SG Market (20 Jun 16)

SG Market: Investors will be bracing for a busy trading week with the British referendum on Thu, and re-balancing of the FTSE Russell indices on Fri. Trades may be focused in safe-havens, including telcos, consumer and gold.

Regional bourses opened higher in Tokyo (+1.6%), Seoul (+1%) and Sydney (+1.2%).

From a chart perspective, downside support for the STI at 2,720, with immediate resistance at 2,820.

Stocks to watch:
*Frasers Logistics & Industrial Trust: Placement tranche was more than 6x subscribed, while public tranche was ~3.9x subscribed. REIT is offering indicative yields of 6.8%/7.3% for FY16/FY17 respectively. Trading debut on 21 Jun.

*GLP: CEO Ming Z Mei opines prospects for the stock are misunderstood on risk profile and accounting treatment. Firmer earnings in 2016 is anticipated, while 2017 is expected to be relatively softer, before picking up subsequently.

*NOL: Buyout offer by CMA CGM has received acceptances of up to 86.8%. Closing date for the offer on 4 Jul.

*China Merchants: Voluntary privatisation offer from parent China Merchants Group has received acceptances of up to 89.3%. Offer will close on 27 Jun.

*City Dev: The 452-room Grand Millenium Hotel Auckland at 71 Mayoral Drive, which is the largest hotel in New Zealand, will open on 7 Sep '16.

*Cacola: Extended timeline to 31 Jul '16 to sign a definitive agreement with BH Investments, on its proposed acqusition of the medical services provider.

*Asiatravel.com: Updated that investor Zhonghong Holding is unable to make full payment for its proposed placement (500m shares @ $0.20), as the amount exceeds the monthly repatriation limit for Chinese firms. Consequently, Zhonghong has proposed that the balance of $91.7m be paid before 31 Dec 2016, with an option to complete the subscription of remaining 458.5m shares before the extended date.

*MMP Resources: Entered into underwriting agreement Maiora Asian Structured Finance Fund for a potential placement to raise between $1m and $2.4m.

*Asia Fashion: Currently in talks with SME bond holders for the extension of the repayment schedule as it has insufficient cash (5QFY16: Rmb6.6m) to repay the Rmb180m debt issue.