Local stocks are expected to muddle along as investors weigh downbeat Oct NODX figures and await more clarity on US trade policies when president elect Donald Trump meets Japanese PM Shinzo Abe today.
Regional bourses had a lacklustre morning in Tokyo (-0.4%) and Sydney (-0.1%). Seoul will commence trading an hour later today owing to exams.STI failed to break above its 200-dma at 2,815 yesterday and is likely to inch towards its lower bound at 2,780.
Stocks to watch:
*Economy: Oct NODX slumped 12% (est: -3%, prior: -5%), dragged by a decline in both electronic (-6%) and non-electronic exports (-14.6%). Overall, shipments to top 10 markets fell, led by EU (-28.6%), Japan (-19.9%) and Indonesia (-13.1%).
*Telecom: IMDA has pre-qualified fibre service provider MyRepublic and Australian TPG Telecom to participate in the first of two spectrum auctions to be held and completed before year-end, which will pave the way for the entry of a fourth mobile operator. MKE maintains its negative view on the sector due to increased competition. M1 (Sell, TP of $1.90) will be most affected, while Singtel (Hold, TP: $3.68) is regionally more diversified and StarHub (Hold, TP: $3.50) is more focused on its enterprise business.
*Midas: 32.5% owned CRRC Nanjing Puzhen Rail Transport has secured four new metro train car supply contracts worth Rmb2.59b, with delivery slated between Aug ’17 and Mar ’19. With these orders, its JV would have accummulated Rmb7.17b of new projects YTD.
*Breadtalk: Disclosed that it has been in discussion with several third-parties to form a JV for a core business to be a franchisee and operator of an existing business in a new territory.
*Aspial: Proposed repurchase of up to $15m of its 4.5% notes due 2017 at 100.2% of principal amount from noteholders. The partial redemption will commence on 17 Nov - 2 Dec.
*Ramba: Spudded first oil from the Akatara Field of the Lemang block, South Sumatra.
*Resources Prima: Disclosed that Executive Chairman and CEO Agus Sugiono has been formally served with a notice of arbitration by Tan Kim Sing. Agus intends to seek legal advice and will defend against the claim.
*Acesian Partners: Client Takenaka Corp terminated the subcontract for works relating to the proposed development of Terminal 4 at Changi Airport.
*Asia Fashion: Entered into an agreement with G Music (HK) to organise and promote the Camomile Acoustic Night - Emi Fujiata Live in HK 2016 concert.
*Neo Group: Exiting its umisushi operations in Indonesia after ceasing renewal of its licence with PT Ubi Sushi Indonesia. Separately, it established a 51:49 JV with Gomtz to cater and manufacture cooked-food preparations.
*Swiber: Under probe by the Commercial Affairs Department for possible regulatory breaches under the Securities and Futures Act.
*Jason Holdings: Faced winding up action from creditor ANZ Bank for failing to meet a $1.7m repayment claim. The application is fixed for hearing on 2 Dec and ANZ has proposed the appointment of Nexia TS Risk Advisory as the liquidator.