The anticipated near-term technical rebound that started off c.3000 level on the STI should follow through in early trade on the back of the overnight rally in European markets that reacted to a better-than-expected PMI for the Eurozone and China. US futures continue to point to a higher opening tonight. For the STI, follow through levels seen at 3070 first, before scoping towards 3100.

We see the possibility of the STI dipping towards 2880 once the current rebound ends before reaching a significant low. Foreign funds outflow from the region due to QE unwinding remains the main stumbling block. This in addition to the lack lustre earnings outlook, troubles in Syria and the need to raise the USD16.7tril US debt ceiling by mid-Oct.

In a further sign that policymakers may have averted a sharp slowdown, China's factory activity expanded for the first time in 4 months in August as domestic demand rebounded. The final HSBC/Markit Purchasing Managers' Index (PMI) climbed to 50.1 in August, up sharply from July's 47.7 and in line with last week's flash reading.

In the Eurozone, strong orders for manufactured goods helped factory activity rise at the fastest pace in over 2 years in August and led to backlogs of work for the first time since mid-2011. Markit's Manufacturing Purchasing Managers' Index (PMI) rose to 51.4 from 50.3 in July. The figure was also better than an earlier flash reading of 51.3.

Vard has secured a new contract for the design and construction of one Platform Supply Vessel (PSV) for Carlotta Offshore, a newly established player in the offshore support vessel market. Delivery is scheduled from Vard Vung Tau in Vietnam in 4Q 2014. The contract value was not disclosed. Based on the similar PSV secured in 2011, the contract could worth about NOK300m. This will bring YTD-FY13 order wins to NOK11.6bn, making up 93% of our order win assumption this year. We expect Vard to book NOK12.5bn new wins in FY13 and NOK11.0bn in FY14. Maintain HOLD call and TP of S$0.92 on Vard.

PT Indofood Sukses Makmur has made an offer to acquire the remaining shares of China Minzhongthat it does not already owned at S$1.12 in cash per share, valuing the company at around S$734m. It currently owns 219.5m shares or approximately 33.49% stake in China Minzhong.

Fitch Ratings has affirmed Mapletree Industrial Trust's Long-Term Issuer Default Rating at "BBB+" with a Stable Outlook. In addition, Fitch has affirmed "BBB+" ratings to senior unsecured notes issued under the S$1 billion MultiCurrency Medium Term Note programme.

Singapore Posthas entered into an agreement for the acquisition of the entire issued and paid-up share capital of EK Media for S$1.2m. EK Media owns and operates a leading online sampling platform in Singapore called The Sample Store (www.thesamplestore.sg), which focuses on distributing product samples to end-consumers. In addition, EK Media also runs branding and social media marketing campaigns for advertisers.

Notwithstanding the ongoing legal action, AusGroup will receive a further $18.3m from Karara Mining, expected to be paid under the terms of the contract over the course of this week. This is in addition to the progress payment of $13.0m paid in July 2013.

CNA Group has signed a Letter of Award via its Vietnamese subsidiary, CNA-HTE Vietnam to renovate, upgrade and expand Ho Chi Minh City's Tan Son Nhat International Airport's domestic terminals for approximately S$10.6m. The project is CNA's second airport-related project in South East Asia clinched this year and will increase order book to approximately S$74.2m.

China Environmenthas secured three contracts with an aggregate value of RMB86.6m to supply Electrostatic Precipitators (ESPs) to Indonesia, thus increasing its orderbook to RMB241.2m.

A-Sonic Aerospacehas established an aircraft leasing business which is steadily growing and will contribute significantly to its bottomline in the years to come. To date, it has leased out two aircraft to clients in South Asia and Euro-Asia. Another two are expected to be leased out before the end of this year. A-Sonic also owns six aircraft engines, of which three have been leased out. The company has entered into letters of intent to acquire additional seven airframes, one aircraft and three aircraft engines.

Source: DBSV