- Mounting worries of a delay on the US tax bill could cap any upside on the SG market, as profit-taking activity continues amid lower liquidity towards the end of the year.
- Technically, the STI is trading just above its near-term support at 3,430 (20-dma), with the next at 3,390. Upside resistance remains at 3,475.
- Over the past weeks the Apple Store order status for the iPhone X has gone from a 3-4 week wait to available for pick-up today.
- There has yet to be indications on incumbents' re-contracting efforts, and could be an upside risk to MKE's FY17E forecasts.
- Still, the negative view on the domestic telecom space is predicated on the thesis that the incumbents would become more aggressive with handset subsidies to re-contract postpaid subscribers before TPG Telecom gets off the ground.
- MKE has Sells on both M1 (TP $1.59) and StarHub (TP $2.17), with a Hold rating on Singtel (TP $3.87).
*Frasers Commercial Trust (FCOT)
- 50:50 JV with Frasers Centrepoint to acquire Farnborough Business Park (FBP) in the UK for £174.6m.
- The 46.5 ha freehold business park in the west of London has a total net lettable area of 555,000 sf with WALE of 8.3 years and 98.1% occupancy.
- Accordingly, FCOT will expand its investment mandate to Europe, beyond existing markets Singapore and Australia.
- The REIT offers an indicative yield of 6.7% and trades at 0.9x P/B.
- Made three property acquisitions totalling $1.09b.
- Deals include a CBD commercial building Chevron House ($660m, or $2,526 psf), the collective sale of residential development Vista Park ($418m, or $1,096 psf ppr) and a stake in a residential project in Dong Nai province in Vietnam ($16.2m).
- Oxley trades at 1.81x P/B.
- Mandatory unconditional cash offer at 6.75¢/share, following a management stake buyout of 51% by hotelier and property magnate Koh Wee Meng.
- The offer price is final and the offeror intends to maintain the listing of the education provider.
- Firm is loss-making and the offer price translates to 0.89x P/B.
*Zhongmin Baihui Retail
- Diluting its stake in a 51% JV which will operate and manage the retail component at Changsha Mingfa International City in China.
- Group formed a separate 48:52 JV with Chongqing Sasseur Outlets Commercial Management, to take over its earlier 51% stake for Rmb9.5m.
- The move reduces its effective stake to 24.5%.
- Operations at the 200,000 sqm gfa shopping centre is expected to commence by end-2018.
- Last traded at 14.8x trailing P/E.
*Viva Industrial Trust
- The right of first refusal granted by Kim Seng Holdings (KSH) to income-producing properties has ended, following its cessation as a shareholder in the REIT manager.
- Offers an attractive 7.9% indicative yield and valued at 1.2x P/B.