SG Market (08 Jun 16)

SG Market: Taking cue from mixed US performance overnight, the market could consolidate gains made over the past five sessions.

Regional bourses in Tokyo (-0.1%), Seoul (-0.1%) and Sydney (-0.5%) opened weaker.

From a chart perspective, the STI may retrace to close the gap between 2,834 and 2,840, before marching higher. Bottomside support is seen at now 2,830 with topside resistance at 2,890.

Stocks to watch:
*Macro: Based on transactions of top five stocks, ShareInvestor and IPREO estimates net sells of $890.1m by global mutual funds, overshadowing a net buys of $536.6m, for the three months leading up to 1 Jun.

*Sembcorp Marine: Delivery deferral of semi-submersible drilling rig, West Rigel, to North Atlantic Drilling has been extended to 2 Sep '16, from Jun '16.

*Mermaid Maritime: Awarded six subsea works across Asia worth US$15m which are expected to be completed by Nov ‘16.

*TTJ: 3QFY16 net profit surged to $13.4m from $1.6m a year ago as revenue soared 262% to $53.7m, boosted by its structural steel business. Gross margin of 33.8% (+8.9ppt) was buoyed by fatter project margins. NAV/share at 35.54¢

*Yuexiu Property: Contracted sales in May fell 13% y/y to Rmb2.12b with 174,500 sqm of gfa sold (-24%). From Jan to May, total contracted sales saw a 66% jump to Rmb13.51b with 1.3m sqm of gfa sold, representing about 52% of its FY16 sales target of Rmb25.8b.

*Frasers Centrepoint: Entered into a 70/30 JV with An Duong Thao Dien Real Estate Trading Investment (ADTD) and other shareholders to jointly develop a residential-cum-commercial project on a 1-ha prime residential site in Ho Chi Minh City, Vietnam. The project has an estimated total development cost of US$85m ($115m).

*Bumitama Agri: Acquired 95% interest in PT Langgeng Makmur Sejahtera, which has a negative book value of Rp16.64b, for Rp237.5m. The target holds a location and plantation permit for a 4,810-ha land in Kalimantan, of which 87% is planted. Remaining 5% stake was acquired by an associate of the group's controlling shareholder to satisfy Indonesia ownership law.

*China Merchants Pacific: Voluntary privatisation offer from parent China Merchants Group has received acceptances of up to 78.55%.