SG Market (01 Jul 14)

US stocks were little changed yesterday, as the half year came to a close. Nevertheless, this still allowed the S&P500 and Nasdaq to clock their sixth straight quarter of gains - a feat last seen more than 14 years ago. The DJIA fell 25pts to 16,827 (-0.2%), while the S&P 500 inched down 1pt to 1,960 (-0.0%); the Nasdaq added 10 pts to 4,408 (+0.2%). ~5.7b shares changed hands, slightly below the 5.8b average month-to-date. Economic news flow was balanced last night. Data from the Institute for Supply Management (ISM) Chicago showed that the pace of business activity in US Midwest fell from a seven-month high; while the pending home sales index indicated that contracts to buy pre-owned US homes hit an eight-month high in May. Tech names helped the Nasdaq to outperform, in particular Micron surged 4.6% after being added to Credit Suisse’s Focus list. Among other stocks in focus, General Motors fell 0.9% after the automaker revealed that it was expanding its list of older vehicles which it is recalling back. The S’pore market may be a tad dull at the open today, as the Hong Kong market is closed to commemorate the Special Administrative Region Establishment Day. However, Hong Kong is also bracing for its largest mass pro-democracy protest in more than a decade. Traders should be alert for any surprise negative developments and spill over reaction to the S’pore market. The STI is resting on its near term support at 3,254, and a downward break could see the index slide to 3,235 next. Any near term upside will likely be capped at 3,285. Stocks to watch: *Second Chance Properties: 3Q14 net profit came in at $4.3m (+18.7%) taking 9M14 net profit to $10.8m (+8.8%). Revenue fell 17.0% to $10.8m dragged by lower contributions from the group's apparel business and gold business. Bottom-line was cushioned by a $0.9m fair value gain on securities held for trading. *CitySpring Infrastructure Trust: Entered into a 51-49 JV with Shimizu Corp to build and lease a $130m data centre to MediaCorp's wholly-owned subsidiary, 1-Net Singapore. Construction of the centre, located at Marsiling Lane, is expected to commence in 3Q14 and be completed by 1Q16. *Noel Gifts: Awarded contract from the National Population & Talent Division, Prime Minister’s Office (NPTD) for the supply, design and distribution of gifts. Slated for delivery in 2015, the contract is expected to contribute positively to Noel’s financial performance for FY15 and FY16. *Hotel Grand Central: Selling its entire 100% stake in Hotel Grand Chancellor in S’pore for $248m. The deal is expected to be completed by 15 Jan ’15. *China New Town Dev (CNTD): Entered into a five-year cooperation framework with the Nanjing Yuhuatai District Government and parent China Development Bank Capital Corporation, to develop the Two Bridges Project and Software Valley South Park in Nanjing. The projects will offer an after-tax investment return of 12.8% on CNTD’s share of equity contributions. *Nam Cheong: Sold another 4 vessels worth US$92m, bringing order book to RM1.7b (25 vessels). Slated for delivery between 2014-15, the contract comprises three 3,000 dwt PSVs, and a 200-men Accommodation Work Boat, to be deployed for maridive and oil services in North Africa, and will contribute positively to the group’s FY15 financials. *Vallianz/Swiber: Vallianz acquired the remaining 49% stake in Vallianz Marine (VMPL) from controlling shareholder Swiber, for US$2.3m (1x P/B). VMPL owns two towing tugs, a utility vessel and an AHTS vessel. *KrisEnergy: Acquiring a 41.7% stake in Block A Aceh PSC in Indonesia for an after-tax consideration of US$40m, subject to working capital adjustment. The block, located onshore Sumatra in Aceh, covers an area of 1,867 sq km and contains several gas condensate discoveries which were approved for development in 2007. *Singapore Windsor: Exploring opportunity to diversify its operations, to include a serviced office business in Myanmar. Such initial investment is not expected to cross 20% of market cap. *Tai Sin Electric: 65% owned Cast Laboratories has agreed to purchase a 5,726 sqm land parcel at 17 Tuas Avenue (41 years leasehold remaining) for $7.65m, and waste water system and assets for $0.25m. *HanKore: Substantial shareholder Alan Wang increased his stake from 10.99% to 11.16%, through the purchase of 858,000 shares at an average price of $0.867 from the open market. *Fragrance: Chairman & CEO Koh Wee Meng raised his total stakes from 84.89% to 84.91% through the purchase of 1.25m shares at an average price of $0.233 from the open market. *CNA Group: Has revised the terms of its recently announced share placement agreement. CNA will now issue 15.3m new shares at $0.0823 each. The net proceeds of $1.2m will be used for general working capital. *Sunmoon: 100-in-1 share consolidation goes ex today *JB Foods: CFO has resigned to pursue other career opportunities. *Frasers Hospitality Trust (FHT): $0.88 per share Initial public offering (IPO) opens today and closes 10 Jul. To trade from 14 Jul. Offers 6.9% FY14 projected yield.