SG Market (18 Dec 13)

Market Roundup: US stocks ended slightly lower with markets getting on edge ahead of a key FOMC policy meeting that could signal when the Fed would dial back its monetary stimulus that has kept interest rates low and helped boost equity markets. There has been some chatter recently about a possible Dec cutback following the release of encouraging economic data but an unchanged reading on CPI in Nov and a tame 1.2% annual inflation which came in well below the Fed’s guidepost suggests that the Fed could afford to wait on a taper decision this week. Markets also got a lift from aerospace giant Boeing, which announced US$10b share buyback and a 50% dividend hike, while feloow Dow component 3M raised its dividend payout by nearly 35%. Asian bourses opened mostly firmer this morning on expectations that the Fed will hold off until its Jan or Mar meetings to make sure that the economy is heading in the right direction. The STI could extend its oversold rally but upside may be capped by the fibonacci resistance at 3,100. Underlying support lies at 2,990. Stocks to watch: *KrisEnergy: Received government approvals for its acquisition of Tullow Bangladesh, which holds a 30% working interest and operations of the onshore Bangora gas field in Block 9, which covers 1,770 sq km. The Bangora gas field commenced production in 2006 and produced 92.7mmscfd and 285 barrels of condensate per day in 3Q13. *Tiger Airways: Nov operating figures for Tigerair S'pore saw a 6% y/y rise in traffic, while capacity expanded 20.8%. Consequently, passenger load factor dived 10.4ppt to 74.2%. Tigerair Mandala carried 182,000 passengers (+345%) on an improved load factor of 71.9% (+7.5 ppt), while Tigerair Philippines achieved a load factor of 77.2% (+12.9 ppt) from 104,000 passengers (+8.3%). *Transview: Disposed its golf business (including properties and assets) in S’pore and Malaysia to Japanese sports gear retailer Xebio for $28m. The group will book a gain of $12m from the proposed sale, which will add 6.9¢ to its NAV/share of 17.1¢ as at Apr. It intends to use the sale proceeds to expand into other businesses or invest in new business opportunities to enhance shareholder value. *Petra Foods: Filed notice of arbitration in relation to its disputed sale of its cocoa ingredients business to Barry Callebaut. *Nam Cheong: Up-sized its medium term note programme from $200m to $600m with net proceeds used for refinancing of existing debt and financing capex, investments and general working capital.