SG Market (14 Sep 16)

SG Market: Singapore market will likely be weighed by the broad selloff in Wall Street amid Fed rate uncertainty and sharp drop in crude prices.

Regional markets opened lower in Tokyo (-0.6%) and Sydney (-0.1%). Seoul market is closed for public holiday.

STI sees immediate support at 2,800, with topside resistance at 2,880.

Stocks to watch:
*ComfortDelGro/SMRT: Public transport fares in Singapore could be slashed by as much as 5.7% in 2017 following a 1.9% cut this year, amid falling energy prices and deflationary pressures. MKE last had a HOLD on ComfortDelGro with TP of $2.63.

*SGX: Hopes to extend the reach of investors after procuring access to S&P Global Market Intelligence’s Alpha Factor Library for an undisclosed fee. The database will help identify sources of alpha and enhance SGX's existing index research and design capabilities, while developing further customisation of index offerings.

*Perennial: Gains immediate access to the Shanghai eldercare market after its move to acquire a 49.9% stake in Renshoutang for Rmb735.5m ($148m), or 12.9x P/EBITDA. Renshoutang currently operates a portfolio of 11 eldercare facilities comprising 2,400 beds and related assets, located predominantly in Changning district in Shanghai, China.

*Bumitama Agri: Proposed acquisition of a 95% stake in Gemiland Makmur Subur for $1.3m will boost its land bank by 2.5% to 212,190 ha. MKE last had a Buy with TP of $0.97.

*Darco Water: Secured $19.8m worth of orders comprising a desalination project for the Bajiao power plant in Shandong, China ($9.9m), wastewater treatment EPC contract in Malaysia ($2.4m) and a pneumatic waste conveyance system system in Singapore ($4.4m). The new contracts are expected to have a positive material impact for the group in FY16.

*iX Biopharma: Received positive test results for its novel sublingual sildenafil wafer (PheoniX) study, and will subsequently apply for the registration of the erectile dysfunction therapy for sale in Australia.

*Uni-Asia: Jointly investing with real estate investment firm CPG, in a small residential property project in Japan. Uni-Asia will pay US$0.5m for a 20% stake in the JV and provide fee-based development and investment management services to the project.

*Regal Int'l: 55%-owned subsidiary entered into a Heads of Agreement with the China-Malaysia Qinzhou Industrial Park Administrative Committee for potential development projects in an industrial park situated in Qinzhou, China.

*Equation Summit: Wal-Mart has launched the proof-of-concept of Equation's asset protection technology for tablets sold at the store. Essentially, the technology is aimed at improving the retail eco-system by preventing theft via locking the device digitally until the point-of-sale.

*Samudera Shipping: Has existing slot exchange arrangements with beleaguered Hanjin Shipping for various services. Net exposure is estimated at US$2.5m-US$3m. It is currently looking for replacement cargo and will undertake the realignment of service routes to mitigate the impact from Hanjin’s bankruptcy proceedings.

*Hoe Leong: Otto Marine withdrew application with Singapore High Court to wind up Hoe Leong after the latter paid US$0.9m without admission of liability that the debt is due.