SG Market (04 Apr 16)

SG Market: The market will attempt to hold its ground in a relatively quiet week for economic data.

Regional bourses opened generally weaker in Tokyo (-0.4%) and Seoul (-0.1%), while Sydney (+0.4%) held steady.

From a chart perspective, topside resistance for STI is pegged at 2,900 with underlying support at 2,760.

*Macro: Asian Development Bank warns China's slowing economy and shift from manufacturing to service-based industries will hit Asia more severely than others, particularly for commodity exporters and countries with strong trade links such as Singapore.

*Property: Consultants highlight two-tier market emerging in private housing market, with price declines in prime areas and city fringe moderating, while that for suburban units and landed homes accelerating.

*SingPost: Chairman Lim Ho Kee stepping down in wake of corporate governance issues. Separately, group announced the termination of its planned JV with Indonesian mobile phone retailer Trikomsel.

*Ezion: Substantial shareholder First State Investment Management disposed 1.7m shares at $0.6053 apiece on 30 Mar, reducing its stake from 8.08% to 7.98%.

*Jaya: Entered non-binding term sheet to acquire Heduru Moni for $237m in a RTO transaction. Heduru is the largest micro-lender in Papua New Guinea, with FY15 net profit of $19.9m. Prior to completion, Jaya is entitled to distribute up to $0.40/share to shareholders.

*Vallianz: Investing US$6m for a 75% stake in Holmen Heavylift Offshore, which owns, operates and charters vessels. Upon completion, Vallianz is expected to record goodwill of US$1.2m.

*Sri Trang: Acquiring 54,000 shares in natural rubber producer Thaitech Rubber from Itochu for Bt111.5m ($4.3m), raising its stake to 42.5% from 33.5%.

*Uni-Asia: Acquiring remaining 50% stake in JVCo Joule Asset Management, which owns a newbuild, handysize bulk carrier, from partner Green Ocean for US$0.3m.

*Matex: Terminated a proposed RTO deal after the long stop date had lapsed. The group is currently in the process of selecting a continuing sponsor for its transfer to the Catalist board.

*TSH Corp: Disclosed it is in preliminary discussions on a potential disposal.

*Kingsmen Creative: Management reshuffle with co-founder Simon Ong relinquishing his position as CEO and MD, to assume post of Deputy Chairman, while COO Andrew Cheng will be promoted to CEO.