SG Market (24 Mar 14)

US shares slipped with the S&P500 closing down 0.3% at 1,867 after rising to an intraday record, as investors booked profits ahead of the weekend amidst lingering concerns of growing tensions between Ukraine and Russia. Healthcare stocks were amongst the biggest losers following a letter of complaint by three members of congress regarding the high prices of a Gilead Sciences hepatitis C drug, while financial stocks were firm, latching on to positive sentiment that only one out of the nation's 30 banks had failed to pass 'stress tests'. Market jitters are expected to intensify today after Russian troops stormed a Ukrainian airbase in Crimea over the weekend, while Nato’s top military commander warned of a massive build-up of Russian troops near Ukraine’s border and urged his Western allies to move troops to the east. Despite the uncertain investment climate, regional stocks are mostly higher this morning although gains were capped ahead of Chinese manufacturing data, with the HSBC purchasing managers’ index projected to signal a third month of contraction. The Nikkei was up 0.9% and Kospi up 0.7% as at 8.20 a.m. Taking the cue, the STI is expected to open higher this morning with the index expected to trade within the 3,027-3,113 band. Stocks to watch *Albedo: Updated that Infinite Rewards- Tan Sri Dato' Danny Tan's investment holding company, had requested for a mutual termination on its RTO agreement, but has not reach any mutual agreement at this stage. Separately, Jarmata Profits acquired 33.9m shares on 19 Mar for $0.0589 each, raising its stake from 3.76% to 5.58%. Jarmata is owned by entrepreneur Dato Sri Thomas Hah Tiing Siu, chairman of Joinland Group. *Yong Xin: Appointed UOB Kay Hian as its new financial adviser for its proposed acquisition of Oriental Land, in place of PrimePartners Corporate Finance. Recall, Yong Xin entered into a conditional agreement to acquire Oriental in May'13, which would result in a RTO upon completion. Oriental is a property developer and owner based in China, with a focus in residential, commercial, industrial, retail, exhibition and convention, logistics and hospitality. *Oxley: Sold more than 50% of the 811 units on the first day of its launch of Royal Wharf, Oxley's premier London waterfront development and first development outside Singapore. Prices for the units ranged from £235k (S$495k) for a studio apartment to £1m for the largest townhouse unit. Completion for the first phase is expected to complete in 3Q16. *China New Town: China Development Bank's (CDB) subscription of 5,347.9m new shares in China New Town, at HK$0.27 ($0.0443) apiece, is expected to take place on 28 Mar, following the completion of the conditions. The new shares will represent 54.3% of the enlarged share capital and the completion of the subscription will pave the way for China New Town's disposal of existing assets for Rmb2,069.8m, intended for completion within 24 months. CDB intends to make China New Town its urban land development platform and transform the Company into the PRC’s leading, largest integrated new town developer and operator. *Tigerair: Ordered 37 Airbus A320neo with Airbus and Pratt & Whitney for US$3.8b (S$4.8b), including the option to increase its order by up to 13 additional aircraft. The new aircraft will be delivered over a period of eight years from 2018-2025. Consequently, Tigerair's outstanding order of nine Airbus A320, that were part of a larger 2007 order, will be cancelled. *Hotel Royal: Has entered into a sales and purchase agreement to purchase Bursari Resort in Phuket, through the acquisition of Panali Co for Thb 1.3b. Bursari Resort has 186 rooms, situated less than 3 minutes from Patong Beach. *Enviro-Hub: Awarded $19.2m piling contract from Kranji Development, involving construction, completion and maintenance of bored piling works for a proposed 7-storey multi-user warehouse with ancillary facilities, at 108 Jalan Lam Huat. Expected to be completed around Oct’14, the project will contribute positively to its FY13 financials. *KS Energy: New rig KS Java Star 2 will be ready for delivery by end of Mar’14, and will be deployed to drill in Vietnam for one plus one year contract. The rig cost US$165.5m, and is capable of working in up to 300-feet water depths.