SG Market (28 Mar 17)

Market sentiment will likely be weighed by UK's formal notice of Brexit tomorrow, as well as the lack of details for the upcoming US tax bill.

Regional markets opened higher in Tokyo (+0.9%), Seoul (+0.4%) and Sydney (+0.8%).From chart perspective, the next level of support for the STI is at 3,100, after breaking below the last support-turned-resistance level at 3,140.

Stocks to watch:
*SingPost: Granted the renewal of its postal license for another 20 years wef 1 Apr 2017 as the group strives to differentiate itself amid the competitive logistics industry. MKE last had a Hold with TP of $1.34.

*CapitaLand: Looking to significantly increase its $2.1b multi-sector real estate presence in Vietnam, with plans to acquire more sites this year for residential development that can yield 2,000- 2,500 units. The group remains open to investment opportunities in offices, serviced residences and integrated developments. Separately, it has signed a third-party contract to manage SingPost's upcoming mall at the new SingPost Centre, thereby increasing its network to 20 shopping malls with a combined GFA of 14.2m sf. MKE last had a Hold with TP of $3.66.

*Ezion: Acquiring the remaining 50% stakes in two JVs for $5m from Swissco, its JV partner currently under judicial management. Additionally, Ezion will purchase three vessels from Swissco for US$61.9m, attached with charter contracts, receivables and charter payment guarantees. Post-transactions, pro forma FY16 NAV/share will edge up 0.3% to US$0.636, while loss per share will narrow from US$0.023 to US$0.014.

*Top Glove: Investing RM4.2m to set up a 70:30 JV with Japan-based Fimatec, to manufacture rubber reinforcing agents in a bid to lower glove production costs and improve quality.

*RHT Health Trust: In response to recent price movements and newswire article purporting that controlling unitholder Fortis Healthcare is considering a buyout, Fortis informed the trustee-manager that it is constantly evaluating various restructuring options for all its assets and investments, and will not comment on speculative positions.

*Sysma Holdings: Clinched a $4.8m contract to build a two-storey detached residential unit at Chestnut Drive. The contract commences in Apr for 20 months.

*Neo Group: 55% owned Thong Siek has secured exclusive rights to negotiate the proposed acquisition of Park Food Manufacturing. The exclusive period will run until 30 Sep '17.

*BlackGold Natural Resources: Completed its first coal delivery to Indonesian state-owned company PT Semen Padang. The US$12.6m purchase order is expected to be completed within the next 10 months.

*Compact Metal: Trading in the shares will not be suspended from 3 Apr, as the group is still awaiting the final outcome of the SGX appeal for time extension to satisfy the requirements to exit the Watch-List.