DBS (technical)

DBS - Technicals appear to be trending higher with RSI and Stochastics all exhibiting uptrend signals. Share price has also breached past its 50day ma at $16.34. The next resistance would be the 200 day MA at $16.55

Suntec

Suntec: Raised $350m of equity on 19 Mar, raising free float market cap to $3.9b following it’s a$413m acquisition of 177 Pacific Highway in North Sydney in 4Q13. It is now the 2nd most liquid S-REIT. Gearing is expected to fall to 34% post equity raising, before rising to ~36% upon the expected completion of 177 Pacific Highway in 2016. StanChart thinks that Suntec REIT might buy Straits Trading Building in 2014 using debt, which will be neutral to the house. StanChart maintains O/PF on Suntec with slightly reduced TP to $1.83 from $1.88.

Charisma

Charisma: Had a series of corporate announcements yesterday. The first, it secured a contract worth US$180m over 15 years to lease 11 sets of hydro-electric power generation equipment to supply power to a national utility board in South Asia. The lease is expected to commence 2Q14 The second is the sales contract secured for delivery of a rig. The transaction is expected to be completed in 2Q14 and is expected to contribute a net profit of ~US$7m. The above 2 transactions are expected to have a positive impact towards NTA and EPS in FY14. Meanwhile, it has also terminated a contract to provide a rig to support contract with a SE Asian based national oil company based in the Andaman Sea.

Pacific Radiance

Pacific Radiance: Has bagged contract for up to US$100m for its latest maintenance work vessel (MWV) which is also the first of 14 newbuilds scheduled for delivery in FY14. The MWV will be chartered to an international oil major for up to seven years, including extensions. The MWV, which will be deployed to provide maintenance services for a project in SE Asia is expected to contribute to earnings from 2QFY14.

Nam Cheong

Nam Cheong: Following Nam Cheong’s recent contract wins for two vessels worth ~US$43.1m, which brought its orderbook to RM1.4b, we note of a wave of buy reiterations on the counter. Accordingly, Nam Cheong’s recent share price decline in recent months was attributed to comments made by Petronas which cautioned of falling charter rates in Malaysia and the possibility of an over-supply of OSVs in Malaysia. Analysts have however been quick to shrug this off, deeming the concerns as unfounded and highlighting the expansion of financing to OSV owners by the Malaysia Development Bank which will enable boost demand for vessels. Furthermore, the strong charter momentum should act as an impetus for vessel owners to continue turning to build-to-stock players for early delivery.

GLP

GLP: Global Logistic Properties (GLP) leased 21,000 sqm of space at GLP Hiroshima to Sagawa Global Logistics- one of the largest third-party logistics providers in Japan. Separately, the largest logistics property company in China was featured in a recent news article on its busy 2013 and packed 2014, as well as its partnership in China comprising a large Chinese insurance company, Bank of China and HOPU Funds (backed by China’s largest state-owned companies and institutional investors). Market observers note that the partnership was more defensive, as it helps to avert the threat of a large investor joining forces with China state-owned enterprises to set up a rival to GLP. Chairman, Jeffrey Schwartz, expects the investment to help open more opportunities in the country- where guanxi or relationships count for a lot. Shortly after the deal, GLP struck a partnership with Bank of China, where the bank will provide financing for GLP's customers over inventory in its warehouses as collateral, easing liquiding concerns for the fast-growing third-party logistic companies. With domestic consumption in China rising, there may be considerable potential for the country's logistics industry. At $2.65, GLP trades at 23% discount to consensus RNAV of $3.45. The counter remains a key constituent in Market Insights model Growth portfolio.

SG Market (01 Apr 14)

US shares rose higher to end 1Q14 with moderate gains. The S&P500 advanced 0.8% to close at 1,872. Gains were broad-based with nine of the 10 S&P500 sector indexes closing higher. Sentiment was buoyed after Fed Chairman Janet Yellen highlighted that the Fed still has a long way to go in restoring the economy and labor market, alleviating concerns of an earlier than expected rate hike. The materials sector was the best performer, jumping 2.1% as a group, while technology and financial shares whose fortunes are tied to the pace of economic growth also outperformed. However, the Asian bourses are weaker currently, ahead of China manufacturing data due later this morning. The Nikkei and Kospi are down 0.3% and 0.4% respectively. The STI may open slightly softer, when OCBC shares resume trading this morning. The bank intends to make an offer for Wing Hang Bank shares at a price above street expectations. On the daily charts, the STI trend remains positive, with the index having broken above its long term declining trend line and the 3,150 psychological resistance. The key RSI and Stochastic indicators continue to exhibit strong upward momentum, which suggests the index may climb further to test 3,200 followed by ~3,240 (200day moving average peak in Oct ’13) in extension. Stocks to watch: *OCBC: Makes pre-conditional voluntary general cash offer for Wing Hang Bank shares at HK$125 each, coming in above market expectations for a HK$115 per share bid. While OCBC sees the HK$38.4b deal as earnings accretive, the overhang on its shares may continue as investors remain concerned about the deal valuations and dilution risks arising from a potential subsequent equity fund raising. *Mapletree Greater China Commercial Trust (MGCCT): Flooding occurred at certain parts of its Festival Walk mall earlier this week due to the torrential rain in Hong Kong. The damaged rainwater discharge pipes have since been repaired. Management believes this incident to have minimal impact on DPU. *Polaris: To pay up to US$1m for Shopdeca.com, an e-commerce company which started in Indonesia and is expanding into Singapore. *Pacific Radiance: Bagged a contract worth up to US$100m for its latest maintenance work vessel (MWV) - the first of 14 newbuilds scheduled for delivery in FY14. The vessel will be chartered to an international oil major for up to seven years, including extensions, and should contribute earnings from 2QFY14. *GLP: Leased 21,000 sqm at GLP Hiroshima to new customer Sagawa Global Logistics, one of the largest third-party logistics providers in Japan. *Charisma Energy: Secured a sales contract for delivery of a rig. The transaction is expected to be completed in 2Q14 and is expected to contribute a net profit of ~US$7m. Separately, the group has terminated a contract to provide a rig for a SE Asian national oil company based in the Andaman Sea. *Ascendas Hospitality Trust: Completed a $50m private placement of 73.5m new shares at $0.68 each. Proceeds will be used to partially fund the acquisition of Osaka Namba Washington Hotel Plaza. *LionGold: CEO Nicholas Ng Yick Hing has resigned due to a medical condition. Separately, the group has proposed to raise $5m from a new share placement of 37.3m shares at $0.134 each, as well as to raise a total of $35m from the issue of convertible bonds. *HPH Trust: Associated Company Shenzhen Yantian Tugboat Company entered into an equity transfer agreement to acquire 13% equity interest in ShenZhen Unitug for a total cash consideration of Rmb2.27m *ICP: Proposed to spin off 17.2%-owned investment, Mount Adrah Gold (MAG), via an IPO on ASX in 2Q14. MAG has a portfolio of gold projects in New South Wales, Australia, where the JORC code compliant mineral resource estimate is 770,000 oz of gold (440,000 oz Indicated, 330,000 oz Inferred), within a total mineral resource estimate of 20.5Mt at 1.1g/t gold. *SIIC Environment: Disposed entire 52% equity-interest in Kunming Nanfang Water at Rmb14.5m (S$3m), Rmb4.5m ($0.9m) above NAV.