Friday, December 2, 2016

SG Market (02 Dec 16)

Investors are likely to take some gains off the table on renewed fears of a potential political crisis in EU ahead of the Italy referendum this weekend. Regional bourses opened lower today in Tokyo (-0.5%), Seoul (-0.6%) and Sydney (-0.3%).Technically, STI appears a little stretched, with topside resistance at 2,950 and support at 2,882 breakaway gap.

Stocks to watch:
*STI: No change will be made to the constituents of the FTSE STI in its Dec quarterly review. The reserve list comprises Suntec REIT, Mapletree Commercial Trust, Keppel REIT, First Resources and Sing Post.

*GLP: Appointed JP Morgan as its financial adviser to undertake an independent strategic review to enhance shareholder value after it reportedly attracted unsolicited interest from a consortium comprising China's sovereign fund, CIC, Hopu Investment Management and Hillhouse Capital Management. GIC holds a 37% stake in GLP, while Hillhouse owns 8.2%. Hopu was part of a consortium that invested US$2.5b in GLP China in 2014. GLP trades at 0.79x P/B.

*Midas: Secured two new contracts in China worth Rmb79.8m, two in Europe totalling Rmb137.7m and one in the Middle East for Rmb14.6m. These orders are slated for delivery in 2017 and expected to contribute positively to FY17 earnings.

*Noble: Completed the disposal of Noble Americas Energy Solutions business for US$1.16b.

*Vard: Closing date of the privatisation offer from parent Fincantieri at $0.24/share will be on 29 Dec.

*Ezra: Extended the put option exercise date granted to Perisai Petroleum for sale of its 51% stake in SJR Marine to the group for US$43m to within one month from 9 Dec.

*Jasper Investments: Appointed as the project manager by main contractor Guangdong Zhuhai LuYuan Construction (GZLY) for marine transportation of aggregates and other construction materials to support the HK-Zhuhai-Macau Bridge projects. The assignment is expected to commence soon for a period of two years. The group is confident of winning more assignments from GZLY.

*Allied Technologies: Seeking approvals to transfer from Mainboard to the Catalist, as group sees difficulty in meeting the $0.20 minimum trading price requirement.

*Epicentre: Entered MOU to negotiate exclusively with hair removal and skin rejuvenation group Japan IPL Holdings on a potential cooperation, JV and/or acquisition for a two-month period.

*OKH: Disclosed that Executive Director and Deputy CEO Bon Ween Fong have been removed from Interpol Red Notice list.

*ISR Capital: ISR CEO Quah Su-Yin claimed that there is no direct or indirect link between the group and the 2013 penny stock saga, save for the fact that she is the sister of one of the co-accused persons. Shares of ISR have been suspended since 27 Nov.

*Swiber: Singapore High Court has granted Swiber an extension until 23 Mar ’17, for judicial managers to send creditors a statement of proposals and summon a creditors’ meeting.

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