0228 GMT [Dow Jones] STOCK CALL: Kim Eng Securities raises SingTel's (Z74.SG) sum-of-parts target price to S$3.35 from S$3.17 to reflect latest values of telco's listed associates. Says AUD, IDR continued to strengthen vs SGD in recent months, potentially boosting SingTel's fiscal 1Q10 results (likely due in August), as Optus and Telkomsel account for about 15%, 18% of SingTel's pretax profit respectively. Notes fast take-up for SingTel's recent launch of latest iPhone 3G handset, with customers "still clamoring to place orders even after the pre-ordering closed." Expects SingTel to maintain FY10 EBITDA margin guidance of 36%-38%, "which we reckon has already considered the new iPhone, and there may be upside if the economy improves further, unless content costs run out of control." Keeps Buy call. Stock off 1.3% at S$3.12; STI down 1.0%. (FKH)

0322 GMT [Dow Jones] SingTel (Z74.SG) +2.4% at S$2.99, faring tad better than most other blue chips (STI +0.8%), although interest tame based on light volume. Recent performance largely in line with broader market - down 2.7% since beginning July, down 3.0% since start of June vs STI's respective 2.9%, 2.7% falls over same periods - as stock not touted to outperform given low beta, lack of immediate catalysts as investors still awaiting pickup in business following management's guidance in May for slower earnings growth due to FX volatility, weaker economic conditions. Still, Bank of America-Merrill Lynch, which has Buy call, says earnings prospects better now as growth momentum in telco's core markets steady, with higher margins expected from Australian unit Optus; "we like SingTel for its dominance in Singapore and improving subscriber market share of Optus." Raises target price to S$3.33 from S$3.08 after increasing fiscal FY10-12 earnings forecasts by 6%-7%. If stock manages to clear S$3.00, next resistance at year-to-date high of S$3.09. (FKH)