SG Market (27 Dec 16)

Muted trading is expected to continue as investors dial back amid absence of fresh catalysts heading into the year-end holiday season.

Regional bourses opened mixed, with Tokyo (-0.04%) lower and Seoul (+0.2%) firmer.Technically, the STI has closed out the breakaway gap, with next support at 2,860 (50-dma).

Stocks to watch:
*REITs: A Business Times feature highlighted that S-REITs offer good defensive yields amid an expected increase in global volatility in 2017. MKE has Buys on CCT (TP $1.81) and Keppel REIT (TP $1.21).

*GLP: Secured a land parcel to develop logistics facilities in Greater Tokyo. The US$1.1b GLP Sagamihara will be completed in phases and ultimately provide 655,000 sqm of gross floor area across six buildings. First phase of construction will commence in 2020 following a sale-and-leaseback agreement with the seller. Project will be the largest modern logistics park in Japan when completed. Trading at 0.8x P/B.

*ST Engineering: Its AgilFence Perimeter Intrusion Detection System has met a UK standard, which is testament to its performance and capabilities as an effective protection solution. MKE last had a Hold rating and TP of $3.17.

*Sabana REIT: Adjusting the conversion price of its $80m principle amount of the 4.5% convertible sukuk due 2017 to $0.8628 from $1.0131 per unit on completion of its 42-for-100 rights issue at $0.258/unit, scheduled on 25 Jan ’17.

*Marco Polo Marine: Its auditors have raised an emphasis of matter in respect to its ability to continue as a going concern in light of the group’s debt load as well as continued losses.

*ISDN: Received in-principle approval for its proposed dual primary listing on the Main Board of the Hong Kong Stock Exchange.

*Annica: Entered conditional agreement to acquire 49% of Horizon Greentech Resources for $4.2m via shares and issue of promissory notes. Horizon is engaged in the business of extrusion and recycling of end-of-life waste tyres. Post deal, Annica’s FY15 loss per share would have narrowed to 0.18¢ from 0.40¢ on a proforma basis.

*EMAS Offshore: Entered into a final settlement agreement with Perisai relating to a US$43m put option. The proposed settlement will require EMAS to pay US$20m in cash within the next four months with an option to extend for another month, while deferring payment on the other US$23m for up to 15 years with an interest rate of 1%.

*Global Yellow Pages: Received approval from Queenstown Lakes District Council to construct 225 residential homes in New Zealand.*IHC: Postponed an EGM to replace several board members to 23 Jan from 28 Dec, after concluding that its previous announcement for the meeting had not given shareholders sufficient notice.

*Serial System: 91%-owned subsidiary entered into a JV with Besson Int’l to market, promote, sell, export and distribute semiconductor components. It will invest US$1.5m for a 51% stake in the JVCo, Newton Tech.

*Dapai Int’l: A lessee, Anhui Sanda, has terminated its rental agreement at Dapai's factory premises in Benbu City, Anhui, China.