SG Market (09 Sept 14)

US Market: US stocks ended mostly lower, pulling back from record levels, as a decline in oil prices dragged energy producers down, following disappointing economic data from China and Japan. The blue-chip DJIA slid 26 pts to 17,111 (-0.2%) and the broad-based S&P 500 lost 6 pts to 2,002 (-0.3%), while the tech-heavy Nasdaq Composite gained 9 pts to 4,592 (+0.2%), lifted by Yahoo. Sentiment was impacted by signs of slowing growth in Europe and Asia with Chinese imports slipping 2.4% in Aug, while Japan’s economy shrank 1.8% in the 2Q, worse than the previous -1.7% estimate. In UK, the GBP fell after polls showed rising support for Scotland’s independence ahead of a referendum next week. The weak economic data sent Brent crude below US$100 per barrel for the first time since Jun 2013, bolstering concern of a global oil surplus amid constrained consumption and recovery of supplies from Libya. Energy shares came under pressure with ExxonMobil (-1.5%), Chevron (-0.9%), Marathon Oil (-1.7%), Schlumberger (-2.1%) and Hallibutron (-1.7%) all dipping lower. Technology shares climbed 0.2%, led by Yahoo which jumped 5.6%, following plans by 22.4% owned Chinese e-commerce giant Alibaba to list on the NYSE. Facebook edged up 0.8% to exceed a market cap of US$200b on optimism over the future of mobile advertising. Twitter gained 2.6% on news that it has begaun testing `buy buttons’ that let users make direct purchases from marketing posts. Among other stocks in focus, Ford fell 2% after Morgan Stanley downgraded the counter to underweight, citing its high exposure to the US market, where sales has been driven by pent-up demand. Boeing rose 2.6% after it was awarded a US$11b contract by Irish budget carrier Ryanair for 100 B737 aircraft. About 5.2b shares were traded on US exchanges, 6% below the three-month average. Declining issues outnumbered advancing ones by a 3 to 2 ratio on the NYSE. S’pore shares are likely to continue their consolidation pattern as US equities take a breather from a five-week rally with the STI enclosed within its 3,320-3,380 trading band. Stocks to watch: *Genting S’pore: The Remote Gambling Bill was tabled for the first time in Singapore yesterday. If passed, the new rules banning all forms of online gambling could kick in as early as next year. This could channel interest back to conventional on-site gaming at the Singapore integrated resorts. *Singapura Finance: Proposed a 1-for-1 renounceable non-underwritten rights issue at $1 each (36% discount to last close of $1.55/share). Net proceeds of $78.8m are intended for general corporate funding purposes. *Chuan Hup: Placed a 1% deposit for an option to purchase several office units at 143 Cecil Street for $31.7m (priced at open market value). Chuan Hup wishes to own the properties for long term investment and recurring rental income. *CNA Group: Proposed to spin-off its China waste water treatment business, CNA Dongying Water, on SGX's Catalist board. The latter’s core project is a build-operate-transfer (BOT) industrial waste water treatment plant located in the Dongying Economic Development Zone in Shandong, China, with a 30-year concession and a processing capacity of 30,000 tpd. *Singapore Shipping: Purchased a new build PCTC (pure car truck carrier) for US$80m. Upon delivery, the vessel is expected to be deployed on a long term charter to a blue-chip shipping major. *Starburst: Secured a $3.2m contract to maintain certain firearm shooting ranges in SE Asia for three years up to Jun ’17. *Ley Choon: Secured a $16.8m contract from PowerGas to lay gas transmission pipelines. *Pacific Radiance: Entered into a JV with DOT Holdings to own and charter offshore support vessels. *Wing Tai: Disposed its 70% interest in PT Windas Dev for US$22.9m. *Halcyon Agri: Completed the placement of 25m new shares at $0.738/placement share to Goh Seng Hui *Goodland: Terminated the MOU on the proposed acquisition of 75% equity interest in UPL Lao *LifeBrandz: Profit warning. Expects FY14 loss.