SG Market (02 Dec 13)

From a macro perspective, the broadly uneventful Thanksgiving weekend points to a flat open for the S’pore market, taking cue from the little changed Japan market this morning. Investors may keep an eye out for HSBC’s factory output indices data for South Korea, Indonesia, India and China today. Meanwhile, China’s official Purchasing Managers’ Index (PMI) for Nov of 51.4 beat analyst estimates, indicating sustained manufacturing growth. In Thailand, deadly clashes arising from the anti-government protest left three dead in Bangkok, leading the central bank to warn that the standoff is hurting the economy. Thai Bev is one of the key S’pore counters with significant exposure to the Thai consumer sector. Near term, the STI may continue to trade in a tight 3,158 – 3,235 range. Upside is capped by the 200-day moving average, as the Stochastics and RSI indicators flat line. Stocks to watch: *Keppel Corp: Following the conclusion of its feasibility studies, Keppel confirms that it is currently negotiating with Golar LNG on the conversion of an existing LNG carrier into a Floating Storage and Liquefaction Vessel (FLSV). The terms and conditions of the contracts have yet to be finalized, though market watchers have previously tipped the deal to be worth ~$750m and take ~30 months to complete. There will be an option to covert two other FLNG vessels at a later date. *VARD: Secured a NOK400m contract from Island Offshore to construct an advanced offshore support vessel, scheduled for delivery in 1Q15. Island Offshore is a long-time customer of VARD, having received over 30 vessels for delivery, and with five vessels currently under construction from VARD. *CapitaMalls Asia: Will open two new malls in S’pore this week. CMA’s Westgate mall in Jurong East opens today; the seven-storey mall spans a net lettable area of 410,000 sf, similar to Raffles City. CMA’s Bedok Mall will welcome shoppers tomorrow; the 220,000 sf mall is 100% leased. *GSH: Acquired a 5,800sqm prime land parcel located at Jalan Kia Peng, in Kuala Lumpur's "Golden Triangle" from Malaysia’s Tropicana Corp, for a consideration of RM132.4m. The site is slated for mixed residential/commercial development. *Wing Tai: Its subsidiary, Winmine Investment has been awarded the tender for a 8,594sqm leasehold land parcel in Shanghai Huangpu District for Rmb1,104m. The group intends to develop the land as an office cum retail development. *SGX: Welcomed its first Rmb bond, issued by Industrial and Commercial Bank of China’s (ICBC) Singapore branch. The Rmb2b ($408m) bond issue has a 2-year tenure and carries a coupon of 3.2%. Singapore investors took up 55% of the bond issue. *United Envirotech: Its Taiwan Depository Receipts (TDR) may be delisted from the Taiwan Stock Exchange, as the company’s outstanding TDR in circulation has remained below 10m units since 6 Jun ’13. *Innopac: To acquire a 81.8% stake in Extera, which in turn owns 90% of Sheng Rong, an operator of two CNG filling stations in Shandong province. Sheng Rong is in the process of building a third CNG filling station and has permits to build two more CNG filling stations and a mother station that will allow it to become a supplier and distributor of CNG. The purchase consideration of $17.1m will be satisfied by cash of $7.2m and the balance of $9.9m will be satisfied through the issue of 300m new Innopac shares at $0.033 a piece. *Cedar Strategic: Has disposed its entire equity interest in two wholly subsidiaries, Yess Le Green and West Themes for an aggregate consideration of $2.5m. The group will record a loss on disposal amounting to Rmb3.9m, and the proceeds will be used for working capital. *Global Invacom: Acquired 100% stake in Raven Manufacturing Limited (RML), a UK satellite antenna manufacturer, for £1.98m ($4.1m). The consideration was based on the estimated NAV of RML. Management believes the acquisition will increase Global Invacom’s capacity and capabilities in the UK as the group continues to move up the value chain, and will strengthen its value proposition as an integrated Sat Comms equipment supplier. *Tiong Seng: Receives approval-in-principle from SGX for its proposed renounceable non-underwritten 1-for-5 rights issue at $0.18 each. The counter will go ex-rights on 5 Dec ’13.