SG Market (25 Mar 14)

US stocks fell with the S&P500 down 0.4% at 1,857, as global markets continued to digest the flash China March HSBC/Markit manufacturing PMI, which saw its lowest reading in eight months and spent the third consecutive month in contraction territory. Investors remained on the defensive and took profit on technology and biotech shares which had outperformed the market recently, as US President Obama arrived in Europe for talks following Russia’s annexation of Crimea last week, stoking concerns of further sanctions. In other economic data, US Markit Manufacturing PMI in March came in lower than expected at 55.5 vs 56.5 estimate, while the Chicago Fed National Activity Index came in higher than expected at 0.14 vs 0.08. Taking the lead from the US and the slew of negative data, regional stocks are mostly lower this morning, with the ASX down 0.5%, Nikkei down 0.8% and Kospi down 0.4% as at 8.40 a.m. Similarly, the STI is expected to open lower with downside support seen at 3,100 (20-dayMA) and 3,081 (50-day MA) Stocks to watch *Memstar: Subjected to no objections from creditors made before 26 Mar, Memstar indicated that books will be closed for its proposed distribution in specie of United Envirotech's shares, as well as capital reduction on 28 Mar. *United Engineers (UE) / UE E&C: UE currently in discussions with a third party on a possible transaction which may lead to a general offer, which may involve the sale of shares in subsidiary UE E&C. Group has appointed OCBC as its financial advisor on the possible transaction. *China XLX Fertiliser: Entered into MOU with Xinxiang Taihang Infrastructure to purchase the right to use a 53.3 hectare land located in Jia Tai Hu District of Xinxiang County in China, which will be used to produce water. *Asia Power: Applied to seek voluntary delisting from SGX, upon receiving controlling interest of 89.52% following its unconditional offer of $0.16/share. *ICP: Books will close on 28 Mar for its 1-for-1 renounceable non-underwritten rights issue at $0.1¢ apiece. *Breadtalk: Issued a "Trade with caution" tag by SGX, following the 13.2% rise in share price on 24 Mar. *WE Holdings: Extending its non-binding MOU with businessman Nay Win Tun to carry out petroleum operation projects in five target oilfields in Myanmar, through a project company. The MOU was originally entered in late June’13 *CityDev: Subsidiary Millenium & Copthorne Hotels New Zealand has successfully raised $111.8m from its offer of redeemable preference shares. The offer was oversubscribed by 15.5%.