SG Market (05 Jan 15)

Singapore market: Selling momentum in Singapore will likely continue, in line with the ongoing global risk off sentiment, fuelled by growth concerns in China and US, as well as escalating geopolitical tensions between Middle Eastern powerhouses, Saudi Arabia and Iran.

Regional bourses opened generally lower in Japan (-0.4%), Korea (+0.5%) and Australia (-1.1%).

From a chart perspective, the STI has broken below its 20-dma at 2,860 and is likely to continue its downdraft towards the next support level at 2,810.

Stocks to watch
*Tigerair: SIA has revised the offer price for the takeover offer of Tigerair upwards from $0.41 to $0.45. Closing date for the revised final offer is extended to 22 Jan.

*ST Engineering: Marine arm secured new orders worth $344m for its ship repair and engineering business in 4Q15. The contracts cover major upgrades, conversion, maintenance, and repair of naval and commercial vessels, which will be delivered progressively over the next 2-6 years.

*GLP: Leased a total of 87,000 sqm in China to three clients, of which two in particular is JD.com and Best Logistics, both of whom are GLP’s largest customers in China.

*Midas: 32.5% owned Nanjing SR Puzhen Rail Transport secured a metro train contract for China's Guiyang Rail Transit Line 1 worth Rmb1.28b. Delivery is scheduled between 2016 and 2017.

*Yoma: Secured lease extension for its landmark hotel project in Myanmar until 2048. It plans to redevelop and restore the 1880s heritage building into a mixed development consisting a hotel, luxury residences and commercial developments is still intact.

*Li Heng Chemical Fibre Tech: Received a voluntary unconditional general offer from Precious Joy to acquire the company at $1/share. Precious Joy does not intend to keep the company listed if it receives more than 90% valid acceptances.

*Ley Choon: Awarded a $7m contract from PUB for watermain repairs and other contract work up to 2017.

*Advanced Integrated Manufacturing: Acquired a minimart in Woodlands for $0.3m.

*Singapore Medical: Disclosed that the company is in early talks on possible transaction.

*Jason Holdings: Ceased proposed acquisitions of Chinese wood-plastic composite manufacturer Top Creation Investment (HK) and the remaining 40% stake in tile distributor White Cubic, after conditions precedent have not been fulfilled.

*RH Petrogas: Assumes rights to operate Kepala Burung PSC from PetroChina in Indonesia. The PSC currently produces ~3,700 barrels of oil equivalent per day net to the group's working interest.

*Far East Hospitality Trust: Transferred 625,000 stapled securities to Golden Development, a unit of the Far East Group, at $0.6307/unit (3.7% discount to last close).

*Albedo: Proposed placement of 100m new shares (3.8% share capital) at 1¢ apiece to Toh Ee Han, director of an investment management and advisory firm. Estimated net proceeds of $1m will be used mainly for growth and expansion plans (70%), with the balance for working capital.

*Soo Kee: Discharged as a corporate guarantor for credit facilities granted to Bedok Land Sdn Bhd.

*Cacola: Warns of potential delisting. Also announced its CEO has resigned for retirement.

*KLW: Suspends shares after failing to find replacement sponsor for SAC Capital. KLW disclosed that incoming sponsor has not completed its due diligence and board will announce the appointment in due course. KLW could get delisted if new continuing sponsor is not found by 31 Mar 2016.