SG Market (12 Apr 16)

SG Market: The market may see some upside risk from higher commodity prices, buoyed by expectations of further monetary easing in China to meet its inflation target for 2016.

Regional bourses opened in positive territory in Tokyo (+0.7%), Seoul (+0.4%) and Sydney (+0.5%).

From a chart perspective, downside support for the STI remains at 2,760, with immediate resistance at 2,850.

Stocks to watch:
*Property: National Development Minister Lawrence Wong says it is too early to unwind cooling measures and relaxing them too soon may risk a premature market rebound.

*OSIM: Ron Sim now control a 74.3% stake following open market purchases and minor acceptances, and needs another 205.8m shares to reach the 97% compulsory acquisition threshold and 153.9m shares to reach the 90% delisting level. MKE believes he will succeed in the privatisation offer and expect acceptances to increase as it approaches 90%.

*Aspial/Fragrance: Construction of its 50/50 JV mixed development CityGate is scheduled to start in May, with TOP expected in Jan 2019. 99%/57% of the project's residential/commercial units has been sold with total sale proceeds of $805m.

*iFAST: Acquiring 21.47% of Pecuniam, which owns a 74.72% stake in iFAST Financial India, for $1.3m, or 2.7x P/B. The Indian fund distributor was previously spun out prior to the group's IPO and has now accumulated AUA of 10.96b rupees.

*Asiaphos: Applied to renew its exploration rights at 1.52 sq km Mine 1 in Sichuan, China. The mine currently has approved production scale of 50,000tpa. It had recently applied to increase this production to 0.4m tpa.

*Biosensors: Amalgamation with CB Medical Holdings was effective on 8 Apr., thereby shareholders will receive their consideration on 19 Apr (7 business days), and the counter will be delisted on 20 Apr.

*Attilan (formerly Asiasons): Chalked up pretax losses for three consecutive years, with six-month average daily market capitalisation of $5.3m as at 11 Apr. As such, the company is giving notice that it could be placed on the SGX watch-list at the next review in Jun.