SG Market (09 Dec 14)

Expect a softer Singapore open today, taking cue from the sharp pullback in the US markets yesterday. In the region, the Nikkei and Kospi are trading 0.6% and 0.4% lower, respectively. From a chart perspective, expect the Singapore market to test the next support at 3,271 (50 day moving average), following yesterday’s break of the psychological 3,300 level is broken. Stocks to watch: *ZICO: 3Q14 net profit rose 17% y/y to RM3.8m, as revenue jumped 48% to RM7.4m, driven by new revenue streams from the Management and Support Services business which began in Jan ’14, coupled by increases in Advisory and Transactional Services and Licensing Services. Bottom line grew at a slower clip due to faster growth in operating expenses. *ISOTeam: Raising $1.4m through a proposed placement of 2.8m new shares at $0.50 each, to be subscribed by Nippon Paint. Separately, Nippon Paint will receive additional 1.2m ISOTeam shares issued at $0.50 each, in lieu of outstanding accounts receivables owing by Industrial Contracts Marketing. The latter is being acquired by ISOTeam. Post-transactions, Nippon Paint’s stake in ISOTeam will increase from 2.63% to 5.93% of enlarged share base. *Lippo Malls Trust: Placed 117.6m new units to institutional and other investors at $0.34/unit (6.8% discount to last close of $0.365). Net proceeds of $38.8m intended to partially fund the recent acquisition of Lippo Mall Kemang. The new units will increase the unit base by 4.8% to 2,583.4m units. *PACC Offshore: Majority shareholder, Kuok (Singapore) raised its stake from 81.1% to 81.4%, after acquiring 5.6m shares in the open market at an average $0.558 apiece on 8 Dec. *Gallant Venture: Subsidiary Bintan Aviation Investments teaming up with GMF AeroAsia to form a JV company for aircraft maintenance at Bintan Industrial Park in the Riau Islands. The JV will provide MRO facilities, manufacturing and assembly of aircraft engines and components, aviation training and academy, and R&D. *Oxley: Appointed Jumeirah as manager for a a proposed luxury hotel mixed-use development (inclusive of an office tower and retail podium) in KL. Jumeirah will provide various technical advisory assistance to help the development adhere to Jumeirah’s design guidelines. *Spackman: Acquiring a 51% stake in Novus Mediacorp for $2.53m, of which $1.35m will be paid in cash and the balance in 3.5m new shares priced at $0.34 each. *Tigerair: Nov traffic rose 2.6% y/y to 784m revenue passenger-kilometers, while capacity declined 5.3% to 974m available seat-kilometers. Consequently, load favros increased 6.3% to 80.5%. The number of passengers carried fell by 3.8% y/y to 407k.