SG Market (24 Jun 16)

SG Market: The local market could be in for a volatile ride as early Brexit results showed a slim victory for the pro-EU camp, but it is still touch and go and the final outcome will only be known after 2pm SG time.

Regional bourses opened higher in Tokyo (+0.6%), Seoul (+0.2%) and Sydney (+0.7%).

From a chart perspective, STI may test resistance at 2,820, with downside support at 2,740.

Stocks to watch:
*Economy: May headline CPI slid for the 19th consecutive month to a 30-year low of -1.6% (est: -0.8%, Apr: -0.5%), while core inflation picked up 1% (Apr: +0.8%).

*Hospitality REITs: Credit rating agency Fitch expects income for Singapore hospitality REITs’ to stabilise this year, on higher tourist arrivals and income from new assets.

*Frasers Centrepoint: Hospitality arm Frasers Hospitality Group is collaborating with Sekisui House, to open a 223-unit serviced residence in Tokyo. The new development will bring the group's pipeline to 22,800 units across 80 cities, a step closer to achieve its goal of 30,000 units by 2019.

*Sabana REIT: Requested S&P to withdraw its ratings after the ratings agency downgraded the industrial trust's long term corporate credit rating from investment grade (BBB-) to junk (BB+) with stable outlook, citing a weakened balance sheet and declining profitability, hurt by negative rental reversions and higher borrowing costs.

*Midas: 32.5% owned Nanjing Puzhen Rail Transport secured four contracts worth Rmb3.3b in China, adding to the associate's Rmb1.28b contracts clinched year-to-date. Delivery for the trains is expected from this year till 2019.

*Chip Eng Seng: Terminated the proposed 70% stake subscription in P99, after both parties were unable to reach a consensus on the share structure. Separately, cash shell P99 updated that it is currently in talks for another acquisition opportunity.

*China Taisan: Non-Executive Chairman Choi Cheung Kong and CEO Lin Wen Chang, are seeking legal advice on their change in shareholding interests, after collateralised shares were sold under a non-recourse loan agreement. Choi's stake has shrunk to 19.2% from 34.4%, while Lin is no long a shareholder (from 9.4%).