SG Market (26 Apr 13)

SG Market: S’pore shares could see a positive start, tracking upbeat US leads, after reaching its highest close in more than 5 years. On Thu, the STI broke past its 3320 resistance, above a 3-month consolidation pattern, whcich could set the index up for the next run to the next stop at the 3400 psychological level. The key domestic risk will be Mar industrial production data due today. Olam will be in in focus after saying it will slow its pace of investments and reduce loans, addressing some of the key concerns raised by short-seller Muddy Waters. Stocks to watch out for: *Olam: Strategic review plans to generate free cashflow more quickly, reduce gearing and capex and streamline its business to make it less complex. Aims to optimise balance sheet through sale and leaseback deals for its 20-odd upstream assets, into an asset securitisation structure akin to a business trust structure. *Suntec: 1Q13 distributable income -8.4% to $47.6m, DPU -9.2% to 2.228¢, which translates to an annualised yield of 4.5%. Gross revenue -32.2%, NPI -37.4% due to partial closure of Suntec City Mall and Suntec S’pore for ongoing AEI works. *Sheng Siong: 1Q13 core net profit +31.3% to $10.5m on +12.3% revenue growth to $179.4m, mainly from contributions from new stores and improved gross margins. *Technics O&G: Appalling 2Q13 results with net profit plunging to near breakeven vs $6.1m in prior year as revenue dived 84% to $8.2m due to spin-off of Norr Offshore Group and significant drop in sales. *Sembcorp Marine: Subsidiary Singmarine secured £7m UK contract to fabricate bridge and flare structures for Nexen Petroleum’s Golden Eagle project with delivery in May 14.