Thursday, March 10, 2016

SG Market (10 Mar 16)

SG Market: Singapore shares are showing relative strength despite overbought conditions as investors track oil prices and key upcoming central bank events from ECB, BOJ and Fed.

Regional bourses opened stronger in Tokyo (+0.9%), Seoul (+0.3%), Sydney (+0.02%).

From a chart perspective, topside resistance for STI is seen at 2,890 with support is at 2,730.

Stocks to watch:
*Oil: Market watchers are pessimistic towards the recent rally as structural dynamics have remained largely unchanged. While the world's largest oil exporters are scheduled to meet on Mar 20 to discuss an output freeze, the street is sceptical about the impact as production still outstrips demand.

*Telecoms: Potential new entrant MyRepublic unveiled extremely enticing proposed mobile offerings, which include a 2GB mobile data plan for as low as $6/month and an unlimited data plan at $60/month. However, Maybank KE underscores that prior to MyRepublic actually winning a licence, incumbents would be able to respond by coming up with better plans, thereby protecting their market share.

*Sembcorp Marine: Raised its stake in Gravifloat to 56% from 12% for US$38m, with the aim of eventually acquiring the remaining 44%. Gravifloat designs and holds patents for redeployable modularised LNG solutions.

*Libra: Looking to diversify into property, tourism and aviation sectors in Malaysia, amid thinning margins in its core M&E businesses in Singapore.

*Hotung Investment: Its 3.8%-owned investee, Shenghua Entertainment Communication has successfully listed on the Taipei Exchange.

*Envictus: Extended the long-stop date of its proposed acquisition of Lyndarahim Ventures to 28 Mar from 14 Mar.

*Elektromotive: Terminated a proposed issue of $20m 0% equity-linked redeemable structured convertible notes due 2018, and paid a termination fee of $0.25m to subscriber Advance Opportunities Fund.

*Pacific Healthcare: Sued for an alleged $0.5m loan and $1.8m payment for a terminated sale of two separate subsidiaries. The claims are being made by one Chan Ewe Teik and his firm Straitsworld Advisory.

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