Friday, September 23, 2016

SG Market (23 Sep 16)

The local market is still struggling on a dearth of news flow and catalysts despite the Fed clearing the way for low interest rate environment to persist for a little longer. That said, rising oil prices could bring some relief for the battered O&M sector.

Regional markets opened mixed, with Tokyo (-0.2%) lower, although Seoul (+0.2%) and Sydney (+0.3%) were firmer.Judging by yesterday's performance, the STI faces heavy resistance near the 2,880 level, with bottom-side support at 2,800.

Stocks to watch:
*CapitaLand: Acquired prime 0.50ha land site in Ho Chi Minh City for USD51.9m, which will be redeveloped into a mixed-used development, comprising 304 residential units and serviced apartments, with estimated project value of US$106m.

*SGX: Launching more LNG derivative products in 2Q17, in its bid to gain pricing dominance for that commodity. The new contracts will be based on its new North Asia price index.

*Lum Chang: 50% JV Dorado Holdings is acquiring property investment firm Corwin Holding, which owns Chill@The Verge (8-storey shopping mall), for S$189.8m.

*CNMC Goldmine: Its Sokor gold mine has to-date produced more than 100,000oz of fine gold since production commenced in 2010, far exceeding initial reserve estimates of 70,300oz of gold ore in its Aug ’11 technical review.

*Santak Holdings: Updated that the discussion with a potential buyer for the proposed disposal of its loss-making China operations is still on-going, and has not arrived at any definitive agreements.

*Golden Energy & Resources (suspended): 67%-owned PT Golden Energy Mines, and 99.9%-owned PT Kuansing have jointly acquired 100% stake in PT Era Mitra Selaras for US$37.2m, which was fully funded by internal resources. The target has proven plus probable coal reserves of 68m tonnes.

*Overseas Education: Repurchased $7m worth of 5.2% bonds issued on 17 Apr ’14 due in 2019. It currently has a remaining $143m in bonds due in the same year.

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