SG Market (07 Jan 16)

Regional bourses all opened lower in Japan (-0.13%), Korea (-0.03%) and Australia (-0.57%).

From a chart perspective, the STI has broken below its support at 2,810 yesterday. The next support is at 2,760, with resistance at 2,850 (20-dma).

Stock to watch
*Economy: Singapore Business Federation calls for bold and decisive steps to energise the economy, which includes government investment of pension funds in the stock market and use additional reserves to support firms' overseas expansion.

*Economy: Financial info services firm Markit highlighted that Singapore is estimated to distribute $15.9b (+0.3%) in dividends this year. However with special dividends included, forecast distribution is expected to fall 2.5% y/y to $16.2b. Excluding Australia and Indonesia, Singapore's anticipated distribution is the worst in the APac region.

*Silverlake Axis. Independent report by Deloitte on allegations of interested party transactions was concluded with no wrongdoings. However, MKE is of the view that findings remain unsatisfactory and reckons investors should stay clear of stocks with corporate governance concerns that cannot be disproved. MKE's last call is a Hold with TP of $0.61.

*Vallianz. Acquired two new built vessels for US$21.8m ($31.2m), in line with the group's strategy to support its on-going vessel chartering business. The consideration will be satisfied mainly via cash of US$19.6m (90%) and an issue of 70.5m new shares at 4.43¢ apiece.

*China Fishery: Joint provisional liquidators (JPLs) Messrs Middleton, Power and Beighton of KPMG ceased to be HK JPLs following court orders.

*Guocoland: Appointed AccorHotels to be its hotel manager for two new-built Sofitel hotels in Singapore (222-rooms) and Malaysia (312-rooms).

*Best World: Established a 49:51 JV in Dubai, UAE, with a local partner. The JVCo will be for general trading and has an initial paid up capital of AED200k ($77.1k).

*Blue Sky Power: Proposed subscription of 2.16b new shares in HK-listed Beijing Gas, or 26.1% stake, at HK$0.45/share (HK$970m). In addition, group will also subscribe for convertible bonds worth HK$350m, which can be converted into an additional 11.3% stake on the enlarged share capital.

*China Gaoxian: Disclosed that it is in preliminary discussions for a proposed major corporate action.

*Jaya: Arbitration proceedings against Mermaid Marine Asia was discontinued after a settlement agreement was reached.

*Memstar Technology: Due date for the proposed acquisition of coal exploration and production company Longmen Group will be revised to meet pre-conditions. Trading will be halted until supplemental agreement is signed.

*Sarine Technologies: Guided for 4Q15 revenue to be ~US$12.3m, a sequential improvement but remains weaker y/y, amid positive developments in the diamond market towards end-2015. Group also expects modest operating profit for the quarter.

*Pavillon: Disposed loss-making Shanghainese restaurants for $0.7m, in light of the highly competitive environment.

*Versalink: Undertaking an internal restructuring exercise to streamline operations.