SG Market (27 Nov 15)

From a chart perspective, topside resistance for the STI is seen at 2,940, with support at 2,850.

Stocks to watch:
*Economy: Industrial Production (IP) continued its poor run, falling 5.4% y/y in Oct ’15 (Sep ’15: -4.7%). M/m, IP also contracted by 2.9% although on a seasonally adjusted basis it rose 2.5%. Year-to-date, IP is down 4.6%, with weak manufacturing activities expected to persist into 4Q15 and remain a drag on GDP.

*S-chips: A study has shown that the governance gap between S-chips and the rest of the market are widening, following recent warnings issued by the SGX over “tardy disclosures” by some S-chips.

*IHH: 3Q15 results came in line with expectations, with core net profit surging 26.4% y/y to RM222.7m on a stronger SGD, although headline net profit was down 19.3% y/y to RM118.5m, eroded by one-off FX losses (RM217.1m) from non Turkish Lira borrowings by Acibadem. Revenue grew 16% to RM2.06b on a spike in revenue per patient in Malaysia (+10%) and Turkey (20%), as contributions from Parkway Pantai (+19%), Acibadem Holdings (+11%) and PLife REIT (+17%) improved. EBITDA margin narrowed 0.8ppt to 23.1%, partially weighed by tighter margin at Acibadem and IMU Health. NAV/share at RM2.71.

*City Dev: Acquired 22-acre landmark Stag Brewery, next to the River Thames in South West London for £158m. CDL plans to redevelop the site into a mixed-use development.

*China Everbright Water: Received permit to upgrade and double capacity at its waste water treatment project in Beijing for Rmb228m. Upon completion in 2H16, water tariff for the project will increase by 85.7%.

*Hongkong Land: Chief Executive Y.K.Pang will step down on 31 Jul ‘16 to move to Jardine Matheson as deputy managing director, and will be succeeded by Robert Wong, an executive director of Hongkong Land's management co. John Witt will also step down as CFO on 31 Mar ‘16 to become group finance director of Jardine Matheson, while remaining as a director of Hongkong Land's management co. Simon Dixon, finance director of Astra International, will be succeeding John Witt.

*Jardine Matheson: Adam Keswick, deputy managing director, will step down on 31 Jul ‘16 to move to London as Chairman of Matheson & Co., and will be succeeded by Y.K.Pang, Chief Executive of Hongkong Land. James Riley, group finance director, will step down on 31 Mar 2016 to move to Mandarin Oriental Int'l as Chief Executive, and will be succeeded by John Witt, CFO of Hongkong Land.

*Riverstone: Acquired a 9.364 acres land at Kamunting Raya Industrial Estate, Perak, Malaysia for RM2.89m to support business expansion by constructing a factory and worker hostels, as the land is adjoined to another existing plot owned by the company.

*China Sunshine Chemical: Entered into a Project Development Agreement with Shanxian county local government to acquire Shanxian Fulong Villa for Rmb20m ($4.4m), in an attempt to tap the growing hospitality sector in the region. The target company owns the dormant Shanxian Fu Long Lake Convention Centre, a hotel cum convention centre, and has a paid-up capital of Rmb19m.