SG Market (14 Mar 17)

The market will likely trade within a tight range over the course of the 2-day FOMC meeting as investors await signals of future rate hikes for the year.

Regional bourses opened mixed in Tokyo (-0.06%), Seoul (+0.4%) and Sydney (-0.04%).Uptrend in the STI remains intact with immediate resistance at 3,150 and downside support at 3,120 although a bearish divergence appears to be forming between the index and 14-day RSI.

Stocks to watch:
*SGX: Relaxed renounceable rights issue cap to 100% of share capital, up from 50% previously, to help companies raise funds expediently for expansion or working capital needs in response to the emergence of disruptive forces and economic restructuring.

*Industrial REITs: Canada's two largest pension funds, Canada Pension Plan Investment Board and Ivanhoé Cambridge, have committed an aggregate US$300m for a 48% stake in LOGOS (Singapre/Indonesia), a real estate logistics operator, to invest in warehouses in Singapore and Indonesia.

*mm2: Presented a slate of eight films to be released this year at Hong Kong FILMART 2017, with productions from Hong Kong, China, Taiwan, Malaysia and Singapore.

*IREIT: Requested for S&P to withdraw its BB long-term corporate rating with stable outlook, following revised regulations that REITs will adopt a single-tier aggregate leverage limit of 45% without the requirement of a credit rating.

*Healthway Medical: No doctors reportedly turned up for work at seven of its family clinics on Monday because certain anchor doctors are on medical leave and no locum doctors could be found to relieve them. HMC has failed to pay salaries of its doctors and senior management amounting to $3.9m last month and has until the end of the month to make good on total obligations worth $10.7m. As at end 2016, its cash balance stood at $2.4m.

*Neo Group: Entered agreement with vendors for an exclusive right to negotiate the proposed acquisition of Lavish Dine Catering, as well as 80% of La Bonnie Pastries.

*China Star Food: Granted operating license from Lonyan City Food, Drug Supervision & Administrationa Bureau for its new manufacturing plant in Liancheng, China. The new factory will have a production capacity of 30,000 tonnes, exceeding the combined capacity of its two existing plants. The group intends to shift all production operations to the new plant, with commencement of production in Apr ’17.

*Asiatravel.com: Partnering M Lhuillier Financial Services to let consumers enquire, book and pay for its domestic and global travel products at the latter’s 2,000 stores across Philippines.*Trek 2000: Divesting 19% stake in Racer Technology to Willy Koh Kee Joo for $3m. The deal is expected to net a disposal loss of US$0.7m, while sales proceeds will be used for investment opportunities.

*Asiaphos: Entered into a letter of intent with Mianyang Aostar to sell an aggregate of 150,000 tonnes of phosphate rocks in FY17. Separately, the group struck a framework agreement with Sichuan Lomon Phosphorus Chemical until 31 Dec '17 to 1) purchase 120,000 tonnes of phosphates with a minimum 25% P2O5 content at Rmb270/tonne, and 2) sell 120,000 tonnes with a minimum 30% P2O5 content at Rmb355/tonne.