SG Market (09 Oct 15)

Singapore shares are likely to head higher after key US averages broke through psychological barriers, spurred by dovish Fed minutes.

Regional bourses are trading higher this morning in Tokyo (+1.3%), Seoul (+0.7%) and Sydney (+0.9%).

From a chart perspective, the STI may make another attempt to test the 2,990 resistance with underlying support at 2,860.

Stocks to watch:
*Banks: MAS will be issuing new guidelines over the next 12-18 months, where banks in Singapore will be expected to disclose policies framing their risk assessment of environmental, social and governance factors for lending. Industries with "elevated risks" include agriculture, defence, forestry, and mining, where banks should prioritise in developing responsible financing policies.

*SingTel: Announced that it will be building a $400m data centre in Jurong, which will be operated as part of SingTel’s Enterprise business. The data centre is designed to meet the growing hosting needs of industries such as financial services, government agencies as well as cloud and internet service providers. It will be a Tier 3 Plus centre, near the top end of the range with expected availability of 99.98% or no more than 94.6 mins of downtime a year.

*SGX: Total securities turnover for Sep came in at $22.5b (+7% y/y; -20% m/m), with daily average traded value of $1.1b (+18% y/y; -27% m/m). Bond listings raised $10.5b with 24 new bonds listed. Derivatives volume totalled 14.1m contracts (+33% y/y; -17% m/m), while commodities derivatives volume ballooned to 964,771 contracts (+151% y/y; +80% m/m).

*China Everbright Water: Group’s Jinan Licheng reusable water project, the largest single reusable water project in Shandong province with a daily supply capacity of 42,000 m3, has successfully negotiated with its customers for a 12.3% tariff raise with retrospective effect from 1 Jul '15.

*GLP: Signed new leases totalling 89,000sqm with three leading retailers in China, including Carrefour. The customers are expanding with GLP to meet growth in demand for China's domestic consumption.

*SingPost: Together with the Infocomm Development Authority of Singapore, the duo has completed the world's first drone mail delivery test with a successful outcome, as it explores drone technology in an attempt to enhance solutions for urban logistics and growth in e-commerce.

*NOL: According to Dow Jones newswires, Temasek has yet to receive any bids for its stake in NOL.

*Vivo Industrial Trust: Announced that its Technopark@Chai Chee, which is undergoing asset enhancement initiatives (AEI), has achieved close to 55% tenancies pre-commitment and all of its AEI works are on schedule to complete by mid-2016.

*ISDN: Will take up an 85% stake in PT ISDN BanTaeng to develop and manage an industrial complex in South Sulawesi, Indonesia. The 3,000 ha Bantaeng Industrial Park is being positioned as a smelting hub for the commodities trade, particularly nickel.

*Rex International: Appointed oil veteran Svein Kjellesvik as Chief Operating Officer. The geophysicist has 40 years of oil industry experience, held leading positions in Schlumberger and is also an instrumental figure in the seismic industry.