SG Market (19 Jan 17)

Market participants are expected to tread lightly in the next few weeks as they wait for a clearer picture of 4Q corporate results and the outlook for 2017, and Trump's trade policies after he steps into office.

Regional bourses opened higher in Tokyo (+0.9%), Seoul (+0.2%) and Sydney (+0.4%).Technically, the STI is pulling back from overbought level with underlying support at 2,968 and topside resistance at 3,040.

Stocks to watch:
*Sembcorp Industries: Awarded a US$300m build-own-transfer contract by Ministry of Electricity and Energy of Myanmar for a 225MW gas-fired power plant in Mandalay, with concession period of 22 years. MKE last had a Hold with TP of $2.40.

*ST Engineering: Conditionally agreed to purchase a 51% stake in SP Telecommunications, which owns an extensive network of fibre optic back-haul infrastructure and facilities in Singapore, for $54-60m.

*City Dev: Proposed acquisition of a 24% stake in Distrii, a China-based operator of co-working spaces in Shanghai for Rmb72m ($14.9m). Distrii currently has a capacity for >2,200 members across nine different locations, of which 80% is filled. Distrii will be opening a new facility in Beijing in 1H17 and plans to further expand into Guangzhou, Shenzhen and other global gateway cities. Additionally, Distrii will take up ~60,000 sf of space (currently leased out) in CDL's Republic Plaza Tower 1, and expects to commence operations in 1H18.

*Straits Trading: Acquiring a freehold 14-storey rental residential apartment in Osaka, Japan, for ¥924.7m ($11.6m). The property has NLA of 2,992.8 sqm and 95% occupancy, as at end-Dec '16, for its 120 apartment units.

*Sunpower: Formed a 51:10:39 JVCo with CITIC Envirotech and Guangdong Keying Zhiran Environmental, to undertake a Rmb1.6b ($331m) project in Shantou, Guangdong. The JVCo will undertake the investment, design, build and operation of a cogeneration plant, with construction expected for completion by 1H18.

*Sino Grandness: Entered into strategic agreement with LYZB E-Commerce to distribute the group's products including Garden Fresh beverages and Grandness canned food, through the latter's mobile internet platform "Ji Shi Hui".

*Singapore Myanmar Investco: JV partner Golden Infrastructure Group plans to submit a criminal complaint against its directors and management for possible breaches, relating to the JVCo's proposed US$12.7m divestment of its 97% stake in a telecom tower business.

*IHC: Disclosed the letter from activist investor Quarz Capital Management, which called for the entire replacement of IHC's board due to their inactivity to stop destruction to shareholder value. In response, IHC's board deems the accusations not accurate and imperative for existing members to stay on to assure continuity to the group's business partners and financial supporters.

*Wong Fong: Established a 60% owned subsidiary in Myanmar with three other individuals to undertake distribution of heavy and construction machinery in the country.

*China New Town: Disclosed that an administrative lapse caused the trading delay up to 10.15am on 18 Jan.

*Cosco: 51% subsidiary Cosco Shipyard delivered a salvage lifting vessel and a bulk carrier to their Chinese and European buyers.

*Ipco: Terminated the proposed placement of 1.06b new shares at 0.18¢ each after the long stop date has passed.