Monday, December 28, 2015

SG Market (28 Dec 15)

Singapore market: The Singapore market is likely to end off the final week of trading in 2015 with a whimper, with liquidity expected to remain thin amid the lack of catalysts.

Crude oil continued to rebound with WTI crude adding 1.6% to US$38.10/bbl at the close of trading on Christmas Eve.

Regional bourses opened mixed with Tokyo (+0.3%) and Seoul (-0.4%). The Sydney market is closed for Boxing day.

From a chart perspective, the STI is likely to remain tight at its current levels with immediate support at 2,855 (20 dma) and resistance at 2,930 (50 dma).

Stocks to watch:
*Economy: Manufacturing output fell 5.5% y/y in Nov (Oct: -5.4%), the 10th consecutive month of contraction, dragged by a sharp decline in transport engineering cluster (-11.2%) and weak electronics output (-11.1%).

*Wee Hur: Purchased an office building and adjacent plot of land with a total land area of 5,478 sqm in Brisbane, Australia, for A$63m ($64m). The property has a net lettable area of about 14,000 sqm and is fully leased to the Queensland State Government for rental income.

*Singapore Myanmar Investco: To operate 6,725sqm of retail space at Yangon International Airport Terminal 2 for five years, and an option for another five, starting from Mar ‘16. The contract will provide the company with exposure to the expected growth in Myanmar’s tourism and business travel.

*Global Yellow Pages: Lodged a police report regarding potentially irregular transactions at its subsidiary, Singapore River Explorer.

*Geo Energy Resources: To acquire the remaining 34% of Borneo International Resources for US$25m. The company owns a 99% stake in PT Sungai Danau Jaya, which holds coal-mining concessions in Indonesia.

*Xyec: Two of its units, Neutral and ACLOX will be merged from Apr ‘16 onwards, as both offer similar IT activities to customers in major manufacturing industries.

*Boustead: Proposed acquisition target, Triangle Energy’s shareholders have approved a revised offer from rival, PT Enso Asia. Accordingly, the offer by Boustead and its partners will lapse by Feb ‘16.

*Advanced Integrated Manufacturing: Agreed to acquire a minimart business for $0.2m through a part cash, part treasury share agreement.

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