Wednesday, June 29, 2016

SG Market (29 Jun 16)

SG Market: Rebounding global markets following the heavy Brexit sell-offs and higher oil prices could bring some respite to risk assets but we remain advocates of safe havens and favour telecos, consumer and yield plays.

Regional bourses opened positive in Tokyo (+1%), Seoul (+0.6%) and Sydney (+0.6%).

From a chart perspective, the STI faces immediate resistance at 2,785, with support at 2,710.

Stocks to watch:
*SGX: Extended the deadline for exclusive talks over its proposed acquisition of London-based Baltic Exchange for another two months till 31 Aug '16.

*GuocoLand: Submitted top bid of $595.1m ($1,239 psf ppr), beating 12 others, for a 99-year leasehold site in upmarket River Valley district under the confirmed list of Government Land Sales programme . The 171,535 sf land parcel has a plot ratio of 2.8 that can yield a maximum gfa of 480,306 sf or ~450 husing units and potential gross development value of $1.06b.

*Mapletree Logistics Trust (MLT): Acquired its fifth logistics facility in Shah Alam, Malaysia, for MYR160m, or a projected NPI yield of 7.5%. Post deal, MLT's aggregate leverage ratio will rise to 36.6%.

*REITs: Indon-centric REITs such as First REIT, and Lippo Malls Indonesia Retail Trust could be buoyed by the passing of Indonesia's tax amnesty bill, which will be a boon for the rupiah and fiscal budget.

*CNMC Goldmine: Acquiring a 51% stake in brownfield Pulai Mining for RM13.8m. The entity holds an exploration and mining concession spanning 3,8.4 sq km in Kelantan, Malaysia that is almost four times the size of its Sokor goldfield project. Between Mar ’11 to May ’13, the mine produced 9,171 oz of gold, compared to CNMC’s 1Q16 gold production of 7,271 oz.

*Sembcorp Marine: Acquired 50% stake in a process design and engineering group for NOK20m (5.6x P/B).

*Q&M Dental: Terminated the proposed 60% acquisition in Smilebay Dental Clinics in Penang, Malaysia, following the expiry of the points of agreement.

*Sim Lian: Launching the 504-unit executive condominium Treasure Crest in Jul. Units in the 99-year leasehold development is priced at between $735 and $755 psf. The project is expected to obtain TOP by 2019.

*China Merchants Pacific: Offeror has received valid acceptances for 96.8% of the maximum potential issued share capital. Closing date for the offer will be on 11 Jul.

*DeClout: Lodged the preliminary prospectus for the proposed listing of its subsidiary, tech equipment provider Procurri, on SGX Main Board.

*Polaris: Indonesian associate Trikomsel defaulted on its $100m 7.875% senior fixed rate notes after failing to repay a coupon in Nov '15.

*Yuexiu Property: Secured loan facilities of up to Rmb400m for a 12 month term, adding to its debt load of Rmb38.2b (net gearing of 73.1%). However, liquidity profile is improving due to its property sales.

No comments:

Post a Comment