FOMC statements will be this coming Thurs 2am in the morning. Markets should be active today and trading sideways till Wednesday.The market will likely remain cautious ahead of FOMC and BoJ policy meetings this week, although market expectations have effectively ruled out a Sep Fed rate hike and technicals are turning slightly positive.
From a chart perspective, immediate support for STI is at 2,800 (200-dma), with topside resistance at 2,880.
If you have been following my morning emails, you will observe that markets are always following the major events. Events such as Crude oil inventories report, Hughes Oil rig counts, FOMC statements, GDP reports, Bank of Japan monetary policies and etc.
Whether you are a trader or an investor of blue chips or penny counters, it is necessary to know the significance of these events. Surely these events cannot allow you to accurate read the market, but it allows you to 'predict' and be aware of the possible pitfalls in the days ahead. With such, it is easier to be in sync with the markets, making a more informed decision.
Stocks to watch:
*Macro: S&P Global Ratings opines that several sectors in the $60b domestic bond market are vulnerable to rising financial strain after a series of recent defaults. The oil services sector is the most vulnerable followed by agriculture & commodities and some real estate companies.
*Swiber: Defaulting on the upcoming coupon payment for the Rmb450m 7.75% fixed rate notes due 2017 and updated that claims against the group have reached US$231.4m, which its interim judicial managers are trying to verify. Counter remains suspended. This could re-ignite concerns towards highly geared offshore support services players amid still turbulent times.
*UOB: Showcased its leading digital capabilities at the UOB Engage 2016 Presentations. Maybank KE is positive towards the bank’s digital initiatives to retain and attract customers. Maintain Hold (TP: $18.34).
*Vard: Its marine design has been selected for the US Coast Guard's new Offshore Patrol Cutter program.
*Federal Int'l: Its 20.7%-owned associate, Gunanusa Utama Fabricators (PTG) has received a letter of intent for the engineering, procurement, construction and installation of an offshore platform from PTTEP Int'l, valued at US$155m, with an option for a second platform. Separately, the group signed a procurement agreement with PTG with relation to the same project which would bring its order book to about $90m.
*Global Yellow Pages: Proposed placement of 34.1m new shares to Yong Yin Min (Pacific Radiance director) and Thomas Knudsen (Damco Asia CEO) at $0.154 per share, a 9.9% discount to the last trading price of $0.171.
*Secura: Subsidiary Red Sentry has agreed to collaborate with Singapore Business Federation to conduct workshops to help companies, especially SMEs, raise their capabilities in cyber security.
*CSC: Acquiring a 21% stake in Coriolis Hertford for $0.9m. Coriolis owns a 40% stake in Railway Street Hertford which recently obtained approval for the development of a ~0.7 acre freehold land in Hertford, UK into a 28 residential units and 1 commercial space with about 30,000 sf of sellable area.
*TSH: Proposed capital reduction via cash distribution of $0.1072/share, and special DPS of $0.016, following the disposal of Wow Technologies , Explomo Technical Services and freehold land and building at 62 Burn Road for total net proceeds of $9.9m. TSH is now a cash company and is exploring various potential new business opportunities to satisfy SGX listing requirements.
*Dyna-Mac: Lodged police report after suspecting criminal conduct by an ex-employee involving the misappropriation of funds amounting $1m.
*Best World: 55.4m new shares issued pursuant to the 1-for-4 bonus issue will begin trading on 19 Sep.
Click on the link for details.
https://research.uobkayhian.com/content_download.jsp?id=36158&h=7681530fd4955629b6260d4dfb682e5a
KEY HIGHLIGHTS
Update
United Overseas Bank (UOB SP/NOT RATED/S$18.86)
Key takeaways from UOB Engage.
At A Glance
Corporate
Dyna-Mac Holdings: Files police report.
Ramba Energy: Raises S$11.3m from cash call.
SBI Offshore: Independent non-executive director quits.
SGX: Mulls over listing of leveraged certificates.
Sector
General: Elected presidency changes for improving Singapore's future.
Click on the link for details.
https://research.uobkayhian.com/content_download.jsp?id=36157&h=b05596af74c76d3e1d54e797a8a2e688
This transmission has been issued by a member of the UOB Kay Hian Group for the information of the addressee only and should not be reproduced and/or distributed to any other person. Each page attached hereto must be read in conjunction with any disclaimer which forms part of it. Unless otherwise stated, this transmission is neither an offer nor the solicitation of an offer to sell or purchase any investment. Its comments are based on information obtained from sources believed to be reliable but UOB Kay Hian Group makes no representations and accepts no responsibility or liability as to its completeness or accuracy.
