SG Market (18 Feb 14)

Market Roundup: US futures traded higher in a shortened session as the markets are closed for the President’s Day holiday. European markets advanced for the second straight day with the Stoxx Europe 600 index closing 0.4% higher, while Asian shares gained as new lending in China climbed to a record in Jan, easing fears of a slowdown. Japan stocks opened higher in early trades with the Nikkei up 1.2% ahead of a BoJ monetary policy statement and HK futures about flat. Having hurdled past the 20-day moving avarege at 3,050, the STI is poised to test the next objective at 3,100 with a larger resistance looming at 3,180, representing the topside of its six-month downward channel and the 200-day moving average. Downside supports remain at 3,024 and 2,990. Stocks to watch: *SIA: Passenger traffic rose 2.2% in Jan ’14 against capacity growth of 1.3%, lifting passenger load factor by 0.8 ppt to 79.1. Load factors improved across all routes except East Asia (-0.9 ppt) as the region continues to absorb capacity increase while demand to Bangkok remains weak. Cargo traffic was 0.4% lower on flat capacity, leading to a marginal 0.2 ppt drop in load factor to 60.5% with good showing on the Europe route (+7.4 ppt) despite the seasonally low season for airfreight. *Ramba Energy: 4Q13 net loss widened to $4.4m from $1.8m a year ago, taking FY13 net loss to $15.3m. Revenue dipped 1.2% to $19m due to slower chemical logistics business, while bottomline was further weighed by a 13.1% rise in total costs and operating expenses arising from higher FX losses from a weakening rupiah, legal and professional fees and provisions made for doubtful trade receivables. NAV slipped to 17.29¢. *Osim: Served with a writ of summons by the founder of TWG Tea, Manoj Mohan Murjani and his company The Wellness Group, alleging that Osim and its directors had conspired to to dilute his stake in TWG. Murjani is demanding for a reversal of recent share transfers that had resulted in Osim raising its stake in TWG to 70%. *AsiaMedic: 25% JV Cryoviva S’pore has been licensed to operate S’pore’s third private cord blood bank and has appointed S’pore Cord Blood Bank to contract process and store all its cord blood units. *KS Energy: 80% owned KS Drilling has secured a US$58m contract to provide a drilling rig for Vietsovpetro in Vietnam. The contract will commence in 2QFY14 and will be for a period of one year with option to extend for an additional year. *Interra: Completed development well CHK 1179 in the Chauk oilfield (60% working interest) in Myanmar, which is producing 24 bpd and commenced drilling on development well TMT-59 at the Tanjung Miring Timur field in South Sumatra, Indonesia. *Linc Energy: Spudded the significant 23H well at the Umiat oil field project in Alaska, spanning 19,358 acres over three leases and potentially holding over 1b barrels of oil. *King Wan: Extended the $50.2m sale transaction of its two Thai associates to Kaset Thai Int’l Sugar Corp (KTIS) for the third time to 15 Aug ’14 pending the listing of KTIS on the Stock Exchange of Thailand. *Hiap Hoe: Acquiring 130 Stirling Street, a seven-storey commercial building (office/retail) with net letteable area of 12,349 sqm in Perth, Australia for A$90m. *China Haida: Expects a loss for FY13 due to provisions for outstanding debts.