SG Market (04 Mar 14)

Morning Bites Stocks ended lower yesterday as part of a global sell-off, prompted by Russia’s growing military presence in Ukraine. US markets ended off their lows, but risk-off was clearly still the theme, with the S&P500 closing 0.7% lower. Investors sought safe havens in the yen, US Treasuries and gold. In Asia this morning, losses in the Nikkei and Kospi are more muted at -0.4% and -0.2%, respectively. As the initial fear fades, some observers opine that the Ukraine issue may turn out to be just a blip on the charts, as with the Georgia-Russia crisis in 2008. If so, investors may make use of the current dip to accumulate their preferred quality blue chip names at more attractive levels. From a technical perspective, the STI made a recent top in mid Feb, and may range trade between 3,027 and 3,121 in the near term. RSI and MACD histogram indicators are pulling back to neutral levels which also suggest that the STI may enter a brief period of consolidation. Stocks to watch: *Keppel Corp: Secured a contract from TS Offshore to construct an ultra-high specification jackup rig worth ~US$500m. Following scheduled delivery in 1Q17, the rig is expected to be deployed in the Eastern China Sea, but will also have provisions built-in to operate in the harsh environment North Sea. The latest contract lifts Keppel’s year-to-date order wins to ~$1.7b. *Tigerair: Newswires tip that Tigerair could be looking for a sale or closure of its Indonesian JV, PT Mandala Airways, unless there are signs of a turnaround this year. A month ago, Mandala suspended nine routes representing ~40% of its capacity, in a move that contrasts with larger competitors Lion Air and Garuda Indonesia, which are currently expanding fleet size and route networks domestically. *Wilmar: To invest up to US$200m to acquire a strategic stake in Shree Renuka Sugars (SRS) via a complex deal structure. Ultimately, the founding Murkumbi family and Wilmar will hold equal shareholding and board representation in the global sugar player, which runs a portfolio of sugar assets in India and Brazil. *GLP: Signed three new lease agreements totalling 39,000 sqm with residential real estate developer Vanke (17,000 sqm), a leading Suzhou hypermarket chain (12,000 sqm) and third party logistics company ANE Logistics (10,000 sqm). *Ntegrator: Secured four contracts worth $2.9m from major telco players in Myanmar to supply telecommunications equipment, bringing year-to-date orders secured to $6.9m. *Creative: Its new product - Sound Blaster Roar, a portable wireless speaker, sold on average more than one unit per minute during a recent IT fair in Singapore, making it one of the hottest selling products at the event. *China Gaoxian/ Nippecraft: These companies have recorded pre-tax losses for three consecutive years and may be placed on the SGX Watch-List.