SG Market (04 Sept 14)

US Market: US stocks finished mostly lower as a selldwn in index heavyweight Apple offset hopes for a peace plan in Ukraine. The blue-chip DJIA advanced 11 pts to 17,078 (+0.06%), while the broad-based S&P 500 s;ipped 2 pts to 2,001 (-0.1%) and the tech-heavy Nasdaq Composite lost 26 pts to 4,573 (-0.6%). Market sentiment was initially lifted by optimism that Ukraine and Russia were close to a ceasefire agreement aimed at ending the five-month conflict in eastern Ukraine, but the rejection by the Ukraine PM to the Russian proposal and announcement by Russia to conduct military exercises added to the confusion. Investors remained on the sidelines ahead of the upcoming ECB policy meeting on Thu, where they will be be looking for clues that the central bank may launch a bond-buying programme. Latest data pointed to economic pick-up as factory goods orders rose 10.5% in Jul for its biggest gain since 1992 and the Fed’s Biege Book showed the US economy continuing to expand through summer. Energy shares rebounded 0.3% as oil prices rose 2.9%. But airline stocks underperformed (-2.9%) as Delta Airlines plunged 5.2% after lowering its 3Q passenger traffic forecast. Taking cue, American Airlines (-3.4%) and United Continental (-1.9%) declined. Housing stocks slid 3%, led by Toll Brothers (-4.7%) after the largest US luxury home builder cut its sales forecast on weaker new home sales, sending PulteGroup (-3.8%), Lennar Corp (2.2%) and DR Horton (-2.5%) all tumbled. Home Depot dropped another 2.4% following investigations into a possible hacking attack that may have compromised customer data. Apple slumped 4.2% following a security breach of its iCloud service that leaked out nude photos of celebrities, which could mar the highly anticipated launch of the new iPhone 6 and iWatch, scheduled for 6 Sep. Meanwhile, rival Samsung took the early initiative by unveiling a virtual reality headset for its new its new Galaxy Note 4 phablet. About 5.4b shares were traded on US exchanges, 3% below the three-month average. S’pore shares are likely to be range-bound with topside resistance for STI capped at 3,380 with downside support at 3,280. Stocks to watch: *SGX: Securities average daily value in Aug was up 5% m/m, but lower 27% y/y. Total traded value remained flat m/m at $21b, even though there was one fewer trading day in Aug. Derivatives volume grew 5% m/m and 9% y/y to 9.4m contracts, driven by equity index futures contracts of 8.7m (+6.5% m/m; +15% y/y). *Linc Energy: Received unsolicited expressions of interest for both its Umiat and Wyoming conventional oil assets in the US. As such, Linc has commenced a formal process to work with additional parties who have expressed in interest in the potential acquisition of the group’s entire USA based oil and gas portfolio. *Rex: Appointed PrimePartners and UOB Kay Hian as placement agents, for its issue of up to 168m new shares at $0.57 apiece (7.7% discount to last close), representing 15.3% of the enlarged share base. Net proceeds of $93.5m will be used to settle liabilities and working capital of Rex Technology Management (20%), for field development (60%) and to pursue existing and potential new business opportunities (20%). *ISDN: To provide financing and other management related services to PT Gema Energy Indonesia (Gema) and PT Bun Yan Hasanah (Bun Yan), to develop and operate manganese mines owned by the Indo companies in Nusa Tenggara Timur, Indonesia. ISDN will have a profit share from the mines’ operations. *Sheng Siong: Proposed placement of 120m new shares at $0.67 each. Gross proceeds of $80.4m will be mainly used to finance its future expansion plans in Singapore. *F&N/ Fung Choi: F&N responds to a query from The Straits Times that the group currently has no plans to divest its 29.5% stake in Fung Choi. *Logistics Holdings: Acquiring a 1.24m sf land located in the precinct of the Senai Industrial Park in Senai, Johor, to build light and medium industrial factories. *Creative Technology: Unveiled the Sound Blaster X7 - its most powerful and technologically advanced audio system to date targeted at audiophiles and gamers. *Global Yellow Pages: Posted 1QFYMar15 net loss of $0.6m from a $0.7m loss a year ago. Revenue fell 9% y/y to $4.4m due to a decline in the Search Solutions business, but partly offset by an increase in revenue from Singapore River Tour & Taxi Services. Focus remains on the group’s on-going strategic diversification into the F&B sector, including the acquisition of the intellectual property rights for Wendy’s Supa Sundaes and Innovation Ice Cream. *GRP: Substantial stakeholder and executive director Kwan Chee Seng picked up another 1.3m shares from the market at $0.107 apiece on 3 Sep, raising his stake from 29.4% to 29.6%. *GSH: Substantial stakeholder and Chairman Sam Goi Seng Hui acquired 0.9m shares from the market at $0.078 apiece on 2 Sep, raising his stake from 46.65% to 46.66%.