SG Market (11 Jan 16)

Singapore market: The Singapore market will likely face downside risks after another mauling on Wall Street as a blockbuster jobs report failed to arrest the freefall.

Market watchers will stay closely peeled to the upcoming 4Q14 earnings season that will kick off on Thu (14 Jan).

For the week, investors are likely to eye the upcoming US crude inventories data and the Fed Beige Book to be released on Wed, followed by the BoE decision for Jan and US initial jobless claims to be out on Thurs.

Regional bourses opened negative in Seoul (-0.95%) and Sydney (-1.78%). Markets in Tokyo are closed for Coming-of-age Day.

From a chart perspective, the STI sees downside support at 2,700 (Jun '12 low), while upside resistance is at the 2,840 (20-dma) region.

Stocks to watch
*Noble: Following the credit rating downgrade by S&P last week, the group is reportedly looking to raise $200m by selling receivables to shore up its balance sheet.

*SIA/ Tigerair: Takeover offer by SIA on Tigerair has been declared unconditional, after SIA received valid acceptances of 79.22%. Offer date has been extended to 5.30 p.m. on 5 Feb.

*Emas Offshore: Slipped into 1QFY16 net loss of US$3.2m (1QFY15: +US$148.4m), as revenue tanked 32% y/y to US$49.8m, due to general offshore weakness and seasonal fluctuation from Asian monsoon. Bottom line was also dragged by the absence of US$143.5m bargain purchase gain recorded last year. NAV/share at US$1.21.

*Goodland: FY15 net profit plunged 86% y/y to $3m, due mainly to a significant reduction in fair value gains for investment properties. Meanwhile, revenue spiked 39% on sale of relatively higher value development properties, where gross margin consequently expanded 7ppt to 19.7%. However, bottom line was also dragged by increased finance costs, other operating expenses and taxes. Final DPS was lowered to 0.3¢ (FY14: 0.5¢). NAV/share at $0.707.

*Olam: To acquire wheat milling and pasta manufacturing assets of BUA Group in Nigeria for US$275m.

*Otto Marine: MOU with renowned port operator in Batam, Indonesia, to explore potential development of a fabrication and marine facility.

*Lippo Malls Indo Trust: Proposed to acquire Lippo Mall Kuta, a three-storey retail mall in Bali with NLA of 21,132 sqm, for $92.7m. Pro forma FY14 NPI and DPU post-acquisition are expected to increase by 5.8% and 1.3%, to $125.9m and 2.32¢, respectively.

*PACC Offshore: Formed a JV with Saudi Arabia’s Hmood Al Khalaf Group to expand its presence in the Mid-East. The new venture will tap on PACC’s fleet in the region, and Al Khalaf’s extensive network and expertise in agriculture and transportation.

*Cordlife: Extending the take-over offer for Bursa-listed StemLife till 2 Feb ’16. Cordlife currently has valid acceptances of 84.2% of Stemlife.

*Pacific Andes: Received notice for its breach of obligations from HSBC, in relation to its $200m 8.5% bonds due 2017.

*Linc Energy: Obtained written approval from noteholders to amend the terms of its US$200m 7% convertible notes that are due in 2018. The amendments include the removal of an existing right redemption, reduction of the interest to 0%, reset of conversion price to $0.12105 as well as an option for noteholders to direct 50% of its asset sale proceeds toward redemption of the notes.

*Ezra: Issued profit warning for 1QFY16 which is expected to be released on 14 Jan. The net loss is mainly attributable to the continuing depressed state of the O&G industry, which has impacted activities in the global O&M and subsea industry.

*Eastern Holdings: Exit offer of $0.425/share declared unconditional, after controlling shareholder MBT Enterprises received valid acceptances of 89.65% of total issued shares.

*Tung Lok: Entered into a $1.2m 3-year tenancy agreement to lease a 4,715 sq unit from an interested party in Orchard Central. The premise will be used to operate a Tung Lok Seafood restaurant.

*Asiaphos: Successfully renewed its Mianzhu Norwest Mine 1’s mining right till 25 Dec ‘16. It intends to increase its production to a minimum of 150,000 tonnes per year (from 50,000 currently).

*Albedo: Raised $3m through a 300m share placement at $0.01 each to Frankie Kiow Kim Yoon, a veteran marketing agent in Asia and also the ex-regional director of Nu Skin Enterprises. The placement will raise Kiow's stake to become the largest shareholder with 9.84% of the enlarged share capital. Funds will be used for group's expansion plans in China.

*Serial System: Acquiring the remaining 51% stake in Achieva Technology from SUTL Eterprise for $2.4m.

*Polaris: Shares of Indonesian associate Trikomsel was suspended from trading by the Indonesia Stock Exchange.