Tuesday, January 12, 2016

SG Market (12 Jan 16)

Downward pressure is expected to persist amid lingering concerns over the slowdown in China that continues to fuel the commodity rout.

Brent slumped 6% overnight to its 12-year low to US$31.55 per barrel on concerns over risks for a slowdown in global demand, as well as expectations that Iran will soon add to the supply glut.

Regional bourses opened mixed today in Tokyo (-1.7%), Seoul (+0.6%) and Sydney (+1%).

From a chart perspective, downside support for the STI is at 2,680 (50% Fibonacci retracement), while resistance is seen at 2,830 (20-dma).

Stocks to watch
*Sembcorp Industries: Entered MOU with Chongqing municipal government to develop renewable energy, township, property and E&C projects in the city.

*Keppel DC Reit. Industry consultant Cushman & Wakefield highlighted 47% ramp up in supply of data centres by end-2016 on sustained demand from growing tech and network-content firms. Market rents are expected to bottom out in 2017 and trend up in early-2018 when supply is fully absorbed.

*PACC Offshore/ Ezion: JV secured a contract of an undisclosed sum, to tow Shell's 1st floating LNG plant from South Korea to Western Australia. Project is due to be delivered during 2H16.

*Tigerair: Dec operating statistics saw passenger load factor lifted marginally to 86.2% (+0.1ppt y/y), amid a 1.4% decline in passenger traffic and a similar cut back in capacity.

*Cheung Woh Technologies: 3QFY16 net profit plunged 60.2% y/y to $1.6m, dragged mainly by increased FX losses and disposal loss of asset. Meanwhile, revenue edged 2.6% to $25m, driven by stronger USD/SGD which boosted the HDD segment, but partially offset by tepid demand and MYR depreciation in the precision metal stamping segment. Gross margin shrank 8.9 ppts to 22.1% from higher materials and overhead costs in China.

*Miyoshi: 1QFY16 turned into net profit of $0.4m (1QFY15: -$0.7m) mainly on group's costs savings strategy. However, revenue tumbled to $11.8m (-13.4% y/y) due to lower orders in its data storage segment.

*CapitaLand: Injected additional $3.8m capital for the development of Citadines OMR Chennai, a serviced residence in Chennai, India.

*SGX: Seeking public feedback on its proposed changes to Mainboard and Catalist Listing Rules, which include the electronic transmission of notices and documents to shareholders.

*Mapletree Commercial Trust: Entered into two five term loan facilities to borrow $190m.

*Sapphire Corp: Newly-acquired Ranken Infrastruture secured a Rmb373m ($82m) contract, to construct 1.6km of the 23.4km Taiyuan Metro-Line 2. The contract is expected to complete within 30 months.

*Cosco Corp: 51%-owned subsidiary Cosco Shipyard delivered a 111,000 DWT Tanker, Front Ocelot, to its European buyer.

*Chiwayland: Incorporated a 70:30 JV with Kunming Juhua Investment Management, to engage in investment and asset management.

*Figtree Holdings: Provided an interest-free two-year shareholder's loan of Rmb24.6m ($5.3m) to Vibrant Properties for a capital investment.

*Sinotel: Received no-objection letter from SGX regarding its voluntary delisting.

No comments:

Post a Comment