SG Market (17 Sept 14)

US Market: US shares rallied, erasing early losses on reports of a new Chinese stimulus plan and as expectations shift on the Fed policy statement this Wed. The blue-chip DJIA jumped 125 pts to 17,156 (+0.7%), just 7 pts shy of its all-time high, while the broad-based S&P 500 gained 17 pts to 2,002 (+0.9%) and the tech-heavy Nasdaq Composite added 34 pts to 4,553 (+0.8%). After a sluggish start, stocks got a lift after a WSJ report suggested that the Fed could be less hawkish than what the markets have been expecting when its its FOMC statement on Wed. Sentiment was further buoyed by news that the PBOC is starting a Rmb500b standing lending-facility to China’s five largest banks. All industry groups finished in positive territory, led by healthcare (+1.3%), energy (+1.2%) and utilities (+1.2%). Tech stocks were up 0.7% as a group following the previous day sell-off. Apple dropped 0.8% following reports that its new iPhone 6 models may not be available in China until 2015. Oil companies moved higher as oil prices climbed nearly US$2 per barrel to US$94.88 after OPEC indicated that the cartel might cut its ouput target next year. ExxonMobil (+1.2%), ConocoPhillips (+1.7%) and Schlumberger (+1.9) all advanced. Among other stocks in focus, health insurance company Humana surged 3.7% after unveiling a US$2b share repurchase plan, while Las Vegas Sands (-1.6%) Wynn Resorts (-0.5%) fell on a poor outlook for the gaming industry in Macau. Volume was active with 6.1b shares traded. Advancing issues outnumbered declining ones by 1.8 to 1 on the NYSE and 1.2 to 1 on Nasdaq. S’pore shares may see a weak recovery from yesterday’s selldown following the Wall Street rebound but trading is likely to remain cautious ahead of the FOMC meeting this evening. Topside resistance for the STI is capped at 3,380 with immediate support remaining at 3,280 with further downside risk at 3,230. Stocks to watch: *Keppel Corp: Secured its fifth rig order from Qatar's Gulf Drilling Int’l to build a high-specification KFELS B Class jackup rig for US$227m. The rig is scheduled for delivery in Q116 and will be chartered to Qatar Petroleum for five years. The contract comes with options for two more similar rigs for deliveries in 2017. *HanKore: Renowned stock investor Alan Wang acquired 5.1m shares at average price of $0.8472 on 15 Sep, from the open market, raising his stake from 12.06% to 13.05%. *Straits Trading: Substantial shareholder Third Avenue Management has reduced its stake from 6.06% to 5.83%, via the sale of 903,000 shares at an average price of $2.84 in the open market. *Singapore Medical Group: Its flagship clinic, The LASIK Surgery Clinic has acquired the ZEISS Femtosecond Laser System to offer the latest laser vision correction procedure, ReLEx SMILE. This is a new, bladeless, flapless, gentle and micro incision refractive procedure that corrects vision problems such as shortsightedness and astigmatism. The treatment uses only one femtosecond laser for the entire procedure and aims to reduce a patient’s dependency on spectacles and contact lens. *Xpress: Issues profit warning and expects to report significant net loss for FY14 due to provisions for receivables and impairment of goodwill. *Total Access: Shares will be suspended from trading today and be delisted with effect from 29 Sep ‘14.