Singapore Press Holdings (T39.SG) surrenders early gains, flat at $3.95 in light trade vs $3.98 intraday high, still holding near six-week low of $3.91 set last Thursday, which expected to offer support near term, according to Dow Jones.

Stock continues to underperform STI, down 4.4% since beginning August vs benchmark down 2.2% over same period, as SPH widely regarded as close proxy to Singapore economy, which expected to grow at much slower pace in 2H10 vs +17.9% on-year in 1H10.

“Year-on-year advertising revenue growth may decelerate for FY11 if economic growth in Singapore also decelerates” in 2H10 and 2011, says Daiwa, which has Hold call with $4.10 target; “we do not view the stock as a good candidate for capital appreciation given its modest net-profit growth outlook.”