SG Market (06 Apr 18)

MARKET OVERVIEW
- Brace for another volatile session ahead after US President Trump ratcheted up tensions with China, urging tariffs on an additional US$100b worth of Chinese goods.
- Technically, the STI sees support at the 3,370 level followed by 3,340. Topside resistance seen at 3,440.

NEGATIVE NEWS
*Noble
- SGX has asked senior creditors to reconsider the restructuring proposal so as to allow shareholders to freely vote on the proposal.
- Under the current proposal, the group will move its assets into a new HoldCo, with existing shareholders receiving only 10% stake in the restructured entity.
- Separately, Prudential has ceased to be a substantial shareholder after it sold 1m shares at $0.072 apiece, bringing its stake to 4.97% (prior: 5.04%).

NEUTRAL NEWS
*DBS
- Aims for 30% reduction in corporate cheque payments by 2020 in a bid to increase the popularity of digital payments among consumers.
- In the past 12 months, it has seen a five-fold increase in corporate clients requesting for digital payment solutions.
- Last traded at 1.47x P/B.
- MKE has a Hold with TP of $29.66.

*Keppel Corp
- Divested Shanghai International Plaza, an office and retail mixed-use property in China for an undisclosed sum.
- The US$133m investment entered in 2014 reaped an internal rate of return of close to 20% following the sale.
- Trades at 14.2x forward P/E and 1.22x P/B.

*UOL
- Purchased 148,000 UIC shares at $3.29 apiece to bring its stake to 49.841%.
- Last traded at 26% discount to RNAV of $11.55.
- MKE has a Buy with TP of $10.40.

*Alliance Mineral (AMA)
- Merging with ASX-listed Tawana Resources.
- Shareholders of Tawana Resources will receive 1.1 new AMA shares for each Tawana share held.
- Existing AMA shareholders will hold a 51% stake in the merged entity.
- Pro-forma market cap of the merged entity estimated at A$446m, making it a mid-tier producer of lithium concentrate.
- Transaction expected to be completed by 4Q18.

*Soo Kee
- Changing its name to SK Jewellery, subject to shareholder approval at an EGM to be held on 30 Apr at 11am.