SG Market (22 Mar 13)

SG Market: S’pore shares are likely open lower following weakness in global markets amid continued uncertainty about the fate of a bailout plan for banks in Cyprus. The uncertainties arising for this risk event are likely to weigh on sentiment for the coming session. The STI could move back below its 50-dma and head towards the underlying support at 3230 with upside resistance now seen at 3275. Stocks to watch out for: *Oxley: Proposed purchase of the Pines Club for $318m to redevelop into a 735-room hotel and commercial buildings. *Ho Bee: Not ruling out launching commercial Reit in the next 2 years. It owns 5 commercial properties, including its latest mixed development The Metropolis at Buona Vista, which is scheduled to be completed by Sep this year. *Saizen Reit: Acquired residential property in Japan for $10m, comprising 61 residential units and 28 parking lots. Property generates ~1.9% and 2.1% of trust's FY12 annual revenue and net property income. *ST Engrg: Clinched US$100m order for a 2nd barge unit from Bouchard Transportatiion. Construction of the 1st barge will begin in Apr, with delivery scheduled for mid-2015. Construction of the 2nd barge will begin in 4Q13, with delivery slated in 1Q16. *JES: Signed LOI with S’pore-based offshore company to construct up to 4 offshore accommodation vessels valued at US$147m. *Otto Marine: Secured $6.3m worth of fabrication contracts for pre-erected columns and pontoons with delivery expected in Jun 13. *Pan Hong: Wins Rmb506m bid for commercial land use rights of a 20,482 sqm site in Hangzhou, China