Thursday, September 15, 2016

SG Market (15 Sep 16)

Cautious trading is expected as investors pare risks and look to BoJ and FOMC policy meetings next week.

Defensive stocks remain in favour, with yield and consumer names preferred.Regional markets slipped in early trading in Tokyo (-0.6%) and Sydney (-0.2%). Seoul market is closed for public holiday.

STI see immediate support at 2,800 (200-dma), with topside resistance at 2,880.

Stocks to watch:*Best World: Acquisition of its manufacturing facility in Singapore has been completed, enabling the direct seller to support the anticipated surge in demand for its skin care products in China. MKE last had a BUY with bonus-adjusted TP of $2.10.

*Mapletree Logistics Trust: Completed the RM160m acquisition of Mapletree Shah Alam Logistics Park in Malaysia, bringing the portfolio to 123 properties worth $5.2b. The industrial landlord trades at an indicative 6.8% yield and 1.1x P/B.

*Roxy Pacific: Acquiring a freehold residential site with land area of 7,685 sf at Jalan Eunos for $11m, or $1,020 psf ppr. Roxy intends to amalgamate it with an adjourning plot, which was previously acquired in Nov’15 at $779 psf ppr, to build apartments.*Allied Tech: Proposed acquisition of six parcels of freehold land in Malacca, Malaysia, for RM7.6m, to construct a factory for its manufacturing and operating activities. The purchase consideration will be funded by bank borrowings.

*Swiber: SGX confirms probe into possible disclosure breaches, following Swiber's shock application for winding up action.

*Kitchen Culture: Disclosed it is considering the issue of up to US$20m convertible notes to a potential investor.

*New Silkroutes: Acquiring 51% stake in loss-making Healthsciences Int'l (HSI) for $2.2m. HSI operates a complementary integrative healthcare clinic and also provides management consulting services for healthcare firms. Based on independent valuation, HSI is valued at $8.5m with book value of $2.1m.

*Secura: Formed a 50:50 JV with Bursa-listed Willowglen to provide security-related services and products in Malaysia.

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