Singapore shares may be lifted by positive sentiment following the overnight rally on Wall Street, invigorated by a rebound in consumer confidence and oil prices.
Regional bourses opened higher with Tokyo (+0.6%), Seoul (+0.2%), and Sydney (+1%) heading higher on the final full day of trading in 2015.
From a chart perspective, the STI is likely to be bounded within the tight trading range between immediate support at 2,860 (20-dma) and resistance at 2,930 (50-dma).
Stocks to watch:
*Keppel Corp: Secured four contracts totalling $125m from repeat customers, two of which are FSU/FPSO conversions awarded by Bumi Armada and Yinson, while the third is a FPSO integration contract from Brazil’s MODEC. The fourth is a barge enhancement contract from BP Exploration.
*Noble: Credit rating has been cut to junk (Ba1 from Baa3) by Moody’s on concerns about its liquidity amidst a broad downturn in prices for energy and raw materials. In response, Noble said that its rating metrics will substantially exceed requirements once the sale of its Noble Agri business is completed.
*Sembcorp Industries: Investing Rmb925m ($202m) for a 49% stake in a 1,620 MW coal-fired power project in Chongqing, China.
*SBS Transit: Signed an LOI with the LTA for the sale of 50 existing buses for $23m, and bus purchase contracts for 346 new buses, totalling $164m in 2016/17.
*Triyards: Won contracts to build two oil barges worth NT$716m (US$21.8m) from a new client, CPC Corp, a Taiwanese state-owned company, for delivery in 2Q18.
*Wilmar Int'l: 93.5% owned Wadworth invested US$9.8m into a 49%-owned associate in Tanzania, East Africa, which manufactures and trades cooking oil, soaps and detergents, and plastic items. Wadworth also acquired a 49% stake in Tanzania Pasta Industries for about US$6.8m.
*IHH Healthcare: Terminated an agreement with City International Hospital to manage a hospital in Ho Chi Minh City, Vietnam.
*China Everbright Water: Won the tender for Jinon Xike WWT Project Phase II for Rmb240m. Phase II has a capacity of 70,000m3/day
*Tiong Seng: Awarded a $69.9m contract from the LTA for the construction of a bus depot at Ulu Pandan.
*ThaiBev: Entered into a new agreement with Thai Malaya Glass to purchase various new glass bottles for three years. Main changes include purchase prices, compensation, and additional charges for glass bottle customisation.
*Samudera: Sold two vessels to its controlling shareholder, PT Samudera Energi Tangguh for US$4.9m. It is expected to record a gain of US$0.3m on the sale.
*AsiaTravel.com: Secured a Rmb58m ($12.6m) loan with Chong Zhi Hong Kong Investment for planned expansion in China and for the bulk purchase of hotel rooms.
*TSH: Divesting subsidiary Explomo Consulting (EC), which engages in event management services for $0.65m, as the group plans to focus resources on its core businesses.