Singapore market (13 Jun 13)

US stocks fell for a third day, as investors remained wary about a scale back in monetary stimulus. The S&P 500 closed 0.8% lower. Similarly, the Singapore market may edge lower today. Increased volatility may occur later in the day, as the China market re-opens after a three-day holiday. Market watchers expect the latter to gap down, as prices adjust for a weak set of economic data announced over the weekend and the global market rout that has played out this week. Yield plays may continue to face downward price pressure, as long term government bonds yields in both Singapore and the US rise to new highs, thereby reducing the yield spread and attractiveness of this asset class. On a positive note, Myanmar-themed stocks may come into focus, with the EU officially granting Myanmar preferential trade terms. This is another positive step forward for the country, which continues to make much economic and political progress. Stocks to watch: * Tiong Seng: To spend $15.6m to ramp up its precast plant capacity in Iskandar by 60% to 160,000 metric tons, equivalent to the supply of ~4500 HDB units annually. The first phase of production will commence in 3Q13, and full production capacity is expected by 1Q15. * RH Petrogas: Made an oil discovery at its 60% owned North Klalin-2 appraisal well in Kepala Burun PSC, located at the Sorong area, West Papua. The well encountered 103 ft of total net pay. Recent tests produced a combined rate of 105 bbl per day of oil and 1.137 MMSCFD (million standard cubic feet per day) of natural gas. This marks the first time oil is discovered within the area. * SGX: Is considering the use of dynamic circuit breakers (CIRB) on all stocks priced above 50¢. If the stock trades outside of a 10% band during trading hours, the circuit breaker will trip, triggering a five minute cooling period in which the stock can only trade within the band. Thereafter, the breaker will be lifted, and the stock will resume trading with a new adjusted price band. * Tiger Airways: Signs a three year cargo JV with Europe-based ECS Group, in which ECS will market Tiger’s cargo space. The partnership officially begins from 1 Jul. Cargo currently accounts for c.3% of Tiger’s total revenue. * Asia Fashion: Vigorously repudiates the claims amounting to Rmb 517.0m, which was made by eight customers. Says the actual sales amount sold to the customers was less than Rmb2m. The Board will be appointing independent professional legal and financial advisors to conduct detailed investigations and advise on the appropriate actions.