KLCI: +0.82% to 1807.2
JCI: +0.11% to 4398.3                           SET: -0.81% to 1412.4
HSI: -0.01% to 23657                             HSCEI: +0.51% to 11365
Nifty: +0.23% to 6203.3                         ASX200: -0.59% to 5352.9
Nikkei: -0.25% to 15126                         S&P500: -0.20% to 1787.9

MARKET OUTLOOK:
By Joshua Tan, Head of Research

Macro Data

China:
China attracted 5.8 percent more foreign direct investment (FDI) inflows in the first ten months of 2013 from the same period a year ago, although the number of new enterprises established by foreign investment was down 9.2 percent y-o-y to 18,184. The Commerce Ministry said that October's FDI was up 1.2 percent y-o-y, marking the ninth straight monthly increase in the FDI while giving a total FDI inflow of US$97.03 billion in the January-October period.

Eurozone:
German investor confidence rose to the highest level in more than four years, signaling that the economic recovery in Europe’s largest economy remains on track even after a third-quarter slowdown. It climbed for a fourth month to 54.6 in November. That’s the strongest reading since October 2009 and up from 52.8 the prior month. Economists predicted an increase to 54, according to the median of 40 estimates in a Bloomberg News survey.

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Regional Market Focus

Singapore

• The benchmark STI closed 10.95 points lower at 3.192.08 (-0.34%). The 1.7bn shares traded were worth S$0.9bn in value.
• The FTSE ST Mid Cap Index declined -0.15% while the FTSE ST Small Cap Index declined -0.20%. The top active stocks were SingTel (-1.59%), Wilmar (+2.55%), DBS (-0.29%), Keppel Corp (+0.27%) and People’s Food (+0.84%).
• We peg key near term support at 3,100 levels.
• Top Picks are DBS (Accumulate, TP: S$17.50), SingTel (Accumulate, TP: S$4.06) and Keppel Corp (Accumulate, TP: S$12.07). Deep Value Plays are Amara (Buy, TP: S$0.74), and Boustead (Buy, TP: S$2.05).

Thailand

• Thai stocks slipped 11.52 points to 1,412.44 points on Tue as the market remained under pressure from domestic political worries while traders looked to the Constitutional Court’s ruling on Senate change due out today.
• US equities lost ground on Tue as the market looked to comments from Federal Reserve Chairman Ben Bernanke. He later said there had been a significant improvement in the labor market since QE was put in place.
• Domestic political factor will remain a big weight on the Thai stock market. Today the Constitutional Court will deliver its ruling on whether charter amendment on the composition of the Senate violates the Constitution while House Speaker Somsak Kiatsuranond said he will not allow the tabling of the opposition Democrat Party’s motion for a no-confidence debate against PM and interior minister because they have not submitted enough evidence to justify it, leaving room for a possible House dissolution. The Senate has already passed the Bt2trn infrastructure loan bill in the second and third readings.
• Yesterday foreign investors stopped selling off Thai shares for the first day and continued to buy Thai bonds for the third day in a row but the amount however remained small. Overall we believe Thai stocks are likely to hold in range ahead of the Constitutional Court’s ruling on Senate change today. To play safe, it is better to take a wait and see approach.
• Resistance for the SET index is seen at 1420-1430 points and support at 1410-1400 points today.

Indonesia

• Indonesian stocks edged up Tuesday (19/11), amid mixed tones in Asia as investors cheered China’s financial sector restructuring, while stronger Yen weighed on some stock indexes in Asia. The Jakarta Composite Index (JCI) added 4.744 points, or 0.11%, to close at 4,398.336. Six of the 9 major industry groups advanced on Tuesday, led by miscellaneous industry sector with 1.34%-gain, followed by agriculture sector with 0.91%-rise, and infrastructure sector with 0.83%-climb. The LQ45 index rose 1.286 points, or 0.17%, to close at 738.007. 127 shares gained and 123 shares declined Tuesday on the Indonesia Stock Exchange, where 3.08 billion shares worth IDR 3.82 trillion changed hands on the regular market. Transactions by foreign investors resulted in a net purchase of IDR 133.22 billion.
• The Jakarta Composite Index (JCI) will likely trade sideways today, with mixed leads from US markets a day earlier and positive tone in Asia this morning. We expect the JCI to trade with moderate moves today, within 4,349 - 4,430 range.

Sri Lanka

• The Colombo bourse witnessed a downward trend from the early hours onwards amidst the inactive sentiment of the investors to settle the indices on a mixed note. The benchmark ASPI charting a loss of 15.33 points or 0.26% closed the day at its intra-day low of 5,809 and the S&P SL20 closed the day gaining 13.62 points or 0.43% to close at 3,213.93.  A total of 54 companies gained during the day whereas 109 companies posted drops in share prices. As at the daily closure, the total market capitalization as at the day’s closure moved up to LKR 2.42Tn, reducing the year to date gain to 11.49%. The market PER and PBV were 15.4x & 2.00x respectively. The turnover for the day amounted to record LKR 603.2Mn, indicating a drop of 35.6% from its previously recorded. Moreover, the three prime contributors for the turnover HNB, COMB & JKH accounted to more than 60% of the daily aggregate turnover. Under the sectorial round-up, Bank Finance and Insurance (BFI) sector topped the list providing LKR 374.7Mn and Diversified Holdings (DIV) sector stood next in line providing LKR 109.8Mn to the daily aggregate turnover.  A total of 23.8Mn shares changed hands during the day resulting in a dip of 83.4% compared to the previous trading day. Foreign participants appeared to be bullish during the day resulting in a net foreign inflow of LKR 264.5Mn, resulted by foreign buying of LKR 449.8Mn and selling of LKR 185.3Mn. This assisted the year to date net foreign inflow to reach LKR 22.9Bn. Looking at the local FOREX markets, the USD is selling at 132.74 /- and is buying at LKR 129.48 /-.

