Tuesday, September 24, 2013

SG Market (24 Sep 13)

SG Market: S’pore shares are expected to take a back seat as Wall Street extended losses amid uncertainty over comments by top Fed officials and renewed concerns over possible budget and debt ceiling standoff, which offset upbeat euro-zone and Chinese PMI data. Both NY Fed President William Dudley and Atlanta Fed chief Dennis Lockhart advocated that an accommodative monetary policy is still needed, while Dallas Fed President Richard Fisher warned the central bank has harmed its credibility with the decision last week not to taper its stimulus. The mixed messages have created more uncertainty about the future direction of US monetary policy and increased volatility in financial markets. Also damping sentiment is the upcoming debate over the US federal budget and debt ceiling, which may potentially lead to a government shutdown by 1 Oct or a debt default. The quick pullback in the STI over the past 2 trading days has filled the huge gap at 3,204, created last Thu after the Fed announced its no-taper move but sentiment remains fragile with technical indicators still deep in overbought territory. Overhead resistance is tipped at 3,275 with downside support at psychological 3,200 level followed by 3,168 (50-day moving average). Stocks to watch for: *Global Logistic Properties: Signs agreement with Vipshop, one of China’s leading e-commerce companies, to develop 130,000 sqm of new built-to-suit facilities at GLP Park Dianshanhu II in Kunshan, Jiangsu province. Construction of the first phase comprising 60,000 sqm commenced in Aug 13. Vipshop is also expanding its lease at GLP Dianshanhu by another 12,000 sqm, making it one of GLP’s top 10 customers. *LionGold: Inked an ore processing agreement with ASX-listed A1 Consolidated Gold (market cap: A$22.1m), which may boost revenue over a 3-year period. Up to 150,000 tpa of ore from A1 gold mine would be processed at the Ballarat gold plant owned by subsidiary Castlemaine Goldfields. As part of the deal, LionGold will subscribe 34.5m new A1 shares @ A$0.116 apiece, representing a 19.9% stake, for A$4.7m. A1 will use the proceeds to develop its A1 gold mine, which is targeted to begin production within the next six months. *Oceanus: Cautioned that Typhoon Usagi has damaged some of the production facilities and affected its abalone stocks at its abalone farms in Guangdong and Fujian provinces. Highlighted the board currently has very preliminary information as the adverse weather has cut off road access and disrupted telecommunication availability to the farms. *Hotel Grand Central: Obtained approval for the redevelopment of the previous Hotel Grand Chancellor and Cashel Street retail and carpark in Christchurch, New Zealand which was destroyed by the Christchurch earthquake in Feb 2011. Costing an estimated NZ$100m, the proposed mxed development will have a GFA of 27,359 sqm, comprising one level of retail space (1,260 sqm), five levels of office (12,830 sqm), five levels totaling 136 hotel rooms and 64 car park lots, and will take 30 months to complete.

No comments:

Post a Comment