SG Market (06 Dec 13)

Investors continued to adopt a risk-off approach ahead of Friday’s payrolls data, leading US stocks to fall for a fifth day. Both the S&P500 and Dow closed 0.4% lower. The market remains in a perverse state where good economic data is perceived to be bad news because that could accelerate the timeline for the Fed to taper, bringing an end to the easy money conditions that investors have become so accustomed to. Meanwhile in China, economists remain skeptical about the impact of the latest economic reforms that the government has been trumpeting. The majority sees the policies adding only a negligible or less than 0.5ppt boost to China’s GDP growth, and believes they need to be accompanied by some monetary, fiscal and credit stimulus for the government to meet its objective for 7% pa GDP growth. Similar to yesterday, the S’pore market may track its regional Australia and Japan peers lower this morning. Korea trades about flat. The STI tumbled 1.2% yesterday and retraced to two-month low of 3,122. On a further downside break, share price might move to test the 3,113 support level, followed by 3,077 in extension. Stocks to watch: *Rex: Its 65%-indirectly owned entity, Lime Petroleum Norway AS, has signed an agreement with North Energy ASA to acquire a 20% stake in a new license in Norway. Located in the North Sea, the license (PL509) contains oil prospects in areas totalling 977 sq km. *KrisEnergy: Updates that its Vietnam Cua Lo 1 ST-1 (sidetrack) exploration well in Block 105-110/04 has reached 2,867m of measured depth. The operator, Eni Vietnam, is currently running wireline logs prior to undertaking a drill stem test to conduct further analysis. KrisEnergy holds a 25% working interest in Block 105, shared with partners Eni Vietnam (50%) and Neon Energy (Song Hong) (25%). *FJ Benjamin: Its flagship label, Raoul has inked a five year franchise agreement in the Middle East with Dubai-based Chalhoub Group, a specialist in the retail and distribution of top brands. Under the deal, Raoul will open nine standalone stores by 2017, with the first two to be in the UAE and Bahrain next year. This marks Raoul’s third franchise deal this year, and lays out the group’s plans to expand its total number of stores across Middle East, China and Sri Lanka, to 37 over the next five years. *Hiap Hoe: Entered into a non-binding early contractor involvement agreement with Probuild Constructions (Aust) for the proposed development of its two properties in Victoria. Probuild is prepared to asset Hiap Hoe with the technical assistance and cost planning advice during the design development phase with an exclusive dealing period until 1 Jun ’14. *Cambridge Industrial Trust: Entered into $250m interest rate swaps with several banks. On a pro forma basis, this extends the weighted average maturity of Cambridge’s fixed rate debt from 0.8 years to 2.3 years, and reduces the weighted average all-in cost of its debt from 3.9% to 3.6%, wef Jun ’14. *Willas-Array Electronics: To commence trading on the HKEx at 9am today, in board lots of 5,000 shares, with stock code 854. The company will effect its dual listing by way of introduction on the Main Board of HK.