Daily news - 28 Oct

Prominent firms' Q3 results out this week
The third quarter corporate results season continues this week with a number of high-profile companies expected to turn in their Q3 report cards. Top of the list is Chinese shipbuilder Cosco Corp which is scheduled to release its financial results on Thursday. The firm was hit by news of its Norwegian client MPF Corp filing for bankruptcy, amid growing fears that the credit crisis could squeeze demand for new shipbuilding and lead to order cancellations. Accordingly, analysts have slashed their target prices for the stock by as much as 50 per cent. And on Thursday, both analysts and investors alike will be watching out for signs of weakness in its order books, before deciding if the stock is worth holding in the short to medium term. Next in line is United Overseas Bank (UOB) - the first local bank to report its Q3 performance this season. To be sure, the banking sector is at the epicentre of the credit tsunami, but UOB's third quarter financial results might not be a good indication of the recessionary impact on the banking sector, according to analysts. Some pointed out that loans growth is still positive, even though most are bracing for more write-downs and nasty numbers coming from the banks' treasury activities.

Source: Kim Eng