SG Market (11 Mar 15)

Singapore shares are likely to follow Wall Street southwards on heightened expectations of a faster-than-expected interest rate hikes.

Regional bourses opened weaker this morning in Tokyo (-0.1%), Seoul (-0.7%) and Sydney (-0.9%).

From a chart perspective, the STI is poised to breach its 50-dma at 3,388 and break below its two-month consolidation pattern towards the next support level at around 3,355.

Stocks to watch:
*Del Monte: 3QFY15 losses narrowed 66% y/y to US$2.2m, dragged by higher interest expenses (US$28.0m vs US$1.2m) incurred from acquisition of Del Monte Foods Inc (DMFI) in Feb '14, as well as acquisition-related expenses. Meanwhile, revenue rose to US$637.6m, with US$511.0m contributed by DMFI. Excluding that, revenue improved 2.3% to US$126.6m, driven by increased sales in Philippines. Group turned operationally profitable on 3.7% margin. NAV/share of US$0.1688.

*Tigerair: Feb ‘15 saw a 3.2% decline in traffic, while capacity fell 8.5%. Consequently, passenger load factor increased 4.3ppt to 78.9%.

*Keppel Land: Parent Keppel Corp has obtained 76.7% control (from 73.7%) of its property arm. Closing date for the voluntary unconditional cash offer is on Thu (12 Mar).

*Nam Cheong: Secured two orders worth US$58m ($80.3m) from Marco Polo Marine and Topaz Energy and Marine, for an accommodation work vessel and a anchor handling towing supply vessel. The new orders bring order book to RM1.7b, and are expected for delivery in FY15 and FY16.

*Frasers Centrepoint: Opened doors to its third property in Kuala Lumpur, Frasers Residence Kuala Lumpur. The 445-unit serviced residence brings the group's hospitality portfolio in KL to 1,000 apartment units.

*SGX: Adding new Asian currency futures contracts- TWD/USD, SGD/CNH, CNY/SGD and EUR/CNH, to expand its current suite of FX futures in 3Q15, subject to regulatory approval.

*WE Holdings: Proposed to acquire Hua Kai for $25m, to gain entry into the land reclamation business. The acquisition will be funded in cash ($8m) and shares ($2m), with the remaining $15m to be paid over a three-year earn-out period, subject to a profit guarantee of $6m earnings per year. In conjunction, group entered into a non-binding MOU with NRA Capital, to issue new three-year 8% convertible non-redeemable bonds.

*Neo Group: Emerged top events caterer with 10% market share for 2013, according to market research firm, Euromonitor.

*UE E&C: Counter will be delisted with effect from 16 Mar, after the compulsory acquisition by Universal EC Investments has been complete.