SG Market (07 Jun 16)

SG Market: The market may continue the positive momentum as traders increasingly push back expectations of a US rate hike.

Regional bourses in Tokyo (+0.3%), Seoul (+0.8%), and Sydney (+0.2%) opened stronger.

From a chart perspective, the STI is testing resistance at 2,830, with next objective at 2,890, while underlying support is seen at 2,760.

Stocks to watch:
*SGX: A study in Australia found that large companies of a certain size are able to price their IPOs at a lesser discount on SGX than a US listing. This may be due to the higher amount of institutional investors targeting such large companies in Singapore compared to the US. Positive for SGX if it could attract more of such large listings.

*Swiber: Secured three new contracts totalling US$215m, lifting order book to about US$1.2b. Works are to be done in Qatar, Myanmar, and Vietnam, with scheduled completion between 3Q16 and 1Q18. Swiber also fully redeemed its Series 16 $130m fixed rate notes.

*Yongnam: Awarded two contracts in Singapore (light industrial development) and Hong Kong (infrastructure works) worth SGD29.6m, adding to order book of SGD399m as of Mar.

*OCBC/Great Eastern: Selling Great Eastern Life Vietnam for $48.2m to FWD Group, the insurance arm of Pacific Century Group, as GE plans to increase focus on Singapore, Malaysia, Indonesia and Brunei.

*GLP: Acquired a 89% stake in two investment management firms in China for Rmb448m.

*Q&M Dental: Acquiring 47.1% stake in Shenzhen New Perfect Dental Research, which provides custom-made prostheses to dental patients, for Rmb66m. The deal comes with a 12-year profit guarantee of $1-2m p.a.

*Hyflux: Divesting a wastewater treatment plant in Yangkou Port, Jiangsu province, to a Chinese state-owned company for Rmb52m, payable in tranches. The plant has been classified as asset held for sale since FY15, and management do not expect any significant impact to FY16 financials.

*Rex International: Disposing 10% stake in Lime Petroleum Norway and 5% stake in Masirah Oil to Schroder & Co Banque for US$5m and US$4.75m respectively, which will be settled via shares equivalent to a 25% stake in Dahan Petroleum.

*Otto Marine: Extended trading halt for two days till 8 Jun after receiving a delisting proposal from an offeror advised by RHB. A further announcement will be made after a board discussion.

*China Merchants Pacific: Voluntary privatisation offer from parent China Merchants Group has received acceptances of up to 78.49%.

*Lantrovision: The court has approved MIRAIT's scheme of arrangement offer of $3.25/share (1.5x 2QFY16 P/B). The last date of trading will be on 7 Jun.

*Novo Group: Received waiver from seeking shareholders' approval for its proposed disposal of three office units in China Merchants Tower, Shun Tak Centre, Hong Kong.

*Chip Eng Seng: Issuing $120m 4.75% notes due 2021 with net proceeds to be used for the financing of new property developments and investments.

*Vibrant Group: Clarified on media reports (23 May) that the group is currently in discussions for issuing Rmb1b panda bonds in China, but it is not in any binding agreement yet to assure the transaction would be completed.