SG Market (21 Jun 17)

MARKET OVERVIEW
- Choppy trading likely to continue, particularly in oil-related counters as crude prices sagged to their lowest level this year, while the partial inclusion of China A-shares in MSCI EM Index might boost sentiment.
- Technically, STI dipped below its 20-dma and is sitting near its immediate support at 3,228, with next level at 3,190. Topside resistance remains at 3,268.

POSITIVE NEWS
*Haw Par/UOL/UIC
- All three of UOB's Wee family controlled companies have requested for trading halt pending announcement.
- Potential corporate action includes the long-awaited major restructuring and unwinding of cross-holdings to unlock value for shareholders, particularly for Haw Par.
- UOB owns a 9.9% interest in Haw Par, which holds direct stakes in UIC (0.5%) and UOL (5.6%). UOL, in turn, owns 44.6% of UIC.

*Manulife US REIT
- Private placement of 73.6m new units was over-subscribed, triggering the upsize option. In total, 97m new units were issued at US$0.83 apiece, raising gross proceeds of US$80.5m.
- Bulk of proceeds will be used to part-fund its maiden acquisition since IPO of a New Jersey office building for US$115m.
- The street is bullish on MUST with 4 Buys and consensus TP of US$0.97.

*Ho Bee Land
- Acquiring freehold property at 67 Lombard Street in London for £129.3m ($228m) giving 4.1% net yield.
- The property is currently multi-let to six tenants with WALE of 10.2 years.
- MKE has a Buy with TP of $3.00 or 29% discount to its RNAV/share of $4.23.

*OKP Holdings:
- Secured $8.8m eight-month project from JTC to construct a temporary road at Bulim in Jurong West.
- The contract will raise its net construction order book to $326.6m, extending till 2019.

*Ouhua Energy
- Removed from the SGX watchlist (financial criteria) in view of its return to profitability in FY15 and FY16.
- However, it remains on the SGX MTP watchlist.

NEGATIVE NEWS
*Nam Cheong
- Received a writ of summons from OCBC in Malaysia, claiming for US$10m arising from owings.
- Last traded at 0.14x P/B.

NEUTRAL NEWS
*mm2 Asia
- Obtained SGX approval in-principle to transfer from Catalist to the Mainboard.

*DMX Tech
- Divesting 60% stake in PT Packet Systems Indonesia for $10.4m (US$7.5m).
- This will raise cash to pay audit fees relating to investigations by the Hong Kong police.
- Expects to reap a nominal gain of $17,873 from the sale.