SG Market (15 Apr 16)

SG Market: Investors are likely to take a breather after Wall Street hit a pause button, and ahead of the release of China's 1Q GDP at 10am.

Regional bourses are mixed in Tokyo (-0.4%), Seoul (-0.3%) and Sydney (+0.3%).

From a chart perspective, STI may run into resistance at 2,910 (200-dma), with next objective at 2,960 fibonacci level. Support reset to 2,840.

Stocks to watch:
*Macro: On the surprise easing move by MAS, beneficiaries of the weaker SGD include tourism, gaming and airlines sectors, with counters such as hospitality REITs, Genting SP and Straco.

*Capitaland Commercial Trust: 1Q16 in line with DPU of 2.19¢ (+3.3%), underpinned by higher contribution from 40% JV CapitaGreen, while gross revenue and NPI slipped to $66.9m (-1.9%) and $52m (-3.6%), respectively, on lower occupancies at Capital Tower and Golden Shoe Car Park, as well as higher property tax. Occupancy rose 1ppt q/q to 98.1% with WALE of 7.3 years, while aggregate leverage stood at 30.1% (+0.6ppt q/q) with average cost of debt of 2.5%. NAV/unit at $1.72.

*Keppel REIT: 1Q16 results in line; DPU dipped 1.2% y/y to 1.68¢ due to a larger dividend payout to perpetual securities holders, despite a marginal rise in distributable income to $54.4m (+0.8%). Revenue and NPI slipped 2.9% and 4.8% to $41.2m and $32.9m, respectively, following the divestment of 77 King Street on 29 Jan '16. Portfolio occupancy stood at 99.4% with WALE of 6 years, while aggregate leverage was lowered to 39% (-0.3ppt q/q) with average cost of debt at 2.58%. NAV/unit at $1.42.

*Keppel T&T: 1Q16 net profit slid 15.6% y/y to $13.3m due to a spike in interest expenses (+31.3%) and lower contributions from associates and JVs (-9.7%). Revenue edged 0.7% higher to $46.3m on increased takings from the data centre division (+34.7%), offset by reduced contributions from logistics (-8.2%). NAV/share at $1.30.

*Soilbuild REIT: 1Q16 DPU slipped 4% y/y to 6.228¢ on an enlarged unit base, while distributable income grew 9.6% to $14.6m. Gross revenue and NPI added 8.2% and 8.8% to $20.1m and $17.2m, respectively, on new contribution from Technics (acquired in May ‘15), as well as higher takings from Solaris on upward rental reversion. Portfolio occupancy slipped to 94.8% (-2ppt q/q) with WALE of 4.7 years. Aggregate leverage maintained at 36%, with average interest cost of 3.36%. NAV/unit at $0.79.

*GKE: 9MFY16 net loss narrowed to $0.4m (9MFY15: $1.8m loss), thanks to a $1.2m gain on disposal of an associate. Revenue slipped 5.4% y/y to $26.2m as its logistics operations handled lower volume of freight and general cargoes due to the slowdown in macro environment. NAV/share at $0.1217.

*YuuZoo: Expanded the cooperation agreement with Alibaba on E-Sports events from China to include six Southeast Asian markets (Singapore, Indonesia, Thailand, Malaysia, Philippines and Vietnam).

*GLP: Leased 153,000 sqm of space in China to four third party logistics companies, including a subsidiary of Sinotrans.

*Oxley: Sold the leases of 241 units at its Royal Wharf development to Notting Hill Home Ownership for £59.9m.

*PSL: Terminated the agreement to purchase a 70% stake in NBN Scaffolding for $3.9m.

*Nam Cheong: Forfeited a deposit of US$8.4m paid by Perdana Petroleum after the latter terminated its purchase order for an accommodation work barge.

*OEL: Applied for judicial management for OSEC Shipyard due to the inability to repay US$0.56m to its creditor.

*Olam: Secured a US$650m revolving credit facility to be used to refinance existing debt, meet working capital and general corporate funding requirements.