SG Market (23 Dec 14)

S’pore shares are likely to be lifted by the global Santa Claus rally with blue-chip leading the way but trading activity is likely to slow ahead of the Christmas and New Year holidays. Looking at the technical indicators, the ADX and MACD are exhibiting bullish crossovers, which suggest that the STI may attept to test the near term resistance of 3,360 before reaching for the Jul peak at 3,388. Downside support is now re-set at 3,280, marked by the 50-dma. Stocks to watch: *Centurion / Lian Beng: Proposed 51/49 JV between Centurion and Lian Beng to develop a 7,900-bed workers accommodation and ASPRI training centre in Jalan Papan, Singapore. The development, scheduled to be completed by mid-2016, sits on 1.5ha of land with lease tenure of 23 years. *STATS ChipPAC: SilTech Shanghai (owned by HK-listed SMIC), Jiangsu Changjiang Electronics Tech (JCET) and the IC Fund entered into a co-investment agreement to form an investment consortium in connection with the proposed acquisition of STATS. SilTech, JCET and IC Fund will make total equity contribution of US$100m, US$260m and US$160m, respectively. IC Fund will also contribute a further US$140m shareholder loan towards the acquisition. *PCRT / PREHL: Perennial Real Estate (PREHL) has gained control of 96.3% of PCRT at the close of its takeover offer on 22 Dec. Trading in PCRT will be suspended wef today. PREHL will exercise its right of compulsory acquisition over the remaining PCRT units via the issue of 0.52423 PREHL shares for every 1 PCRT unit. Such a move also paves the way for PREHL to resume listing on the main board of the SGX, following its restructuring and reverse takeover of nightspot operator St James. *IPS Securex: Signed an MOU with United Tactical Systems and Wattre Corporation to jointly collaborate on the development, manufacturing, marketing and sales of the HyperWhistle - a high decibel traditional form whistle, which aims to be the smallest and loudest whistle in the world. *Koyo Int’l: Awarded a two-year contract worth $2.5m to provide maintenance of M&E systems at One Raffles Place, with an option for one-year renewal. *Del Monte Pacific: Proposed a renounceable underwritten rights issue of 641.9m new shares to raise gross proceeds of up to US$180m. The issue price will be at a 20-25% discount to a reference price on the date of receiving regulatory approvals from SGX, PSE and Philippines SEC. The funds will be used to repay a bridging facility used to partially finance the acquisition of its consumer food business. *AEI: Entered into an agreement to issue 20m new shares to Well Global Investments at a price of $0.13 per placement share (8.3% premium to the VWAP for trades done on 22 Dec). The net proceeds of ~$2.6m has been earmarked for the financing of AEI’s investment opportunities or acquisitions of other businesses or companies synergistic to the group’s operations and competence. *China New Town: Expects to make a Rmb622m provision for impairment of land development for sale at one of its subsidiaries. This will reduce the group’s FY14 net profit by Rmb339m. *Ramba: Extended negotiations with Risco Energy Investments till 31 Jan 2015, in relation to its proposed sale of a 25% working interest in the Lemang Block. *CH Offshore: Appointed Provenance Capital as the independent financial adviser for the voluntary conditional cash offer of $0.495 made by Falcon Energy. *C&G Environmental Protection: Obtained government approval for the proposed sale of its waste-to-energy business and assets to Grandblue Environment. *Sarine Tech: In response to SGX's query on trading activity, the company reiterated that the diamond industry has been, and is likely to be, during 4Q14 and early 2015, adversely affected by credit shortage, increase in polish diamond inventories, and the divergence in prices of rough stone and polished diamonds.