SG Market (17 May 16)

SG Market: Singapore market may see some positive spllover action from Wall Street, with focus on oil-linked counters, following the overnight surge in crude prices, but upside would be capped by the lack of catalysts.

Regional bourses opened generally in positive territory in Tokyo (+1%), Seoul (flat) and Sydney (+0.3%).

From a chart perspective, STI is deeply oversold with topside resistance at 2,805 and underlying support at 2,710.

Stocks to watch:
*Property: Apr private home sales (excluding ECs) tumbled 11.6% m/m to 745, despite more units (900) being launched (+32%). Including ECs, sales reached 1,291 or 60% of launched units.

*Airlines: Eight Asia-Pacific budget airlines including SIA's Scoot & Tigerair, formed a low cost carrier alliance, aimed at expanding their destinations and routing options for cost savings and to provide more value for customers.

*SIA: Apr passenger load factor rose 1.8ppt to 77.1%, on higher traffic (+1.9%) against a drop in capacity (-0.5%), lifted by East Asia, while all other regions deteriorated. SilkAir (+3.7ppt to 72.9%), Scoot (+3.6ppt to 85.5%) and Tigerair (+2.4ppt to 84.9%) all enjoyed better load factors. Cargo load factor also improved to 62.7% (+1.3ppt) as traffic (+8.5%) outpaced capacity expansion (+6.3%).

*Cosco: 51%-owned subsidiary Cosco Shipyard agreed to defer delivery for one of two jack-up drilling rigs by 20 months till end 2017 to owner KS Drilling, reflecting the unfavourable market conditions besetting the industry. Separately, group delivered a 111,000 dwt oil tanker to its European buyer.

*mm2 Asia: Jointly acquired the distribution rights for 19 movies in Singapore and Malaysia with Clover Films, doubling the number of distributed titles this year from the nine in FY16.

*Singapore Myanmar Investco: Signed franchise agreement with Crystal Jade Management Vietnam to operate and manage outlets in Myanmar, with the first expected to be opened in 3Q16 at Yangon International Airport Terminal 2, and a second at Sedona Hotel Yangon later in the year.

*Hyflux: Secured a 27-year loan facility of $653m to finance the development of the TuasOne waste-to-energy plant project.

*Ntegrator: Secured five contracts worth $11m, comprising the supply of batteries to Vietnamese mobile network operator Viettel, and provision of pipeline installation and maintenance services, as well as supply of telecom equipment to Singapore-based clients.

*Charisma Energy: Acquired 80% stake in a Chinese company that won approval to develop a 20MW solar photovoltaic power plant that will supply electricity to the National Grid in China for 25 years. Projects expected to commence commercial operation in 1Q17, with first five years of revenue in the range of Rmb140m.

*Telechoice Int'l: Acquiring 25.19% stake in HK-based IPTV technology solutions provider MVI Systems for HK$11.6m.

*Hyflux: Secured a 27-year loan facility of $653m to finance the development of the TuasOne waste-to-energy plant project.