SG Market (22 Aug 16)

Singapore market will likely see light trading on a dearth of corporate news, while O&G counters are likely to push higher on the short-term uptrend in crude prices.

Regional markets opened mixed in Tokyo (+0.3%), Seoul (-0.4) and Sydney (flat).STI faces immediate resistance at 2,880, with underlying support at 2,830.

Stocks to watch:
*Sembcorp Marine: Acquiring naval architecture and engineering house LMG Marin for US$20m, to move up the value chain for the global offshore and marine sectors.

*Ezion: Wholly owned subsidiary of Commonwealth Bank of Australia, First State Investments, sold 3m shares for client funds at $0.29 apiece on 17 Aug, reducing its stake from 5% to 4.86% and ceased to be a substantial shareholder.

*Q&M: Board has approved the lifting of moratorium of 9.5m shares (1.2% share capital) held by Health Field Enterprises, which was allotted the shares as consideration for the acquisition of a 60% stake in Aoxin in Dec '13. Controlling shareholder Quan Min Holdings is currently in talks to buy over the said shares, which will lift its stake to 56.8% and intends to honour the moratorium till Nov '16.

*Best World: Received in-principle approval for its 1-for-4 bonus issue. Book closure date will be announced in due course.

*First Sponsor: Divesting a 70% stake in the Star of East River mixed-use project in Dongguan, China to Chinese developer China Vanke (55%) and Regent (15%), owned by Shu Zhen, CEO of its Guangdong operations for $339.8m Including loan assignment and shareholder loan to be injected by both parties. The group will retain a 30% stake in the project and book a net gain of $95.3m. Pro forma FY15 NTA is estimated to rise to $1.806 (+9.3%).

*KS Energy: 80.1% owned subsidiary KS Drilling secured a US$17.4m drilling contract for work in Indonesia, which is expected to commence in Jan '17 for 14 months.

*Swing Media: Entered non-binding MOU to acquire Grace Health Group, a company that owns ~7,000 wagyu cattle in Queensland, Australia. The company currently sells its produce domestically and intends to subsequently target the Greater China market.