SG Market (12 Mar 13)

SG Market: S’pore shares are expected to remained subdued even as Wall Street keeps pushing higher as investors are shaken by the steep sell-down in penny stocks after some broking houses imposed trading curbs. Immediate overhead test for the STI is at the 3000 psychological resistance with near term support at the 20-dma of 3280. Stocks to watch out for: #OUE: Acquires US Bank Tower and some related properties in downtown LA for US$367.5m. The building has 72 levels of office space, 6 levels of underground parking on area of 1.4m sf and is 56.3% occupied. *SingExpress Land: Proposed 1-for-1 rights issue @ $0.015 plus placement of 2.2b new shares @ $0.015 to Acquire Wealth to raise $226.5m to fund expansion into US property market, focusing on distressed property assets. Appointed Neil Bush, son and brother of 2 former US presidents, as board chairman. The company is also undergoing a name change to SingHaiyi Group. *Tiger Airways: Feb pax load factor 84% vs 80% yoy as revenue pax km rose 42% vs capacity growth of 36%. *World Precision: Bags Rmb13.7m worth of contracts to deliver 10 high-end stamping machines to Kia Motors auto parts supplier and home appliances manufacturer in China. *CitySpring: Wholly owned subsidiary City Gas and Osaka Gas has established a 51/49 business venture to market and sell natural gas to industrial customers in S’pore. The transaction will increase the group’s pro forma NTA to 3.07¢ from 0.53¢ but reduce its cash earnings to 4.03¢ from 4.25¢.