• City Developments added to the FTSE EPRA/NAREIT Global Developed Index 
• Cityneon - signs term for Marvel's Avengers STATION touring exhibitions in Australia 
• Noble Group announces 1-for-1 rights issue at 11cts/share 
• Straits Times Index quarterly review - No change to the STI constituents 
• Singapore's May PMI flat at 49.8 
• US stocks recovers lost ground ahead of employment data tonight.

Stock to Watch 

City Developments added to the FTSE EPRA/NAREIT Global Developed Index Expect shares of City Developments to rise following its addition into the FTSE EPRA/NAREIT Global Developed Index during the Asia Quarterly Review. We had taken a positive stance on the stock in recent weeks following a price pullback and in anticipation of this and added it to our Model Portfolio picks on 27 May. Our fundamental TP is $9.60.

News

Cityneon - signs term for Marvel's Avengers STATION touring exhibitions in Australia Cityneon Holdings announced that its wholly-owned subsidiary, Victory Hill Exhibitions (VHE), has entered into a non-binding term sheet with iLive Entertainment Group (iLive) to host and operate the Marvel's Avengers S.T.A.T.I.O.N touring exhibitions produced by VHE in Australia. iLive will host and operate the exhibition starting in Sydney, Australia. The exhibition is expected to be opened no later than 1 December 2017. We maintain our earnings forecast as we have already assumed a total of six exhibition sets by end-2017 and eight sets by 2018. Maintain BUY; TP: S$1.03.

Noble Group announces 1-for-1 rights issue at 11cts/share
Noble Group Limited announces a 1-for-1 fully underwritten rights issue at 11cts/share that generates net proceeds of approximately US$500mil. The pricing of the Rights share represents a discount of approximately 63% to the closing price of SG$0.300/share on 2nd June 2016. The rights issue, together with the sale of Noble Americas Energy Solutions announced last Monday and the previously announced sale of low return assets and working capital reduction measures will, in aggregate, generate US$2bil in additional liquidity over the next 12 months, this according to the company. Straits Times Index quarterly review - No change to the STI constituents FTSE Russell announces that there will be no changes to the constituents of the Straits Times Index, following the June quarterly review. The STI reserve list, comprising the five highest ranking non-constituents of the STI by market capitalisation, will be (in order of size) Suntec REIT, Singapore Post Ltd, Neptune Orient Lines, Keppel REIT and Mapeltree Commercial Trust. Companies on the reserve list will replace any constituents that become ineligible as a result of corporate actions, before the next review. 

Singapore's May PMI flat at 49.8 
Singapore's purchasing managers' index (PMI) for manufacturing in May was at 49.8, its 11th straight month of contraction. April's PMI was also at 49.8. The unchanged reading in May is due to mixed indicator trends, with new orders and new exports posting marginal declines but offset by marginal increase in factory output.

US stocks recovers lost ground ahead of employment data tonight 
US stocks recovered from early session declines to end higher and Treasuries gained as investors awaited tonight's May employment data for clues to the timing of the Federal Reserve's next policy move. A report from the ADP Research Institute showed 173k workers were taken on in the US last month while filings for unemployment benefits declined for a third consecutive week.Meanwhile, oil price managed to recover from early losses after OPEC members failed to agree on production limits at a meeting in Vienna as data showed a drop in US supplies. In Europe, The ECB left its inflation targets unchanged, sparking concerns that the enlarged stimulus program has yet to impact the economy.

Source: DBS