SG Market (01 Feb 16)

Worrying US headlines over mounting polarization, protectionism and lacklustre corporate earnings could dampen sentiment in the local market.

Regional bourses saw mixed trading this morning in Tokyo (-0.5%), Seoul (+0.5%) and Sydney (+0.2%).Technically, the overbought STI may find support at the 3,025 level, with overhead resistance at 3,110.

Stocks to watch:
*Gaming: Fitch envisaged that gaming revenues in Singapore are anticipated to remain at US$4b in 2017 on continued weak VIP segment. Both Marina Bay Sands (Las Vegas Sands) and Resorts World (Genting S’pore) will likely face additional competitive pressure from casinos in Macau and the Philippines. The credit agency also floated the risk of new gaming licences awarded by the Singapore government.

*Ezra: JV partners Chiyoda Corp and NYK Line have taken US$336m and US$115m impairment charges on their respective 35% and 25% stakes in Emas Chiyoda Subsea (ECS). Separately, UK-based offshore operator Bibby Offshore filed for arbitration against ECS (40% owned by Ezra) for US$14.7m owed from US$18m contracts performed in Trinidad in 2016. Bibby reportedly also has arrest warrants on vessels Lewek Express and AMC Ambassador.

*Ascendas India Trust: 3QFY17 DPU of Rp0.68 (+8%) met estimates, as gross revenue and NPI climbed to Rp1.88b (+7%) and Rp1.26b (+9%) respectively, lifted by recently acquired/ completed IT park CyberVale 3 and Victor building, as well as positive rental reversion. Portfolio occupancy held steady at 97%, with WALE of 3.5 years, while aggregate leverage ticked up 1ppt q/q to 30%, with average debt cost of 6.1% (2QFY17: 7%). NAV/unit at $0.71.

*Q&M Dental: Simplified non-compete and service agreements with Qinhuangdao Aidite for the latter's proposed spin-off on China's New Third Board.

*Fragrance Group: Emerged top bidder for a property in Liverpool, UK. The 4,570 sqm site has a historical building which has a floor area spanning 11,494 sqm and can be used for hotel, residential, leisure or retail purposes.

*Cordlife: Voluntary offer for KLSE-listed Stemlife has closed, with Cordlife securing 98.7% control of the company. It plans to compulsorily acquire the remaining shares.