SG Market (26 Mar 13)

SG Market: S’pore shares may be muted as investors keep a wary eye on developments in Europe where the last minute bailout deal for Cyprus has raised concerns that bank deposits across Europe could one day become targets of creditors. It is also premature if events there will lead to more funds flow to Asian and S’pore in particular. The STI has yet to break clear of the immediate resistance at 3270 convergence area for the 20 and 50 dma. Underlying support remains at 3230. Stocks to watch out for: *Lian Beng: Clinched $220m contract for the construction of the 868-unit Bartley Ridge, a JV project by City Dev, Hong Leong Holdings and TID. The contract will boost the group’s orderbook to $884m. Construction will commence in Mar 13 with completion due in mid 2016. *BBR Holdings: Bagged a $102.8m contract from HDB to build 4 blocks of flats at the Kallang Whampoa area. Work has started in Mar 13 with completion due by Apr 16. This is its 5th HDB contract won since 2009 and takes its orderbook to $1.12b. *Tiong Seng: Secured 2 contracts worth $223.4m, comprising a $135.4m condo project Eco Sanctuary from SP Setia and a $88m terrace housing project The Springside in the Seletar/Sembawang area from Kallang Development. These contracts will boost orderbook to $1.47b. *Swissco: Takes 46.5% stake in SPV, Rockwood Asset Holdings, to diversify into oil rigs. Initial US$8.2m investment will be funded via a convertible loan, payable through an issue of 35.6m Swissco shares @ $0.2577 (7.6% of enlarged share cap). For a start, Rockwood has entered into a EPC contract with Rongsheng Heavy Industries and Rongsheng O&M for the construction of an oil rig with option for a second rig. *Anchun Int’l: Secured Rmb5m contract from a China fertilizer producer for its CO shift reactor, which converts harmful carbon monoxide emissions into useful feedstock products.