Singapore shares are likely to see subdued trading as oil prices slipped back down on glut woes and on jittery sentiment over another terror scare in Europe and lack of major market catalyst.
Regional bourses are trading higher this morning in Tokyo (+0.9%) and Seoul (+0.3%) but lower in Sydney (-0.2%).
From a chart perspective, technical indicators are in oversold. Having failed to break past its 50-dma at 2,940, the STI is expected to resume its downtrend towards the underlying support at 2,850.
Stocks to watch:
*Economy: Non-oil domestic exports fell 0.5% y/y in Oct (sep: +0.3%) due to 3.2% drop in electronic exports (Sep: +5.7%). NODX to all the top 10 markets, except Japan EU and HK, declined.
*S-chips: SGX flags concerns about financial accounting practices at several S-chip companies that may result in the companies’ cash, assets or reserves being substantially eroded Firms at risk include those from textile and sporting goods, manufacturing, heavy industries, packaging, electrical and electronics, retail and chemical sectors.
*Marco Polo Marine/ Sembcorp Marine: SMM received its first contract cancellation, after Marco Polo Marine terminated a US$214.3m jackup rig contract and demanded a refund for its 10% deposit over claims of cracks found on the rig legs. Heavily indebted MP has not operated a rig before and has not secured any charter for this intended rig.
*CapitaLand: In an interview with Straits Times, the group expects to see record home sales for China projects, adding that the real estate industry in China offers good prospects over the next 10-20 years. The company is considering issuing onshore corporate bonds in China.
*Q&M Dental: Commenced preparatory work on its proposed spin-off of its China manufacturing business Aidite on China's New Third Board, and is in process of finalising the terms of a restructuring exercise
*Hyflux: To acquire a 50% stake in PT Oasis Waters International for $50m from JV partner, PT Gunawan Sejahtera. Oasis manufactures, and sells bottled drinking water in Indonesia. The deal values Oasis at $100m, or more than 10.5x P/B.
*Interra Resources: Divesting a granite quarry to PT Sanmas Mekar Abadi for a total consideration of US$3.5m as the granite business does not fit into its core strategic interest.
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