Thursday, December 22, 2016

SG Market (22 Dec 16)

Bias for the market is tilted to the downside today amid a pullback in US equities, as well as a surprise increase in US crude stockpile could weigh on the O&M sector and banks.

Regional bourses opened mixed, with Tokyo (-0.3%) treading lower, while Seoul (+0.1%) and Sydney (+0.3%) edging higher.Immediate resistance for STI remains at 2,953, while underlying support is at the 2,882 breakaway gap.

Stocks to watch:
*Keppel Corp: Awarded contract by PUB to design, build, own, and operate Singapore’s fourth desalination plant at Marina East for a concession of 25 years. The plant is expected to be operational in 2020, and will be able to treat both sea and fresh water to produce 137,000 cubic metres of fresh water per day.

*Sembcorp Industries: Secured project financing of US$309m for its Sirajganj power project in Bangladesh from the World Bank, Clifford Capital and CDC Group. The construction work on the 414MW BOO power plant has since commenced at a cost of US$412m.

*SIA Engineering: Renewed services agreement with SIA Cargo, which is expiring this year. The 3-year extension with options to renew for another five years is expected to yield revenue of up to $250m over the 8-year term.

*GMG Global: Delisting from the SGX wef 23 Dec following its takeover by Halcyon Agri. *IHC: In progress of seeking funding sources for two $50m MTNs maturing on 27 Apr ’17 and 6 Feb ’18. It expects to continue divesting non-core assets to meet their debt obligations and currently has no firm plan to extend the maturity date of both bond issuances.

*Delong: Entered into binding MOUs with minority shareholders of Delong Thailand to dispose its 55% stake in the company for $15.5m. It expects to record a $0.1m gain from the divestment.*SBI Offshore: Won a high court battle to claim $0.63m from a former executive director and CEO Tan Woo Thian, for outstanding amount from the latter’s guarantee of an advance for an acquisition, which the company did not proceed with. The sum is payable to the group by 13 Jan ’17.

*Dapai: Leasing 30,857 sqm of its factory premises at Chengbei Industrial Zone, Fujian, China to Quanzhou Dachuangyuan Tourism Supplies for two years at an annual rental of Rmb2.6m. Dachuangyuan will also purchase existing inventories at the factory at a 30% bulk discount, which amounts to a Rmb5.7m loss against carrying costs.

*Profit warning: Global Invacom

No comments:

Post a Comment