SG Market (11 Mar 14)

US Stocks inched down from its record high to close at 1,877, as a substantial drop in Chinese exports last month and remaining jitters about the conflict in Ukraine kept investors on the defensive. Markets traded in a tight range and volume was dreadful with no economic data in the US and no major news flow. Shares of fuel-cell makers and suppliers were the bright spot ahead of company earnings release this week, with Plug Power rising more than 24% and extending the 77% gain from last week. Miners and steelmakers were pressured by the weak Chinese data, while Boeing was the biggest loser amongst bluechips, dipping 1.3% following reports that hairline cracks were found in the wings of some of its Dreamliners in production, due to a manufacturing problem. Regional markets opened rather flat this morning, with the ASX up 0.02%, Kospi up 0.06% and Nikkei up 0.4% as at 8.30 am. Following the overnight muted performance, the STI is expected to open relatively flat and trade within a tight range. The trend channel resistance can be found near the 3,150 level, while downside support is tipped at 3,092 (50d simple moving average). Stocks to watch: *Property: National development minister Khaw Boon Wan announced in parliament that the HDB will only accept valuation requests from resale flat buyers after being granted an option to puchase a flat by the sellers, in a bid to reduce the focus on COV. The change will take effect from 5pm on 10th Mar'14. *Yoma: Together with the Hongkong and Shanhai Hotels group, Yoma has announced a definitive shareholders agreement for the purpose of restoring the Myanmar Railway Company headquarters into a hotel called The Penisula Yangon. The agreement, subject to conditions and approval, will seek to redevelop and restore the heritage building, which dates from the 1880s and is one of the oldest existing colonial buildings in Yangon. *United Engineers: 67%-owned subsidiary WBL Corporation has entered into an agreement with SIP Genway Group to sell its 78% interest in Suzhou Industrial Park Jian Wu Heng Ye (JWHY) Property Development Co to Genway Group for Rmb490m. JWHY is engaged in residential housing development in Suzhou, China and owns a 147,238 sqm land site in Qingjianhu, Suzhou, of which only 53,497 sqm is currently being developed into a residential project. *Asiasons Capital: In a response to SGX query regarding a loan of $12.3m to an investee company for its operating and working capital requirements, Asiasons replied that the loan has a tenure of 24 months and that interest costs and arrangement fees associated will be paid by the investee company. The loan was extended to the investee company as the nature of the investee company is capital intensive and it needed funds for its growth and expansion. Asiasons do not foresee any issues with the collection of the debt based on the business model of the investee company. *Q&M Dental: Has signed a non-binding MOU with Mr Zhang Haiquan to acquire a 60% equity stake in Nanjing Sucoronal Dentistry Technique Center (Nanjing Sucoronal) that will operate 8 dental clinics and a dental laboratory located in Nanjing City, PRC, in a transaction valued at Rmb21m. Rmb 10m out of Rmb21m will be injected into Nanjing Sucoronal as new equity. *SGX: Signed MOU with Dalian Commodity Exchange to jointly explore areas of cooperation including development of new commodity derivative products, joint commodity-related events, information sharing, training, member and investor education in both markets. *International Healthway Corporation (IHC): Marks maiden entry into Australia with a A$45m (S$51.8m) acquisition of a freehold commercial property in Melbourne. The fully-tenanted 10,170 sqm office building at 553 St Kilda Road is located next to Alfred Hospital. IHC plans to reposition the property going forward to complement and create synergies to the existing medical services provided in the surrounding vicinity. *China XLX Fertilizer: In relation to their possible exit offer by CITIC Securities and possible delisting, it was updated that discussions are now in advanced stages, and are subject to finalization and execution of definitive documentation *Sysma Holdings: Has secured a contract with an established owner worth $6.8m to build a 2 storey detached dwelling house at Sundridge Park Road, commencing in March for 16 months.