SG Market (10 Dec 14)

Mixed overnight macro developments and a lack of corporate news flow provide few leads for Singapore investors to work with this morning. There was little positive catalyst for the US market to have clawed its way up from being almost 1% down at the open to close flat. Meanwhile, most other markets tumbled yesterday. Brazil’s Ibovespa declined to an eight-month low, closing 0.2% lower at 50,193. Having accumulated a (Sep) peak to trough loss of 19%m the index is now on the verge of entering a bear market. Key stocks Vale (-2.3%) and Petrobras (-1.2%) continued to slide. Declines in Europe (EuroStoxx -2.6%) were led by the 13% plunge in Greece’s ASE Index due to election uncertainty. In Asia, China slumped 5.4% after regulators tightened collateral requirements for some short term loans, pulling back sharply from a two-week sizzling rally. This dragged the HSI down 2.4% at the close. Reflecting the volatile moves, the Nikkei and Kospi are trading 1.2% and 0.6% lower, respectively, this morning. The Australia market is also in the red with a 0.8% loss. From a chart perspective, expect the Singapore market to test the next support at 3,273 (50 day moving average), if the psychological 3,300 level fails to hold. Stocks to watch: *CapitaLand: Acquired a 50% stake in Asiana Agresif (AA) for cash consideration of RM24.8m. Together with 50% JV partner Juta Asia, the consortium will jointly develop the land parcels of land in Kuala Lumpur owned by AA into one block of condominium and low rise villas. *KrisEnergy: Management believes that the group will be profitable in 2015 and 2016 before taxes, driven by existing oil and gas production (average 7,403 boepd in 3Q14) from fields in the Gulf of Thailand and Bangladesh, target production of the Nong Yao oil development by mid-2015 and target production at the Wassana development in 2H15. *Nordic Group: Secured a US$2m contract from Bumi Armada, to design and supply a remote operated hydraulic valve control system for a FPSO vessel. This brings outstanding order book to $43.3m. *GP Industries: Disposed of Coudrey Investments, which holds 50% interest in an Indonesian company that markets and distributes electrical wiring products and accessories for US$2.9m, against its NAV of US$3.2m. *Polaris: Entered into a two-year exclusive master distributorship agreement with Commtiva Technology to promote and distribute Infocus brand in Singapore, Malaysia, Thailand, Vietnam, Philippines and Cambodia. Commtiva makes various gadgets, including smartphones. *Asia-Pacific Strategic: Acquired a 22.3% stake in Silvermane Investments, which owns the Amayapampa Gold Project (AGP) in Bolivia, for $6m. Based on the qualified persons report, AGP has 23.2 mt of gold resources with NPV of $42-$77m, based on a gold price of US$1,300/oz. $2m cash has been paid, while the remaining $4m will be payable in 2-year convertible notes, after production of gold has commenced. *Memstar: Extends trading suspension for negotiation of possible transaction