SG Market (30 Dec 14)

S’pore shares are expected to open lower this morning, taking cue from regional markets. The MSCI Asia Pacific Index is down 0.1%, weighed by material and energy producers, as oil sank overnight to its lowest level in more than five years. Trading activity is however expected to stay muted till next week, as we head into the new year in 2015. From a chart perspective, downside support for the STI could be found at 3,360 (resistance turned support) followed by 3,307 (20-dma), with upside capped at 3,388. Stocks to watch: *KrisEnergy: Indonesian government has approved the plan of development for the Lengo gas field in the Bulu production sharing contract offshore East Java, which will allow KrisEnergy to pursue formal negotiations for gas sales agreements with potential offtakers. Production is anticipated to commence ~24 months after the JV partners declare final investment decision and is expected to plateau at 70m cubic feet per day. *Compact Metal: Entered into a conditional placement agreement with SL Capital Ventures, which will see Compact Metal place out 160m new shares to the latter, at an issue price of $0.05. The proceeds for the proposed placement are intended primarily for the investments in the new cement business to be carried on by the group. *Lasseters International: Proposed renounceable non-underwritten rights issues of up to 249.5m new shares in the company at an issue price of $0.06 for each rights share, on the basis of one rights share for every one existing share held. Proceeds from the rights issue will be used to strengthen the financial position and capital base of the company and enable the group to be less reliant on external sources of funding, thereby potentially incurring lower external funding expenses. *Chaswood: Announced its expansion to East China with the opening of its first Bulgogi Brothers outlet in Changning district, Shanghai. *Guocoland: Associate Tower REIT announced that it will dispose of all 19 office parcels and 190 car park bays within Menara ING to Goldstone Kuala Lumpur for a cash consideration of RM132.3m.