Singapore shares may reclaim some ground, with firmer European and regional markets in Tokyo (+0.4%), Seoul (+0.03%) and Sydney (+0.9%) taking over market leadership as Wall Street was closed for Labour Day.
The focus of today’s market action will be on China’s trade figures for Aug with exports forecast to shrink 6.6% (Jul: -8.3%) and imports to contract by 7.9% (Jul: -8.1%) amid weak global demand. If the data turn out to be worse than expected, that would put further presuure on the yuan.
From a chart perspective, the STI is still tucked in an intermediate downtrend with the next support at 2,750 and capped by topside resistance at 2,950.
Stocks to watch:
*Gaming: Fitch views the gaming industry in Singapore and Malaysia as stable despite slipping tourist arrivals, shrinking VIP business and lower win rates, as both have withstood uncertain macroeconomic conditions. However, their market share in Asia Pacific will decline if the weak backdrop persists for another 12-18 months.
*GLP: Signed 1.4m sf of leases in China with Best Logistics and SF Express, which are expanding in five cities across China to cater to increasing demand for express delivery services driven by e-commerce.
*Hutchinson Port: Declined offer by parent Hutchison Port Holdings to acquire its 50% equity interest in Zhuhai International Container Terminals, as management is of the view that the investment does not meet the trust’s criteria, factoring into account volume trends of foreign cargoes, competition and synergies.
*Raffles Medical: Opening its first medical centre in Japan within a 5,400 sf facility at Herbis Osaka which offers family medicine, travel medicine, dermatology, aesthetics, chinese medicine, and health screening services.
*Tee Land: Acquiring a 24,704 sqm freehold land at Rangsit Klong 1, Patumthani Province, Greater Bankok, Thailand from Mrs Yuree Sethawan, via its associate Chewathai, for THB92.6m ($3.66m) to develop a landed housing project. The acquisition will be financed via internal funds and bank borrowings and is expected to complete by Dec '15.
*QT Vascular: Received CE mark clearance for its peripheral drug-coated balloon, Chocolate Touch from Lloyds Register Quality Assurance Notified Body Number 0088.
*Cordlife: Disclosed that the unsolicited offer from HK-based Robust Plan for its shares and convertible bonds in China Cord Blood Corporation has been withdrawn with immediate effect.
*CEFC: Framework cooperation agreement with CEFC Shanghai International Group to be its exclusive procurement and supply platform for all of CEFC Shanghai's overseas procurement and supply activities for crude oil and petroleum products.
*YuuZoo: Partnered Sweden-based Circle of Champions (CoC) to distribute and market CoC's Android and iOS mobile games developed for 11 of the world's most popular football teams. Under the agreement, YuuZoo plans to build online platforms for the football teams, which will facilitate downloading the games, as well as enabling users to purchase fan merchandise and interaction. The sales from all activities will be shared between CoC and YuuZoo.
*Fabchem China: Cautioned that 2QFY16 revenue and profit will be significantly lower y/y, amid the temporary closure of Port of Qingdao and Port of Weihai for exports of commercial explosive products following the recent explosion at Port of Tianjin. Production schedule may also be impacted due to limited warehouse capacity for export-ready products. In addition, subsidiary, Hebei Yinguang Chemical is expected to incur operating losses due to China's slowdown and challenging commodity market conditions.