SG Market (13 Jan 17)

The market is likely to see some profit taking as the US post-election exuberance wanes amid the lack of clarity on Trump's policies.

Regional bourses opened mixed in Tokyo (+0.4%), Seoul (-0.4%) and Sydney (-0.9%).Technically, the STI is overbought with underlying support at 2,968 and topside resistance at 3,040.

Stocks to watch:
*Strategy: Financial services provider Markit projects total dividends for S'pore listed companies to rise by 0.6% to $16.4b in 2017 (2016: $16.3b, +0.4%), above Asian peers including Thailand (+0.4%), Hong Kong (-0.8%) and South Korea (-9.6%).

*Telecom: M1 and StarHub signed an MOU for a potential collaboration in mobile infrastructure sharing, to enable both companies to optimise resources to improve network coverage and capacity. The pooling could also enable both companies to reduce capex spending for the roll-out of next-generation networks.

*GLP: Reports suggest that Blackstone may vie With Warburg Pincus and a Chinese consortium to bid for the logistics facilities operator. The stock now trades at 1x P/B and a 15% discount to the consensus RNAV/share of SGD3.06.

*Duty Free Int'l: 3QFY17 results exceeded expectations as net profit jumped 26.6% to RM21.2m, lifted mainly by a net FX gain of RM9.6m (3QFY16: RM2.2m) and lower purchasing costs. However, revenue slid 13% to RM133m from a slowdown in tourism traffic from Thailand. Second interim DPS of 1.25¢ declared (3QFY16: nil). Separately, the group proposed a 2-for-5 bonus five-year warrants with exercise price of $0.43 to raise maximum gross proceeds of $205.4m for investments and working capital.

*ST Engineering: The electronics arm secured contracts worth $695m (4Q15: $435m) in 4Q16 bringing 2016 total contracts won to $2.33b (2015: $1.61b).

*Yoma: Landmark development projects have been approved by the Myanmar Investment Commission.

*Oxley: National Treasury Management Agency of Ireland will lease levels 3 to 8 of Block D1 or 11.8% of total gfa at upcoming development in Ireland, Dublin Landings, for 25 years. The lease will commence from the handover of the premises, expected in Feb 2018.

*AusGroup: To supply Shell Australia with scaffold equipment and consumables for the Prelude FLNG project in Australia’s Browse Basin, for an undisclosed sum.

*CSE Global: Acquiring 100% stake of Gulf Coast Power & Control of Louisiana for US$4.9m, which may be raised to US$5.4m upon reaching profit milestones. The target provides equipment and services to the midstream and downstream O&G industry. Post-deal, FY15 pro-forma EPS is estimated to increase 3% to 6.81¢.

*Aztech: Exit offer of $0.42/share has been declared unconditional after offeror AVS Investments garnered 52.86% control. Closing date of the offer will be on 23 Jan.

*Samurai 2K Aerosol: Placement of 20m new shares at $0.20/share was fully subscribed, with trading to debut on 16 Jan.