Wednesday, September 16, 2015

IHC, Healthway, Hyflux, Capitaland, SGX, Technics O&G

Here are some stocks that could move the market this Tuesday morning.

International Healthway ( Valuation: 0.00, Fundamental: 0.65) Corp (IHC) intends to form an unlisted wholesale property trust or private REIT with its Australian portfolio of property assets before inviting investors to invest in the REIT. The move by IHC comes after the sale and purchase agreement with a third party for two of the group's properties in Melbourne was terminated. Meanwhile, Healthway Medical Corporation ( Valuation: 2.10, Fundamental: 1.40) has called for a trading halt this morning to announce a revision of the terms of its acquisition by IHC after SGX's trade with caution warning on IHC shares and their subsequent. IHC last traded at 31.5 cents while Healthway last traded at 3.8 cents.

Hyflux and consortium partner Mitsubishi Heavy Industries has won a contract to design, build, own and operate a waste-to-energy (WTE) plant in Tuas from Singapore's National Environment Agency for a period of 25 years. The WTE plant will be able to process 3,600 tonnes of waste per day and generate 120 MW of electricity. The project, valued at an estimated $750 million, is expected to be completed by 2019. Hyflux last traded at 63 cents.

Capitaland, through a wholly owned subsidiary, has entered into a joint venture with Thien Duc Trading-Construction Company to develop a 2.6-hectare site in District 2, Ho Chi Minh City, Vietnam, into an upscale residential development with about 1,000 homes. The development will have an estimated total project value of US$150 million ($211 million). Capitaland closed at $2.77.

Singapore Exchange has formed three independent committees to advise the market regulator on listing, disciplinary and appeal matters ahead of a new disciplinary framework that will take effect next month which will give SGX the ability to impose fines on issuers' office-holders and issue managers, as well as to restrict their access to the market. SGX closed at $7.45.

A subsidiary of Technics Oil & Gas ( Valuation: 0.30, Fundamental: 1.50) has clinched a contract worth $70.5 million to construct a liftboat. Technics closed at 60 cents.

Markets

US stocks mounted a mini rally on Tuesday as the main indexes scored their third winning session in the last four. But some market participants found it difficult to pinpoint distinct drivers behind the run-up, especially as the yield on two-year Treasury note jumped to its highest levels in more than four years, suggesting that Treasury investors are bracing for a rate hike.

The S&P 500 climbed 25.05 points, or 1.3% to 1,978.09, the Dow jumped 228.89 points, or 1.4%, to 16,599.85 while Nasdaq gained 54.76 points, or 1.1% to 4,860.52.

Singapore stocks lost ground though. Apart from a smattering of small-cap news, there was little to drive trading. For most traders, the US Federal Reserve is this week's big unknown.

The Straits Times Index ended the day 1.03% lower at 2,841.94, after trading between 2,837.59 and 2,857.14. Market breadth was negative. Decliners outnumbered gainers 240 to 167. A total of 1.34 billion shares worth about $1.5 billion changed hands.

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