SG Market (13 Mar 17)

The local market could retract some of last week's gains, ahead of the probable rate hike this week following the strong US jobs report last Fri.

Regional bourses are mixed today in Tokyo (-0.4%), Seoul (+0.5%) and Sydney (-0.5%).The STI remains within the top end of its uptrend channel between 3,020 and 3,175.

Stocks to watch:
*SingPost: Credit ratings agency S&P has maintained its BBB+ with stable outlook credit rating on SingPost, citing expectations that the group will consolidate its operations in the logistics and express delivery markets in Asia-Pacific and the US in the next six to 12 months. MKE last had a Hold with TP of $1.34.

*OUE: Divested its 40% stake in the proposed integrated resort project in Incheon, Korea for US$22.9m ($32.3m).

*China Everbright Water: Won a bid for Hubei Suizhou High-tech Industrial Park Piaoshui and Fuhe River Basin Integrated Water Environment Restoration PPP Project. Group will own 78.4% in the project which will require a total investment of ~Rmb956m.

*Ezra: 75.3% owned EMAS Offshore terminated a bareboat charter contract for the Lewek Champion with the vessel owner, Hai Jiang 1401, with immediate effect. As guarantor of the contract, Ezra received a demand from Hai Jiang for a payment of US$194.5m, or 51% of Ezra's net assets, to be made within 15 days within termination.

*Vibrant/Figtree: Acquired a 50-years leasehold, 76,553 sqm plot of industrial land in Changsha High Tech Industrial park, Jiangsu, China for Rmb24.1m. The land will be developed into built-to-order industrial factories with the parties holding effective stakes of 48/32% respectively.

*Stamford Tyres: 3QFY17 net profit surged 154.6% to $2.3m from a low base, boosted by declines in finance costs (-16.4%) and FX losses (-71%). Revenue inched up 0.4% to $59.7m, while gross margin improved to 25.8% (+0.6ppts) on 1) lower cost of sales and 2) contribution from value-added activities at its retail chain and truck tyre centres. NAV/share at $0.514.

*CSE Global: Won two deepwater offshore projects valued at US$30 ($42m) for integrated control systems, to be executed in the Gulf of Mexico from 1Q17 to 4Q18.*Triyards: Secured US$20.6m worth of contracts for the fabrication of two passenger ferries.

*Jackspeed: Proposed issue of 50.2m new shares (20% share capital) at $0.11385 apiece to individual investor Chua Keng Woon. Net proceeds of $5.7m are intended for working capital.

*Healthway Medical: In a cashflow crunch after a proposed issue of notes did not receive SGX approval; group updated that fresh funds of $10.7m are required by 31 Mar for operations to continue.

*Saizen REIT: Updated that the proposed RTO transaction with Sime Darby Property will not be able to complete by the long-stop date on 31 Mar, and will therefore not proceed with the deal.