SG Market (08 Oct 15)

Singapore shares could extend its rally following the positive close on Wall Street overnight, although gains could be capped due to the absence of major catalysts.

Regional bourses are trading higher in Seoul (+0.7%) and Sydney (+1.0%) but lower in Tokyo (-0.2%).

From a chart perspective, the STI has broken past its resistance at 2,920, with 2,990 as the key hurdle to clear.

Stocks to watch:
*UOB: The bank has been gaining pace in the cash management business, recording a 42% y/y jump in revenue for 1H15, with the bulk of its clients being Asian corporates. With transaction banking accounting for about a third of UOB’s ~$3b wholesale banking revenue last year, UOB’s CEO Wee Ee Cheong aims to increase his focus on fee income this year as such businesses could provide more value on a ROE basis compared to the traditional loans business.

*SIA Engineering: Setting up Boeing Asia Pacific Aviation Services, a 49/51 JV with Boeing to offer engineering services, materials management and fleet support solutions to Asia Pacific customers who are operating Boeing aircraft.

*CDL Hospitality Trust: Opened Claymore Connect after an AEI which started in Dec ’13, increasing the mall’s net lettable area by 10,000 sf to ~54,000 sf. The tenant mix of the refurbished mall will cater to the increasing number of residents in Tanglin, Orchard, and Claymore.

*CapitaLand Mall Trust: Blackrock emerged as a substantial shareholder after increasing its stake to 5.1% from 4.97% through a series of married deals.

*IHC: Oxley's deputy CEO Low See Ching purchased 10m shares at $0.085 each on 5 Oct via the open market, raising his stake from 6.51% to 7.11%.

*Rowsley: Peter Lim Eng Hock purchased 4.2m shares at $0.1898/share on 6 Oct via open market, raising his stake from 48.91%% to 49%.

*Oxley: Clarified that recently reported acquisitions of IHC shares by CEO, Ching Chiat Kwong, and Deputy CEO, Low See Ching are personal investment decisions of the duo, and thereby do not have any connection or impact on the group.

*Singapore Medical Group: Entered into MOU with Cardioscan to set up a 50/50 JV for provision of cardiac monitoring and reporting services in Singapore, Malaysia and Indonesia.

*Yuuzoo: Granted co-hosting rights for the upcoming Electronic Sports China Cup Online Gaming Clubs Invitational in China, a massive annual e-sport event organized by the Chinese Ministry of Culture.

*PEC: May revised its FY6/15 financial results to report a net loss as the group may be required to make a provision on an outstanding debt of $19m from Jurong Aromatics, which went into bankruptcy late Sep '15.

*Golden Energy and Resources: Proposed to issue 1.98m new shares at $0.67 to Deloitte for settling its outstanding professional fees of $1.3m, incurred for the liquidation of Poh Lian Construction.