SG Market (29 Dec 14)

S’pore shares are likely to open higher on the back of the festive cheer on Wall Street last Fri but trading activity is expected to stay muted till next week, as we head into the new year. Asian markets are trading slightly higher this morning, with the MSCI Asia Pacific Index up 0.1%. 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: *Keppel Corp: Won a contract valued at over US$100m to build one of the world’s largest land drilling rigs for a major operator. The harsh environment rig is scheduled for delivery in mid-2016. *Nam Cheong: Sold two vessels worth $45m, comprising one AHTS to Netherlands-based repeat customer, Vroon, and one PSV to West Africa-based repeat customer, EA Temile Development Company. The latest orders bring the group’s order book to ~RM1.7b. *Otto Marine: Sold an AHTS to an unrelated third party for US$100m. The transaction is expected to have a positive contribution to the NTA and EPS of the group for FY14. The group’s net order book stood at US$500m as at 30 Sep ’14. *TEE Land: Entered into a 55%-owned JV (Potts Point Hospitality) with Peter & Jan Clark and Kenmooreland to acquire the 76-room, 4-star Diamant Hotel in Sydney for A$23.2m. The acquisition is part of the group’s strategy to build up a portfolio of recurring income generating assets in developed markets. *Isetan: Will cease its own retailing operations at Isetan Orchard, Wisma Atria from 2Q15. However, the group it will continue retailing and F&B services by securing new tenants and providing the necessary facilities management. *Sheng Siong: Executed a conditional JV (60% owned) with Kunming Luchen group and Tan Ling San to operate supermarkets in China. *TT International: Announced that its Big Box property - Singapore’s largest warehouse retail mall - has opened its doors to shoppers on 27 Dec '14.