SG Market (06 Jan 15)

S’pore shares are likely to open lower following the rout on Wall Street overnight, with oil-related stocks expected to trend lower after oil prices fell below the US$50 per barrel mark for the first time in 5½ years. From a chart perspective, technical indicators are overbought. If the 50-dma at 3,305 is broken, next support for the STI can be found at 3,380 (200-dma). Stocks to watch *Dyna-Mac: Secured contracts worth ~$89m for the construction of 10 units of FPSO topsides modules and 1 unit of flare tower from BW Offshore. *Marco-Polo Marine: Has secured multi-year contracts for its OSV chartering fleet, worth in excess of US$46m since Nov'14. *Vard: Subsidiary SEAONICS secured a NOK100m equipment contract for a polar research vessel, currently under construction at Fincantieri. *Ntegrator: Secured three contracts worth an aggregate $14.5m, which includes the supply of high-performance batteries to Viettel, upgrade the carrier ethernet network for M1 and installation of fiber cable for Huawei. *Dragon Group: Proposed to acquire 30% stake in Heat Tech Japan (HTJ) for $6m (US$4.5m), of which $2m shall be paid in cash and the remaining via an issue of shares (40m shares at $0.10/share). HTJ is a Japanese company that manufactures and develops heat dissipation products, as well as wind power generation equipment. As at 30 Sep 2014, HTJ recorded NAV and NTA of US$3.2m and US$1.7m, respectively. Dragon was also granted a 12-month option for US$1m, to purchase an additional 36.7% in HTJ. *Forterra Trust: Mandatory conditional cash offer has closed with valid acceptances of 97.1%. The counter will be suspended with effect from today. The offeror intends to exercise its right of compulsory acquisition of remaining shares. *Ocean Sky: Non-binding MOU to acquire Link (THM) Holdings, a Singapore property developer which is currently developing One World Medini in Iskandar, for $226.2m. Consideration is expected to be via an issue of shares, after a 2-into-1 consolidation, at $0.352/share. Upon completion, the acquisition is expected to result in a RTO, where Link will own 74.1% of enlarged issued share capital of Ocean Sky. *Artivision: To provide Israeli companies- Reshet Noga, Web3 and Globes Publisher Itonut (1983), the use of its Advision Video Advertising Platform, a server which allows viewers to watch advertisements on their computers and mobile devices. *Manufacturing Integration Technology: Won $10.5m contract to deliver 2 lines of equipment for making building integrated photovoltaics (BIPV) to an existing customer in China. This is the largest ever order secured. The order is expected to contribute positively to FY15 performance. *IHH Healthcare: Has no intention to acquire an 11.5% associate stake in Bangkok Dusit Medical Services (BDMS) at this juncture. *Gallant Venture: Disposed indirect 29.4% interest in PT Sebuku Iron Lateritic Ores for $16.6m (US$12.6m).