SG Market (18 Sep 13)

Markets will continue to remain edgy as all eyes are on the Fed’s announcement today, with regard to the status of its quantitative easing program. Recent polls indicate expectations for a US$10b reduction in the monthly Treasury purchases. Overnight in the US, tech stocks performed best, aided by Microsoft’s advance after the software giant announced plans to buy back US$40b in stock and boost dividend by 22%. The S&P 500 closed up 0.4% at 1,705, just 5pts shy of last month’s 1,710 all-time high close. Taking cue from the neighboring markets, traders in Singapore may posture for a mild positive open. This morning, the Nikkei futures are up ~0.8%, while the ASX futures are flat. The STI’s bullish breakout above the 3,166 level (defined by the 50 day moving average) is positive for near term momentum. Meanwhile, the RSI technical indicator continues to rise steadily. As long as the 3,150 support holds, the STI stands a chance to trend up higher to the resistance level at 3,233 (200 day moving average). Stocks to watch: *Global Logistic Properties (GLP): Signs a long-term lease for 26,000 sqm at GLP Park Beijing Capital Airport to DHL Supply Chain China. *ParkwayLife REIT: acquired five Japanese nursing home properties which is expected to generate accretive net property yield of 7.0%. The deal will be fully funded by 6-year committed and unsecured JPY bank facility with interest at ~1.75% pa. *Ramba: Completes development drilling of a production well at the Jatirarangan block, with analysis confirming the presence of hydrocarbons in the area. The well has produced up to 5.5 mmscfd of gas and 265 bpod of oil since completion of deepening work. The well is currently under observation. A comprehensive extended well testing for other identified zones is expected to be carried out in future, subject to regulatory approval. *Rex International: its 65% subsidiary, Lime Petroleum Norway, will receive 10% stakes in each of two new exploratory licenses in Norway, from North Energy, as part of a co-operation agreement between both parties. Both licenses are situated in the Barents Sea. No consideration is needed. Rex will now have 15 licenses in four regions, from an initial 10 as at listing on 31 Jul. Management anticipates to announce more deal flows in the coming months. *FDS Networks: Has failed in its application for extension of time to meet the requirements for an exit from the SGX Watchlist. Hence SGX will proceed to delist the company. Share trading will be suspended after 5pm, 16 Oct ’13, until completion of an Exit Offer by the company. *China Dairy: subsidiary, Silver Bridge International has agreed to sell its entire 60% interest in Kuitun Dairy Company to Xinjiang Production and Construction Group Dairy, for consideration of RMB6m.