Singapore shares are likely to open lower, after US stocks tanked overnight, on tumbling oil prices, while Fed chair Janet Yellen reaffirmed the case for a rate hike this month.
Regional bourses are trading lower this morning in Tokyo (-0.2%), Seoul (-1.1%) and Sydney (-0.6%).
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 Nov manufacturing PMI came in at 49.2 vs 49 consensus and 48.9 in Oct. Economists note that while still contractionary, this is the second consecutive improving month and that sub-indices are trending higher too.
*Transport: Transport Minister Khaw Boon Wan announced that S’pore will spend more than $1.0b upfront to buy 99 new trains to achieve higher rail reliability. The new trains have improved propulsion systems and more reliable and durable AC synchronous motors, which require less maintenance and more cost-effective in long run. The trains will be added between this year and 2019.
*CapitaLand: Exploring mixed developments and office assets in Vietnam, and is aiming for some of these opportunities will materialise next year and beyond. To carry out bigger mixed-development projects, the group will bring in capital partners either through funds or JV arrangements.
*Rowsley: The Business Times reported that tycoon and majority shareholder (49%) Peter Lim is aiming to shake things up at the company, with a revamped board, to better exploit growth opportunities. Unnamed sources added that growth at the firm over the past two years was not satisfactory and that Lim wants the firm to grow “bigger and faster”.
*Sembcorp Marine: Announced an unexpected standstill agreement with North Atlantic Drilling for a semi-submersible drilling rig until Jun '16.
*Q&M Dental: Dental supplies distribution arm successfully obtained HSA approval for its dental zirconium blocks manufactured by its China subsidiary. Moving forward, it will commence the marketing and sale of the blocks in Singapore. Separately, regarding its spin-off listing of Aidite, the latter will embark on a series of restructuring steps, which will result in Q&M’s stake being diluted from 100% to 51% of the enlarged share base.
*KS Energy: Awarded a US$4.1m contract for its land drilling rig, “KS Discoverer 3” in Pakistan which is expected to begin in Jan ‘16.