SG Market (26 Dec 14)

S’pore shares are likely to consolidate its recent gains with some cheer coming from the latest supportive policies from China. Trading volume is expected to remain tepid till next week, as most investors continue their festive celebrations into the New Year. Asian markets are trading relatively flat this morning, with the Nikkei inching up 0.01% and the Kospi down 0.04%. From a chart perspective, upside on the STI may be capped by near term resistance at 3,360 with downside support at 3,280. Stocks to watch: *Wee Hur: Acquiring a plot of land in Brisbane for ~A$51.3m. To complete the land acquisition, the group will need to, at a later date, acquire an additional 2,194 sqm of land for A$5.2m, bringing the combined land area to 1.91 ha at a total cost of A$56.5m. Wee Hur intends to use the land for a mixed-use development comprising residential, retail and office units. The acquisition will be funded by internal resources. *Poh Tiong Choon: To redevelop warehouse and office at 42 and 48 Pandan Road for $128m, funded by internal funds and debt. The total gfa of the project is ~101,590 sqm and construction is expected to commence in Dec ‘14 and targeted to complete in two phases by Feb ‘18. Subsequently, lease at the sites will be extended for a further 24 years and 4 months from 1 Jul ‘19. *Sarine: Expects revenue for 4Q14 to be in line with or slightly better than 4Q13, despite the challenges currently faced by the diamond industry. Management strongly believes that the group will be profitable for the quarter, which will allow it to recommend during its AGM to approve a final dividend for the year. *Straits Trading: Sold wholly-owned STC International Investment Holdings (formerly known as RendezvousHotels Asia) to Baijia International Group (Hong Kong), for Rmb19.3m ($4.1m), above book value of $3.9m as at Sep ‘14. *Rotary Engineering: Disposed its entire 40% equity interest in ITRO for $3.2m. *TPV Technology: Granted exclusive right and license to use the Philips Trademark in Hong Kong from 1 Jan ‘15 until 31 Mar ‘17.