SG Market (08 Mar 17)

A weak session would likely ensue on heightened worries of geopolitical tensions in North Asia and the region.

Regional bourses opened largely flat in Tokyo (-0.1%), Seoul (+0.2%) and Sydney (-0.1%).The STI still remains in consolidation within its uptrend channel between 3,110 and 3,170.

Stocks to watch:
*SGX: Feb securities turnover surged to $28.2b (+17% y/y, +35% m/m) over 20 trading days (Jan '17: 20 days, Feb '16: 19 days), with average daily value of $1.41b (+11% y/y, +35% m/m). The derivatives segment was mixed with total volume of 12.5m contracts (-10% y/y, +7% m/m) as trading in equity indexes slowed 14% y/y (+4% m/m), but partly mitigated by increased trading in FX futures of 7% y/y (+1% m/m). Commodities derivatives trading volume surged to 1.49m (+28% y/y, +26% m/m).

*Yanlord: S&P raises Yanlord's outlook to positive from stable, although reaffirming BB- long-term corporate rating. This is on the back of significantly improved financial leverage position, as well as expectations that Yanlord can sustain robust sales and solid margins.

*mm2 Asia: Updated that the group will lodge its preliminary offer document for the spin-off listing of events-management company UnUsUaL, after obtaining approval at the EGM to be held on 20 Mar.

*Vard: Parent Fincantieri has reiterated that the $0.24/share privatisation offer is final and it will not be revising the offer price. Closing date for the offer is on 10 Mar.

*XMH: 3QFY17 net profit slid 23.2% to $0.8m, on lower revenue of $19.5m (-27.5%), impacted by weak contribution from project business, although partially offset by improved sales in distribution. A shift in sales mix and intense competition resulted in a drop in gross margin to 24.1% (-2ppts). Bottom line was partially supported by a disposal gain of $1.1m and net FX gain of $1.4m (3QFY16: $0.4m gain). NAV/share at $0.613.

*Sarine: Management updated that the Asia Pacific diamond market has continued its steady recovery at the start of 2017 following upbeat trade shows in Hong Kong. Positive feedback towards Sarine Profile was also strong.

*IEV: Discussing with various stakeholders for a potential fund raising exercise, to support R&D efforts in advanced nano materials from rice husk and global commercialisation of its newly patented marine growth prevention solution.

*UPP: Paper manufacturer UPP secured investment from high profile individuals via a proposed placement of 40m new shares at $0.25 apiece. Investors include Mohamed Nazir Bin Abdul Razak (CIMB Chairman), John Vlasto, Hsieh Fu Hua (UOB Chairman) and Chan Chia Lin (ex-Executive Director of Fullerton Fund Management). Net proceeds of $9.9m are intended to reduce debt.

*Anchor Resources: Received approval-in-principle from Terengganu State Authority for the renewal of mining leases for its Lubuk Mandi Mine. The group will provide further updates upon the issuance of a formal renewal.

*Swiber: Judicial managers have filed for an extension until Jul to submit a proposal to creditors.