SG Market (20 Aug 14)

US Market: US stocks ended with solid gains as lingering concerns over global conflicts gave way to optimisim that the Fed will leave interest rates near zero for longer and encouraging economic data. The DJIA rose 81 pts to 16,920 (+0.5%), closing above its 50-dma for the first time this month, while the S&P 500 advanced 10 pts to 1,982 (+0.5%), reaching within 10 pts off its all-time high, and the Nasdaq Composite added 19 pts to a 14-year high at 4,528 (+0.4%). Volume was light with about 4.5b shares traded. Markets got a lift after housing starts jumped 15.7% in Jul for its strongest rebound in eight months, well above forecasts. That helped homebuilders stage a 2.6% rally with Lennar (+3.3%), DR Horton (+2.3%) and KB Home (+2.7%) all advancing. Retailers also climbed 1.9% on tame inflation data, which crept up 0.1% in Jul, and robust earnings. Home Depot (+5.6%) and Dick’s Sporting Goods (+1.6%) rose after reporting 2Q profits that beat estimates. That sent shares of rival Lowes up by 2.1%. Discount retailer TJX bolted 8.7% higher as it boosted its full year profit outlook following better-than-expected 2Q sales. Apple set a post split high of US$100.68 in heavy trading. But Elizabeth Arden plummeted 23.3% after reporting its biggest quarterly loss in its history due to steep declines in sales of celebrity fragrances. The Fed will release the minutes of its latest FOMC meeting tomorrow before central bankers head to Jackson Hole for their annual summit to discuss about the outlook for the economy and monetary policy. Market watchers expected the prevailing docish stance to hold, provide support for markets. S’pore shares are expected to cheer the upside momentum on Wall Street, with the STI again testing the 3,320 resistance. A breakout of that level would raise the next objective to previous peak at 3,388. Underlying support remains at 3,280. Stocks to watch: *NOL: Revealed that it is evaluating options to improve the strategic positioning and performance of its businesses, including a potential sale or IPO of APL Logistics, its only profitable business arm for reportedly US$750-900m (10-12x EBITDA), but stressed that discussions are preliminary and exploratory in nature. *Biosensors: Major shareholder CITIC Private Equity has decided to not proceed with any takeover transaction at this point of time, but remains committed to enhance its investment position in Biosensors. *SIIC Environment: 75.5%-owned subsidiary, SIIC Environment Holdings (Weifang), was awarded a BOT wastewater treatment project by Dalian municipal government in Dalian, China. The project entails the construction and operation of a 40,000 tpd wastewater treatment plant with a 22-year concessionary period, including the construction phase. *Logistics Holdings: Awarded $66.5m contract from Ministry of Education for building and maintenance works to three groups of schools. The four-year project will commence in Sep 2014, and raises order book to $396.3m. *TriTech: Awarded a $15.1m contract by PUB, to construct sewers the Mandai Road area, for a period of three years, completing in Aug’17 *Figtree: Acquired a freehold property in prime area of Melbourne for A$14.0m, subject to approval by Foreign Investment Review Board of Australia. The 503 sqm land parcel, zoned for retail, hotel or residential uses, has an existing three-storey building, which will be redeveloped into a high rise mixed development. *Ezra: Received shareholder support to consolidate its offshore support services division, EMAS Marine, into associated company EOC. Shareholders have also approved the proposed dual-listing of EOC (currently listed on Oslo Børs) on the SGX. *CWT: Subsidiary Straits Financial has been approved as a clearing member by the Dubai Merchantile Exchange, the Mid-East international energy futures and commodities exchange. *Wilmar: Terminate the 50-50 JV agreement with Finland’s Kemira Oyj to manufacture alkyl ketene dimer wax in China. The proposed JV was meant to help Wilmar expand down the oleochemicals value chain and enhance its footprint in the Asia Pacific region, *Dukang: Expects FYJun14 earnings to be significantly lower on lower average selling prices and volumes of Luoyang Dukang and Siwu products due to Chinese government austerity measures and higher marketing expenses.