From a chart perspective, immediate support for STI is at 2,800 (200-dma), with topside resistance at 2,880.
If you have been following my morning emails, you will observe that markets are always following the major events. Events such as Crude oil inventories report, Hughes Oil rig counts, FOMC statements, GDP reports, Bank of Japan monetary policies and etc.
Whether you are a trader or an investor of blue chips or penny counters, it is necessary to know the significance of these events. Surely these events cannot allow you to accurate read the market, but it allows you to 'predict' and be aware of the possible pitfalls in the days ahead. With such, it is easier to be in sync with the markets, making a more informed decision.
Stocks to watch:
*Macro: S&P Global Ratings opines that several sectors in the $60b domestic bond market are vulnerable to rising financial strain after a series of recent defaults. The oil services sector is the most vulnerable followed by agriculture & commodities and some real estate companies.
*Swiber: Defaulting on the upcoming coupon payment for the Rmb450m 7.75% fixed rate notes due 2017 and updated that claims against the group have reached US$231.4m, which its interim judicial managers are trying to verify. Counter remains suspended. This could re-ignite concerns towards highly geared offshore support services players amid still turbulent times.
*UOB: Showcased its leading digital capabilities at the UOB Engage 2016 Presentations. Maybank KE is positive towards the bank’s digital initiatives to retain and attract customers. Maintain Hold (TP: $18.34).
*Vard: Its marine design has been selected for the US Coast Guard's new Offshore Patrol Cutter program.
*Federal Int'l: Its 20.7%-owned associate, Gunanusa Utama Fabricators (PTG) has received a letter of intent for the engineering, procurement, construction and installation of an offshore platform from PTTEP Int'l, valued at US$155m, with an option for a second platform. Separately, the group signed a procurement agreement with PTG with relation to the same project which would bring its order book to about $90m.
*Global Yellow Pages: Proposed placement of 34.1m new shares to Yong Yin Min (Pacific Radiance director) and Thomas Knudsen (Damco Asia CEO) at $0.154 per share, a 9.9% discount to the last trading price of $0.171.
*Secura: Subsidiary Red Sentry has agreed to collaborate with Singapore Business Federation to conduct workshops to help companies, especially SMEs, raise their capabilities in cyber security.
*CSC: Acquiring a 21% stake in Coriolis Hertford for $0.9m. Coriolis owns a 40% stake in Railway Street Hertford which recently obtained approval for the development of a ~0.7 acre freehold land in Hertford, UK into a 28 residential units and 1 commercial space with about 30,000 sf of sellable area.
*TSH: Proposed capital reduction via cash distribution of $0.1072/share, and special DPS of $0.016, following the disposal of Wow Technologies , Explomo Technical Services and freehold land and building at 62 Burn Road for total net proceeds of $9.9m. TSH is now a cash company and is exploring various potential new business opportunities to satisfy SGX listing requirements.
*Dyna-Mac: Lodged police report after suspecting criminal conduct by an ex-employee involving the misappropriation of funds amounting $1m.
*Best World: 55.4m new shares issued pursuant to the 1-for-4 bonus issue will begin trading on 19 Sep.
Click on the link for details.
https://research.uobkayhian.com/content_download.jsp?id=36158&h=7681530fd4955629b6260d4dfb682e5a
KEY HIGHLIGHTS
Update
United Overseas Bank (UOB SP/NOT RATED/S$18.86)
Key takeaways from UOB Engage.
At A Glance
Corporate
Dyna-Mac Holdings: Files police report.
Ramba Energy: Raises S$11.3m from cash call.
SBI Offshore: Independent non-executive director quits.
SGX: Mulls over listing of leveraged certificates.
Sector
General: Elected presidency changes for improving Singapore's future.
Click on the link for details.
https://research.uobkayhian.com/content_download.jsp?id=36157&h=b05596af74c76d3e1d54e797a8a2e688
This transmission has been issued by a member of the UOB Kay Hian Group for the information of the addressee only and should not be reproduced and/or distributed to any other person. Each page attached hereto must be read in conjunction with any disclaimer which forms part of it. Unless otherwise stated, this transmission is neither an offer nor the solicitation of an offer to sell or purchase any investment. Its comments are based on information obtained from sources believed to be reliable but UOB Kay Hian Group makes no representations and accepts no responsibility or liability as to its completeness or accuracy.
