SG Market (10 Jun 15)

Singapore shares are likely to stay muted this morning, taking cue from the flat close on Wall Street, as investors continuing to keep tabs on the Greek saga and rising US treasury yields.

Separately, MSCI has decided not to include China A-shares in its emerging market indices for now until some key issues relating to market accessibility have been resolved. China A-shares will remain on the 2016 review list for potential inclusion into the global benchmarkets.

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

From a chart perspective, the STI is trading well below its 200-dma at 3,360, suggesting the index is in a negative mid-term trend, with downside risk at 3,268. Technical indicators are grossly oversold.

Stocks to watch:
*DBS: Speaking at the Reuters Wealth Management Summit, DBS’s group head of wealth management, Tan Su Shan, guided that the bank is aiming for a 40% jump in its private banking assets to US$100m over the next three years, led by growth in the greater China region and in Singapore. DBS currently manages ~US$71b of assets at its private bank and is ranked as Asia's seventh largest private bank.

*Loyz Energy: Acquiring Primeline Energy (PEH) by way of scheme of arrangement for $197m. The acquisition will be satisfied entirely by the issue of 1.79b new shares at $0.11 per share and will result in a reverse takeover of the company. A successful RTO will see Loyz seeking a transfer from the Catalist to the Main Board of SGX. Listed on the TSX Venture Exchange in Canada, PEH is an independent oil and gas exploration and production company focusing exclusively on upstream opportunities in China, and owns exploration and development rights in the East China Sea, via two petroleum contracts, namely Block 25/34 and Block 33/07.

*XMH Holdings: Secured new orders worth $23.1m which comprises standby power generating units for a data centre ($7.8m) and a healthcare centre ($7.7m), as well as vessel electrical packages for shipyards ($7.6m). Contracts are expected for delivery between Sep ‘15 - Mar ‘17.

*Soilbuild Construction: Secures maiden construction contract to build a 24-storey condominium in Yangon, Myanmar for US$50.4m. The project is expected to commence in 3Q15 and is expected to be completed within 40 months. It also brings the group’s latest order book to ~$784.0m.

*China New Town: Disclosed that executive director and vice-chairman, Shi Jian, has been detained by the PRC Changzhou authorities for unspecified reasons. The group reassured that business is as usual, none of its assets has been frozen or seized and no event of default of the group has been triggered. The stock will resume trading this morning, following a three-day trading halt.

*Creative Technology: Released its Sound Blaster FRee Bluetooth Speaker, which has two custom-tuned Neodymium drivers, and twin passive radiators. The speaker also boasts dual orientation playback, which allows for wide stereo imaging when placed horizontally, or 360-degree sound when placed vertically. Separately, Creative also launched the white colour version of its SB Inferno gaming headset.