SG Market (11 Dec 13)

Market Roundup: US stocks slid as investors looked to cash in on some of the year’s strong gains ahead of the holiday season and weighed the potential impact of Fed stimulus cuts. But money continued to flow from bond funds into equities with an improving economy supporting the trend. Economic data showed that wholesale inventories rose 1.4% in Oct, the largest gain in two years and well above expectations for a 0.3% advance. Job openings also rose to 3.93m in Oct, up slightly from a month earlier. After the market close, budget negotiators in Congress reached an agreement that could restore the normal funding process and avoid another government shutdown on 15 Jan. The budget deal would be put before the House and Senate for a vote late this week or next week. The STI broke below its 3,100 support following weaker Asian markets after China reported a slowdown in industrial production, though retail sales came in higher than forecast. The next support for the index lies at 3,050, which is the level from which the STI gapped up in Sep, with 3,100 now becoming its overhead resistance. Stocks to watch: *Civmec: Its Darwin operations secured a major project following expansion into the Northern Territory in Australia this year, bringing its order book to $386m. Recent awards include precast works for the Ichthys Project Onshore LNG facilities, structural fabrication and structural, mechanical and piping contracts for the construction of air gas liquefaction plant and fabrication of structural steel for Perth airport T1 expansion. *Yoma: Acquiring an 80% effective interest in a 60-year leasehold land plot (starting Dec 98) in the Pun Hlaing Golf Estate (PHGE) with land area of 8,887 sqm valued at US$3m from parent Serge Pun & Associates for the construction of a hotel. *Chip Eng Seng: Purchased a fully tenanted freehold office building with land area of 10,528 sqm and 135 basement car park lots, located at 420 St Kilda Road, Melbourne, for A$45.3m. *Ezra: 45.7% owned associate EOC has secured a charter for an FPSO, which has been deployed in the North Malay Basin to speed up gas production. The $272.1m charter has commenced in Nov 13 for a period of 3 years. *Pacific Radiance: Indonesian JV PT Logindo goes on IPO today (11 Dec) with issue of 127.4m new shares @ Rp2,800 each, raising gross proceeds of ~US$31.4m. In addition, PT Logindo will issue 1.1m new shares to satisfy ESA allotment and 68.5m new shares for conversion of the Logindo loan. Post IPO and the conversion of the loan, Pacific Radiance’s stake in PT Logindo will drop to 34.3%.