SG Market (01 Feb 16)

Regional bourses all opened in positive territory in Tokyo (+1.5%), Seoul (+0.6%) and Sydney (+0.9%).

From a chart perspective, STI looks to test its immediate resistance at 2,670, with downside risk is at the recent low of 2,530.

Stocks to watch
*Banks: Dec total loan growth flat. DBU loan growth contracted -1.2% (Nov '15: -0.7%), worst in almost 16 years, while ACU loan growth 1.5%, slowest since Feb '10. System NPL ratio rose to 1.5% (4Q14: 1.1%).

*MGCCT: 3QFY15 results in line. DPU rose 11.6% y/y to 1.854¢, while distributable income climbed 13% to $51m. Revenue and NPI expanded 19.8% and 22.3% to $88.2m and $72.5m, respectively, from contribution from recently acquired Sandhill Plaza, strong rental uplift from both Festival Walk and Gateway Plaza and the appreciation of Rmb and HKD against SGD. Portfolio occupancy climbed to 98.7% (+0.3ppt q/q), with WALE of 2.2 years. Aggregate leverage stood at 41.4% (+0.4ppt q/q) with all in interest cost of 2.67%. NAV/unit at $1.167

*Noble: Franklin Templeton became a substantial shareholder after acquiring 2.5m shares @ $0.285 in the open market on 27 Jan, raising its stake to 5.03% from 4.99%.

*SingPost: In relation to its ongoing investigation on undisclosed interested party transactions, group highlighted reasons why PwC was selected as the special auditor for its corporate governance audit, and also stood by PwC’s independence in the review.

*ISOTeam: Secured seven contracts totalling $16.7m, with the largest being a $13.9m addition and alteration contract for Aloha Changi Resorts, expected to complete by Aug '17.

*OUE: In response to a media query, the group clarified that it is not marketing units at residential development Twin Peaks for bulk sale at $2,300-$2,400 psf, and is not buying back some units at the project to sell stacks or blocks to Middle Eastern and Chinese buyers. Till date, OUE disclosed that 72 units have been sold at an average $2,861 psf.

*Genting Singapore: Obtained approval from Casino Regulatory Authority on its casino licence renewal at Resorts World at Sentosa for another three years commencing on 6 Feb 2016.

*Yongnam: Consortium comprising JGC Corporation, Yongnam and Changi Airports International, has entered a framework agreement with Myanmar's Department of Civil Aviation to design, construct and manage the Hanthawaddy International Airport, on the basis of a public-private partnership. Recall in Feb '14, Incheon International Airport Corp walked away from the deal, citing several disputes which include payment terms.

*Smartflex: Non-binding term sheet with Novo Tellus PE Fund 1 to dispose its core business for $26.1m (last market cap: $32.9m). Upon completion, the company will become a cash company.

*Yamada Green Resources: To lease a moso bamboo plantation from Jiangle Shangfeng Bamboo Industry for Rmb41.8m. The 9.1m sqm plantation is adjacent to the group's investment, and the 10-year lease is expected to yield greater economies of scale for the group.

*GDS Global: Acquired 51% stake in Grimm Industries, which engages in trading of heavy machinery and parts, from CCM Int'l for $2m.

*Uni-Asia: Took delivery of a 37,000 dwt newbuilding handysize bulk carrier from Imabari Shipbuilding, by drawing down US$18.4m under a term loan facility from BOT Lease. The vessel was chartered out immediately.

*Asiatravel.com: Proposed placement counterpart Zhong Hong New World Int'l received a whitewash waiver from the Security Industry Council should mandatory offer requirement arises after the placement.

*Profit warning:
Isetan Singapore
Soon Lian
Gaylin