SG Market (01 Apr 13)

SG Market: S’pore shares could push higher, taking cues from S&P 500’s record close before the long weekend amid signs of stability in debt-stricken Cyprus. Focus will be on the Chinese PMI data due later this morning. While today's tone may be upside biased, sentiment on China-related developers may be hurt by fresh property curbs in Shanghai and Beijing. Property stocks will be in the limelight after the URA estimates show private-home prices grew 0.5% in 1Q on quarter to a new record but at a slower pace compared to the 1.8% rise in 4Q. Expect the STI to test the 3320 resistance with the next hurdle pegged at 3380. Underlying support remains at 3300.The house pegs the next hurdle at 3370, while immediate support at 3300. Stocks to watch out for: *SMRT: Issues profit guidance warnings of a net loss for 4QFY13 due to increasing operating costs without corresponding fare adjustments as well as impairment of $17m goodwill in its associate Shenzhen ZONA transportation Group. *Lian Beng: Acquires 17,974 sf freehold commercial plot at Changi Rd for $68m and plans to redevelop the site into a mixed-use project with both office and retail space. LBG will hold 40% in the project, while partners KSH Holdings and TEE Int’l will each hold 30% stake. *TA Corp: 51% owned Que Holdings is appointed distributor of Shell's automotive and industrial lubricant products in Myanmar. Business ops expected to start in 2Q13. *NH Ceramics: Acquiring BlackGold Group, which has controlling interests in 53,000 ha of coal concessions in Riau province, Indonesia for US$150m. Co will issue 3.18bn new shares @ $0.059/share or 91.2% of its enlarged share cap in the RTO deal. Blackgold willl seek a whitewash waiver to avoid having to make a GO and plans to keep NHC’s listing status. Co also undergo a 5:1 share consolidation post-acquisition. *BH Global: Believes it is a victim of fraud after advanceing an agent $2.8m of a $4.2m fee to procure 30 ha of land in Batam to build a new shipyard but later discovered that Batam authorities had never received its application for the land, which was allocated to another party. The $2.8m payment had been fully provided for in FY12 results. *Guanzhao Industrial: Lost its appeal against a JV partner, and now will pay Rmb8m in overdue rental and another Rmb536,818 in accrued interest payable. The group also lost the right to use the land that has been leased to it. The claim will have an adverse impact on the group.