SG Market (25 Nov 13)

Morning Bites Amid the lack of meaningful news flow, expect the S’pore market to drift upwards slightly today, taking cue from the global markets. Iran’s agreement to temporarily halt its nuclear programme in exchange for sanctions relief has quelled oil prices, and may give a lift to stocks today. Brent crude dipped 2% to US$108.81/bbl, while the S&P500 futures gained 0.3% and Nikkei rose 0.9% this morning. Nevertheless, broader sentiment for the S’pore market remains lackadaisical following the penny stock fiasco and a relatively dull 3Q corporate results season. The STI has penetrated below its 50-day moving average at 2,188 but remains largely bounded within the wider 3,123-3,233 trading band. Stocks to watch: *Biosensors: SGX filings reveal that CITIC PE Funds Management has become the new majority shareholder in Biosensors, following its purchase of Shandong Weigao’s entire 21.7% stake at $1.05 per share. *AIMS AMP Capital Industrial REIT: Has agreed to acquire a 49% interest in Optus Centre from Stockland, an Australian managed fund. The consideration of A$184.4m ($215m) will be fully funded by debt. The premium business park, located at Macquarie Park in north Sydney, is currently 100% leased to Optus. The weighted average lease term of 8.62 years comes with fixed annual rent escalation of 3%. On a pro forma basis, the acquisition is expected to accretive and raise the AIMS’ DPU by 5.7%. *OCBC: Sold its 14.88% stake in Vietnam Prosperity Joint Stock Commercial Bank for US$55.5m, a 20% premium to the FY12 book value. *Keppel Land: Completes the divestment of its 51% shareholding in the integrated township, Jakarta Garden City to PT Modernland, initially announced late Jul. Keppel Land will realize a net gain of ~$149m and receive net proceeds of ~$237m, which will be redeployed to new residential and commercial projects in Indonesia, with a focus on Jakarta. *Cosco: Contracts for two advanced semi-submersible accommodation vessels placed with its 51% owned subsidiary, Cosco Shipyard Group, have been declared effective. The vessels are worth in excess of US$200m each, and are scheduled for delivery in 2016.