SG Market: Singapore shares could face further selling pressure following the sharp drop in crude price and upbeat US economic data adding more cause for the Fed to lift interest rates.
Regional markets opened lower in Tokyo (-0.1%), Seoul (-0.7%) and Sydney (-0.2%).
Immediate support for STI now seen at 2,800, with topside resistance at 2,880.
Stocks to watch:
*Banks: Jul loans rose 1.1% m/m (Jun: -0.4%) to $597b, the strongest since Jun '15. The surprise jump was mainly lifted by financial institutions (+11.9%) stemming from the hunt for yield, as well as general commerce, which cushioned the slowdown in construction lending.
*SingPost: Sold its 60% stake in Japan Self Storage for $2.4m and booked a $1.6m disposal loss, which confirms the impairment risk of the massive $579m goodwill in its balance sheet. MKE's last rating was a contrarian Sell with TP of $1.29.
*Sino Grandness. Updated that the recent 2.25m sale of shares by substantial shareholder Soleado Holdings that reduced its stake to 14.01% from 14.35% was due to Soleado's internal portfolio management. The Thai investment company has reassured that Sino Grandness remains one of its core strategic investments.
*mm2 Asia: Proposed 1-into-2 stock split to make each share more affordable to investors.
*Vallianz: Received letters of demand from Swiber's interim judicial managers for payments totalling US$63.5m. The group has declined payment arguing that the parties have substantial commercial dealing and a a practice of netting off receivables and payables. For reference, Vallianz had receivables/payables amounting US$65.9m/US$67.3m owing from/to Swiber as at Jun '16.
*SIIC Environment: Acquiring 60% in Ranhill Water Technologies for Rmb273.9m (1.3x P/B). Ranhill provides services for the industrial wastewater treatment market in China and its current concession contracts has a total design capacity of 260,000 tpd.
*Roxy Pacific: Acquired a freehold residential site, Harbour View Gardens along Pasir Panjang Road for $33.3m or ~$772 psf ppr.
*Darco Water: 60% owned unit acquired a four-storey office building in Hubei, China for $2.4m. The 1,493 sqm leasehold property (45 years) will be used for expansion.
*Otto Marine: Secured shipbuilding contracts worth US$8m, for harbour tugs from an Indonesian state-owned company. Delivery is expected in 4Q17.
*Trendlines: Commenced ADR trading on the US OTCQX under the symbol TRNLY. As there is no new issuance of shares, the ADR trading does not dilute existing shareholders.
*MMP Resources: Issuing 185.7m new shares to Singapore-based investment holding company. Vessel Gate Investment, at $0.007/share, or 75% premium on the last close. Net proceeds of $1.2m will be used to fund the potential acquisition of a Japanese ski operator.
*TSH: Following completion of recent disposals of its operating businesses, TSH has become a cash shell with cash of $32.7m ($0.136/share).
*Secura: Formed strategic alliance with M1 to be its cyber advisory and consultancy partner.
*Katrina: CFO Lee Li Eng has resigned with immediate effect to pursue personal interests.
*Aspial Corp: Repurchased $4m of the $80m notes issued at 4.5% in 2014.
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