S'pore market is likely to take another breather from overbought conditions, as investors assess the efficacy of central bank action and the likelihood of an oil producer pact to freeze output.
Regional bourses opened mixed in Tokyo (-1.5%), Seoul (+0.1%) and Sydney (-0.4%).
From a chart perspective, topside resistance for STI capped at 2,890 with support at 2,730.
Stocks to watch:
*Telecoms: Mobile data price war heats up with Starhub and M1 pushing out new data plan offerings a day after MyRepublic and Singtel fired off the first salvos. Singtel is in the strongest position to slug this out given its diversified income stream from the region.
*Citic Envirotech: Awarded a Rmb198m ($42m) project to upgrade an existing industrial waste water treatment plant in Hebei, China. The street remains bullish on the counter with average TP of $1.78.
*XMH. 3QFY16 net profit plunged 63.1% y/y to $1m due to increased opex post-consolidation of marine products manufacturer Z-Power Automation in 4QFY15. Revenue rose 16.8% to $3.8m from more projects, but gross margin narrowed to 26.1% (-5.6ppt) as it booked less profitable projects. NAV/share at $0.147.
*Datapulse: Sank into the red with 2QFY16 net loss of $0.6m (2QFY15: $71k profit) as revenue declined 21.5% y/y to $4.8m on weak demand for media storage and cards segments. NAV/share at $0.227.
*Sysma: 1HFY16 net profit slumped 68.6% y/y to $0.5m despite chalking higher revenue of $68m (+17.6%) on increased contribution from construction (+24.7%) and property development (+157.7%) segments. However, gross margin slid to 5.9% (-1.9ppt) on a shift in business mix, while bottom line was weighed by the absence of a tax credit. NAV/share at $0.159.
*SHS: Entered into a 50:30:20 JV with IFG Asia and Infra Land to provide technical consultancy for construction services in Myanmar.
*Singapore Myanmar Investco: Expanding its consultancy services in Myanmar to include the telecoms, F&B and advertising sectors.
*Asia-Pacific Strategic: Acquired Century 21 (AsPac) Realty, a local real estate agency with around 100 registered agents, for $0.2m.