SG Market (19 May 15)

Singapore stocks could inch higher at the open, after the S&P 500 and Dow closed at all-time highs, as market shrugged off early concerns about Greek debt and a renewed rise in bond yields after Carl Ichan tweeted that Apple is worth almost double to its current price.

Regional bourses are trading higher mixed this morning in Tokyo (+0.4%), Seoul (-0.1%) and Sydney (-0.8%).

From a chart perspective, the STI is still trying to hold its ground above the 50-dma support at 3,450 with topside resistance at 3,520. Looking at technical indicators, the RSI appears neutral, while the MACD could be gearing up for a bullish crossover.

Stocks to watch:
*Accordia Golf Trust: 4QFY15 DPU of 1.79¢ missed IPO forecast of 1.82¢ due to the depreciation of JPY/SGD. Otherwise, DPU and distributable income of ¥1.62 and ¥1,776m, respectively, would have been 9% higher-than-estimated. Operating income of ¥9,811m also came in 5% lower-than-forecast from an unfavourable weather conditions and lower average play fees, as well as lesser-than-expected membership revenue from a drop in the number of members. Subsequently, operating loss came in worst-than-expected at ¥1,131m vs ¥361m. Aggregate leverage of 30.3%, while NAV/unit stood at $0.85.

*Ezion: Rejects Atlantic Marine Services (AMS) claims as "frivolous and without merit". AMS claims company was behind a conspiracy to induce an AP Moeller-Maersk unit to breach charter agreements by creating impression that AMS was in financial trouble.

*Midas: Subsidiary Jilin Midas Aluminium Industries has secured a series of contracts worth Rmb328.9m for the supply of high-speed train car body components in China. These contracts are expected to contribute materially to FY15.

*Centurion: Awarded tender to operate a student accommodation at Short Street, Singapore. The 10-storey property with a lease term of 8 years will be renovated to house 400 students with commercial spaces for F&B outlets. This brings the total number of beds in Centurion’s student accommodation portfolio to 2,770 by end-2015. Separately, group is conducting a non-deal roadshow in Hong Kong.

*Boustead Projects: Awarded $32m contract to design and build an integrated commercial and logistics facility for the World Furnishing Hub in Sungei Kadut Industrial Estate in Singapore. The contract will raise Boustead Projects Group order book backlog to $296m.

*Nera Telecommunications: Announced a $13.1m contract to supply, install and maintain a nation-wide broadband project in South East Asia.

*CapitaLand: 100% owned The Ascott aims to double its service apartment units in Europe by 2020. Targets 10,000 apartment units in Europe in 5 years through acquisitions of turnkey developments or existing buildings which can be converted into serviced residences, management contracts and franchises. The group also has plans to refurbish 33 properties in Europe by end 2016.

*GSS Energy: Will invest up to US$6m into Ramba's oil and gas operating assets located in West Jambi block in Sumatra, Indonesia, intended to cover all related costs, fees and expenses to complete drilling of two onshore exploration wells. Further details are expected to be released prior to the investment that is scheduled to commence in 2H15. The investment would help GSS gain presence into a new geographical location, adding to its current operations in Central and East Java.

*Keppel Corp: Keppel Seghers have handed over Phase 2 of the Runcorn Energy-from-Waste (EfW) facility in UK to the client in April, after successfully completing a 30-day reliability test.

*SIIC Environment: CFO, Raymond Tan, has resigned to pursue other career interest.

*STATS ChipPAC: Appointed Maybank Kim Eng Securities as the independent financial adviser for the voluntary conditional offer.