SG Market (03 Apr 14)

US stocks extended a fourth straight day of gains, with the S&P500 advancing 0.3% to close at another record high of 1,891, buoyed by positive economic reports. Jobs data from ADP revealed that US private sector employers added 191,000 workers in Mar, slightly off estimates of 195,000, although gains from Feb were revised to 178,000 (+28%), indicating the easing of winter-related impact on jobs growth. Meanwhile, Feb factory orders posted the biggest rise since Sep ’13, up 1.6% versus estimates of a 1.2% rise. Eight of the 10 S&P500 sector indexes closed higher, led by the consumer discretionary index which rose 0.7%. In the region, the Nikkei and Kospi are 0.5% and 0.1% higher respectively, this morning. Similarly, the S’pore market may follow suit to post mild gains at the open. Noble will continue to be in focus, as brokers give the thumbs up for the partial sale of its agri unit to COFCO. However, shares of Asiasons Capital, Blumont and LionGold may come under pressure, as both the MAS and Commercial Affairs Department (CAD) have commenced investigation into possible breaches of the Securities and Futures Act arising from suspected trading irregularities of the counters. Magnus Energy has also received notice from the CAD for assistance in their investigations. On the daily charts, the STI trend remains positive, with the key RSI and Stochastic indicators continuing to exhibit strong upward momentum. A close above the 3,200 level may see the STI make a next move toward ~3,240 (200day moving average peak in Oct ’13). Stocks to watch: *GLP: Signed two lease agreements totaling 13,000 sqm with Sinopharm to enhance the latter’s distribution capability in Eastern China. *Sing Land: Key investor Silchester sold 13.25m shares yesterday, lowering its stake to ~4.95% from 8.16%. The fund says that the sale was not to realize gains, but to increase the free float of Sing Land. Silchester’s actions are an attempt to make it more difficult for UIC to successfully privatize Sing Land. UIC has an on-going offer for Sing Land shares at $9.40 a piece. *Pteris: Major shareholder and director Winston Tan (10.5% stake) has called for an EGM to vote on the removal of five directors, including Chairman Lim Joob Boon and new CEO Peter Zheng Zuhua, on grounds that the management and board “have failed to build value for its shareholders”. The provider of airport logistics systems has been struggling to turn a profit since FY08. *Biosensors: Has extended its existing licensing agreements with regard to Terumo’s Nobori drug-eluting stent until Dec ’16, and will expand the existing sales collaboration with Terumo to bolster Japanese sales of Nobori and increase market share. *Ramba: Deadline for PT Sugih Energy to launch its previously proposed partial offer for 51% of Ramba shares at $0.65 each, has been extended till 11 Apr, pending the confirmation of financial resources. *CCM Group: Decided not to pursue legal recourse in relation to the recent termination of contract by Ronny Chin Architects. CCM is not aware of further liabilities relating to the contract other than the $4.7m called upon by Overseas Assurance Corporation. In addition, the board is considering various fund raising options to ensure adequate working capital for the next 12 months. *China Print Power: Considering to change its listing on the SGX Mainboard from a primary listing to a secondary listing, whilst retaining its primary listing on the HK Exchange. *Chemoil: Free float has fallen to below 10%, and may be suspended under SGX rules. The expected date of suspension will be announced in due course.