SG Market (20 May 15)

Regional bourses are mostly trading higher in Tokyo (+0.9%), Seoul (+0.4%), although Sydney is flat.

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:
*Property: According to Cushman & Wakefield, S’pore developers may incur up to $90m in extension charges for unsold units from Apr-Dec '15, followed by $238m in 2016 if housing market conditions does not improve. As at end 1Q15, developers had paid ~$119m in extension fees for unsold units for condos completed from 2010 onwards. Listed developers which could see considerable QC charges by end 2016 are CapitaLand, City Dev, Wheelock Properties, Wing Tai and Heeton.

*QT Vascular: Has enrolled the first 11 patients in its First-In-Human study of its novel Chocolate Touch PTCA (Coronary Drug Coated Chocolate) in the Dominican Republic. If successful, the study would provide initial evidence of a new and unique device that could be able to treat the most common coronary disease in a way that minimizes the placement of stents.

*Ramba Energy / GSS Energy: GSS Energyis investing US$5m in Ramba's exploration programme at West Jambi block in Sumatra, where 2 onshore wells are expected to be drilled from 2H15. This marks the third major investment that Ramba has secured in less than one month, with the group successfully raising ~$30m in total funds. International petroleum consultancy DeGolyer & MacNaughton estimates the West Jambi block as holding gross contingent resources of ~23.1m barrels of oil, 0.81m barrels of condensate and 97b cubic feet of marketable gas, as at 31 Dec ’14.

*LHN: Expands regional presence with new master leases in Myanmar and Indonesia. In its first business venture in Yangon, LHN has signed a master lease with a local developer to open its first SOHO-style serviced residence in the region by Sept '15. Meanwhile, the group's second GreenHub Suited Office in Jakarta is expected to open by 3Q15.

*Silverlake Axis: China associate Global InfoTech released its prospectus on ChiNext of Shenzhen Stock Exchange for 33.34m new shares at IPO price of Rmb11.26. Closing date of application is 20 May.

*Longcheer: Received a confidentiality agreement for a potential investment opportunity.