SG Market (02 Oct 15)

Regional bourses are mixed in Tokyo (-0.5%), Seoul (+0.03%) and Sydney (-0.2%).

From a chart perspective, the STI is likely to drift with no clear direction. Topside resistance is seen at 2,860 (20-dma), while downside support is at 2,670.

Stocks to watch:
*Economy: Sept's PMI of 48.6 contracted deeper than street expectations, down from Aug's reading of 49.3. Factors cited for the drag included declines in new orders, new export orders and production output. Meanwhile, inventory and stockholdings of finished goods continued to expand.

*Sarine Technologies: officially released its new Meteor system, designed to provide faster, cost effective mapping of smaller rough diamonds. The system will allow Sarine’s technology to be more accessible to a wider range of manufacturers especially those focusing on smaller diamonds.

*Sarine Technologies: Profit warning for 3Q15 revenue may plunge 50% y/y, and fall by a third compared to 2Q15, due to lower polished diamond prices and residual inventory overhang. Group expects to record a 3Q operating loss of ~US$1.5m ($2.1m). Conditions may only improve post Diwali holiday in late 4Q15 or 1Q16 onwards.

*Aspial: Acquired a 90% stake in investment holding company World Class Global for $14.4m, as part of the group's restructuring exercise.

*PEC: Existing client Jurong Aromatics (JA) has gone into receivership after its debt restructuring talks stalled. The group provides integrated engineering and maintenance services to JA and is assessing the impact to the group.

*BBR: Awarded a design and build contract for the construction of Wisteria Mall and The Wisteria apartments for $116m by NorthernOne Development. The project comprises 60% residential and 40% retail components spanning ~170,000 sf. Sales of the residential component is expected to be launched in 1Q16 and overall work is expected to be completed by 2Q18.

*Nordic: Secured six new contracts worth $4.3m. This comprises four which requires the supply and installation of hydraulic valve remote control system, tank gauging system and motorised valve, expected for completion by 2Q16, as well as two contracts that involve piping insulation and architectural installation work, expected to conclude by 1Q16.

*S I2I: Distributor of pre-paid air-time cards for Indonesia's Telkomsel has been allotted four clusters for exclusive distribution in the country, down from 12 in the previous two years, as a result of a consolidation exercise by the telco.