Thursday, March 17, 2016

SG Market (17 Mar 16)

SG Market: Market sentiment is likely to get a lift from a dovish Fed rate decision and firmer oil prices, with yield plays and O&M names benefitting.

Regional bourses marched ahead in Tokyo (+1.2%), Seoul (+1%) and Sydney (+1.3%) in opening trades.

From a chart perspective, the STI could push towards topside resistance at 2,890 with further upside capped by overbought conditions, while immediate support remains at 2,770.

Stock highlight:
*Telecoms: Consistel intends to challenge MyRepublic for the licence to be S’pore’s fourth telco. Separately, regulator MDA is enhancing pay-TV consumer protection by requiring operators to provide option for 12-month or shorter contract terms and cancel termination charges for unilateral price and bundle changes. Negative for incumbents M1 and StarHub, less so for Singtel.

*Anchor Resources: The loss-making Malaysian goldminer is set for listing tomorrow at IPO price of $0.25, and hopes to swing to the black by year end, after being in the red for the past nine years.

*Cosco Corp: Cosco (Nantong) Shipyard, a 51%-owned subsidiary has secured a contract to build a self-elevating workover unit, with an option for another similar unit. Delivery is expected in 3Q17. Price is confidential.

*First Resources: Feb FFB harvest fell 7.3% y/y to 163,562 tonnes, on lower FFB yield of 1.0 tonne/ha (Feb '15: 1.2 tonnes/ha). CPO production tumbled 9.5% to 39,994 tonnes, on lower extraction rate of 22.8% (-0.3ppt).

*Hiap Hoe: Divesting its property at 380 Lonsdale Street, Melbourne, to A&J Brady for A$60m.

*GLP: Signed 161,000sf lease with baby product e-commerce retailer Akachan House in Tokyo.

*Sunpower: Secured a Rmb97.6m contract from Jiangsu Xinhua Semiconductor Metarials to supply 34 reduction furnaces for a semiconductor-grade polysilicon project, with expected delivery this year.

*Noble: COO Cronin is retiring but will remain as a part time consultant to the group in the role of Vice Chairman, Americas.

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