SG Market (19 Mar 13)

SG Market: S’pore shares expected to open on a wek note amid renewed worries about contagion risks from Europe following plans to impose a unprecedented levy on bank deposits in Cyprus roiled markets. The STI may slip below its 50-day dma support at 3260 to further downside at 3230 as negative overseas coupled with local trading curbs weigh heavily on sentiment. Stocks to watch out for: Ascendas Reit: Acquires The Galen, a 6-storey science park building with GFA of 30,685 sqm and 66-year tenure for $126m via issue of new units. The new addition is expected to generate a NPI yield of 6.8% and enhance DPU by 0.052¢. *China New Town: Entered into non-binding MoU to place out 3b shares to China Development Bank (CDB), representing 40% of the enlarged capital at a subscription price of @HK$0.246 (S$0.0396) or 65% discounted to last traded price. The transaction will dilute the stake of controlling shareholder SRE Investment to 19.6% from current 32.6%. CDB intends to apply for whitewash waivers from HKEx and SGX to avoid having to make mandatory takeover for rest of China New Town shares. *Keong Hong: Awarded $101m contract by Chip Eng Seng to build hotel mixed development comprising 13-sorey hotel and a 6-storey retail podium cum car park at the junction of Jalan Bukit Merah and Alexandra Road. The project will commence end Mar and will be completed within 24 months. This brings the group’s orderbook to $550m, stretching till 2016. *World Precision: Bags Rmb20.8m tender to supply 13 high-end stamping machines for the auto parts division of Baosteel, the world’s 2nd largest steel producer, with delivery in 3Q13. Yongnam: Joined a consortium comprising JGC Corp and Changi Airport Planners & Engineers to evaluate submitting a tender for the construction and management of Hanthawaddy Int’l Airport in Myanmar. The proposed investment into infrastructural developments is part of its diversification strategy to develop new revenue streams, expand its business and improve its growth prospects. Yoma: Plans to venture into luxury tourism sector in Myanmar, setting up 70/30 JV with First Myanmar Investment Co, a unit of Serge Pun & Associates to buy 75% stake in a hot-air balloon tour operator for US$10.7m; a 75% stake in 21.16-acre site in Bagan for potential hotel development for US$3.75m; a 75% stake in a firm which offers luxurious adventure tours in Myanmar and Bhutan. *Willas-Array: Seeking for a dual primary listing on SEHK to give it ready access to both equity markets in S’pore and HK, widen its investor base and increase its stock liquidity. This is also in line with the group’s focus on its operation in China. *PCA Technology: Cash offer of $0.15 by MSKK Investments extended till 26 Mar. *Otto Marine: Announces several key management changes to strengthen its shipbuilding capabilities.