Sentiment may be lifted by upbeat economic data in US and China, as well as Fed’s optimistic outlook on the US economy, but upside gains may be capped by continued jitters over Trump’s policies amid an overbought market.
Regional bourses are mostly flat in Tokyo (+0.02%), Seoul (-0.01%) and Sydney (+0.1%).Technically, the STI broke new ground to a 14-month high and appears headed to the next objective at 3,110. Underlying support is at 3,025.
Stocks to watch:
*GLP: Added two distribution facilities in Chicago with combined space of 448,000 sf for US$33m, bringing total space in the state/country to 11m/173m sf. The logistics facilities owner currently trades at a 16% discount to its RNAV/share of $3.06.
*Roxy-Pacific: Appointed Jones Lang LaSalle and Colliers International as the joint marketing agents for the proposed sale of its property in Sydney, Australia, located at 59 Goulburn Street. The commercial property was previously acquired in Apr '14 for A$90.2m.
*k1 Ventures: Swung into 2QFY17 net profit of $6.6m (2QFY16: $8.5m loss), mainly from a FX gain of $5.1m, as well as an absence of a FX loss of $17.6m last year from the voluntary liquidation of Focus Up Holdings. However, revenue slumped 74% to $3.5m from reduced investment income from Knowledge Universe Holdings. The group disclosed it will not be making any new investments, but will focus its efforts on managing the current portfolio. NAV/share at $0.44.
*Loyz Energy: Turned around in 2QFY17 with net profit of US$0.9m (2QFY16: US$0.6m loss) on revenue of US$2.6m (+8.3%), buoyed by higher selling price of US$44.85 per barrel (+29.4%). Bottom line was boosted by a US$0.8m gain on settlement of bond receivable from Farm Exploration as well as reduced staff costs. NAV/share at US$0.028.
*HC Surgical Specialists: Acquiring a 51% stake in Julian Ong Endoscopy & Surgery, which intends to set up its first clinic at Mount Elizabeth Novena Hospital. The consideration of $2.2m comprises cash of $1.6m and 1m new HCSS shares at $0.6059 apiece. Pro forma FY5/16 EPS of 1.86¢ (-0.5%) implies a P/E of 32.3x.
*Technics Oil & Gas: Judicial manager of the group is divesting the entire 51% stake in structural steel manufacturer Technics Steel to TTJ Holdings for $0.35m.
*Gallant Ventures: Incorporated a 80:20 Singapore-based subsidiary, Teachcast Global, to engage in education services.
*Spackman: Commenced filming "Golden Slumber", a manhunt thriller directed by Nakamura Yoshihiro and is based on the Japanese novel by Isaka Kotaro, which is targeted for release in Korean theatres in 2H17.
*Moya Holdings: Disclosed that it is currently considering a potential acquisition, which is in water business.