SG Market: Spore stocks may open higher on Wall Street's modest rise last Fri. Banks may be in focus after top central bankers agreed over the weekend on new Basel III global banking rules requiring lenders to set aside more capital (4.5% core Tier 1 + 2.5% buffer reserve) to protect against future stresses & potential losses. Move not expected to be an issue for DBS, OCBC, UOB, which already boasts Tier 1 capital well the minimum requirements.
Implementation will be phased in from 2013 till 2019 so there will be no immediate impact on the banks. Immediate resistance for STI at year high of 3043 while support at 2960. Technical indicators suggest that near-term upside momentum could be waning but potential consolidation could eventually pave way for STI to re-test 3043. On the stock ratings front, CLSA raises price tgt for Genting Spore to $3.00 (highest in mkt) from $2.00 prev while Daiwa ups its price tgt to $2.06.
UBS downgrades Allgreen to Neutral from Buy; cuts TP to $1.13 from $1.31 & City Dev to Sell from Neutral, cuts TP to $10.96 from $12.50.
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