DBS Equity Research: Wired Daily 23 Nov 2015

kiasutrader

Publish date: Mon, 23 Nov 2015, 11:44 AM

NOL - Signed exclusivity agreement with France's CMA CGM for a potential acquisition by way of a preconditional voluntary general offer

Attention turns to ECB and FED policy actions in December. We peg a range from 2825 (11.46x, -1.5SD, FY16F PE) to 3030 (c.12.22x, -1SD, FY16F PE) over the next 1 month. Above 2825, there is immediate support at 2890.

Meanwhile, any upside over the next few weeks is cap around 3035 and we also note immediate resistance at 2950/75.

The relative strength charts are telling us that Singapore stocks are rather unloved as Asian equities underperform the world and Singapore equities underperform Asia. Singapore's final 3Q GDP will be released this Wednesday. Despite the economy narrowly skipping a technical recession in 3Q, the recently concluded 3Q results season showed that the 'corporate earnings recession' has worsened.

NOL and its largest single shareholder, Lentor Investments (a wholly-owned subsidiary of Temasek Holdings), have entered into an exclusivity agreement with France's CMA CGM with respect to a potential acquisition of NOL by way of pre-conditional voluntary general offer. CMA CGM is granted exclusivity till 7 Dec 15.

Fitch Ratings affirmed Noble Group's position that it has enough liquidity to meet its debt commitments within the next 12 months, but warned that any weakening in the commodity trader's position could result in negative rating actions.

Rex International had entered into an investment and shareholder's agreement with West Indian Energy Holding (WIEH) and GELCO Energy, to merge their respective assets in Trinidad into a new entity, Steeldrum Oil Company. Steeldrum will have oil exploration and production interests in Trinidad.

XinRen Aluminum Holdings is proposing to issue of up to US$70m 8% convertible bonds due 2020, which are convertible into shares.

KSH Holdings is proposing a revised bonus issue on the basis of one (1) bonus share for every 13 existing shares held, from a 1 for 8 bonus issue announced earlier.

Singapore's Q3 wholesale trade was down 26%. Excluding petroleum, however, the drop was less severe, 12.1%. The decline in nominal domestic wholesale trade value was partly due to lower prices of petroleum and chemical products. After adjusting for price changes, overall domestic wholesale trade registered a year-on-year increase of 7.4%, said the Department of Statistics Singapore. The worst-performing industries were ship chandlers & bunkering; petroleum & petroleum products; and general wholesale trade. These registered sharp double-digit declines of 51%, 38.8%, and 38.8% respectively.

Source: DBS

Rex Intl (5WH)KSH (ER0)

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