Tuesday, June 23, 2015

SG Market (23 Jun 15)

Singapore shares are poised to open higher this morning, taking cue from the rally on Wall Street, sparked by renewed hopes for a Greek deal this week.

Regional bourses are trading higher this morning in Tokyo (+1.3%), Seoul (+0.6%) and Sydney (+1.2%).

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

Stocks to watch:
*Property: BNP Paribas believes that immigration policies and incoming private housing supply (~24k units added in 2015) will make averting further property price declines more difficult than widely thought. The bank estimates that private property prices could fall a further 10% over next 2 years, which in turn could have a negative wealth effect and constrain private consumption growth. Private property prices have fallen 5.5% from their mid-2013 peak. BNP cautioned that some households may soon find it hard to meet TDSR requirements as debt service ratios may rise in tandem with the Fed's monetary tightening.

*CapitaLand: Divesting its 30% stake in DBS China Square, at 8 Cross Street, Singapore, for $150m to DBS Bank. The divestment is not expected to have any material impact on the net tangible assets or earnings per share of CapitaLand for FY15.

*Ezra: Priced its proposed 190-for-100 renounceable underwritten rights issue at $0.105 apiece. Counter will go XR on 26 Jun and books will close on 30 Jun.

*Adventus: 65% owned subsidiary Crimson Star is acquiring VRG Riverview Apartments for $58.7m. The property is a freehold semi-completed residential apartment, comprising two blocks and 302 apartment units, with GFA of 47,665 sqm in Ho Chi Minh City, Vietnam. The acquisition will be funded through a mix of internal resources, sales proceeds from the sale of apartment units, and debt.

*Roxy-Pacific: To set up JV with four individuals to acquire a land parcel in Jakarta, Indonesia, for IDR68.12b, with the intention to develop a hotel. JV proportion in relation to each purchaser shall be 49% (Roxy-Pacific), 21% (Tjandrawati), 12% (Heru Sutantio), 12% (Hendro Sutantio) and 6% (Jenny Sutantio).

*Ntegrator: Secured four network related contracts worth $8.2m from repeat customers in Myanmar and Singapore. The three Myanmar contracts are slated for delivery this year, while the Singapore contract is for a period of two years with option to extend for a third year. The latest contracts bring the cumulative value of year-to-date order wins to $59.0m.

*Grand banks: Expects to report a net loss for FY Jun ’15, weighed by various one offs, discounts given, and timing of revenue recognition.

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