SG Market (20 May 14)

US Market: US stocks finished higher in one one the slowest trading days of 2014 as small caps and tech companies rebounded, recouping some of their recent losses. The DJIA gained 21 pts to 16,512, while the S&P 500 added 7 pts to 1,885 the tech-heavy Nasdaq added 35 pts or 0.9% to 4,126. In the absence of economic news, investors turned their attention to comments by a Fed official that the central bank is likely to raise interest rates only in 2H15. Tech shares rallied as Internet stocks jumped 1.5% with Pandora Media (+5.3%), TripAdvisor (+5.2%), Netflix (+4.2%) Facebook (+2.1%) and Micron Technology (+3.5%) leading the charge. There was also spillover effect from the truce in the smartphone patent battle between Apple (+1.2%) and Google (+1.6%). Internet and biotech names have been among the most volatile in recent weeks, advancing on signs of improving economy and slumping on concerns of hefty valuations. In deal news, drugmaker Pfizer rose 0.6% after British pharmaceutical firm AstraZeneca rejected its US$117b offer, while telecoms giant AT&T lost 1% after agreeing to buy broadcast satellite service provider DirectTV for US$48.5b. S’pore shares likely to open flat as 1Q14 GDP growth of 4.9% is unlikely to excite the market amid very dry news on the corporate front. The STI is expected to hover between the the 3,285 and 3,220 trading range with the 20-dma at 3,254 providing immediate support. Stocks to watch: *Goodpack: KKR reportedly in advanced talks to acquire the company for >US$1.0b. Founder David Lam, with 32% stake, is said to be open towards a takeover offer. Co rents reusable IBCs to tyre manufacturers, chemical and juice producers such as Michelin, Bridgestone, BASF, Campbell and Heinz, for use in transporting their products. *MYP: Proposed RTO to transform the third party logistics provider into a property investment company. MYP will issue 854.7m new shares @ $0.22 to acquire Grace Shine Pte Ltd and Affreton Pte Ltd, which are owned by Indonesian property players, including Jonathan Tahir, son-in-law of Mochtar Riady of the Lippo Group. Property assets to be injected include ABI Plaza, MYP Plaza, and three condominium units in Singapore. Post deal, FYMar14 proforma NTA/share will increase to $0.252 from $0.23. *Vard: Secured a third contract for the design and construction of a 4,000 dwt platform supply vessel for Carlotta Offshore, with delivery from its Vietnam yard in 3Q15. *Saizen REIT: Divesting Saumur Meinohama II (SM2) from its property portfolio for ¥60m ($0.7m). The property, located in Fukuoka, comprises 14 residential units and contributed about 0.1% of group revenue in 9MFY14. As at 1 May, SM2 was valued at ¥50.4m ($0.6m). *ST Engineering: Acquired Aviation Academy of America, a flight school in Texas, for US$811,000. The acquisition is part of the group’s strategic initiative to grow its pilot training capacity and capabilities.