SG Market (21 Aug 17)

MARKET OVERVIEW
- Sentiment remains wary of the White House fallout, which cast doubts on Trump's economic plans, as well as key speeches from ECB and US Fed at the annual Jackson Hole symposium this week.
- Technically, next support for STI is at 3,190, with former support-turned-resistance at 3,275.

POSITIVE NEWS
*Addvalue Technologies
- Set up billing platform to offer airtime services for IP-based voice communications to the maritime industry.
- Teamed up with Thailand partners to commence sale of equipment-cum-airtime bundle services starting from 21 Aug '17.
- Management aims to achieve monthly recurring revenue of US$0.1m in FY3/18.

NEUTRAL NEWS
*CWT
- As part of the pre-conditional offer, the shareholder meeting of HNA Group to approve its $1.4b acquisition of CWT will be held on 7 Sep.
- At last close, CWT trades at a 9.4% discount to the $2.33 offer price.

*Best World
- Controlling shareholders Dora Tan and Doreen Tan each acquired 50,000 shares at average price of $1.10 on 18 Aug.
- This raised their combined interest from 40.725% to 40.734%.

*Enviro-Hub
- Divesting its entire 12% stake in Carros Project Management to Chew Ghim Pok for $24m.
- Sale proceeds will be used for partial repayment of its outstanding $30m term loan.

*OEL
- Acquiring Maxz Universal Development Group for $41.5m in a RTO transaction.
- Consideration will be satisfied via an issue of 92.8m new shares at $0.35 apiece and $9m in cash, following a 20-to-1 share consolidation.
- Maxz Universal Development owns 93.9% of the lessee for Le Meridien hotel on Sentosa in Singapore.
- Following the RTO, the vendors will own 73.5% of the enlarged share base of OEL.

*Starburst
- Several institutional and accredited investors acquired 12.4m placement shares at $0.39 apiece (5.02% share capital) from chairman Edward Lim and managing director Yap Tin Foo.
- The two founders' stake was reduced to 70.97%.

NEGATIVE NEWS
*Dukang Distillers
- Issued negative profit warning for FY6/17.
- The weak set of results was attributed to 1) significant impairment loss for non-current assets and 2) prolonged severe air pollution and poor weather conditions, which led to stricter inspections and enforcements and impacted baijiu production and operations.