Wednesday, December 28, 2016

SG Market (28 Dec 16)

Braced for a year-end slumber after trading volumes sank to a low not seen in years yesterday although market sentiment was perked up by a surprise jump in China's industrial profits.

Regional bourses opened mixed, with Tokyo (-0.04%) and Seoul (-0.9%) weaker, and Sydney (+1%) markedly stronger.Technically, the STI bounced off the 2,860 (50-dma) support level, with immediate resistance is at 2,900.

Stocks to watch:
*Jumbo: A Business Times feature noted that analysts are bullish the seafood restaurant operator despite the lacklustre economy, due to its appetite for expansion. Medium term growth is expected to be driven by new store openings, with Jumbo negotiating for franchise and JVs in Asian countries. MKE has Buy with $0.78 TP.

*Yanlord: Acquired prime development site on the Sino-Singapore Nanjing Eco Hi-Tech Island for Rmb7.84b via a public land auction. The 541,000 sqm GFA site will comprise residential apartments, recreational facilities, hotel, offices and tourism space. Trading at 0.6x P/B.

*Ying Li: Disclosed that China Everbright bought entire 205m shares from substantial shareholder Leap Forward at $0.138/share on Fri, raising its stake in the Chongqing-based developer to 22.92% from 14.9%. Trading at 0.5x P/B.

*SATS: Acquiring an additional 10% stake in Evergreen Shy Catering from Malaysia Airlines for RM100m, boosting its ownership to 25%. This is in line with its strategy to grow the scale of its food business. MKE has Sell with $3.76 TP.

*Cosco: 51%-owned COSCO (Dalian) Shipyard has delivered a cargo teaching practice ship of 30,000 dwt to Dalian Maritime University in Oct. *Swee Hong: Disposing its freehold property at 190A and 190C Choa Chu Kang Ave 1 to Hong Ee for $3.1m and expected to record a gain of $2.6m on the sale with 80% of the net proceeds to be used towards repayment of its creditors, while the remaining will be retained as working capital.

*Rex Int'l: Secured an extension of its exploration credit facility from Skandinaviska Enskilda Banten for two more years from Dec ’16 for its Lime Petroleum Norway unit. However, the facility has been reduced from NOK700m to NOK400m (US$46m).

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