SG Market (18 Aug 16)

SG Market: Singapore shares are likely to trade sideways with a positive bias after Fed FOMC minutes overnight offered little clues to future rate hike plans. Oil counters may pare losses amid sharp drawdown in US crude and gasoline stockpiles last week. Meanwhile, St. Louis Fed president James Bullard’s dovish comments on interest rates might bode well for REITs. Regional markets opened mixed, with Tokyo (-0.9%) and Sydney (-0.3%) weaker, and Seoul (+0.1%) marginally stronger.From a chart perspective, STI might see positive drift away from the 2,830 support, while resistance is seen at 2,900.Stocks to watch: *Macro: According to a MasterCard survey, consumer confidence dived 10.7 points to 33.6 in 1H16, a low since Jun '09.*Singtel: Signed conditional agreement to acquire stakes in Thailand’s Intouch (21%), and India’s Bharti Telecom (7.39%) from Temasek for a total of $2.47b. The deal will be funded by internal funds, debt, and placement of 386m new Singtel shares at $4.16/share. Acquisition is not expected to affect Singtel’s dividend policy.*GLP: Incorporated three subsidiaries in China, two of which, are for provision of distribution facilities, while the third is to undertake investment management.*United Global: Entered into a six-month MOU with Lighthouse Enterprise to explore collaboration opportunities, with the possibility of Lighthouse setting up a new lubricant oil blending plant in Myanmar with the group providing technical expertise. *Halcyon Agri: Cash offer of $0.75/share by parent Sinochem Int'l has received acceptances of ~50.3% and has become unconditional in all respects.Profit warning:Tiong Woon, Epicentre, Sin Heng Heavy Machinery