SG Market (26 Nov 13)

The Dow logged another record high close, after edging up 0.05% to 16,073, but the fade in the rally toward the final hour of trading may be a signal that investors are becoming more realistic as the markets become pricier. Meanwhile, overnight US data on Nov manufacturing outlook and Oct pending home sales disappointed. The weakness in Japan this morning (Nikkei -0.8% at 8.32am) may contribute to some market softness in Asia, paving the way for a tepid open in the Spore market. Following a relatively dull 3Q corporate results season, there continues to be a lack of significant developments to drive strong interest in the local market. The STI has penetrated below its 50-day moving average at 3,190 but remains largely bounded by the wider 3,123-3,233 trading band. 8:58:36 AM: Benjamin Oh Sze Wei: Stocks to watch: *SIA: Has received approval from India’s Foreign Investment Promotion Board (FIRM) to establish the proposed 49/51 JV full-service airline in India with Tata Sons. Further approvals from India’s Directorate General of Civil Aviation remain pending. Both companies intend to put up a combined investment of US$100m, with first flight take-off anticipated by mid-2014. *Yongnam: Secured a landmark $168m subcontract for works at Marina One mixed-use development located at Marine South, slated to be Spore’s new CBD. The subcontracts, awarded by the main contractor, a JV between Hyundai Engineering & Construction (E&C) and GS E&C, involve the fabrication and construction of a record ~30,000 tonnes of structural steelwork. Completion is expected by 1Q16. The latest deal lifts Yongnam’s orderbook to $397m. *ST Engineering: Its US Shipyard, VT Halter Marine has won a shipbuilding contract from Crowley Maritime to build two container roll-on/roll-off vessels, valued at ~US$350m. The vessels will be powered by LNG, a new standard in shipping. Construction will take place in 1H14, with deliveries in mid and late 2017. *CapitaLand: Its wholly-owned serviced residence business unit, The Ascott, has secured contracts to manage four more properties with a total of 797 apartment units in Hangzhou, Chongqing and Shenzhen, under the Somerset and Ascott brands. The properties are slated to open over 2015-18. With these deals, The Ascott has crossed its milestone of having 10,000 apartment units in its key market in China. *City Dev: Has been approached by independent third parties regarding the possibility of a sale of its controlling stake in HK-listed City e-Solutions (557 HK). The approaches have been entirely exploratory in nature and may or may not lead to a definitive agreement. *SGX: Together with the China Securities Regulatory Commission (CSRC), has established a framework to allow Chinese companies that have obtained CSRC's approval to seek a direct listing on SGX. *Rex: Its 41.6%-owned Masirah Oil has begun drilling for a prospect in Masirah North North #1 (MNN #1), located in the block 50 Oman concession. MNN #1 will be drilled up to a depth of 1km, after in-depth technical evaluation and verification using the proprietary Rex Virtual Drilling technology, as well as confirmations provided via conventional methodologies. *HPH Trust: The Capital Group ceases to be a significant shareholder after paring down its stake to 4.5% from 5.1%, via open market sales at an average US$0.68 per share. *SIIC Environment: Will undertake the expansion and upgrading of the Hanxi Waste Water Treatment Plant in Wuhan City, to increase the facility’s capacity by 50% to 0.6m tpd. *Cedar: Its newly acquired subsidiary, Guiyang Shunhe Real Estate Devt (GSRE) has delivered 7,416sqm of commercial units in its development project known as Xiao Cheng Gu Shi in Guiyang City, Guizhou Province. GSRE will record revenue of ~Rmb36m from the sale, and this is expected to contribute positively to the Cedar’s consolidated revenues in 4Q13. *NH Ceramics: Swung into an FY13 net loss of $0.7m versus a net profit of $3.7m from a year ago. Revenue fell 46% y/y to $2.8m, as it supplied less building materials following the completion of a project supply contract during FY13. In addition, during the financial year, the group continued to scale down its business in the trading of building materials. *Sheng Siong: Has renewed the lease for its supermarket at Yuan Ching Road till 31 Mar ’14. Upgrading works have been proposed for the building in which the supermarket is located in, and Sheng Siong is in discussions on leasing suitable premises in the upgraded building. The supermarket has a floor area of ~16,500 sf and contributed less than 5.0% of group revenue for 9M13. Upgrading works at the building had been proposed and the group is currently in discussions to lease suitable premises in the upgraded building.