SG Market (24 Dec 15)

SG Market: Singapore shares may see some positive spillover sentiment from the extended rally on Wall Street on firmer crude oil prices, with consumer spending boosting optimism on the outlook of the US economy.

Regional bourses opened positive today in Tokyo (+0.7%), Seoul (+0.2%) and Sydney (1.1%).

Technically, the STI could head towards the next objective at 2,940 if it breached past the immediate resistance at 2,860. Downside support remains at 2,800.

Stocks to watch
*Ascendas Hospitality Trust: Reviewing strategic options after receiving an unsolicited expression of interest from unnamed party to buy over the trust.

*SingPost: Setting up a special corporate governance audit in wake of questions over its disclosure standards and own admission of administrative oversight in a Jul 2014 deal, relating to an interested party transaction.

*Interplex: Baring Private Equity Asia has launched a pre-conditional voluntary offer at $0.82/share, 15.5% above the last trading price. The offer is conditional upon the consent of noteholders for its $200m 6.9% notes due 2019.

*Ascendas REIT: Acquiring 6-20 Clunies Ross Street in Sydney, Australia, for A$76.6m. The logistics property is currently tenanted by two government-related entities, Australia Post and New South Wales Police, and is expected to generate a NPI yield of 7.1%. Annualised pro forma DPU contribution is estimated at 0.7¢.

*Noble: Fitch Ratings notes that the sale of Noble Agri may provide relief to its liquidity crunch. The credit rating agency last had a BBB- rating for the group.

*Courage Marine: Signed MOU to buy 70% of stake in Hope View International, a Chinese company that provides logistics, customs clearance services and import of export of goods.

*Mercator Lines: Received a notice of enforcement from its lender to sell three vessels to a related company for an aggregate US$14.8m, to reduce its debt obligations.

*Cosco Corp: Cancelled one contract to build a bulk carrier originally scheduled for delivery in 1Q16 for COSCO Dalian, and pushed back delivery for another from 4Q15 to 3Q17. Construction of both vessels has commenced and the downpayment received for the cancelled vessel will be applied towards the other vessel.

*Chiwayland: Won a tender for a land parcel in Sydney, Australia, for A$18.6m. The 2,980 sqm site is expected to be developed into residential units.

*Yamada Green Resources: To acquire a 45% stake in Fujian Tianwang Foods for Rmb39.9m. Tianwang manufactures and supplies processed food products.

*DuTech: To acquire Krauth Technology in Germany and product know-how for a total of €0.45m. It will also extend a loan of €2.02m to Krauth. Krauth is a developer and producer of solution products.

*IFS Capital: Accept a loan facility of $50m from Phillip Credit for general working capital requirements.