SG Market (30 Nov 15)

Expect a muted opening from Singapore shares, with Wall Street ending little changed last Friday, in a shortened and quiet trading session after Thanksgiving.

Investors are likely to tread cautiously ahead of the eventful week, starting with China’s manufacturing PMI tomorrow, ECB’s meeting on Thurs where further easing is expected, and US non-farm payrolls on Friday, a likely gauge on whether Fed will raise rates next month.

Regional bourses are trading lower this morning in Tokyo (-0.3%) and Seoul (-0.8%) but flat in Sydney.

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

Stocks to watch:
*Jumbo Group: FY15 results below estimates, as net profit fell 8% y/y to $10.6m even as revenue grew 9.2% to $122.8m due to revenue contributions from new outlets in Singapore. Bottom line was crimped by increased staff costs (+14.2%), lease expenses on its new outlet (+16.8%), as well as professional fees relating to its restructuring exercise and IPO. NAV/share at $0.089.

*Marco Polo Marine: 4QFY15 turned into net loss of $3m (4QFY14: +$2.5m), bringing FY15 net profit to $8.5m (-16%). For the quarter, revenue tumbled 35% y/y to $15.2m, mainly dragged by the deconsolidation of ship chartering operations BBR and lower utilization of its fleet due to the continued weakened shipping demand. NAV/share at $0.53.

*China Everbright Water: Secured Rmb228m ($50.1m) contract with the government of Daxing District, in Beijing, for the upgrade and expansion of Beijing Daxing Tiantanghe Waster Water Treatment Project. The project is the company’s first complying with the discharge standard of category IV surface water, which is higher than the National Grade 1A standard.

*Cordlife: China Huarong International, one of China's four major financial asset management companies, emerged as a substantial shareholder of Cordlife after a 12.77% stake acquisition on 25 Nov at $1.70 apiece.

*Olam: Grain platform aims to expand into animal feed and related businesses in Nigeria. The expansion involves setting up poultry and fish feed mills as well as hatcheries to produce day-old-chicks.

*Cache Logistics Trust: Acquired a single-storey distribution warehouse facility from Penske for a total acquisition cost of A$10.5m. The property has 6,276sqm of GLA and is located at 223 Viking Drive, 18km away from Brisbane CBD, and will be leased back to the vendor until Aug 2023, with a minimum annual rental escalation of 4%.

*CapitaLand Commercial Trust: Contrary to a media report, the trust sees complications in a potential redevelopment of the Golden Shoe Car Park due partially to the property’s specific zoning use.

*Dukang Distillers: Slowing down the development of its new factory in Pingdengxiang, Yichuan, China due to the weak operating environment. It will also slow down the relocation of its existing factory in Yichuan and will rent space in its existing factory for Rmb4m/year.

*China Fishery/ Pacific Andes: Both counters suspended after China Fishery entered provisional liquidation.

*Hiap Hoe: Entered into a heads of agreement with ISPT for proposed sale of its freehold asset located at 206 Bourke Street, Melbourne, Australia for A$118.3m.

*ISOTeam: Secured 14 new contracts in Singapore totalling $20.5m, out of which $9.4m are projects from town councils.

*Roxy-Pacific: Acquiring a 3,745 sf freehold residential site situated at Lot 2722C Mukim 23 at No. 178 Jalan Eunos, Singapore for $4.1m, which will be financed by a mix of internal funds and bank borrowings.

*Memtech Int'l: Divesting its entire 30.85% stake in Raytech to Wong Kin Peng, an existing shareholder and Managing Director of Raytech, for HK$5.4m (US$0.7m).

*Asiatravel.com: Issuing 500m new ordinary shares to Zhong Hong New World Int'l at $0.20 per placement share, for a total of $100m, as well as two warrant tranches, with the first tranche being 400m warrants, with each warrant carrying the right to subscribe for one ordinary share at $0.24, and the second tranche being 100m warrants, with each warrant carrying the right to subscribe to one ordinary share at $0.30 apiece.

*METech: Terminated its proposed acquisition of a 9% stake in Advance SCT from Fort Canning (Asia), as it aborted plans to explore synergies in the metal business with the target group.