Wednesday, January 6, 2016

SG Market (06 Jan 16)

Singapore market: Singapore market is likely to see some swings today as investors continue to grapple with indecision and volatility as the early theme in 2016.

A slew of economic data will be released today, which includes the services PMI for Japan and China before noon, followed by US ISM non-manufacturing data and factory orders in the evening.

Regional bourses opened generally lower in Japan (-0.02%), Korea (-0.3%) and Australia (-0.8%).

From a chart perspective, the STI sees immediate resistance at 2,860 (20-dma), with support at the 2,810 region.

Stocks to watch
*SPH Reit. 1QFY16 results came in line with estimates. DPU was stable at 1.33¢, despite a climb in distributable income to $35.3m (+3.8% y/y), due to a reduction in income distributed to 95.4% (1QFY15: 98.4%). Gross revenue and NPI grew 2.9% and 5.9% to $52.1m and $40.1m respectively, driven by rental uplifts at both Paragon and Clementi Mall, as well as savings from property expenses. Occupancy dipped to 99.8% (-0.2ppt), while aggregate leverage was maintained at 25.7%. NAV/unit at $0.94.

*Ascendas Hospitality Trust: Market observers cited a handful of interested parties keen on a buy out of the REIT, comprising a mixture of funds and companies. Market watchers expect a potential deal pricing at ~1.1x P/B, which translates to $0.792/unit, based on end-3Q15.

*SGX: Intends to introduce sustainability reporting on the environmental, social, and governance aspects of business on a comply or explain basis. It is currently seeking public opinion till Feb ‘16 with the new set of rules and guides to apply to reports published in CY18 onwards.

*QT Vascular: Disclosed that the first-in-human study of its drug-coated balloon, Chocolate Heart, has demonstrated promising early results for the treatment of patients with de novo coronary disease.

*Cordlife: Received valid acceptances of an aggregate 82.24% for its proposed acquisition of remaining shares in Bursa-listed Stemlife.

*Spackman Entertainment: To release its action-comedy movie, Chasing, in Korea on 7 Jan.

*OKH GLOBAL: Disclosed that CEO and Executive Chairman Bon Ween Foong was issued an Interpol Red Notice, citing that he is wanted by Indonesian authorities in connection with a charge of “providing false statement for official document". Bon has vehemently denied the charge.

*Polaris: Indonesian associate Trikomsel has launched Osmo smartphone, which is a locally produced smartphone in collaboration with Advan, in a bid to expand market share in the country.

*New Silkroutes Group: Extended the long stop date for the proposed disposal of Digiland (Thailand) and Infonet Systems and Services from 31 Dec 2015 to 30 Jun 2016.

*Renewable Energy Asia: Its Phase 2 20MW power plant in China has been unable to reach optimum capacity due to the incomplete installation of cells, which could lead to potential losses of income and cancellation risk of the concession. Group intends to seek compensation from relevant contractors and suppliers.

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

*Qian Hu: Issued profit warning for 4Q15.

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