Tuesday, December 20, 2016

SG Market (20 Dec 16)

Trading in the market is expected to be muted as investors await BoJ’s monetary policy decision later today amid geopolitical concerns in Turkey and Germany.

Regional bourses opened mixed, with Tokyo (-0.1%) weaker, and Seoul (+0.4%) and Sydney (+0.6%) firmer.Technically, immediate resistance for STI is at 2,953 with underlying support at the 2,882 breakaway gap.

Stocks to watch:
*ST Engineering/Penguin. Jointly awarded a design, construct and maintenance contract for three rescue vessels by the Singapore Civil Defence Force. Construction is expected to begin in mid-2017 with delivery expected in 2019. STE has clinched new shipbuilding and ship repair contracts amounting $138m in 4Q16. MKE has Hold on STE with TP of $3.70.

*Cosco Corp: Parent Cosco Shipyard Group plans to consolidate 13 shipyards and 20 more units under its shipbuilding arm, Cosco Shipping Heavy Industry. Cosco Corp’s shares were halted on Mon, pompting speculation of possible delisting in light of the restructuring.

*Hutchison Port: Announced a co-management agreement between its 100%-owned Hongkong International Terminal, and two other JVs with Cosco Shipping Ports to set up a single team to manage 16 berths owned by the entities at terminal 4-9 of Kwai Sing, Hong Kong. This is to improve allocation of resources and capacity.*mm2 Asia: CEO Melvin Ang has acquired 1.91m shares between 14 and 19 Dec at prices ranging from $0.415-0.419/share, thereby increasing his stake by 0.19% to 45.22%.

*Thakral: JV with Living Gems Lifestyle Resorts launched its Gemlife brand of retirement housing with its first two in Queensland, Australia. Both communities are expected to house 637 homes with initial occupants moving in by mid-2017. A third site is expected to be approved for development in 1Q17 and will accommodate 207 homes. Each housing unit is expected to be sold for between A$360,000-A$575,000.

*Geo Energy: Agreed to raise coal supply to Engelhart CTP Singnapore to a minimum 7m tonnes, from the 6m contracted under an initial coal offtake agreement for Feb-Dec '17. In return, the latter will double its 2017 prepayment to US$40m.

*SGX: Its Singapore kilobar gold contract has attained the shariah standard to become the world’s first shariah-compliant gold futures.

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