SG Market (13 Mar 15)

Singapore shares are expected to open firmer, led by the technical rebound on Wall Street, with the S&P500 rebounding off its 100-day moving average.

Regional bourses are trading higher this morning in Tokyo (+0.4%) and Seoul (+0.8%) but weaker in Sydney (-0.5%).

From a chart perspective, the STI is likely to be bounded by upper resistance at 3,388 and downside support at around 3,355.

Stocks to watch:
*United Envirotech: 3QFY15 results above estimates. Net profit jumped 37% y/y to $12.8m on the back of a 81% jump in revenue to $116.1m, as treatment business added $7.6m (+38%) to $27.8m, engineering business added $32.8m (+74%) to $44.1m and the contributions of new membrane sales amounting to $11.4m to outside parties during the acquisition period. Bottom-line was weighed by a more than 2x rise in materials, consumables and subcontractor fees at $72.4m. NAV/share at $0.729.

*Keppel Land: Offeror Keppel Corp is extending its offer to 26 Mar. As of yesterday, Keppel Corp has garnered 85.1% control of the total number of shares, below the 95.5% threshold level, which will trigger the higher offer price of $4.60.

*Soilbuid REIT/Technics O&G: Buys 72 Loyang Way, an integrated facility from subsidiary Technics O&G, comprising two blocks of 3-storey and 4-storey ancillary office, two high ceiling single-storey production facilities, a blasting and spray painting chamber, a 200-worker dormitory and a jetty with 142m of sea frontage for $97.0m, on par with independent valuation. TOG will leaseback the facility for 15 years, first year rent at $7.87m with yearly rental escalation of up to 2.25% from year three onwards.

*Keppel REIT: Together with joint owner Mirvac Group celebrated the topping out of the Old Treasury Building Office Tower in Perth. The office tower is expected to be completed in mid-2015, and is currently 100% pre-committed with a 25 year lease, with options for another 25 years from the Government from Western Australia.

*mm2 Asia: Latest co-production, "Ah Boys to Men 3: Frogmen" is the top grossing movie for three consecutive weeks in Singapore since its 19th Feb release, surpassing the "Ah Boys to Men 1" record of $6.2m.

*Interra Resources: Entered into an agreement for the proposed acquisition of 21.4% equity interest in PT Benakat Oil, at a purchase price of US$7.4m. The acquisition will be funded by US$1.2m cash and the remainder via the issuance of 57.1m new shares at an issue price of $0.1492 per share.

*Nordic Group: Non-binding MOU to purchase Austin Energy, a construction services provider that specializes in thermal insulation in the petrochemical, pharmaceutical and offshore industries, for $26m (2.1x P/B). The acquisition is intended to expand group's service offering.

*Sinotel Technologies: SGX-listed Advance Technology has made a mandatory conditional general cash offer for Sinotel Technologies, after acquiring an additional 9.27% stake in the company, bringing its total to 39.25%. Offer price of $0.098/share, subject to obtaining >50% total issued shares.

*Raffles Education: To acquire the remaining 41.8% stake in Educomp-Raffles Higher Education for INR986.4m ($21.6m), which operates the Raffles-Educomp brand of green field campuses and learning centres or institutions in India.

*Edition: Proposed to undertake a renounceable non-underwritten 8-for-1 rights issue at an issue price of $0.01, to strengthen its balance and working capital.