Wednesday, March 9, 2016

SG Market (09 Mar 16)

SG Market: Investors might take some chips off the table as another round of rig delivery deferrals and weak Chinese economic data eclipse the rebound rally which has now been long in the tooth.

Regional bourses with Tokyo (-1%), Kospi (-0.02%), and Sydney (-0.1%) weaker in the open.

From a chart perspective, downside risk for STI is at 2,730 with resistance capped at 2,890.

Stocks to watch:
*Macro: Following the privatisation bid for OSIM, a Business Times speculates that more controlling shareholders may consider taking the same route if listing requirements become too onerous.

Keppel Corp. Key client Transocean has again deferred delivery for five jack-up rigs worth US$1.1b till 1Q20 from 2018. Keppel expects to receive some compensation for this second deferment of the rig contracts.

*Noble: Seeking US$2.5b one-year borrowing base revolving credit facility to refinance existing debt due later this year.

*Hiap Seng: Awarded two contracts worth about $18.3m for the provision of mechanical works that are due for completion by Jul ‘16 and Feb ’17 respectively.

*Starland/GRP: Starland is exploring a potential acquisition opportunity, and its dividend-in-specie to GRP will only be effected after the potential deal is finalised.

*China Gaoxian: Received a 1b won ($1.1m) claim by Daewoo Securities for an alleged breach of underwriting agreement provisions regarding inaccurate financial statements.

*Hyflux: Received LOI for turnkey EPC contract to build a US$500m integrated water and power project in Egypt. The 150,000 m3/day desalination plant will come with with a 25-year operation and maintenance contract.

*EMAS Offshore/Ezra: In response to a SGX trading query, management of both companies disclosed that the group is constantly reviewing options to maximise shareholder value, including possible transactions, although no definitive agreements have been entered into.

*Wilmar: Indonesian businessman Martua Sitorus sold 64m Wilmar shares to Archer-Daniels-Midland for an aggregate $199.8m.

*Multi-Chem: Exercises its option to acquire property in Tradehub 21, Boon Lay for $1m to support the operations of its cybersecurity business.

*Fabchem China: Expects to report a 4QFY16 net loss mainly due to the temporary suspension of its booster production activities as well as a challenging operating environment.

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