SG Market (04 Dec 14)

After the recent sector sell-off, expect the Singapore O&M plays to stabilise after a rebound in the US oil-related stocks last night. The firmer markets in Japan (Nikkei +0.8%) and Korea (Kospi +0.6%) point to a broadly bullish session for the Singapore market today. 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: *China New Town Dev (CNTD): Selling its 90% stake in the Wuxi Project to its 10% JV partner, Wuxi New Town Dev, for cash consideration of Rmb1.1b. CNTD is expected to log a one-off net gain of Rmb675m from the disposal. The sale assets comprise a primary development business, as well as equity interests in auxiliary facilities in the new town, such as hospitals, streets and hotels. Post-sale, proforma FY13 NTA will rise 39% to Rmb0.615 ($0.132), and loss per share will narrow from Rmb0.0474 to Rmb0.0275. *Raffles Education: Received approval in-principle from SGX for the proposed spin-off listing of its Oriental University City Holdings (H.K.) on the Growth Enterprise Market of the HKSE. *LCD Global: Its 116-unit serviced residence in Vientiane, Laos, will commence operating as Somerset Vientiane (formerly known as Parkview Executive Suites) from 9 Dec. This comes after a refurbishment of its guest rooms, lobby and breakfast lounge. The Ascott will manage the property for the first two years before transitioning into a franchise structure. *Tritech: Secured a $19.2m of sewer contract from PUB for works on Sembawang Road and around Sembawang Avenue. *Memstar: Seeking to covert its trading halt announced 1 Dec, to a voluntary suspension up ot 9 Dec, as it is in advanced negotiations with third parties in relation to a possible transaction. *Petra Foods: Won a counterclaim to invalidate Nestle’s trademark registration for the two and four-finger shapes of its Kit Kat bars. Nestle’s threats of commencing a trade mark infringement suit have been declared as “unjustifiable”, and an injunction has been granted to restrain Nestle from making such threats. *Gaylin: Cofounder, executive Director and COO Teo Bee Kheng passed away on 2 Dec.