Wednesday, June 15, 2016

SG Market (15 Jun 16)

SG Market: Risk-off mood is likely to take hold with defensive sectors such as telecoms and consumer to benefit, as investors rush into safe-havens amid lingering fears from upcoming risk events.

Regional bourses languished in the red again in Tokyo (-0.6%), Seoul (-0.4%) and Sydney (-0.6%).

From a chart perspective, downside support for the STI remains at 2,720, with immediate resistance at 2,830.

Stocks to watch:
*Strategy: MSCI emerging markets index to delay inclusion of Chinese mainland stocks again, due mainly to lingering concerns on market accessibility, particularly with the 20% monthly repatriation limit being a significant hurdle.

*CapitaLand: Taps start-ups with $100m global tech venture fund in its ongoing effort to innovate and build real estate of the future.

*SATS: Signed partnership with Swiss airfreight handling service provider Cargologic, to establish a secure temperature-controlled corridor between Singapore and Zurich, targeting temperature-sensitive airfreight in the pharmaceutical industry.

*NOL: Newly reconstituted Board chaired by Rodolphe Saade, who succeeded Kwa Chong Seng. Nicolas Sartini has been appointed CEO, replacing Ng Yat Chun, while Serge Corbel will be its CFO, taking over Cedric Foo.

*Soilbuild REIT: Acquiring a nine-storey light industrial development known as Bukit Batok Connection at market value of $96.3m. The building has a land tenure up to 2042, with a net lettable area of 377,776 sf. Upon completion, the property will be leased to SB Westview for a 7-year term on a double net lease basis, with rental escalation of up to 2% per annum.

*Hyflux: Obtained a US$185m loan facility for Qurayyat Independent Water Project, the largest seawater reverse osmosis desalination plant in Oman. The plant has a water purchase agreement with the only purchaser for IPP/IWPP projects within the country, to supply water for 20 years from 2017.

*Mermaid Maritime: Secured a one year charter contract for dive support vessel, Mermaid Nusantara, to PT Seascape Surveys Indonesia. The contract comes with a additional year extension option, and the vessel is expected to be delivered in Aug 2016.

*Mencast: Subsequent to the lapse of its long-stop date to acquire Stone Marine Singapore (SMS), the group has now conditionally agreed to purchase certain target assets (instead of SMS), for $2.45m. The transaction will yield a bargain purchase gain of $0.9m.

*GS Holdings: Proposed placement of 8m new shares at $0.285 apiece to private investor Lee Sai Sing, who will hold a 10.6% stake upon completion. Net proceeds of $2.3m is intended for the group's expansion of its dishwashing operations.

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