SG Market (03 Dec 14)

SGX will delay the opening of the securities market today. The market will start at 12.30pm, with the pre-open routine at noon. The market will remain open till 1700 hrs and close as per normal. This delayed opening is to enable member firms to complete client position reconciliations, and rectify any errors in the end-of-day processing for 1 Dec arising from a software defect which has since been rectified. The Nikkei and Kospi are up 0.6% and 0.3% respectively, this morning. Taking cue from the firmer US markets overnight, the indications are for a positive open in the Singapore market later. From a chart perspective, expect the Singapore market to trade between the 3,300 and 3,360 band in the near term. Stocks to watch: *Keppel Land: Entered into a conditional JV agreement with ShweTaung Group to develop a 23-storey office tower in Yangon's CBD. Keppel Land's investment will be US$47.4m for a 40% stake. When completed in 2017, the office tower will have 33,400 sm NLA of premium Grade A office space. The office is part of the Junction City mixed development which also houses a shopping center and the Pan Pacific Hotel. *Singapore Post: Investing A$95m ($105m) in Couriers Please, one of Australia's leading metropolitan small parcel delivery business. The deal is priced at 34.4x FY6/14 target NTA, and is in line with the group's strategy to expand regional e-commerce delivery network. Post deal, Sing Post’s proforma FYMar14 NTA/sh will drop 22% to $0.21, while its EPS will improve 7% to 7.24¢. *IPS Securex: Entered into a framework cooperation agreement with Bio-Nexus Research (BNR), to integrate BNR's "mobile workflow engine" software platform into various solutions, and allows IPS to promote, market and sell the solutions to all the Asean countries on an exclusive basis. *Boustead Singapore: Proposing to consolidate its various real estate solutions businesses under Boustead Projects (BP), with a view to list the BP shares on the SGX Main Board by way of an introduction, together with a distribution-in-specie of BP shares to Boustead shareholders. *MFG Integration Technology: Secured orders worth $13.7m for its vision inspection, die sorting and laser marking equipment for delivery in 1Q15. The contracts will lift the group’s order book to $32.9m. *Advanced Systems Automation: Proposing to place 688.9m new shares (26.1% of enlarged capital) at $0.45 apiece to four individual investors - Dato' Loh Choon Khiang (9.7%), Loh Choon Piew (9.7%), Yeo Lay Muay (3.4%) and Low Jinn Yenn (3.4%). Net proceeds of $3.1m intended to be used for working capital. *JEP Holdings: Signed a 30-year lease agreement for a 18,502 sqm land parcel at Seletar Aerospace Park for $10.6m. The group estimates capex requirements of $28m over the next three years, with the construction of a new building and machinery to be funded by long term debt. Upon completion, scheduled by end-2017, JEP expects an 80% boost in production area. *Rex Int’l: 65% owned subsidiary Masirah Oil commissioned a new 3D seismic survey in Block 50 Oman, to be completed over the next two months. *PSL: In relation to the expiry of the exclusivity period under the MOU for a proposed investment in Longmen Group (target), the latter will refund the deposit in full by 31 Dec ’14, at interest rate of 5.33%. *Elektromotive: SGX rejected the group’s application to seek regulatory clearance for its proposed London Stock Exchange (AIM) listing. Elektromotive remains in consultation with its Sponsor to determine any alternate course of action. *Giken Sakata: Court meeting for Scheme of Arrangement is scheduled at 10am on 18 Dec.