SG Market (24 Nov 16)

The Singapore market could open higher today following fresh records set in Wall Street, spurred by firm US economic data and with a fully priced in Fed rate hike in Dec.

Regional bourses opened mixed, with Tokyo (+1%) stronger after a holiday break, while Seoul (-0.2%) and Sydney (-0.1%) lost ground.Technically, the STI could head towards the next resistance level at 2,860 after breaching the 50-dma at 2,835.

Stocks to watch:
*Economy: Singapore's final GDP grew 1.1% in 3Q16, beating expectations of 1% and advance reading: 0.6%, driven by electronics, infocomm and other services. The government trimmed its 2016 growth forecast to 1-1.5% and expects the economy to expand by 1-3% in 2017.

*CapitaLand: Serviced residence unit Ascott is targeting 10,000 “Lyf” units by 2020. “Lyf” is a new brand targeted at millennials, especially entrepreneurs that desire co-living and co-working experience. Management views Singapore and China will remain as core markets with Vietnam as the key growth market. Maybank KE has a Buy call with TP of $4.06

*F&N: Exercised call option to acquire the remaining 30% stake in 70%-owned Malaysian subsidiary Yoke Food Industries, which engages in manufacturing, marketing, distributing, and exporting beverages, for RM23.4m ($7.5m).

*Acromec: Acquiring 60% of Golden Harvest Engineering, which provides air-cond and ventilation maintenance services, for $1.86m, of which $0.86m will be satisfied via new shares at $0.375 and remaining in cash over three tranches. The deal comes with profit guarantee of $0.3m each for FY17/18, and could have lifted proforma FY15 EPS by 2.2% to 3.7¢.

*Moya Holdings: Forming 51:49 JV with Maynilad Water Services to engage in provision of water and wastewater services, and investment in Indonesia.

*MMP Resources: Entered into a service agreement with Sean Tedore to review several strategic winter travel and leisure acquisitions in Hokkaido, Japan. This is in line with its ongoing strategy to expand in the travel, hospitality and leisure sector.

*Cacola Furniture: Terminated its $45m placement agreement with Advance Opportunities Fund as well as a conditional unsecured $40m loan facility.