SG Market (01 June 16)

SG Market: The market may trade cautiously today, ahead of the OPEC and ECB meetings on Thursday, and the US jobs report on Friday.

Regional bourses in Tokyo (-0.9%), Seoul (-0.2%) and Sydney (-1%) opened weaker.

From a chart perspective, downside support for the STI is seen at 2,760, with resistance at 2,830.

Stocks to watch:
*O&M: Shipyards’ new orders fell 49% to $4.9b in 2015 amid the cyclical downturn. Industry association advises shipyards to control overheads whilst diversifying overseas for growth.

*Cache Logistics Trust: Amid a tenant-subtenant rent renewal dispute at Schenker MegaHub, subtenant Schenker is seeking to bind land lord, Cache to renew its lease at a pre-agreed, below-market rate.

*StarHub: Priced the offering of $300m 3.55% notes due 2026 as part of its $1b MTN programme. Net proceeds will be used for general corporate funding and investments.

*Frasers Centrepoint: Its hospitality division has commenced operations at 48 properties across Asia, Europe, the Middle East and Africa.

*ISOTeam: Won private and public contracts worth about $26.3m. These are expected to be FY16 earnings accretive.

*Straits Trading: Acquiring 3 freehold residential rental properties in Central Osaka, Japan for ¥6.2b ($77.2m) to complement its investments in Asia Pacific.

*Technics Oil & Gas: Applied to be placed under judicial management following a number of civil lawsuits lodged against it by several parties including a former director, as well as landlord, Soilbuild REIT.

*Global Invacom: Chosen MaxLinear’s EN5520 digital channel stacking switch for use in its FibreIRS system.

*GSS Energy: Agreed to dispose Cepu Sakti Energy (CSE) for $1. As at 31 Mar, CSE had negative equity of $3.2m, the transaction will result in a net book gain of $3.2m.

*Interra Resources: Agreed to purchase an additional 23.4% stake in PT Benakat Oil for Rp71.4b, increasing its stake to 34.1%. This is part of its strategy to acquire and develop energy assets in the oil and gas industry.

*Ley Choon : Selling 4 Sungei Kadut Street 2, a 4,240 sqm leasehold property with a remaining tenure of 9 years, for $6.8m to Double-Trans.