SG Market (27 Jun 17)

MARKET OVERVIEW
- Cautious mood expected ahead of several key meetings and economic releases in the region.
- Notably, investors would keep an eye on potential catalysts from the Summer Davos held in Dalian, China, over the next 3 days.
- Probable profit taking for Noble Group (NOBL SP) after Fitch Ratings issued a widespread credit downgrade on the commodity trader due to poor liquidity and weak profitability.

POSITIVE NEWS
*Silverlake Axis
- Awarded a contract by an existing customer, a leading ASEAN bank, to implement its integrated banking solution.
- The core banking system transformation project will be for the client's international bank branches.
- Work is scheduled for completion in nine months.

*GLP
- Substantial shareholder Bank of America raised its stake from 9.98% to 10.98%.
- Acquired 47.2m shares on 20 Jun at an undisclosed sum.

*Delfi
- First State Investments (FSI) emerged as a new substantial shareholder.
- FSI acquired 914,800 shares at $2.02 each on 22 Jun via the market.
- Stake raised from 4.91% to 5.06%.

*The Trendlines
- Bayer Trendlines Ag Innovation Fund, consisting US$10m investment from Bayer and managed by Trendlines, makes its first investment.
- The investment will conduct research in crop protection, with the aim to discover and develop a pest management platform.

*Dragon Group
- MOU with HK-based Argos Enterprise for the latter to invest in two of Dragon's upcoming projects.
- First being the construction of the world's largest wooden ZhengHe Treasure Boat, with estimated investment of Rmb130m.
- Second is for the development and management of a 19.76 acres riverfront land along Yangtze River Bank.

NEGATIVE NEWS
*Noble
- Fitch Ratings downgraded Noble's credit rating to junk status.
- Group's 1) long-term foreign-currency issuer default rating, 2) senior unsecured rating and 3) outstanding senior unsecured notes cut from B- to CCC.
- The widespread credit downgrade on the commodity trader is due to poor liquidity and weak profitability.
- Separately, Noble disposed entire stakes in three subsidiaries that carry out non-ferrous metals warehousing services for US$4.7m ($6.5m).

NEUTRAL NEWS
*Second Chance Properties
- To divest property at 12 Haig Road for $10m; estimated to net a divestment gain of $0.6m.
- Disposal due to downward rental pressure amid heightened retail competition in the vicinity.

*Top Glove
- To place out up to 6.5m (including top-up option of 1.5m shares) vendor shares for $1.71 apiece, or 6.6% discount to last close.
- Retail investors have till 28 Jun to register for the placement.

*Neo Group
- Extended the exclusive negotiation period on the proposed acquisition of Lavish Dine Catering to 31 Dec '17 from 30 Jun '17.

*Vibrant Group
- To acquire ASX-listed Blackgold Intl for A$0.045/share, by way of a scheme of arrangement.