Wednesday, September 30, 2015

SG Market (30 Sep 15)

Singapore shares may see a slight respite today, after Wall Street ended higher after a volatile session, on stronger-than-expected consumer confidence and rising house prices.

Mining giant Glencore rebounded sharply (+17%) in London last evening, after the company retorted it was operationally and financially robust, despite critics' fears that the low commodity prices could negatively impact earnings.

Regional bourses are generally higher this morning in Tokyo (+1.9%) and Sydney (+1.5%), but lower in Seoul (-0.5%).

From a chart perspective, STI may see a slight rebound in the near-term supported by the rising indicators. Topside resistance is at 2,850 (14-dma), while support for the index is at 2,670.

Stocks to watch:

*SinoCloud (former Armarda): Post acquisition of a 63% stake in a Tier-4 data centre in Guiyang, SinoCloud has formed a management unit, SinoCloud Asset Management, to manage the centre. The unit will be spearheaded by industry veteran Zhang Dai, who previously served as a management team member responsible for China Telecom's data centres.

*Khong Guan Flour Milling: FY7/15 net profit slid 6.8% y/y to $1.2m as revenue remained flat at $62m, mainly supported by higher sales from its Malaysian subsidiaries, but negated by lower short-term trading income. Bottom-line was dragged by higher FX loss due to a weakening ringgit, partially offset by stronger performance of associates. A first and final DPS of $0.03 was maintained.

*Serrano: Disclosed that 122.4m (81.6%) of rights shares were subscribed, of which 67.6m rights shares were accepted by its undertaking lenders. The remaining 34m shares will be allotted and issued to satisfy excess applications. The corporate action helped raised $8.2m in net proceeds.

*Biosensors: Will commence sales of its BMX-J drug-eluting stent system in Japan starting from Oct ‘15. Group has already established a distribution channel across Japan and hopes to expand these channels to increase coverage and sales going forward.

*CNMC Goldmine: Produced a record 3,771.2oz (+28.1% from previous high) of gold in a single gold pour, highest output since the start of its gold production in Jul ‘10.

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