Hong Kong

• HSI lost 2 points to 23,657, ended the 3-winning streak. CEI gained 58 points or 0.51% to 11,365. Trading volume remained high at HKD89.297 billion.
• HK market was firmer at the morning, tracking the strong US markets, and opened at 23,835 (+175 points). CEI kept out-performed HSI with 4-winning streak.
• The high trading volume this week sent HKEX (388.HK) up 3%.
• Tencent (700.HK), Kingsoft (3888.HK) and Netdragon (777.HK) lost 1.6%, 3.4% and 3.1% respectively, tracking the overnight weakness in U.S. software sector. We still suggest investors to be prudent on this sector as the sector is vulnerable to short-term consolidation. 
• Sinopec Corp (386.HK) gained 1.2% to reach almost 6-year high on China oil price reform expectation. Petrochina (857.HK) also climbed 2.5%.
• China Life (2628.HK), the largest life insurer in China, further gained 4.8% after 8.7% gain in previous day.
• China property sector under-performed with China Res Land (1109.HK), Yuexiu Property (123.HK) and KWG Property (1813.HK) dropped 4.7%, 2.8% and 2.5% respectively on government’s housing policy.
• Technically, the next resistance and support for HSI are 23,945 and 23,500 respectively.

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Morning Note
Company Highlights

Singapore Technologies Engineering Ltd announced that its electronics arm, Singapore Technologies Electronics Limited (ST Electronics), has sold its entire 21.13% equity stake in Trusted Hub Ltd to Trusted Hub Ltd’s existing shareholder and President, Mr Wong Yaw Ming, for a cash consideration of S$1,200,000. This consideration was arrived at on a willing buyer, willing seller basis, taking into account the company’s past performance, current and projected financials. The divestment is part of an ongoing review by ST Electronics to streamline capabilities, optimise resources and divest minority investments that are no longer strategic to its business. This exercise is not expected to have any material impact on the consolidated net tangible assets per share and earnings per share of ST Engineering for the current financial year. (Closing Price: $4.040, 1.000%)

Charisma Energy Services Limited wish to inform that the change of the Company’s trading counter name from “YHM Group Limited” to “Charisma Energy” on the Catalist of the Singapore Exchange Securities Trading Limited will take effect on Wednesday, 20 November 2013 at 9.00 a.m. (Closing Price: $0.057, - %)

Atlantic Navigation Holdings (Singapore) Limited announced that it has, through its wholly owned subsidiary, Atlantic Maritime Group FZE, entered into shipbuilding contracts for the construction and delivery of a 75-metre platform supply vessel and a 6,400 BHP anchor handling tug supply vessel. These shipbuilding contracts are part of the Group’s continuing programme to upgrade and expand its operating fleet. The new vessels will increase the size of the fleet owned by the Group to 15 vessels and provide additional capabilities and capacity to meet the needs of its clients. Both vessels will be built in Guangzhou province in China. The AHTS is expected to be delivered in March 2014 while the PSV is scheduled for a March 2015 delivery. The total contract value for the aforementioned vessels is approximately US$28.7 million. The Group will be using internal resources to fund the building of the vessels, and they are not expected to have a significant impact on the Group’s earnings and tangible asset value for the financial year ending 2013. (Closing Price: $0.315, -12.500%)

Swissco Holdings Limited announced that it has placed orders for 3 more vessels worth an aggregate of S$35 million (excluding owner supplied equipment) consisting of two anchor handling tug supply vessels, and one Multipurpose Utility Tug. The two units of AHTS with 80 tons bollard pull will be built at a Northern Chinese shipyard, while the multipurpose utility tug will be built at a Southern Chinese Yard. The newbuild vessels are expected to be delivered in FY2015, adding to the Group’s fleet capabilities. As part of its overall strategy in maintaining a competitive fleet of vessels available for charter, Swissco continuously renews its fleet to maintain a low age profile. This is complemented by expanding the fleet to improve the range of vessels offered and capabilities. (Closing Price: $0.290, - %)

MoneyMax Financial Services Ltd. announced today that it has been included in the listing of the MSCI Singapore Micro Cap Index. (Closing Price: $0.330, - %)

Westminster Travel Limited announced that the Company has, on 17 November 2013, entered into a: (a) conditional sale and purchase agreement with Corporate Travel Management (UK) Limited, pursuant to which the Company has agreed to sell and CTM has agreed to purchase, 751 ordinary shares amounting to 75.1% of the issued and paid-up share capital of the Company’s wholly owned subsidiary, Wealthy Aim Investments Limited for a cash consideration (“CTM Disposal Consideration”) of HK$354,146,490 (equivalent to S$56,951,385*); and (b) conditional sale and purchase agreement with Ever Prestige Investments Limited, pursuant to which the Company has agreed to sell and EPI has agreed to purchase, 249 ordinary shares amounting to 24.9% of the issued and paid-up share capital of WAIL for a cash consideration of HK$117,420,074 (equivalent to S$18,882,683*). The Disposal Consideration represents: (a) 154.76% to the Company’s market capitalisation (or a premium of 54.76% to the market capitalisation) of S$49.00 million and (b) 28.97% premium to the highest market capitalisation of S$58.80 million achieved by the Company since its listing on 23 January 2009 (based on the highest closing price of S$0.21 per Share on 5 October 2009). (Closing Price: $ - , - %)