SG Market (23 Jun 16)

SG Market: Trading expected to be cautious and quiet as investors remain on edge on the eve of the UK referendum.

Regional bourses opened mixed in Tokyo (+0.2%), Seoul (-0.2%) and Sydney (+0.4%).

From a chart perspective, downside support for the STI is at 2,740, with resistance at 2,820.

Stocks to watch:
*Banks: Industry consultant McKinsey opines that slowing global growth, the emergence of fintech start-ups and rising bad loans are combining to create a powerful storm for the Asia Pacific banking industry. MKE is negative on the three banks UOB (Hold, TP $16.96), DBS (Sell, TP $13.40) and OCBC (Sell, TP $7.20).

*Noble: Proposed 1-for-1 rights issue at $0.11/share will go ex on 28 Jun.

*GuocoLand: Secured Japan's largest rail operator, East Japan Railway, as an anchor tenant at Tanjong Pagar Centre, bringing the 100,000 sf retail space take-up to 70%. The mixed use residential and commercial development is slated for completion in 3Q16.

*China Merchants Pacific: Exit offer of $1.02 has been declared unconditional, after the offeror received valid acceptances of 91.7% of the maximum potential issued share capital. Closing date for the offer has been extended to 11 Jul.

*HTL: Agreed to a buyout offer by Shanghai-listed Guangdong Yihua Timber Industry at $1.00/share (24% premium) via a scheme of arrangement. Shareholders holding 50.5% of share capital have undertaken to accept the offer.

*CityNeon: Opened Avengers S.T.A.T.I.O.N. at Treasure Island Hotel and Casino in Las Vegas, marking the group's debut in western US.

*Cosco Corp: 51%-owned Cosco Shipyard delivered a 111,000 dwt oil tanker to its European buyer.

*Magnus Energy: Awarded EPC and operation/maintenance contracts to Algae Farm Engineering to build and manage its 30 tpd microalgae oil cultivation facility in Selangor, which will commence operations by Dec ’16. The contractor also undertakes to secure offtake agreements with buyers for Magnus. The group is expected to generate profit of US$3m annually from this new US$12.8m bio-oil facility.

*Full Apex: Disposing its Qingdao subsidiary for Rmb23.8m. It is expected to book a disposal gain of Rmb16m.

*Serrano: Engaged consultancy firm to source for potential investors and M&A targets, to improve its current financial position.