SG Market (29 Sep 16)

Focus will be on oil-related names following the OPEC agreement to limit production although we question if this is a Saudi ploy to talk up the oil price in order to support a US$10-15b bond issue next month. Maybank KE prefers Ezion (Buy, TP $0.45), over Keppel Corp (Sell, TP $4.50) and Sembcorp Marine (Sell, TP $1.00).

Regional markets opened higher in Tokyo (+0.8%), Seoul (+0.8%) and Sydney (+0.9%).From a technical perspective, topside resistance for STI is pegged at 2,880, with underlying support at 2,800.

Stocks to watch:
*Economy: Deputy PM Tharman notes that the Singapore economy is “in a tough period that will last for a while” and expects 2016 growth to be at lower end of 1-2% forecast, below street estimate of 1.8%. However, he sees pockets of growth in certain industries, such as tourism, healthcare and professional services.

*Water: PUB is expected to unveil the winner of a $400-500m tender for the construction of Singapore's fourth desalination plant. The six contenders are SGX-listed Hyflux, United Engineers, Sembcorp Industries and Keppel Corp, as well as China-linked MCC Land and Spain's Tedagua.

*Noble: Franklin Resources raised its stake to 6.01% via the acquisition of 25m shares on the open market on 26 Sep, at an average price of $0.138. Noble closed at $0.151 after breaking out of a channel formed earlier this month.

*Sapphire: Secured a contract worth Rmb452m ($92m) for works on the Beijing Metro Line 12. The project is targeted to be completed in four years and is expected to positively impact the group from FY17 onwards. This follows the Rmb873m award of metro and infrastructure contracts in other Chinese cities two months ago.

*Zhongmin Baihui: Entered agreement with Hui’an Hongyi Property Development to acquire a 25,466 sqm retail property located in Quanzhou City, China, for Rmb122.2m ($24.9m). The group expects to record a gain on bargain purchase of Rmb15.6m.

*Rickmers Maritime: Informed by its trustee that >25% of noteholders for its $100m 8.45% notes due 2017 have served a notice of acceleration for principal repayment. However, it did not disclose the specific default event, evidence of attaining >25% threshold nor request that the notes be redeemed immediately. The group will provide further update in due course.

*Figtree: Obtained permit for the construction of a multi-storey residential cum retail development on a 671 sqm land along La Trobe Street, Melbourne. The development will comprise 210 residential apartments, retail and cafe outlets.

*SUTL: Announced that it will provide management and consultancy services to two to-be-built marinas in Jakarta and Zhuhai.

*Trendlines: Completed sale of the 25.5% owned E.T View Medical to Ambu. The group estimates pro forma FY15 net loss to narrow from US$3.6m to US$0.9m.

*China New Town: Counter requested for a trading suspension following an earlier trading halt on 26 Sep, pending regulatory clearance from Securities & Futures Commission of Hong Kong in relation to a corporate action.*Serrano: Received letter of demand from Maybank for US$2m for overdue principal amount and accrued/penalty interests.