Tuesday, December 29, 2015

SG Market (29 Dec 15)

Singapore shares are likely to stay muted following overnight losses on Wall Street on the resumption of a selloff in crude oil as well dearth of news catalysts.

Regional bourses opened mixed with Tokyo (-0.4%), and Seoul (-0.4%) slipping in the final days of trading in 2015 while Sydney (+0.4%) gained after markets reopened from its Boxing Day holiday.

From a chart perspective, the STI is likely to continue to hover at its current levels with immediate support at 2,860 (20-dma) with resistance at 2,930 (50-dma).

Stocks to watch:
*Economy: Market hopes for M&A activity to rebound in 2016, spurred by the restructuring trend of GLCs. As at mid-Dec, M&A activity in Singapore dropped to US$52.3b (-45%). Market watchers note strategic interest for transformative M&A remains high as leading domestic players across key industries have relatively strong balance sheets, and interest to grow inorganically.

*Property: Government is moderating industrial land supply with its 1H16 industrial GLS programme at an eight-year low in face of a looming space supply glut. In addition, the six sites on its Confirmed List will come with shorter lease term of 20 years (from 30), to discourage speculation.

*SIA: Deadline for SIA's $0.41/share takeover offer for Tiger Airways is extended to 8 Jan. As at 28 Dec, SIA has received 18.8% valid acceptances, bringing its total stake to 74.5%.

*SingPost: SGX will await for the results of SingPost’s upcoming audit before assessing its compliance with listing rules after the latter had admitted to not properly disclosing a conflict of interest in an acquisition it made in 2014.

*Oxley: Divesting Chiba Port Square, a property in Chiba Prefecture, Japan, to Greenland Hong Kong Investment Group and Laox for US$60m.

*Ying Li: Sold all 585 Soho units at 15.1%-owned Beijing Tongzhou project on the first day of launch for Rmb1.06b. Group is now working to launch the pre-sales of Tower Two ahead of its original schedule.

*Alliance Mineral: Successfully delivered its first order of tantalite concentrate to Japan, and has signed an MOU with Sinosteel Equipment & Engineering for strategic cooperation on the development of tantalite and other minerals.

*China Everbright Water: Its Wuzhong Chengnan WWT Project has obtained a subsidy of Rmb6.4m from the Jiangsu provincial government.

*China Yuanbang Property: Disposing 25% stake in Wanyuan Yuanbang Resort Development to Wanyuan City Qinba Electronic Commerce for Rmb37.5m ($8.2m).

*Cordlife: Received a prepayment of US$44.7m from Magnum Opus for a loan made in Aug ‘14. It will waive the remaining US$1.6m of the original loan amount in exchange for the prepayment.

*Pan Hong: Obtained a bank facility of up to HK$82m (US$10.5m) from Luso Int'l Banking for general working capital. The loan amount to be drawn down is secured through a standby letter of credit issued by Xiamen Int'l Bank.

*Chiwayland: 75% owned subsidiary Suzhou Chiway Jinhui Real Estate is disposing it's 5% interest in Suzhou Chiway Huayuan Real Estate to Shenzen Pingan Dahua Huitong Wealth Management for Rmb5m.

*Pacific Andes: Applied for further extension for the release of FYSep15 results to 28 Feb ’16, due to matters relating to the provisional liquidation of China Fishery Group and China Fisheries International.

*CSC: Received 72.7% in valid acceptances for its rights cum warrants issue.

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