNG) carrier for 215 mln usd. In a disclosure, STX Pan Ocean said the LNG carrier is to be delivered on Dec 31, 2009.

CapitaLand Ltd may still gain after JP Morgan raised its fair value for the stock to 5.13 sgd from 4.50 to take into account the recent sale of Raffles City complex to CapitaCommercial and CapitaMall Trust. Last month, CapitaLand unit Raffles Holdings Ltd sold Raffles City for 2. 09 bln sgd to CapitaCommercial Trust and CapitaMall Trust, both real estate investment trust units of CapitaLand. It also securitized serviced apartments held by unit Ascott Group into Ascott Residence Trust, which started trading last week. CapitaLand finished 0.08 sgd higher at 4.92 yesterday.