SG Market (07 Jun 13)

SG Market: S’pore shares are expected to be put on holding mode despite the technical rebound on Wall Street in a volatile session as investors are likely to keep to the sidelines ahead of the key jobs report out this Friday. The rally in US stocks came as the greenback fell against the euro and yen after the ECB held interest rates steady and ECB President Mario Draghi laid to rest hopes of any further monetary stimulus in the near term. Traders also unwound the carry-trade bets on a weaker yen after Japan’s PM Shinzo Abe failed to stimulate interest with his economic revival plan. Markets have seen increased volatility over the past two weeks as investors searched for direction amid mixed economic signals and speculation that the Fed will curtail its quantitative easing program. The latest data on the labour market showed US weekly jobless claims decreased by 11,000 to 346,000, while economists are forecasting nonfarm payrolls to rise by 165,000 in May and the unemployment rate to stay at 7.5%. It would be interesting to see if the STI can hold above the 200-day moving average at 3,188 after bouncing off the key technical indicator yesterday. A downside break would be bearish for the market at least for the mid-term with the next support seen at 3,088. While the blue chips remain under pressure, there are however pockets of strength in the Myanmar-linked stocks and some Iskandar-related plays. Stocks to watch for: *Jaya Holdings: Signs long term charters worth more than US$60m for three of its four new platform supply vessels (PSVs) well ahead of their delivery dates. The first high-spec PSV will be delivered end of July and be deployed on a three-year time charter in South-east Asia. The other two median-sized PSVs will be delivered in 1H14 and will operate in Latin America under charters of up to three years. *CNA Group: Won several projects totalling $13.8m across Asia comprising 1) a 15-year concession fee contract from Laos Airport Authority to run a common use terminal equipment solution in Luang Prabang Airport, 2) an environmental control system for the Bangalore Metro Rail Corp to be completed by Aug 14, 3) local sequential controller system for SMRT’s Downtown Line 3, as well as a number of smaller contracts in Vietnam. *Del Monte: Posted the listing circular approving the proposed listing on the Philippine Stock Exchange. The shares are expected to be listed by way of introduction on 10 Jun and trading of the shares can commence immediately upon listing. Upon listing on the PSE, the company will be dual listed on SGX and the PSE and the shares will be fungible between the two exchanges. *MIIF: Pays an additional cash distribution of 1.9¢ per share following final settlement from the divestment of its 47.5% interest in Taiwan Broadband Communications to Asian Pay Television Trust (APTT). Earlier, the trust distributed 525.9m APTT units to shareholders or $0.44329 per share cash in lieu of APTT units. *Enviro-Hub: Terminates proposed acquisition of property, comprising covered warehouses at 10 Tuas Avenue 5 after failing to obtain JTC approval. *CNMC: Post collaboration with Chinese partner, China Gold, the group gave a production update of 1,155 oz of gold dore bars in May and 685 oz of gold bullion for the whole of 1Q13. The higher production and leaching efficiency was attributed to improvement in the ore selection process, better management of leach operations and application of leaching chemicals. Construction of a second leach yard is expected to be completed by Jul 13 with more investments in plant and equipment being planned for 3Q13. *Noble: NHL, a discretionary trust whose beneficiaries include the children of Chairman Richard Elman, bought 2m shares at an average price of $1.0136 per share, raising its total stake from 21.09% to 21.12%.