SG Market (06 Sep 13)

SG Market: S’pore shares are likely to shift to down gear after Wall Street lost momentum after opening strong on robust economic data. Growth in US service industries accelerated to its fastest pace in almost eight years, while an ADP report showed the private sector added 176,000 jobs in Aug, and new jobless claims slid 9,000 to 323,000 last week, near a five-year low. The data bolstered expectations that the Fed would scale back its bond purchases as soon as this month and triggered a selloff in bonds with the benchmark 10-year Treasury yield climbing 8 bps to 2.98%. The views also prompted a rout in European bonds as yields surged to the highest levels in more than a year despite the ECB and Bank of England pleding to keep monetary policies accommodative and leaving rates uncchanged. Gains were capped by caution ahead of the key nonfarm payrolls report this Fri, as well as uncertainty over possibile of a US military action against Syria as both US and Russian leaders meet at the G-20 summit and The STI will need to break above the 3,065 resistance to reverse its current downtrend, failing which support can be found at 2,990. Stocks to watch for: *Global Logistic Properties: Leased another 17,000 sqm at three GLP parks in in Foshan, Tianjin and Suzhou to Sankyu Logistics as part of the customer’s expansion plans to meet growing demand from domestic consumption. With these new agreements, Sankyu now leases 77,000 sqm across three locations with GLP in China. *Hiap Hoe: Acquired a mixed use retail and commercial development property in Melbourne, Australia for A$105m. Located at 206 Bourke Street in the heart of CBD, the freehold property has a land area of 3,144 sqm and lettable space of 11,922 sqm with high occupancy rates and strong tenant mix. Acquisition comes with approved planning permit to build a 142-room hotel above the existing development. Ascendas REIT: Obtained TOP for its development project Nexus@one-north at Fusionpolis. The business park comprises two six-storey office toweres linked by a central plaza and skybridge with total net lettable space of 21,167 sqm, of which 58.3% has been pre-committed with another 16.2% under advanced negotiation. Among the committed tenants are National Healthcare Group, Fox Int’l Channels and Croda S’pore. *Hock Lian Seng/TA Corp/King Wan: The consortium, which includes Far East Distillers, will be launching the 420-unit luxury condominium The Skywoods at Dairy Farm Road, near the upcoming Hillview MRT station on 7-8 Sep. Developed on a 17,500 sqm site, The Skywoods will feature 28 units of 1+1 bedroom, 70 units of 2-bedroom, 210 units of 3-bedroom, 84 units of 4-bedroom and 28 penthouses with unit sizes ranging from 527sf to 1,496sf and average price of $1,250 psf. *Mineral, Oil & Gas: SGX has introduced new mainboard admission rules for mineral, oil and gas (MOG) companies to take effect from 27 Sep. MOG listing applicants that are not yet in production must have a minimum market cap of $300m and disclose plans, milestones and capex to reach production stage. All other listed MOG companies are required to have achieved indicated or contingent resources, sufficient working capital for 18 months and appoint one independent director and audit firm with relevant industry experience. *RH Petrogas: Commenced drilling of the Zircon-1 exploration well in the Salawati Kepala Burung PSC in West Papau, Indonesia. Zircon-1 is a larger prospect located 4.3km southwest of the Koi-1 discovery, which flowed 980 bopd and 2.7 mmscfd of gas in 2000. The group has a 33.2% working interest in the PSC, which covers an area of 1,097 sq km. The other partners are Petrochina (16.8%) and Pertamina (50%). *Mirach Energy: Less than 10 days after uncovering a new oil layer at its KM-607 well, group spudded another infill-well, KM-611, at its Kampung Minyak oil field. A drilling depth of 455 metres will be carried out during the second week of Sep for testing and perforations work scheduled at the third week of the month. *China Minzhong: Latest disclosure shows Indofood has acquired another 11.1m shares at the offer price of $1.12 on 5 Sep, bringing its total stake to 59.44%.