SG Market (03 Jun 16)

SG Market: Ahead of the US jobs report tonight, the market may continue to trade cautiously.

Regional bourses opened mixed, with Tokyo (+0.8%) and Sydney (+0.7%) stronger, and Seoul (-0.04%) marginally weaker.

From a chart perspective, the STI could see an upside bias, after recently exiting oversold territory. Resistance is seen at 2,830, with downside support at 2,760.

Stocks to watch:
*Acromec: 1HFY16 net profit surged more than 3x y/y to $1.6m. Excluding IPO-expenses, bottom line would have surged 4x to $2.1m. Revenue rocketed 187% higher to $23.2m, due to increased work for its major projects. Gross margin was steady at 20.5% (+0.25ppt). Order book stood at $30m. Interim DPS of 0.3¢ announced. NAV/share at 8.39¢.

*Sembcorp Industries/SMM: Were named defendants in a lawsuit filed in the US by EIG Management regarding a US$221m investment in Sete Brasil. Both companies see the allegations as baseless and will contest the claim.

*GLP: Leases 20,000 sqm in Brazil to new customers. One is a global healthcare company, while the other is a third-party logistics provider.

*SGX: Grants 13 firms an extension for the minimum trading price rule, from Jun to 1 Sep.

*Soilbuild REIT: Commenced search for a new tenant for 72 Loyang Way, after existing tenant Technics Oil & Gas defaulted on the lease agreement by applying for judicial management.

*GKE: Obtained regulatory approval in China to sell ready-mixed cement products, and the group commenced commercial production.

*International Healthway Corp: Applied to court to wind up subsidiary IHC Medical RE to protect its interest in terms of inter-co loans extended to the latter, after receivers were appointed over the subsidiary by external creditors.

*InnoPac: Was placed on SGX’s Watch-list due to its financial performance (three years of consecutive losses) and sub-par market cap (~$9m). Separately, it signed a 50:50 JV with RC Carbon to set up a recycling business in Malaysia. It will invest an initial US$2.5m in the JVCo to set up the recycling facility.

*China Sports International: Proposed rights issue for up to 288.4m shares at $0.01 each, on the basis of 1 rights share for every four existing ordinary shares. Proceeds will be used for business development (70%) and working capital (30%).

*Allied Technologies: To dispose two of its Chinese subsidiaries to Carapace Daybreak for a total of $20.1m. It is not expected to record any gains or losses on the transaction. Proceeds will be used as working capital.

*SunMoon Company: Extended the long stop date of the acquisition of a 12% stake in Harvest Season till 29 Jan ‘17.