SG Market (10 Apr 14)

US shares rallied, as the S&P500 jumped 1.1% to close at 1,872 after minutes from the FOMC reaffirmed the Fed's commitment to keeping monetary policy easy and accommodative as long as the labour market remains weak. Techs and internet stocks spiked, lifting the Nasdaq (+1.7%) for its best performance in four weeks. Healthcare stocks also outperformed, rising 1.2% as a group. Among key stocks in focus, Bell-weather Alcoa surged 3.8% after its core earnings came in ahead of analysts’ expectations. In other economic data, data from the Commerce Department showed that US wholesale inventories was up at a slower pace to 0.5% in Feb, largely in line with expectations, supporting the view that restocking was not able to aid the economy in 1Q14. Taking cue from the US, the Nikkei and Kospi are both up 1.2% and +0.4%, respectively, this morning. Similarly, the S’pore market looks poised for a firmer open. For the STI, the key indicators are starting to taper down from relatively overbought levels. Nevertheless, traders may wait for the STI to break out of the 3,186 – 3,229 near term range, which may better signal the index’s next directional move. Stocks to watch: *Keppel Corp: Signed a 30-year management services agreement with Titan Petrochemicals Group (1192 HK) and Titan Quanzhou Shipyard, to manage the TQS shipyard. Located in Fujian province, TQS will be one of the largest shipyards in China when completed, and have capability to construct offshore jackups and semisubs, in addition to ship repair and conversion. Having this yard will allow Keppel to meaningfully break into the China market, which has a strong preference for China-made products. Analysts in general, view this move positively. *ST Engineering: Its aerospace arm, ST Aerospace has recorded new orders worth $460m in 1Q14. The contracts range from airframe, component and engine maintenance, to cabin reconfiguration and engine wash. *Asiaphos: Responds to SGX query on trading activity that it is presently in discussion to explore the possibility of potential corporate exercises which may or may not proceed. *TSH Corp: Intends to undertake a business diversification into the property development and property investment business in certain parts of Australia, while retaining its current businesses. *Tritech: Is currently exploring potential acquisitions, investments and/or fund raising options available in relation to its water business. *HanKore: Received approval-in-principle from SGX for its proposed 10-into-1 share consolidation.