Wednesday, September 21, 2016

SG Market (21 Sep 16)

Traders will be in a waiting mode heading into the policy decisions by BoJ and Fed, which have the potential to trigger market volatility. Meanwhile interest is dominated by microcaps.

Regional markets opened generally muted in Tokyo (-0.1%), Seoul (-0.1%) and Sydney (+0.2%).From a technical perspective, topside resistance for STI is at 2,880, with underlying support at 2,800.

Stocks to watch:
*Economy: Credit agency Fitch has cut its growth forecast for Singapore to 1.8% from its earlier forecast of 2.1% and expects growth to only recover gradually to 2% by 2018.

*Poh Tiong Choon: Co-founders and substantial shareholders are undertaking a strategic review of their 41.3% stake and are in the process of appointing an independent corporate advisory firm. A potential offer at attractive valuations could spark a re-rating for other logistics players like Cogent Holdings.

*Asian Pay Television Trust: Instructed CDP to transfer units held by mainland Chinese investors to its trustee-manager for subsequent sale in the open market, to comply with Taiwanese regulations that limits the sectors in which Chinese investors are allowed to invest.

*Sunpower: Awarded a Rmb22.6m contract by China Shenhua Coal to Liquid and Chemical Co to provide EPC services to the E1 concentrated liquid crystallisation project in Ordos City, Mongolia. The project will be completed in 2017, and expected to have a positive impact to FY17 earnings.

*Japfa: Entered 40:60 JV with Cargill Food Investment Indonesia to manufacture unbranded cooked poultry products for the Indonesian market. The JV will lease the Boyolali factory from Japfa, and expects to commence operations in 1Q17.

*Hotel Properties: Inked management agreement with InterContinental Hotels Group to manage an 83-room resort in Maldives, scheduled to open in 3-5 years.

*China International: Currently engaged in preliminary discussions with various investors regarding a potential deal relating to its subsidiary.

*GSH: Launched 200 of the 632 units at high-end condominium Eaton Residences in Kuala Lumpur, and has received bookings for 150 units. Prices for the units measuring between 635 sf and 2,982 sf are in the range of RM1.1m-2.6m.

*Lippo Malls: Issuing $140m 7% perpetual securities, the highest priced debt this year amid the challenging environment. The retail landlord is trading at 9.1% annualised yield and 1x P/B.

No comments:

Post a Comment