SG Market (21 Mar 14)

US stocks recovered almost all of the previous day’s losses, with the S&P500 closing 0.5% higher at 1,872, as investors chose to focus on upbeat economic data, which signaled a slow but steady trend for the economy. Data from the Philadelphia Fed Manufacturing Index rebounded 9% after Feb’s fall, beating expectations of a 3.8% rise. Jobless claims of 320,000 were lower than expected, and kept to near its three-month low. Meanwhile, Feb existing home sales was in line with consensus with 4.6m homes sold. Financials outperformed, following results from the Fed’s annual stress tests which showed that only one out of the 30 leading banks (Zions Bancorp) was not able to fulfil the minimum capital threshold. The mood is decidedly more positive in the region this morning. The Kospi (+0.5%) and ASX (+0.4%) are both higher as at 8.46am. Japan is closed today. Similarly, expect the STI to open on a firmer footing this morning, despite the dearth of major corporate happenings. In the near term, we see the index continuing to trade within the 3,027 - 3,113 band. Stocks to watch: *Ascott Residence Trust: Acquired a rental housing property in Fukuoka named Infini Garden for ¥6.3b ($78.4m) at an EBITDA yield of 6.6%. On a pro forma basis, the accretive acquisition is expected to increase FY13 DPU by 2.1% to 8.58¢. *Biosensors: Significant shareholder CITIC Private Equity Funds Management reiterates that it is still considering the options available to enhance the value of its investment in Biosensors. *Sim Lian: Will launch for sale the first phase of Vision Exchange tomorrow. The 99-year leasehold commercial development, located at Jurong Gateway, is expected to be completed in 2018. Sim Lian will release 250 units with average prices of $2,150psf for office units and $4,498psf for medical suites and F&B units. *CCM: Received a notice of termination in respect of its $94.6m building contract for Eon Shenton, on grounds of alleged breaches on contract. *Teho Int’l: Proposed to diversify into property development, investment and trading, with an an initial focus on the UK, Australia, and Asia (ie. S’pore, M’sia, Thailand and Japan). Accordingly, Teho proposed to make a $12.3m acquisition of residential real estate developer, TIEC Holdings, which will entail Teho assuming liability as guarantor for TIEC's existing debt of $36.1m. *Tritech: Awarded Rmb24.4m waste water treatment contract by HuaRong Xuehua Brewery, for the design, construction, supply and installation of the waste water treatment plant with a total capacity of 8,000 cubic metres per day. *KrisEnergy: Awarded a 100% working interest and operatorship of the production sharing contract (PSC) with an initial 4-year term for Block 115/09 offshore Vietnam. The block covers an area of 7,382 sq km in the southern Song Hong Basin. *Rex: its 5.35% owned North Energy will commence drilling at two of its licenses in 2H14. *Yoma: Set up two new subsidiaries in Myanmar, to engage in vehicle operating lease and rental, and construction and hotel-related activities. *WE Holdings: Kick starts iron ore trading business with first scheduled shipment of 20,000 wet metric tonne to China-based Ningbo Foreign Trade Co worth US$1.4m. *Devotion Energy: Will be delisted wef 25 Mar 2014