Tuesday, March 24, 2015

SG Market (24 Mar 15)

From a chart perspective, the resistance is tipped at the recent 3,460 peak, with support now tipped at 3,400. Technical indicators are grossly oversold, with MACD appearing poised for a bullish crossover.

Stocks to watch:
*Economy: Headline inflation rate in Feb ‘15 fell further by 0.3% y/y (Jan ‘15: -0.4% y/y), mainly on lower costs of housing & fuel-and-energy-related items such as petrol pump prices and electricity tariffs. This is the fourth consecutive month of deflation.

*IHH Healthcare: Newswires reported that IHH Healthcare has acquired a 51% stake in Hyderabad-based Continental Hospitals, a 750-bed super specialty facility, for ~RM167m. The deal marks IHH’s first direct acquisition in India, despite the group owning a 10.5% stake in Apollo hospitals and having stakes in two JV facilities in Kolkata and Hyderabad.

*Keppel Land: Parent Keppel Corp has garnered 88.3% control of its property arm, nearing the compulsory acquisition threshold (95.5% level), which will trigger the higher offer price of $4.60. Deadline for the extended voluntary unconditional cash offer is on Thurs (26 Mar) at 5.30pm.

*Rex: JV Lime Petroleum Norway receives enlarged financing facility of NOK700m (from NOK300m) for funding of its offshore exploration drilling programme in 2015. On top of the facility, shareholders of Lime Petroleum have also made capital injections totalling US$35m in Nov ’13, Jan ’14 and Mar ’15.

*Singapore Windsor: Proposed to dispose its under-performing printed circuit board punching moulds manufacturing and trading business for HK$55m ($9.8m), or 1.2x P/NAV. Sale proceeds is expected to pare down the group’s gearing ratio fully from 1.2x to 0. Proforma FY14 NTA/share is expected to improve from HK61.45¢ to HK81.97¢, while loss per share should narrow from HK60.80¢ to HK23.04¢.

*Roxy Pacific: Alongside JV partner Hostplus, the duo is acquiring a 4.4ha Land in Western Australia for A$59m. The total industrial land area of ~45,456 sqm will be rezoned for commercial and residential use. The land is located adjacent to the Leighton beach and the train station in North Fremantle, with direct access to Perth’s CBD. Roxy Pacific’s stake in the JV is 40%, with Hostplus holding the remaining balance.

*Hu An Cable: Profit warning for FY14 due to a decline in gross profit, as a result of lower sales and decreased selling prices, attributed to tighter credit in the industry, as well as a fall in copper prices. Separately, group proposed a 20-into-1 share consolidation to meet the minimum trading price requirement for Mainboard-listed stocks.

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