Tuesday, December 15, 2015

SG Market (15 Dec 15)

Singapore shares could open higher, taking cue from Wall Street, which halted a global sell-down to close in positive territory in the final moments of trading amidst crude oil’s rebound from a six-year low.

However, sentiment is likely to remain fragile with underlying trends pointing to a global risk-off mode.

Regional bourses are trading higher in Seoul (+0.2%) and Australia (+0.4%) but lower in Tokyo (-0.3%).

From a chart perspective, the STI is hovering above its 2,800 support level with the next level of support forming at 2,780. Immediate resistance is seen at 2,880 (20-dma).

Stocks to watch:
*Ezion: Diversifying from the O&G segment, as it entered into an agreement with a Chinese SOE to support offshore wind power installation projects in China, located mainly along the coastal regions of China.

*OSIM: Exiting its Australian nutrition business after suffering losses of $3.5m/year for the past three years.

*Interra Resources: Entered into an MOU with Sany Heavy Industry in conjunction with the “One Belt, One Road” initiative in China. The partnership will focus on investing in energy projects.

*KrisEnergy: Abandoning an exploration well in the Sakti field after indications from wireline logs revealed that the field was below the economic threshold for a commercial discovery.

*Vallianz: Subsidiary Rawabi intends to refinance loans amounting SAR1.1b (~US$293.3m) secured against 20 vessels. Exercise involves the transfer of vessels to an SPV, and a sukuk financing.

*MMP Resources: Announced that its restructuring which began in Feb has reduced much of its debt and narrowed its business focus into micro power plants. The group is now looking for inorganic growth opportunities in renewable energy, building materials, and commercial & retail construction. It is also seeking SGX approval for a listing transfer from Mainboard to Catalist board.

*GLP: Incorporated three indirect subsidiaries in China, namely GLP Jinan Hi-Tech Logistics Facilities (capital: US$18.7m), Haipu Cold Storage Management (Rmb5.5m), and GLP Nanjing Pujiang Logistics Facilities (US$20.1m) for the provision of distribution facilities and services.

*Envictus International: Agreed to acquire an 85% stake in Lyndarahim Ventures for RM20.4m. The company operates 28 coffee outlets in Malaysia.

*Rickmers Maritime: Issued profit warning for 4Q15 after recognising impairment charges on its vessels amounting to US$129m in light of the depressed chartering markets.

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