SG Market (05 Dec 13)

The S&P500 closed 0.1% lower Wednesday, in the red for its fourth day running. The Fed in its Beige Book business survey, noted that gains in manufacturing, technology and housing kept the economy expanding at a “modest to moderate” pace from early Oct through mid Nov. Meanwhile, Friday’s jobs data remains highly anticipated, with surveys indicating that the unemployment rate may fall to 7.2%, the lowest level since 2008. Investors’ remain jittery about the Fed tapering and an improvement in economic data may accelerate the potential monetary policy adjustment. Given the dry corporate news flow environment, the S’pore market may track its regional Australia and Japan peers lower this morning. Korea trades about flat. The STI has retraced back to the lower end of its 3,158 – 3,235 range. On a downside break, the next support level lies at the two-month low of 3,122. Stocks to watch: *Yoma: Entered into a new 20/60/20 JV with LCT and First Myanmar Investment to build and operate a steel mesh products manufacturing plant in Yangon. The JV will commence with an initial capital of US$6.5m. The major shareholder of LCT has over 20 years of experience in the steel mesh products manufacturing and distribution business in SE Asia. *OUE: Obtained shareholders approval at yesterday’s EGM for, i) its proposed disposal of OUE Bayfront Property to OUE Commercial REIT, and ii) the proposed distribution in species of OUE Hospitality Trust to OUE shareholders. *Cosco: Secured a contract valued at over US$54m to build two 64,000 DWT bulk carriers, scheduled for delivery in 4Q14. *Swissco: Purchased two anchor handling tug supply vessels and one fast utility/crew boat, under its fleet renewal and expansion program, for an aggregate $42m. The vessels will be built at Chinese yards and are expected to be delivered in 2015. *SP Windsor: Proposed to dispose its entire 70% stake in Windsor Manganese (WML) for HK$45m ($7.3m), which compares with its FYMar13 NAV of HK$4.6m. The cash proceeds will be used to repay the group’s loans and improve its gearing from 86% to 59%. SP Windsor will thereafter focus on its remaining business in the manufacture and sale of moulds and printed circuit boards, while seeking to expand and diversify its operations. *Ascendas Hospitality Trust: Has appointed international serviced apartment provider, Oakwood to rebrand and manage its serviced apartment in Tokyo for five years. *Amplefield: Entered into an MOA to form a 50/50 JV with Citybuilders to provide services related to project management, construction, management as well as facilities management in Vietnam. The JV will commence with an initial capital of US$1m.