SG Market (08 Jun 17)

MARKET OVERVIEW
- Cautious sentiment ahead of the UK elections and ECB policy meeting today.
- Oil-related counters could come under further selling pressure as oil price slid more than 5% following a surprise build on US crude inventories.
- STI could test uptrend support line at 3,218 drawn from Nov '16, with next objective at 3,190. Immediate resistance lies at 3,250.

POSITIVE NEWS
*SGX
- Turned in improved securities turnover value of $26.5b (+23% m/m, +23% y/y) in May with daily average of $1.26b (+11% m/m, +23% y/y).
- There was one Catalist listing during the month raising $13m and 87 new bond listings raising $41.24b.
- Total derivatives volume rose to 14.73m contracts (+9% m/m, +9% y/y), underpinned by China 50 index futures with 5.86m contracts (+13% m/m, +7% y/y).
- Trades at 22.4x or 38% discount to HKEx of 36x.

*Sanli Environmental
- Trading debut for water-focused EPC contractor on Catalist board.
- IPO of 52m new shares at $0.225 was 11.8x oversubscribed. Pre-IPO investor Heliconia (Temasek-subsidiary) raised its stake to 7.97% from 5.36%.
- Main customer is PUB and eyeing $3b worth of contracts from Deep Tunnel Sewerage System.
- Listing at trailing P/E of 9.8x.

NEGATIVE NEWS
*TTJ
- 3QFY17 net profit slumped 81% to $2.6m on lower revenue of $16.8m (-69%).
- Sales deteriorated for structural steel business and absence of contributions from dormitories.
- On the flip side, order book surged to $157m (1HFY17: $59m); enquiries remain healthy.
- Trades at 11.8x trailing P/E and 1.1x P/B

*Joyas Int'l
- Auditors flagged discrepancies between unaudited and audited results for FY16, arising from disposed business.
- Audited FY16 results reflect a wider net loss to HK$21.7m (unaudited: HK$13.8m).