SG Market

SG Market: likely to be quiet as investors wind down ahead of Christmas amid thin newsflow. However keep a look out for jitters in the market as S. Korea plans to go ahead with a planned live firing artillery drill today that has prompted N. Korean threats of retaliation…

The STI, which closed +0.2% at 3153 Friday but -1.0% for the week, is expected to hold below 3200, a level not tested since Dec 10; support expected at Nov low of 3118. Do not rule out possibility of some yr-end window dressing toward end of the month, although any upside likely to be modest, accompanied by light volume.

#Stocks to watch:
* China Fishery: may outperform the market on expectations of higher valuations as the fishing group seeks a dual listing in HK; counter stock closed +4.6% at $2.26 Friday.
* Pacific Andes: parent of China Fishery, which owns 70% stake, may play catch up. Counter closed unchg at $0.345 on Friday.
* Ziwo: approval from the Securities and Futures Bureau of Taiwan Financial Supervisory Commission, Executive Yuan to list up to 71.2m TDRs (1 TDR = 1.25 shares). Indicative offer price not yet determined.
* Yanlord: picks up 150k sqm gfa prime residential site in Longgang, Shenzhen for RMB 945m at public land auction; this translates to an avg purchase price of RMB 6313 psm ppr.
* Contel: lifts trading halt at 9am. Mgt cautions that the proposed acquisition is subject to numerous conditions and there is no certainty that the RTO will be completed on the terms set out in the earlier announcement.
* SIA: recent weakness likely due to disruption at some of Europe’s busiest airports, including Frankfurt, Schipol and Heathrow caused by heavy snow. Separately, SIA to take an undisclosed stake in a Rmb 1b cargo venture with China Eastern Airlines (51% stake) and EVA Air.
* HLN Tech: lift halt at 9am. Makes foray into PRC real estate development, with proposed Rmb 73.5m acquisition of up to 58% interest in Greatly Holdings Invmt from Tan Jian You (the "Vendor").
* Boustead / TT Int’l: Boustead’s deadline to sign the Heads of Agreement with TT Int’l to invest in the Big Box (mixed warehouse and retail store) has lapsed.
* Teckwah: to acquire 3 units of factories in the Iskandar Development Zone for RM15.7m. The packaging, distribution and logistics firm plans to expand its pharmaceutical packaging pdtn facilities.
* Eu Yan Sang: acquired 90% interest in Macau firm Yan Sang Biotech for HK$6.1m. The latter is involved in the pdtn and sale of Chinese medicine and health products.
* Vibropower Corp: issues FY profit warning, due to expected loss from the failure of a major customer of the group to fulfill payment obligations of an outstanding debt of ~US$1.4m