SG Market (22 Nov 16)

The Singapore market will likely be positively buoyed by hopes of an OPEC production cut by month-end. Within the O&M space, MKE likes Ezion (Buy, TP SGD0.42), believed to be an early beneficiary of resumption in sector spending.Regional bourses opened largely higher in Tokyo (-0.1%), Seoul (+0.7%) and Sydney (+1%).Technically, STI could test its immediate resistance at 2,820 (200-dma) followed by 2,835 (50-dma), with support seen at 2,800.

Stocks to watch:
*REITs: Global house Jefferies is bullish on S-REITs, after analysis showed the sector has historically outperformed the broader market, except for periods of high growth and low inflation. The contrarian move came after most houses turned bearish on the sector due to increased expectations for higher treasury yields following the Trump election.

*Pacific Radiance: 50% owned JV CA Offshore Investment is suing two Chinese shipyards for US$5.6m on pre-delivery instalments, after the shipyards failed to deliver two platform supply vessels.

*Lian Beng/KSH Holdings/KOP: 32%/28%/25% JVCo Epic Land proposed to dispose 17 strata office units in Prudential Tower to a third party, which has been given eight weeks exclusivity for due diligence.

*Boustead Projects: Won a JTC tender with a $88.9m bid, to develop a business park at Mediapolis. The development sits on a 9,872.5 sqm site and has gfa of 39,490 sqm, with construction expected to commence in 1Q17 and schedule completion in 4Q18.

*Declout: Proposed to undertake an off-market equal access share buyback scheme at $0.315/share (65.8% above last close) for 23m shares (3.4% of share capital), from proceeds derived from the divestment of 72.1% owned Acclivis.

*Cedar Strategic: Successfully concluded all outstanding issues identified by Baker Tilly in its special audit report, including the rectification of lapses in corporate governance and internal controls.

*iX Biopharma: Secured a patent in South Africa for WaferiX drug delivery technology, a non-invasive and pain-free alternative way of delivering pharmacologically active compounds into patients’ blood stream.

*Swiber: Disposing Swiber Atlantis, which owns the Sea Horizon vessel for US$10.3m. The vessel is no longer capable of being utilized unless significant rectification works are done. Swiber expects a net gain of US$0.2m from the transaction.