Wednesday, November 23, 2016

SG Market (23 Nov 16)

The Singapore market is likely to edge forward, taking cue from the record-breaking run on Wall Street and expectations of an OPEC agreement to cut output next week, but sentiment remains fragile over US President-elect Trump's anti-trade policies.

Regional bourses opened slightly higher in Seoul (+0.1%) and Sydney (+0.5%), while Tokyo is closed for Labour Thanksgiving Day. Technically, STI is sitting just above its 200-dma at 2,820 with immediate resistance at 2,840.

Stocks to watch:
*Economy: US President-elect Donald Trump's intention to pull out of the Trans-Pacific Partnership on the first day of his first day in office on 20 Jan would be a major setback for Asia and trade-reliant Singapore. Even if the other 11 other nations decide to go it alone, they may face a major hurdle as at least six members representing 85% of the total GDP of the original signatories are needed to ratify the agreement, which is not possible without the US.

*SGX: Signed MoU with Tokyo Commodity Exchange to jointly develop a LNG market in Asia. Singapore is already Asia's key trading hub for oil and refined fuel products, while Japan is the world's biggest consumer of LNG and the collaboration will make it difficult for other aspirant trading hubs like Shanghai and Seoul to break in.

*SPH/mm2 Asia: Both parties signed MoU with OTT platform RINGS.TV to jointly develop and manage a live and on-demand video application in Singapore over the next six months.

*SIIC Environment: Considering dual listing in Hong Kong next year, among fund raising options.

*Rickmers Maritime: In full default after the grace period to make interest payment of $4.3m on its 8.45% notes due in 2017 lapsed. The group continues to be in discussions with lenders to obtain standstills and/or waivers failing which, its ability to continue as a going concern will be impaired.

*DeClout: Realised disposal gain of $27.9m from the divestment of 72.1% owned Acclivis. It intends to use $7.2m of the sale proceeds to undertake an inaugural share buy-back at $0.315/share, subject to approval at an EGM on 7 Dec.

*Libra: Received US$0.8m from the termination of an option to subscribe for new shares in Neptune Aviation.

*Accrelist (formerly WE Holdings): Entered into a convertible loan agreement with Singapore Rixin Zhonghe Investment for $4m. Loans will be used for working capital purposes of its new corporate accretion services business that focuses on FinTech and Education.

*Swissco: Its JM application hearing will be held on 25 Nov.

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