Singapore shares may inch higher at the open as Wall Street kicked off Dec with a rousing start but most local investors are expected to stay side-lined in anticipation of a slew of economic releases and central bank speeches this week.
Regional bourses are trading lower this morning in Tokyo (-0.2%), Seoul (-0.4%) and Sydney (-0.4%).
From a chart perspective, technical indicators are oversold with topside resistance for the STI seen at 2,940, with support at 2,850.
Stocks to watch:
*Economy: S’pore Commercial Credit Bureau's (SCCB) latest quarterly Business Optimism Index has fallen to a historical low of -2.93ppt for 1Q16 versus +0.14ppt for 4Q15, with S’pore firms becoming more pessimistic due to falling global demand. SCCB expect optimism levels to remain muted for months ahead.
*NOL: Ex deputy CEO Lim How Teck opines that NOL should carve out and sell its terminals in US and Asia to a 3rd party, instead of selling its business as "one whole package", as such a move will enable Temasek Holdings to fetch a "premium" in its planned sale. NOL’s current NAV/share stands at $1.38, although it fails to take into consideration its terminals' MTM value. Temasek is in talks with France's CMA CGM, and both parties have until 7 Dec to agree on a deal. CMA CGM is reported to be in talks with lenders to finance the potential takeover bid.
*Sembcorp Marine: Issued profit warning for 4Q and FY15 amid a challenging operating environment and customers deferring or seeking to defer their rig orders.
*SGX: Launched 11 stock indices tracking healthcare, real estate, minerals, O&G, O&M, covering $200b of stocks listed on SGX. The indices will be reviewed every Mar and Sept. Two indices tracking real estate companies and REITS are considered tradeable, which could see ETFs created.
*Asian Micro Holdings: Renewed its five-year contract, ending 31 Dec, with Rolls-Royce Singapore for an additional 15 months to 31 Mar ‘17, for the supply and transportation of compressed natural gas (CNG), and maintenance of Rolls-Royce CNG's yard. The contract has an option to extend for another year and total order amount of CNG is estimated to be $3m, excluding the option.
*Memstar: Regarding its proposed RTO of Longmen Group, target purchase price has been reduced to US$200m from US$323m, following IFA report and completion of first fundraising tranche and the issuance of a convertible loan. Consequently, post-completion of RTO, Longmen will now own 53.8% of Memstar, from 71.2%.
*Allied Tech: Entered into a non-binding MOU to acquire Maxz Universal Development. Maxz Universal holds a 93.9% stake in Treasure Resort which in turn operates and manages resorts such as Mövenpick Heritage Hotel Sentosa.
*EMS Energy: 20%-owned associate, Oilfield Services and Supplies (OSS) has commenced its pre-admission process for a planned IPO on the Catalist board of the SGX.
*Intraco: Won a final award of $3.6m in its arbitration proceedings against Timor Global in relation to a failed JV agreement.
*Weiye: Undertaking a share consolidation exercise on the basis of 1 new consolidated share for every 10 existing shares.