Wednesday, March 26, 2014
SG Market (26 Mar 14)
US stocks ended a 2-day losing streak to close higher with the S&P500 up 0.4% to 1,866, as traders latched onto positive data which saw March consumer confidence exceeding expectations and hitting a six-year high. Adding to the upbeat mood was talks that China could launch fresh stimulus to keep up the pace of its economic growth. Industrials were the best performers rising 0.9% as a group, while biotechnology companies were firm, arresting the sector’s recent decline. European stock markets also rebounded from sharp losses, spurred by comments from the European Central Bank (ECB), where its president Mario Draghi guided that its monetary policy is becoming more effective and the ECB will do whatever necessary to achieve price stability. Regional markets are higher this morning with the Nikkei up 0.9%, Kospi up 0.8% and ASX up 0.8% as at 8.20 a.m. Following the trend, the STI is expected to open higher with resistance tipped at 3,142 (200-day MA) Stocks to watch *Boustead Singapore: Awarded a major multi-million dollar contract to design and supply and wastewater treatment facilities for the Balance of Plant scope of a 2,000 MW ultra supercritical coal-fired thermal power plant in Indonesia. The latest contract win raises Boustead’s order book to $400m. *RH Energy: Regarding the proposed acquisition of Chiwayland Group from Chiwayland and Petchem (Petchem), and for its proposed disposal of R H Energy (HK, Zoneda Energy, R H International, Greenzone Energy, and 70% of the entire issued and paid-up share capital of Amersun Energy to Petchem, the long stop date has been extended to 30th Sep ’14. *SMRT: Signed a MOU with Huawei Enterprise Business Group (Huawei), which will see both companies partnering to jointly develop and market products and solutions in the international market. *Mandarin Oriental: To construct a mixed-use complex adjacent to its wholly-owned hotel in Munich, Germany. The US$170m expansion will add 51 additional guestrooms (+70% capacity) and slated for completion at end-2020.