SG Market (23 Jun 17)

MARKET OVERVIEW
- Market likely to range trade ahead of the long weekend and on slight disappointment over the partial unwinding of UOB's Wee Cho Yaw's stable of property holdings.
- Technically, the STI is ranging near its 50-dma at 3,213. Next support is at 3,190, with overhead resistance at 3,268.

POSITIVE NEWS
*Noble
- Surprise emergence of Abu Dhabi Financial Group (ADFG), comprising members of the Abu Dhabi royal family,
as a new substantial shareholder.
- Goldilocks Investment, an opportunistic fund launched by ADFG, acquired 66m shares at $0.4653 each in the open market on 20 Jun, raising its stake 1.2% to 5%.

*Hong Leong Asia
- 40.2% owned China Yuchai clinched tow large orders to supply bus engines to Myanmar and Saudi Arabia.
- The first is for 2,000 heavy-duty natural gas engines for Yangon's upgraded public transportation system, with another 1,000 engines to be ordered during the second phase.
- The second is to supply 600 engines to equip high-end buses for the Saudi Arabian market.

*iFAST
- Launched its pre-funded stock dealing service in SGX-listed stocks and ETFs on FSMOne.
- Brokerage fees are competitive at 12bps for stocks and 8bps for ETFs, with minimum of $10/trade, which will give retail brokers a run for their money although a large percentage of retail business still stems from the contra model.
- Trading at 47x trailing P/E and 2.6% yield.

*Secura
- Clinched a $3.2m contract from a leading global semiconductor company.
- Work includes provision of security services at two purpose-built facilities in Singapore for two years.

NEUTRAL NEWS
*UOL/UIC/Haw Par
- UOL will issue 27.3m shares in exchange for 60m UIC shares owned by Haw Par, based on 1:2.2 ratio.
- Post share swap, UOL's stake in UIC will increase to 48.9% from 44.7%, while Haw Par's stake in UOL will be raised to 43.4% from 41.5%.
- UOL has obtained SIC waiver from making a general offer for UIC. Deal is conditional upon UOL shareholders' approval of a MGO waiver by Haw Par.
- This partial unwinding of Wee's cross-holdings is likely to cool recent speculation that a privatisation of UIC could trigger a re-rating of undervalued property counters.

*Serial System
- Spinning off Serial Microelectronics (HK) (SMHK) on the main board of Hong Kong Stock Exchange.
- SMHK distributes electronic components in HK and China.
- Separately, the group intends to transfer its listing from SGX Main Board to Catalist.

*BlackGold Natural Resources
- Proposed non-underwritten placement of 66.7m new shares at $0.123 each.
- Net proceeds of $8m are intended for business investment (50%) and working capital (50%).

*M1
- Secured 3-year fixed rate term loan of $200m for working capital.
- Participating banks include CIMB, DBS, Sumitomo Mitsui.