STI:       +0.36%     to     3,127.3            KLCI:        +0.14%     to     1,835.5
JCI:       +0.32%     to     4,202.8            SET:          +0.40%     to     1,332.5
HSI:       +1.13%     to     23,179.6          HSCEI:     +1.76%     to     10,834.4
Nifty:      -0.26%     to     6,268.4            ASX200:   +0.67%     to     5,327.2
Nikkei:  +0.63%     to     16,111.0          S&P500:   +0.29%     to     1,833.3

MARKET OUTLOOK:
By Joshua Tan, Head of Research

Regional Market Focus

Singapore

• The Straits Times Index (STI) ended 11.07 points higher or +0.36% to 3,127.29, taking the year-to-date performance to -1.26%.
• The FTSE ST Mid Cap Index gained +0.62% while the FTSE ST Small Cap Index gained +0.39%. The top active stocks were Vallianz (+15.09%), SingTel (+0.56%), Keppel Corporation (+1.46%), DBS (-0.06%) and Charisma Energy (+4.23%).
• However, we had pegged near term support at the key technical 3050 level and said the probability of a short term bounce is likely at that level. Since then, price has cycled up cycled up to resistance at 3126.
• Next resistance is at 3170.
• Immediate supports at 3000 and 2930.

Thailand

• Thai stocks were wedged in a tight band on Wed and trading was subdued at around Bt16bn as several stock markets around the globe were closed for the Christmas holiday. The composite SET index ended the day up by 5 points.
• US bourses will reopen today after the Christmas holiday while stock markets in Europe and Australia will remain shut. In Asia, the Indonesian bourse will be closed today for a public holiday.
• In the Thai stock market, the major downtrend remains firmly intact. Domestic political situation still needs to be closely monitored. Even though PM Yingluck Shinawatra proposed reform assembly plan to end political unrest, the anti-government People’s Democratic Reform Committee (PDRC) reacted negatively to the plan. As it stands, political movements after the New Year holiday bear close watch. Foreign fund outflows are also likely to continue as the US Federal Reserve would start winding down its QE program early next month.
• Foreign selloff of Thai shares abated on Wed excluding big-lot transaction for CPALL shares. Net foreign selling in the Thai stock market moderated to around Bt400mn. Under this circumstance, we expect Thai stocks to remain stuck in a tight range in light trading today. Equity exposure should be maintained at 25% of the short-term trading portfolio with focus on global economic recovery plays.
• Today we peg resistance for the SET index at 1340-1350 points and support at 1320-1300 points. 

• Closed for holiday.

• The market ended on a mixed note, with the indices closing on marginal gains and loses. The benchmark ASPI dropped by tiny 0.49 points (0.01%) and settled within the negative side at 5,845.93. However, the S&P SL20 index closed positive gathering minute 0.89 points or 0.03% to close the day at 3,225.13. The total market capitalization as at the daily closure stood at LKR 2.43Tn, charting a year to date gain of 12.20%. The market PER and PBV were 15.19x & 1.97x respectively. The turnover for the day amounted to record 246.38Mn indicating a drop of 8.01% against the previous trading day. Under the sectorial summary, Bank Finance & Insurance (BFI) sector provided LKR 124.13Mn, dominating the list while accounting to half of the total turnover. Manufacturing (MFG) sector added LKR 59.59Mn. Further, the two sectors BFI & MFG collectively accounted to nearly 75.00% of the total turnover. The traded volume for the day amounted to 27.53Mn shares, indicating a gain of 83.52% as against its previously recorded. Looking at the movements in share prices, 75 companies lost and gained, whilst the gainer to loser ratio was being recorded as 75:75. With regard to the foreign figures, a net foreign inflow of LKR 99.96Mn was recorded during the day, being a result of foreign purchases of LKR 110.28Mn and sales which amounted to LKR 10.32Mn. Currently the year to date net foreign inflow stands at LKR 22.46Bn. The local FOREX market closed with, the USD selling at LKR 132.34/- and buying at LKR 129.18/-.

• Closed for holiday.

• Closed for holiday.

Morning Note
Company Highlights

C&G Environmental Protection Holdings Limited announced that it has entered into a legally binding framework agreement with Grandblue Environment Co. Ltd for a 100% sale of its equity interest in C&G Environmental Protection (China) Company Limited. The proposed consideration for this sale is valued at RMB1.85 billion (approximately S$385.4 million) and will be satisfied by cash and the issuance and allotment of new ordinary shares in the share capital of Grandblue. Post transaction, C&G to emerge as second largest shareholder with more than 10% stake in Grandblue. Strategic initiative to enable a change of business platform to hold the Group’s waste-to-energy assets in China through Grandblue, a leading diversified PRC utility and environmental player. Group to refocus on expansion of its waste-to-energy business in Southeast Asia. Strategic move is expected to positively impact the Group’s financials when completed. (Closing price: $0.350, +9.375%)

City Developments Limited has announced that its subsidiary (55% interest), Millennium & Copthorne Hotels plc will extend its global hotel portfolio with the acquisition of a new hotel in the Chelsea district of London, England. The Hotel is a luxury property that borders the River Thames and offers 154 suites and 4 penthouses. The primary lease to be acquired has a remaining term of approximately 98 years. The purchase price for the Hotel is 65 million, subject to standard purchase price adjustments, and completion of the acquisition is expected to occur during the first quarter of 2014. (Closing Price: $9.610, +1.052%)

Source: PhillipCapital Research - 26 Dec 2013