SG Market (21 Jun 16)

SG Market: Positive momentum from short covering yesterday may ease, as market participants await the British referendum on Thu.

Regional bourses opened generally lower in Tokyo (-1%), Seoul (-0.3%) and Sydney (+0.3%).

From a chart perspective, STI sees immediate resistance at 2,820, with downside support at 2,740.

Stocks to watch:
*Frasers Logistics & Industrial Trust: Trading debut today. The Australian industrial REIT is offering indicative yields of 6.8%/7.3% for FY16/FY17, respectively, based on its IPO price of $0.89/unit.

*EC World REIT: Reportedly mulling IPO to raise $450m. The trust holds Chinese logistics assets and is backed by Shanghai-based Forchn Holdings, a co-founder and shareholder of Cainiao (Alibaba’s logistics division). The REIT could reportedly offer 7-8% yield for FY16.

*GLP: Signed new leases totalling 98,000 sqm with five companies in China, including Alibaba affiliate Cainiao, Best Logistics, and three new customers.

*Ezra: Secured several new deepwater projects worth USD300m from international oil majors for work in the Gulf of Mexico, Southeast Asia, and West Africa.

*OKP: Awarded $18m worth of projects from PUB, for drainage improvement works in Singapore. The new contracts will raise the group's net construction order book to $394.8m, with visibility till 2019.

*ST Engineering: 55:45 JVCo with Airbus is establishing a new 30,000 sqm site for components manufacturing in Germany, with a planned investment of $61.5m. The facility is expected to commence production by 1H18.

*China Merchants Pacific: Voluntary privatisation offer of $1.02 has received acceptances of up to 89.6%, just short of the 90% delisting mark. Offer will close on 27 Jun.

*HTL: Secured approval from the Chinese regulatory board on the proposed buyout of HTL. Accordingly, the group will enter into an agreement with the offeror Guangdong Yihua Timber Industry, on the proposed buyout via a scheme of arrangement.

*Starland: Entered agreement for a $157.5m RTO of Switzerland-based fintech and brokerage firm Ayondo, which provides social trading services such as allowing individuals to replicate performances of top traders onto their portfolio automatically and in real time. The firm is licensed by financial authorities in the UK and Germany.

*MYP: Proposed acquisition of Straits Trading Building for $560m, in a bid to expand its property business.

*Rowsley: Acquiring a 65% stake in Squire Mech for $19.5m (7.5x P/E) through the issuance of up to 130m shares at $0.15/share. The deal for the mechanical and electrical engineering consultancy services company is subject to a three-year cumulative net profit of $12m.

*Miyoshi: Acquiring a 15% stake in Core Power (Fujian) New Energy Automobile, which develops, manufactures, assembles and sells light electric vehicles in China, for $8.8m.

*China Medical Int’l: HK-based subsidiary CMIC Hemodialysis granted a HK$20m ($3.5m) loan by lender Concorde Global, at an interest of 12% p.a., and to be fully repaid by 19 Dec '16.

*SGX: Launched the Sustainability Reporting Guide, which requires companies to discuss sustainability practices with reference to five components at least once a year, no later than five months after the end of each FY.