SG Market (28 Mar 13)

SG Market: S’pore shares are likely to see muted trading today given the mixed reaction on Wall Street. Market sentiment will remain cautious ahead of the reopening of Cypriot banks and traders may be unwilling to take fresh positions ahead of the long Good Friday holiday. However, Asia may be a beneficiary of any potential capital flight out of Europe with funds seeking safe havens such as S’pore. Resistance for the STI is kept at 3320 with support now at 3300. Stocks to watch out for: *Keppel Corp: Secured US$820m order from Mexican drilling company Grupo R to build 4 KFELS B Class jack-up rigs for delivery progressively from 2Q15 to 4Q15. *Nam Cheong: Secured sale contracts for 6 vessels worth US$72.1m to 2 existing customers, comprising 2 build-to-stock 5,150-bhp AHTS vessels to Icon Offshore and 4 build-to-order emergency response and rescue vessels to a S’pore-based company. The vessels are scheduled for delivery between 2Q13 and 4Q14. *Yanlord: S&P revised its rating outlook to stable from negative and reaffirmed its BB- long term corporate credit rating, citing improving sales execution and liquidity. *Azeus: Won arbitration case against customer and awarded HK$40.9m or $6.6m in compensation. This relates to a HK$60.7m IT service contract secured in Nov 07, which were interpreted differently by Azeus and the customer.