Thursday, January 21, 2016

SG Market (21 Jan 16)

Singapore market is expected to be kept on tenterhooks following the chaotic session with late short covering on Wall Street overnight.

Regional bourses opened mixed in Tokyo (+0.4%), Seoul (+0.3%) and Sydney (+1.3%).

From a chart perspective, the STI sees immediate resistance at 2,670, with underlying support at the five-year low of 2,520.

Stocks to watch
*Healthcare. MKE maintains Overweight on sector, with top picks being Raffles Medical, Q&M and ISEC. House sees buying opportunities amid the weak sentiment, as earnings remain resilient. Catalysts stem from further expansion and M&As.

*SGX: 2QFY16 results beat on better-than-expected costs control. Net profit fell to $83.7m (-3% y/y), as revenue slipped to $194.6m (-0.2%) on a slump in securities (-9.8%) from lower daily average traded value (-11%), but partially mitigated by derivatives (+1.5%), market data & connectivity (+8.2%), and depository services (+13.7%). Proposed a higher interim DPS of 5¢ (2QFY16: 4¢).

*Frasers Commercial Trust: 1QFY16 results met expectations. Distributable income surged 18% to $19.7m from higher rental rates and first full quarter contribution from a property in Australia, while DPU rose at a slower pace to 2.51¢ (+2%) due to an enlarged unit base from a private placement. Occupancy was 92.9% (-2.5ppt q/q) with WALE of 3.3 years. Aggregate leverage stood at 36.2%. NAV/share at $1.53.

*First Resources: Dec FFB harvest climbed 4.9% y/y to 210,212 tonnes, on slightly lower FFB yield of 1.4 tonnes/ha (Dec '14: 1.5 tonnes/ha). CPO production slipped 2.4% to 15,974 tonnes, on lower extraction rate of 22.2%. (-0.9 ppt).

*GLP: Leased 79,000 sqm to five logistics companies in China. Clients include China Post and a leading global FMCG company focusing on agricultural products.

*Charisma Energy: 33:67 JV with India's Sunseap was awarded a 140MW solar farm tender, to supply electricity to the national grid for 25 years.

*JES: Updates that it is still pending a decision from the Jiangsu Court regarding its appeal for a restructuring scheme with creditors. Till a decision is finalized, negotiation with creditors are currently halted.

*SHC Capital Asia: Non-binding MOU to acquire a tourism and hospitality business in Myanmar for an indicative $75m in a RTO transaction. Company intends to seek an extension on its listing status as a cash company, due to be expired on 31 Jan 2016.

*Addvalue: Disclosed that initial in-orbit testing of its in-house developed inter-satellite data relay system have yielded extremely positive results.

*Tritech: 30:70 JV with China Finance Asset Management to tender for two water works projects in China, namely Sponge City and Smart Waterworks.

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