SG Market (16 Apr 13)

SG Market: S’pore shares are likely to face selling pressure after the sharp retreat on Wall Street on technical factors triggered by China’s weak 1Q GDP and heightened nervousness following 2 explosions at the Boston Marathon. Heightened tensions in the Krean peninsula also playing on the minds of traders and keep the local bourse on the back-foot. If the 3280 immediate support is breached, next line of defence is at the 3250 level. Stocks to watch out for: *Keppel Reit: Booked 20.7% y/y increase in 1Q13 net property income, mainly driven by higher occupancies, improved performance from Ocean Financial Centre and 77 King Street, lifting distributable income by 7.6% and DPU by 3.7% to 1.97¢ for 5.9% annualised distribution yield. *K-Green: 1Q13 net profit declined 9.8% to $3.2m in line with 10.5% drop in revenue. NAV falls to $1.01 from $1.05 after distribution paid in prior quarter. *Keppel Corp/Falcon Energy: Secured US$226m jackup rig order from Falcon Energy, bumping up new orders to-date to US$1.8b. *Ascendas Reit: 4QFY13 NPI slid 4.3% q/q due to flat revenue and higher M&C charges and property taxes. This, coupled with a doubling in performance fees dragged DPU down by 15.5% to 3.06¢ from 3.62¢ paid in the 3Q. *Far East Hospitality: Acquires Rendezvous Grand Hotel (298 rooms) and Rendezvous Gallery retail wing (NLA 24,700 sf) for $264.3m from Straits Trading. *SIA: Overall load factor rose 1.9 ppt to 71.5% in Mar 13. *Geo Energy: Acquiring its 5th coal mine concession in East Kalimantan with area of 4,600 ha that estimated to contain a higher calorific value coal of 7,200 kcal/kg and semi-coking coal. *Breadtalk: Entered into JV with a consortium of investors comprising Perennial Real Estate Holdings, Bright Assets Enterprise, HK-listed Shun Tak, Ron Sim and Ronald Ooi, to develop Phase 2 of 3 plots of land in Tongzhou district of Beijing, China. Breadtalk will have an effective 2.93% stake in the Beijing Tongzhou integrated project, which comes with retail, office and residence components. *Contel: Inks $582.3m RTO with vendors of e-commerce social network YuuZoo Corp via issue of up to 1.16b new 5 to 1 consolidated shares @ $0.50. *HLN Technologies: Sacked its COO Wa Kok Liang for grave misconduct and breach of duties in relation to the proposed disposal of HLN Rubber Products to Wa. *Innopac: Australian foreign investment review board has approved its takeover of Merlin Diamonds