The market could lose further ground as the US Congress heads for a key healthcare vote that is seen as a proxy to President Trump's ability to keep his big promises to business.
Regional markets opened slightly higher in Tokyo (+0.03%), Seoul (+0.2%), and Sydney (+0.1%).Notably, STI has broken below the lower bound of its 2-month uptrend channel at 3,140, with the next near-term support at 3,090.
Stocks to watch:
*ST Engineering: Awarded a contract by MINDEF for the production and supply of the Next Generation Armoured Fighting Vehicle (AFV) for an undisclosed amount. The AFV will replace the ageing Ultra M113 fleet, which has been in service since early-70s. SAF currently has ~1,000 M113A2s, some of which have been replaced by the Bionix IFV. Delivery of the new AFVs will begin in 2019. MKE last had a Hold with TP of $3.17.
*YuuZoo: Acquired an exclusive option to buy Cinram Europe, a European logistics and distribution company with five distribution centres totalling 1m sf, from US-based 46 State Street via issue of 7.5m shares ($0.9m based on last closing price). The deal is subject to due diligence and expires on 30 Jun '17. Cinram recorded FY16 revenue and EBITDA of $261m and $7.4m respectively.
*Kingboard Copper: Appointed Religare Capital Markets Corporate Finance to act as the financial adviser for its voluntary unconditional privatisation offer of $0.40 each. The offer circular is expected to be sent out within 14 days from 20 Mar.
*Loyz Energy: Disclosed that it does not have any business and financial dealings with Ezra. However, it highlighted that Ezra's CEO, Lionel Lee, is a substantial shareholder with a 9.9% stake, and is the corporate guarantor for loans totalling US$22.6m.
*AIMS AMP REIT: Issued $50m 3.6% fixed rate notes due 2022.