SG Market (20 Apr 15)

Singapore market is likely to track U.S. lower today.

On the other hand, China announced it will cut RRR by a further 100bps effective today. This may provide some support for Singapore market, especially stocks with Chinese exposure.

Technically, STI is still trading in upward trend channel but is headed for the lower trend channel now. Support-resistance at 3500-3561 respectively.

Stocks to Watch:

#ISEC: Entered into non-binding MOU with Cao Thang Corp (CTC) and Mr Nguyen Danh Khoi to operate and administer eye hospitals, ophthalmology centres and eye clinics in Vietnam. CTC holds and operates a private eye hospital and eye clinics.

#LHN: Secures seven-year master lease with seven-year option to renew for 18 Tampines Industrial Crescent with Oxley Bliss Pt Ltd. The property comprises a 3-storey and a 7-storey ramp-up building, classified B2 Clean Industrial, has 440,000 sf NLA. The master lease covers second and third floors of the 3-storey block and second to seventh storey of the 7-storey block. Expected TOP: May-June 2015.

#Envictus: Subsidiary entered into conditional sale and purchase agreement with Central Spectrum (M) Sdn Bhd to purchase eight plots of land in Selangor Halal Hub, Pulau Indah, for RM57.6m for the construction of new facilities for Envictus. The land has 82 years lease remaining.

#TT International: Will be offering Scheme Creditor (under scheme of arrangement dated 9 Sep 2009) to covert a number of their RCBs into Dilution Shares.

#Halcyon: Announces it will not renew SICOM average long-term contracts with dealers, reserve long-term contracts exclusively for Group’s consumers, and substantially increase premiums relative to SICOM price for long-term contracts.

#SIA: Receives Regulatory approval to establish Singapore-based JV with Airbus to perform civial aviation flight training for Airbus. SIA now holds 45% of JV.

#United Envirotech: Increases limit of US$300m MTN programme to US$500m

#China Taisan: Proposes consolidation of every 20 existing shares into 1 ordinary share.

#Japfa: Warns losses in 1Q2015 due to continuing weakness in poultry market and in purchasing power of low-income consumers. And (ii) translation loss from USD loans due to weakening IDR.

#Tat Hong: Expect loss for 4QFY15 as a result of significant charges for impairment of goodwill and assets as the anticipated recovery in activity levels in Australian construction sector did not materialise amidst protracted sluggish Australian economy.