SG Market (09 Dec 15)

Singapore Market: Sentiment in Singapore is likely to be dampened from the continued rout in crude oil and growth slowdown in China.

China CPI data for Nov is expected to be released at 9.30am.

Regional bourses are mixed today in Tokyo (-0.3%), Seoul (+0.2%) and Sydney (flat).

From a chart perspective, the STI sees immediate resistance at the 2,900 region, with downside support at 2,855.

Stocks to watch:
*Construction: Builders enter 2016 with wall of debt coming due, falling confidence and declining earnings. Contractors Ley Choon and Swee Hong are restructuring their debt with lenders, while Tat Hong is requesting for financial covenants for its notes to be eased.

*Best World: Maybank-KE issued an unrated note on the company, citing that the direct seller is gaining traction in Taiwan and China. 9M15 earnings of $6.4m (+219% y/y) has exceeded FY14's record $4.1m, attributed to operational leverage due to greater product demand from increased customer acceptance.

*Keong Hong: Acquired property in Osaka, Japan, for ¥938m ($10.6m). The 344.7 sqm site comprises a 9-storey commercial building with a net rentable area of 1,686.2 sqm, which is 92.8% tenanted. Post-acquisition, proforma EPS is expected to rise 1.3% to 16.69¢.

*Sembcorp Industries: Commenced operations of its 40% owned Fujairah 1 water and power plant in the UAE. The US$200m expansion boosted the plant's capacity by 30%.

*Zagro Asia: Rumakita Investments disclosed it does not intend to raise its cash offer price of $0.30/share for its voluntary delisting proposal.

*Charisma Energy: Issued 200m new shares to Patrick Tan Choon Hock to raise $2.3m. Funds will be used to invest in renewable energy projects and working capital.

*A-Sonic Aerospace: Established a 33:67 JV with China Merchants to engage in air logistics, cargo handling support, and ground services in China and Hong Kong. The company will inject an initial investment of HK$3.3m into the JV co.

*HLH: Acquired 30% interest in two plots of lands, spanning 4,295sqm and 5,427sqm respectively, in Cambodia, for property development. The total purchase price of US$2.8m will be funded via a mix of internal funds and borrowings.