SG Market (04 Dec 15)

Singapore shares are expected to open on a weak note, following the sell-off in global markets as the ECB QE stimulus failed to excite investors. All eyes will now be on the release of the US employment data for Nov today, for cues on any Fed rate hike come mid-Dec.

Regional bourses are trading sharply lower this morning in Tokyo (-1.5%), Seoul (-0.7%) and Sydney (-2.0%).

From a chart perspective, the STI is expected head towards downside support at 2,850, with immediate resistance at the 2,920 level (20-dma).

Stocks to watch:
*Property: SRX data showed that Nov HDB resale flats price rose 0.4% mom, buoyed by 4 and 5-room units. Property agencies cites that the data confirms that HDB resale prices are reaching consolidation phase, with prices -1.7% year-to-date versus -6.2% for the whole of 2014. However, most do not see this as a rebound in resale HDB flat prices, as most transactions are still around valuation price.

*NOL: News sources cited that CMA CGM has obtained firm commitments from banks to finance the takeover of NOL. Exclusive buyout talks will last until end of 7 Dec.

*SIA: CEO highlights that the airliner could order more ultra-long-range (ULR) aircraft to launch additional direct routes to US if its non-stop services are successful. Direct flights could result in better yields as passengers will be willing to pay more for such routes. SIA now has 7 A350-ULR variant on order, all slated to arrive in 2018.

*SGX: Extends minimum trading price (MTP) review date by 6 months to 1 Sept '16 for companies that have consolidated their shares to comply with MTP before 1 Mar '16 but whose shares are still in danger of falling below the $0.20/share MTP threshold again.

*Healthway Medical: Swung to 3Q15 net loss of $3m, although revenue climbed 7.6% y/y to $23.2m, from better performances in primary healthcare and specialist & wellness healthcare segments. Bottom line weighed by an absence of gain from available for sale financial assets last year, as well as allowances for doubtful receivables. NAV/share at $0.084.

*Mencast: Proposed placement of 54.6m new shares at $0.27 apiece to two existing shareholders, Wong Swee Chun and Goh Kai Kui. Post-issue, Wong's stake will be raised from 1.1% to 11.8%, while Goh will increase his stake from 0.12% to 2.3%. Net proceeds of $14.7m will be used to pay down existing debt.

*Nordic: Awarded new orders totalling $2.5m which are expected to be completed by 2Q16. The orders include the supply and installation of control and gauging systems as well as the provision of labour and materials for insulation work and services.

*TTJ: Clinched new public sector and industrial contracts worth $16m with deliveries expected between FY16 and FY18. The contracts involve the supply, fabrication, and installation of steelworks for the Singapore LNG Terminal as well as another civil defence doors project for the Thomson-East Coast Line. The contract wins brings its order book to $146m as at 3 Dec.

*Spackman: Announced that its movie, THE PRIESTS, has sold over five million tickets at the Korean box office, setting the all-time record for the highest number of ticket admissions sold for a Korean film that opened in the non-peak month of Nov. Distribution rights to THE PRIESTS have been sold in both Singapore and PRC in addition to the five overseas markets announced previously. Three movies are also scheduled for release in 1H16.
*China New Town Development: Contributed Rmb40m to a partnership that has in turn invested Rmb1b in three separate shanty-town reformation projects. The investment is expected to contribute annual recurring income to the company.

*Sembcorp Marine: Bought back 60,000 shares at $1.904 average on 3 Dec.

*LHN: 50% JV agreed to purchase 38 Ang Mo Kio Industrial Park 2 for $30m.

*Fabchem China: Resumed the production of its commercial explosive products except boosters on 1 Dec. Its boosters will require additional inspection and clearance before production resumes.