From a chart perspective, the STI resistance is tipped at the recent 3,460 peak, with support now tipped at 3,400. Technical indicators are grossly oversold, with MACD exhibiting a bullish crossover.
Stocks to watch:
*SIIC Environment: Proposed to buy Global Environment Investment (HK), which owns a 92.2% stake in Fudan Water (FW), for Rmb1,548m ($348.3m), or 2.9x P/NAV. FW is a water treatment business with operations in Shanghai, Jiangsu, Zhejiang and Guangdong provinces, with a planned water treatment capacity of over 1m tons/day. Consideration will be done via cash (Rmb151.7m) and an issue of 1,560m new shares (14% enlarged share capital) at an issue price of $0.132/share.
*Metro: Divests 50% stake in ECM Property Tianjin, which owns a 6-storey 4-basement Mall in Beijing for US$179.5m and payment of shareholder loan for US$123.2m. The asset was co-developed by Metro in 2009 and having achieved stable occupancy of 99.5%, is considered a matured asset ready for divestment. The divestment is expected to result into a net gain of $37.2m for Metro.
*UOB: Obtained approval from the respective board of directors for the voluntary conditional cash offer of subsidiary Far Eastern Bank at $3.51 per share. UOB currently holds 78.9% of Far Eastern Bank outstanding shares.
*ValueMax: Expands its business to include unsecured moneylending. The new business will be conducted through VM Credit.
*MM2: Entered into non-binding MOU with Grand Olympus Films and JTeam to co-produce new film "Game Kids" in China, aimed for release in 4Q17
*Teho: Paid $37k for options to purchase two leasehold properties at 33 Ubi Avenue 3 with a combined area of 6092sf and 60 years lease commenced 2007, worth $3.7m.
*LifeBrandz: To draw down $1.98m from fixed deposit held with Maybank to obtain bankers guarantee demanded by Clarke Quay landlord CapitaMall Trust on its outstanding leases after ceasing operations of five night spots earlier this month.
*Kris Energy: Successfully drills Rossukon-2 well in G6/48 Gulf of Thailand after drilling total depth of 5,460 feet measured depth.
*Green Build: Auditors raised concerns of net operating cash outflow of Rmb671k and net equity deficit of Rmb11m.
*DMX Technologies: Requested to convert its trading halt into a suspension, after it received a report from the HK authorities, citing irregular accounting practices at two of its subsidiaries in 2008 and 2009.
*Sino Construction: 4Q14 earnings from continued operations deteriorated further to $1.1m loss (vs $0.3m losses in 4Q13) as thin gross profit margin (6.7%) and large administrative expenses weighed on bottom-line.
*Jacks Int'l: Undertakes 5-into-1 share consolidation