SG Market (27 Jun 14)

US Market: US shares trimmed early losses from a selloff in the morning session after a Fed official hinted that interest rate hikes may come sooner than expected. The DJIA shed 21 pts to 16,846 (-0.13%), while the S&P 500 dipped 2 pts to 1,957 (-0.12%) and the Nasdaq edged down 1 pt to 4,379 (-0.02%). Investor sentiment took a hit after non-voting Fed member James Bullard suggested that interest rates could rise in 1Q15, adding that the jobless rate could drop below 6% and inflation reach 2% by year end, and that the market is not pricing in how close the Fed is to its goals. Markets were also on a sour mood after economic data showed consumer spending rose a less than forecast 0.2% in May after a flat Apr and new jobless claims slipped 2,000 to 312,000 last week. Financial shares (-0.3%) led the declines, possibly triggered by the the fraud lawsuit against Barclays (-7.4%) for giving unfair treatment in favour of US high-frequency trading clients. Among stocks in focus, aluminum producer Alcoa rose 2.7% after announcing a US$2.9b purchase of British aircraft parts maker Firth Rixson, while retailer Bed Bath & Beyond tumbled 7.2% after projecting a 2Q earnings outlook which came in below expectations. Tobacco firm Philip Morris slid 2.7% after slashing its 2014 earnings forecast amid unfavourable currency shifts, major price discounting in Australia and weak macro-economic environment in the EU. S’pore shares are expected to open relatively flat following the lacklustre performance in Wall Street. But downside risk for the oversold STI may be limited with supports tipped at 3,270/3,220 and resistance at 3,285/3,310 and short term momentum indicators supportive of an upward move. Stocks to watch: *Wing Tai/Metro/UE E&C: The consortium of Wing Tai (40%), joined by Metro (40%) and UE E&C (20%) launched The Crest, a 469-unit 99-year leasehold condo at Prince Charles Crescent over the week-end. About 130 units wre released, of which only 30 were sold. ASPs are tipped in the region of $1,750-1,800 psf before a 7% ABSD reimbursement. The site was purchased at a land cost of $960 psf ppr in Sep ’12, with estimated breakeven of ~$1,400 psf. *PNE Micro: Disclosed that it is in late stage discussions with potential investors who are interested to acquire not more than 30% of the company. But no definitive agreement has been reached yet. *Global Invacom: Plans to issue 44.6m new shares (16.1% enlarged share capital) at 19.75p ($0.42) each via placement to finnCap, Mirabaud and three directors of the company in relation to its proposed secondary listing on the AIM of the London Stock Exchange *Anwell: Warned that a trade creditor has obtained a court order to seize and auction off Rmb229.4m of pledged assets for outstanding trade payables of Rmb94m, which may adversely impair the business operations of its subsidiary Henan Kerry, which contributed 82% to its sales in 1H13. Trading in the shares has been suspended since 9 Aug ’13 until further notice. *KOP: Booked FYApr14 net loss of $5.5m, which relates to the previous business, prior to completion of the reverse takeover by KOP Properties on 6 May and the company’s change of name to KOP. Investors will find the next 1QFYApr15 results relevant to the new business. *LCD Global: Market talk of a counter bid for LCD Global, as Aspial CEO Koh Wee Seng continues to buy LCD shares at prices above the $0.17/share offer price. *Hotel Prop/Wheelock Properties: Unconditional offer of $4.05/share by 68 Holdings (40/60 JV between Wheelock and Ong Beng Seng) closed yesterday, with valid acceptances bringing the offeror's stake to 57.73%. *Jaya: Proposed capital reduction via cash distribution of $0.16/share will go ex on 1 Jul, and is expected to be paid on 14 Jul. *Great Eastern: Group CEO, Christopher Wei, has resigned to take on an appointment with another MNC. His last day of service will be 30 Sep '14. *GLP: Chairman Ang Kong Hua will step down wef 17 Jul, following his retirement from the Board and be replaced by current GLP Non-Executive Director, Seek Ngee Huat. *Superbowl: Will be delisted from 9am today, following completion of privatisation exercise. *HanKore: Appointed PrimePartners Corporate Finance as the independent financial adviser for its proposed RTO of China Everbright Water Investments.