SG Market (20 Mar 13)

SG Market: S’pore shares expected to remain in a cautious mode following the rejection of a bank deposit tax by Cyprus in return for rescue funds, which puts the country at risk of default with wider implications for some of its weaker European cousins. The big issue is whther the EU can contain the Cyprus crisis to prevent a wider European contagion. On the local front, the STI appears trapped between a tight range bounded by the 20 and 50-day moving averages at 3260-3280. A downward break of the 3260 support could see the index head towards further downside at 3230. Stocks to watch out for: *Midas: Bags €22.7m contract for the supply of aluminium alloy extrusion profiles for 100 train sets to Ural Locomotives, a JV between Siemens and Russia’s Sinara Group. *China Aviation Oil: Awarded contracts to supply aviation fuel to Air China at airports in London, Madrid and Los Angeles for 18 months wef Apr 13 with an aggregate contractual volume of 120,000 tonnes or ~16% of its total aviation fuel supply volume for 2012. *UE E&C: Awarded $23.2m tender for proposed renovation of the Arts & Crafts Centre in Brunei. The project is to be completed in 2 phases by Aug 13 and Mar 14. *Rickmers Maritime: Plans non-underwritten renounceable 1:1 rights issue @ $0.24 to raise $98.5m net proceeds to repay bank loans and reduce gearing to 51.8% from 59.3%. Also secured agreement with banks to extend its value-to-loan covenant waiver for another 1½ yrs to Dec 14. Trust intends to maintain quarterly DPU at US0.6¢ for FY13. *CSC Holdings: Disclosed that it has $3.5m progress claims outstanding against main contractor Poh Lian Construction, which has been placed under judicial management for piling and soil improvement works done for the H2O Residence project in Sengkang. *Fragrance/Aspial Corp: Sold 250 (>80%) out of 310 units at the 3-day launch of the Urban Vista condo development in Tanah Merah. Prices typically fall within the $1,400-1,550 psf range.