Wednesday, December 23, 2015

SG Market (23 Dec 15)

Singapore market may see slight gains today, following overnight gains in Wall Street on improved sentiment from stabilising oil prices and possible stimulus out of China. But trading is expected to remain thin ahead of the holiday season.

Regional bourses opened positive today in Korea (+0.4%) and Sydney (+0.8%). The Japanese market is closed today for Emperor's Birthday.

Technically, the STI faces immediate resistance at 2,860 and support at 2,800.

Stocks to watch
*O&M: Upstream O&G firms expected to extend budget cuts in 2016, with offshore recovery nowhere in sight. Street sees downside risks stemming from order cancellations, particularly in the jack-up segment, dragged by declining utilisation and deteriorating day rates.

*Noble: Proposed disposal of its remaining 49% stake in agriculture unit to Chinese food giant Cofco for US$750m. The sale is expected to net a book loss of US$546m. Proceeds will be used to reduce debt.

*Swiber: Acquiring a construction barge for US$10m, 33% below its market value, as part of its strategy to support ongoing projects.

*Cosco Corp: 51%-owned subsidiary Cosco Shipyard Group is exploring various options to improve business operations, including the expansion of funding sources and optimising its asset structure.

*ARA Asset Management: Established the ARA Harmony Fund V with Singhaiyi, and Suntec REIT to undertake the redevelopment of Park Mall to enhance the gross floor area of the asset.

*Li Heng Chemical: Majority shareholder Precious Joy Management intends to make a voluntary unconditional general offer at $1/share, 115% above the last traded price of $0.465.

*Mercurius Capital: Change in controlling shareholder from Zhang Zhize to Chang Wei Lu, following the completion of a married deal involving 23.1% stake for $2.3m (0.9¢/share). Chang currently owns 23.8% of the group.

*Hotung Investment: Investee company, Nien Made Enterprise, has listed on the Taiwan stock exchange.

*Annaik: To transfer listing from the SGX Mainboard to Catalist in view of the minimum trading price requirement on the mainboard.

*Cogent: Commenced arbitration against Crane Specialist after gantry crane works at its logistics complex at Tanjong Kling Road was not satisfactorily completed.

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