SG Market (11 Dec 14)

Amid the lack of corporate news flow, the Singapore market will likely take direction from the overnight sell-off in the US market to open lower this morning. Trading of late has been volatile, exacerbated by the daily swings particularly in the O&M plays. Momentum however, remains on the downside. From a chart perspective, the STI has continued to trade within the 3,300 – 3,360 band, But if the psychological 3,300 level fails to hold, expect the index to test the next support at 3,273 (50 day moving average). Stocks to watch: *TTJ: 1QFY15 net profit fell 10% y/y to $4.2m, as revenue dropped 23% to $24.7m, mainly due to lower sales in the structural steel business offset by increased dormitory revenue. Gross margin rose 4.7ppt to 30%, mitigating the deterioration in bottom line. Order book stood at $99m. BVPS at $0.35. *Keppel Corp: Initiated its first share buy-back yesterday, with the purchase of 0.5m shares at between $8.31 and $8.39 each. The rig builder is authorised to purchase a max of 90.8m shares via share buy-backs. *GLP: Rating agency, Moody’s says that the group’s announcement to acquire a stake in Blackstone’s US logistics real estate portfolio will not impact its Baa2 rating and stable outlook. *YuuZoo: Management clarifies that no decision has been made by the Board with regard to the issues highlighted in a recent DealStreetAsia article titled: “YuuZoo in early talks to raise $100m, mulls secondary listing on Nasdaq”. *CH Offshore / Chuan Hup / Falcon Energy: All three companies on trading halt. Falcon Energy and Chuan Hup own 29% and 23.8% of CH Offshore, respectively. *New IPO: iFAST to commence trading at 9am. iFast is an Internet-based investment products distribution platform with assets under administration of ~$5.13b. iFast has two main businesses, i) its B2C website, Fundsupermart.com, and ii) a B2B platform that caters to financial institutions and high net worth clients. The offer of 32.8m new shares was 12.4x subscribed. Based on the offer price of $0.95 per share, iFast is valued at 24x annualized 9M14 P/E and 3.9x P/B.