SG Market (07 Oct 15)

Singapore shares may take a breather after its 100-point dash over the past two days as 4Q business sentiment hit its lowest level since 1Q13, notably in the manufacturing and transport sectors.

Regional bourses are trading lower this morning in Tokyo (-0.1%) and Sydney (-0.4%) but higher in Seoul (+0.4%).

From a chart perspective, support for the STI is tipped at 2,850 (20-dma), with next resistance level tipped at 2,920.

Stocks to watch:
*Economy: A quarterly survey by Dun & Bradstreet and Singapore Commercial Credit Bureau showed that business sentiment for Singapore companies in 4Q15 fell to its lowest level since 1Q13. Among the sectors surveyed sentiment in the manufacturing and transport sectors were the most downbeat, while the services and construction sectors were the most optimistic.

*Fortune REIT: Exploring the possibility of changing its listing status on the main board of SGX from a primary listing to a secondary listing, whilst retaining its primary listing on the Hong Kong Stock Exchange.

*GLP: Leased a 270,000 sf facility at Mowry Business Center #4 in Newark, California, US to CEVA Logistics, commencing Sep '15.

*Pan Hong: 75% owned subsidiary, Sino Harbour Holdings (SHH) has entered into a strategic cooperation framework agreement with Zhejiang University of Technology Assets Operations and Irvine Pharmaceutical Services (IPS) to launch a foray into the pharmaceutical inspection industry in China. Under the agreement, a new company with Rmb64m capital will be set up and co-owned by SHH (52% stake), Zhejing Uni (20%), IPS (20%) and employees of the new company (8%). The new company aims to establish a pharmaceutical service centre / laboratory with FDA approval and China Metrology Accreditation qualification, as well as to help Chinese pharmaceutical products penetrate the US, Canadian and European markets.

*DeClout: Proposing a spin-off of its subsidiary, Procurri Corp, to be listed on the mainboard of SGX. Procurri is a distributor of data centre equipment and maintenance provider. The group has appointed DBS as the issue manager for the proposed listing.

*Hong Leong Asia: Subsidiary China Yuchai will sell its Xiamen engine manufacturing plant for Rmb189.5m and recognise a loss of Rmb17.6m. The disposal is part of the group’s effort to consolidate its operations back to Yulin City amidst a challenging operating environment.

*Fuji Offset Plates Manufacturing: Subscribing a stake in IPark Development for RM0.2m. In addition, the company will extend a RM10m loan to IPark for the purchase of three parcels of land totalling 188,743 acres in Johor, Malaysia.