Wednesday, November 25, 2015

SG Market (25 Nov 15)

Singapore shares may get a slight lift from better-than-expected 3Q15 GDP growth of 1.9% vs 1.4% estimate (2Q15: 2%), while energy stocks could enjoy some respite, after oil prices rose overnight as tensions escalated following the downing of a Russian warplane jet by Turkey.

Regional bourses are trading lower this morning in Tokyo (-0.4%) and Sydney (-0.3%), but flat in Seoul.

Froma chart perspective, the STI looks set to test the 2,940 resistance, with the next objective at the psychological 3,000 mark, supported by oversold technical indicators.

Stocks to watch:
*Strategy: The Business Times reported that the STI offers best dividend yield at 4.2%, versus Asia’s average of 2.4%. The five highest dividend yield stocks are Hutchinson Port Holdings, Keppel Corp, Ascendas REIT, CapitaLand Mall Trust and Sembcorp Marine.

*O&M: Analysts highlighted that some oil borrowers are beginning to approach creditors to revise their credit terms, with three companies this month, namely Dyna-Mac, Ezra and Pacific Radiance, seeking to alter certain debt limits or profit targets, as contract delays weigh on earnings.

*SMRT: Train service was disrupted on the North-South Line this morning as a result of a power fault.

*Rowsley: Investing £3.2m for a 50% stake in a JV with former Manchester United football stars Gary Neville and Ryan Giggs, as well as Sherborne Corporate Services and Kenilworth Consultants, to extensively renovate the Northern Stock Exchange building in Manchester, UK, into a boutique hotel, with restaurants, conference/event space, rooftop bar and basement gym.

*Marco Polo Marine: Seeking refund of 10% deposit from Sembcorp Marine following its termination of a US$214.3m jack-up rig construction contract for alleged cracks on the rig’s legs.

*Spackman: Releases “The Priests” in US, Canada, Japan, Taiwand and Philippines. The movie crossed the 4.5m ticket milestone at the Korean box office on the 19th day of opening.

*Manhattan Resources: Long stop date for prposed acquisition of Singxin Resources has lapsed on 21 Nov, and the transaction parties are negotiating for a possible extension of the agreement.

*Debao Property: Investing RM20m for a 50/50 JV with Poly Ritz Development to develop a mixture of commercial and residential development on a 3.48-acre land plot in Kuala Lumpur, Malaysia, as well as a residential development on 10.47-acre land in Selangor, Malaysia.

*SHS Holdings: Clarified that a Dhaka Tribune has misreported about a JV being set up to develop a proposed solar power plant development in Bangladesh, clarifying that the proposed transaction is still in discussion, and that there is no certainty that it will take place.

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