SG Market (22 Jun 15)

Regional bourses are trading higher this morning in Tokyo (+0.7%) and Seoul (+0.9%), but Sydney (-0.1%) opened slightly softer.

From a chart perspective, the STI is capped below the 200-dma at 3,360, with downside support at 3,268.

Stocks to watch:
*Property: A report by UOB Global Economics and Markets Research highlighted that Singapore’s housing glut will worsen in the near future as more public and private units come on stream, and could only start easing from 2017. With population growth forecast at only 1.5% pa over the same time period, oversupply pressures will persist. UOB believes anything short of a 10% fall in property price may not be enough to prompt the government to loosen cooling conditions.

*Noble: Completes disposal of its 100% owned Mongolian coal unit Enkhtunkh Orchlon LLC (EO) to Australia' Guildford Coal for up to US$65m. EO development prospects comprise ~50.0ha of land in Mongolia's South Gobi basin. Based on the Noble’s FY14 financial statements, EO book value and NTA stood at US$57.8m and US$57.5m respectively.

*SingPost: Sold stakes in more traditional forms of postal service business as it shits its focus towards the e-commerce segment. Accordingly, SingPost sold a 90% stake in DataPost to Jing King Tech Solutions for $39.3m, which follows the sale of Novation Solutions and DataPost HK for $24.4m last month. SingPost expects to record an estimated gain of more than $30m from the three divestments, which will be recognised in its 1QMar16 and 2QMar16 financials.

*CapitaLand: To acquire a shopping mall, Vivit Minami Funabashi, in Tokyo's Chiba Prefecture, Japan, for ¥3.05b ($33.2m), 71% discount to market value.

*M1: Launched a mobile Point-of-Sale solution (mPOS) in collaboration with CIMB, MasterCard and Wirecard, which transforms smartphones and tablets into terminals so merchants can accept credit, debit and prepaid card payments. mPOS terminal adoption worldwide is expected to go up from 4.5m to 38m between 2011-17, driven largely by growth in retail sector, increased online trade and higher usage of smartphone and cards.

*Q&M Dental: Proposed to acquire 60%-stake in three dental clinics in Penang, Malaysia, for RM12.29m. The consideration will be paid via cash (63%) and shares (37%), which will come with a 5-year moratorium lock-up. In addition, the doctors of the three clinics have signed a 12-year full time service agreement and provided a profit guarantee of at least RM0.9m-RM1.5m per year for a 12-year period.

*Healthway Medical Corporation (HMC)/ International Healthway Corporation (IHC): IHC proposed to acquire HMC, via a scheme of arrangement, at $0.10/share, to be satisfied by the issue of new IHC shares at $0.45/share. HMC shareholders will be entitled to receive 2 new IHC shares for every 9 shares held. Upon receipt of approval from the Court, HMC will be delisted. The acquisition is intended to expand its business to provide primary healthcare services in Singapore, in addition to its current specialist healthcare services.

*Foreland Fabrictech: Executive chairman, Tsoi Kin Chit sold 160.6m shares via married deal at an average price of 0.62¢/share (total $1.0m) to Huang Wen. The stake sale represents 29.5% of issued share capital, and will see Tsoi reduce his stake to 11.03%.

*Serial System: To purchase 12m shares of Global Invacom for $3.5m (US$2.6m), which represents 4.7% of issued share capital.