SG Market (22 Sept 14)

US shares finished mixed, in a session which saw Alibaba's trading debut and the Fed's recent reaffirmation of its easy-money policies taking centre stage. The DJIA rose 14 pts to 17,280 (+0.1%), while the S&P 500 fell 1 pt to 2,011 and the Nasdaq declined 14 pts to 4,580 (-0.3%). Volume was heavy with 9.2b shares changing hands – the highest in six months. Alibaba shares closed at US$93.89, 38% above its IPO price. The Chinese e-commerce giant now has a market cap of US$231b, surpassing that of Facebook (US$202b). The rest of the tech sector, however, slipped 0.4% as a group, as investors rotated funds out from the sector to invest in Alibaba. Oracle (-4.2%) led the decline, after announcing Mark Hurd and Safra Cataz, current co-presidents, to succeed Larry Ellison as CEO. Meanwhile, investors cheered Scotland’s vote not to break away from the UK, and the Fed’s extended commitment to keep interest rates low into next year. Among other stocks in focus, Dresser-Rand jumped 9.4% after reports surfaced that Siemens was looking to acquire the company in a US$7.6b deal. Concur Technologies soared 18% after SAP made a US$7.4b bid for the software company. With the Dow ending the week at an all-time high, S’pore shares could get a slight lift with immediate topside resistance seen at 3,330 where the 20 and 50-day moving averages are converging. Downside support remains at 3,280 level. Stocks to watch: *Keppel Land: Divesting its entire 80% effective shareholding in BG Junction, a strata-titled retail development in Surabaya, Indonesia to its existing partner Silverise Enterprise, for Rp400b ($42.8m). Keppel Land is expected to book a net profit of ~$12.5m upon completion of the transaction by year end. *Far East Hospitality Trust (FEHT): Entered into a 30/70 JV with parent, Far East Organization, to develop a new $443.8m hotel in Sentosa that will collectively house 850 rooms. *Oxley: To provide construction, management and consultancy services for a 20-storey mixed development in Mayangon Township, Yangon. The project, covering an area of 3.2 acres, shall be called Min Residence, and is scheduled to be completed by 3 years (option to extend by 1 year, if necessary). *XinRen Aluminum: Buying 55% of Xinjiang Tianfu for Rmb88.6m, a coal mine in Xinjiang with proven reserves of 250m tonnes. *ISOTeam: Says it is currently at an advanced stage of negotiations to acquire stakes in certain target companies, although no formal agreement has been executed. *Ley Choon: Officially opens its asphalt recycling plant in Sungai Kadut drive. The asphalt plant has a production capacity of 400 mt per hour, making it the largest single asphalt plant in S’pore and possibly in SE Asia, and will triple Ley Choon’s asphalt production capacity.