SG Market (27 Mar 13)

SG Market: S’pore shares may extend gains as stronger economic data in US overshadow concerns in Cyprus and Europe. The STI has broken above the 3270 congestion area and is poised to test the 3300 psychological resistance before heading towards the recent high of 3320. Dowmside support lies at 3230. Stocks to watch out for: *GLP: Pre-leased 91,000 sqm at 2 new logistics parks in Harbin (completion in Jan 14) and Wuhan (completion in Jun 13) to Deppon Logistics, its 2nd largest customer in China with 267,000 sqm or 4.1% of total leased area. *Chip Eng Seng: Entered into collective purchase of San Centre at Chin Swee Road with GFA of 12,253 sqm for $113m or $857 psf ppr. The 99-year leasehold property can be redeveloped into a 20-storey commercial or mixed commercial cum hotel development. *Rotary Engrg: Secured 2 contracts worth $42m for work on Jurong Island. The 1st contract worth $30m involves EPC of 3 storage tanks for a leading independent storage O&G operator, while the 2nd contract with value of $12m is for fabrication and installation of pipe rack modules for an international speciality chemicals company. Both contracts will commence this quarter. *Chuan Hup: Terminated the leases of its Jalan Samulun shipyard. The 5,281 sqm property has less than 3 years tenure remaining and will make a $1.1m admin fee payment for the premature termination of the leases. *Global Invacom: Expanding in Asia-Pac satellite market following RTO of Radiance. This comes after securing a US$20m contract in 4Q12 to supply of satellite communications equipment to an unnamed major player in the Asian satellite pay TV market.