SG Market (20 Feb 13)

SG Market: S’pore shares could open higher and break past the 3300 resistance upbeat consumer confidence data from Germany and more M&A drove US stocks to multi-year highs. The announcement of mega Iskandar projects by both S’pore and M’sian govts may also give a fillip to Iskandar plays such as Rowsley, CapitaLand, IHH Healthcare. F&B stocks may get a boost from the Yamada Green, which sees renowned investor Sam Goi taking a 16.5% stake in the company. Among stocks in focus: *CapitaLand: Entered into JV with Iskandar Waterfront (40% stake) and Temasek (9%) to develop $3.2b township project in Danga Bay in Johor’s Iskandar Malaysia. The JV will acquire 3.1m sf of freehold land for $324m or $105 psf to be developed over 10-12 years into a premier waterfront residential and commercial project with total GFA of 11m sf. CapitaLand’s Ascott group will also be developing a 310-unit service residence and a 147-unit condominium development at the Afiniti Medini urban wellness project in Iskandar. *Other Iskandar plays: IHH Healthcare, Raffles Education. *Yamada Green: Private placement of 82.2m new shares representing 16.5% stake to well-known investor Sam Goi at $0.119 per share, or 11.9% discount to its latest traded price of $0.135. *Sinotel: Acting on special auditor PwC's recommendations on procurement procedures following discovery of fraudulent purchases bt employees.