SG Market (06 Apr 17)

The market could lose momentum, taking cue from the biggest one-day reversal in Wall Street since Feb 2016 after FOMC minutes signalled a shift by the Fed towards unwinding its massive US$4.5t balance sheet this year, and on disappointment over the pace of US tax reform as well as a pullback in crude prices.

Regional markets opened lower in Tokyo (-0.5%), Seoul (-0.6%) and Sydney (-0.3%).Technically, immediate support for the STI is seen at 3,140, with topside resistance at 3,200.

Stocks to watch:
*Land Transport: The Public Transport Council has begun the review of the 2018 public transport fare adjustment formula and mechanism, targeted to be completed by 1Q18, with hints of a possible hike. Within the sector, MKE last had a Hold rating on ComfortDelGro with TP of $2.68, with a bearish outlook for its taxi segment.

*GLP: Signed 264,000 sqm of new leases over the past three months with global demand coming from third-party logistics providers, including Best Logistics in China and a new e-commerce customer in Brazil. The group is still in discussions with several shortlisted parties and due diligence has commenced over a potential buyout. At last close, GLP trades at a 9.8% discount to consensus RNAV/share of $3.06.

*Oxley: Terminated a term sheet with Wyndham Hotel to operate a Days hotel in Batam, Indonesia.

*Spindex: Mandatory privatisation offer of $0.85/share will close on 12 Apr. As at 30 Mar, the offeror has obtained valid acceptances for 65.27% of share capital.*Serial System: Proposed to acquire a 70% stake in printing business Print IQ Singapore for $0.3m, to broaden the scope of its consumer products distribution business.

*SHS Holdings: Signed MOU to develop a 300MW solar farm in Ninh Thuan Province, Vietnam, for a yet-to-be-disclosed amount.

*KS Energy: Expects overall operating cash flow to remain negative for the next 12 months. However, the group anticipates cash flow to be positive before working capital changes, boosted by existing and prospective rig charter contracts.

*Cheung Woh Technologies: Expects to report a 4QFY17 loss, due to lower sales generated and higher costs incurred for the HDD components segment.

*Mercator Lines: Entered an agreement for the proposed transfer of its listing status to Essence Holdco, an Australian firm to be incorporated by two individuals, Nickolaos Mitropoulos and Dimitrios Podaridis via a scheme of arrangement, and for it to be listed on the Catalist board. Three companies, Champion Commodities, County Fresh Milk and Champion Beverages will be injected into Essence, which will place out $5m new shares to shareholders and creditors and $1m to the judicial manager.

*Maxi-Cash: Established a $300m multicurrency medium term note programme with DBS as its sole arranger, with net proceeds used for general corporate purposes.