SingTel (Z74.SG) rebounds from morning fall, +2.5% at $3.33 on strong volume, as investors look past flat 2Q11 earnings. “The positive surprise was an increase in the dividend payout ratio to 55%-70% from 45%-60%, which we don’t think the street was expecting,” says Morgan Stanley, which has Overweight call, $3.65 target.

OCBC, which has Buy call, $3.59 target, says 2Q11 results largely in line; ability to generate cash flow remains strong. 2Q11 net profit down 6.7% on-year at $892.2 million on losses from Indian associate Bharti’s (532454.BY) newly-purchased Zain Africa operations, related acquisition costs. Resistance at last year’s $3.52 peak.