SG Market (19 Dec 14)

S’pore shares are likely to extend gains following the big push on Wall Street and positive opening on Tokyo (+1.8%) and Seoul (+1.4%) but upside is expected to be limited by the lack of positive catalyst. From a chart perspective, upper resistance levels for the STI is seen at 3,266 (200-dma) and 3,276 (50-dma) with downside support at 3,200. Stocks to watch: *SingTel: Acquired Ensyst, an IT company which provides cloud-based professional and managed services in Australia, for A$13m (62.5x P/B), as part of the group's ICT transformation strategy. *Mermaid: Its dive support vessel “Mermaid Commander” has been awarded a two-year subsea construction contract valued at ~US$50m, to commence Apr ’15. *China Environmental: Awarded license to enter into money lending business. *CSC Holdings: Entered MOU with New Hope Liuhe, a Chinese agribusiness company, to jointly develop a leasehold industrial land located at Tuas South Street 9. *Europtronic: Failed to reach agreement with the PRC authority regarding the proposed acquisition of its land property in Suzhou. *RH Petrogas: Updates that the controlling shareholders have to-date not received any offer or indication of terms from a potential investor who previously expressed interest in investing in the company, and considers discussions to have terminated. *Keppel DC REIT: Exercised its over-allotment option of 17.7m units in full.