SG Market (10 Sep 13)

SG Market: S’pore shares will likely head higher following the sharp rally on Wall Street on upbeat China trade data, M&A activity and easing concerns of a possible US-led military action against Syria. The broad-based S&P 500 rose above its 50-day moving average for the first time since 23 Aug, which suggests positive near-term momentum. With Tokyo and Sydney both climbing 0.9% and 0.5% respectively in early morning trades, the STI is poised to clear above the 20-day moving average at 3,100 to test the 3,110 resistance. Momentum indicators are also flashing upward strength with MACD exhibiting a bullish crossover. Downside risk is now shifted to 3,065 resistance-turned-support level. Stocks to watch for: *Sound Global: Makes formal delisting and exit offer of $0.70 per share after first mooting the idea in Jun 13. The delisting from SGX is not a privatization exercise as the company will continue to maintain its primary listing on the SEHK. The delisting and exit offer are subject to approval of at least 75% of total shares present at an EGM to be convened and the resolution not being voted against by 10% of the votes. *Global Logistic Properties: Signed new agreements to lease 22,000 sqm of space at its Chengdu and Suzhou logistics parks to two leading manufacturers in China. High precision mold maker Tontec leased 11,000 sqm at GLP Park CDHT in Chengdu, while API Group, a global leader in heat transfer solutions, pre-leased 11,000 sqm at GLP Park Suzhou. *Halcyon Agri: Signed term sheet to acquire JFL Agro, which owns 24,327 acres of land in Kelantan, Malaysia for RM130.9m. Plans are to develop an estimated 16,061 acres of the cultivable land as a natural rubber plantation to extend its value chain upstream and complement its recent acquisition of Chip Lam Seng’s rubber processing assets in Ipoh. *Amara: Looking to spin off Amara S’pore Hotel and adjacent 100 AM shopping mall and Amara Sanctuary Resort Sentosa into a hospitality Reit and listing it in an IPO next year but no concrete plans at the moment. Plans to open a hotel in Bangkok next year, and a hotel/retail/office building in Shanghai is expected to be completed by 2015. *A-Sonic: In response to SGX query on the doubling of its share price to $0.131 and surge in traded volume to 104m shares yesterday, company drew attention to its early Sep announcement, giving a comprehensive account and outlook of its new aircraft leasing business, which may have spurred the sudden investor interest. *Tiger Airways: Raised stake in Indonesia's PT Mandala Airlines to 35.8% from 33% after acquiring another 23.1m shares at Rp4,500/share or $11.6m via subcription of rights issue. *See Hup Seng: Disclosed that it is in discussions over a possible acquisition via issue of new shares but cautioned that the talks are non-binding and in preliminary stage and no definitive agreement has been reached. *Asiasons Capital: Responds to SGX’s query on trading activity, highlighting ongoing reviews of the company’s business and evaluation of potential investmant opportunities but there has been no written agreement or decision made by the board yet. *China Minzhong: Company’s Ba3 rating put on on review for upgrade by Moody’s which cited Indofood’s majority stake and stronger credit profile provides a degree of support and will bolster the group’s operations, finances and scale, and ability to invest in new industrialised plants. Latest disclosure by Indofood shows that its unconditional takeover offer of $1.12 has garnered an effective control of 60.1% of the China-based vegetable producer. *Guthrie GTS: United SM Holdings has extended its cash offer of $0.88 per share by another month to 1730h on 9 Oct, which will be the final closing date. As of 6 Sep, the offeror and its concert parties have control over 87.6% of the company. *Ecowise: 3QFY13 net profit inched up 3% y/y to $0.5m,while revenue slid 12% to $20.4m. The decline in revenue was due to lower export sales from its retreaded tyres and rubber compounds businesses. Gross margins however improved to 22% versus 19%, which helped buoy the bottomline. *Second Chance Properties: Issued a profit alert, highlighting a substantial increase in the valuation of its properties in tandem with the rising commercial real estate market. This will also result in a considerable increase in record net profit for FY13. *DeClout: Suing Activ Technology for non-payment of $0.5m after receiving two dishonoured cheques on work and services provided in Apr 12.