SG Market: Wall Street's Fri gains may give traders some confidence to continue push Spore shares higher on opening, paving way for STI to test lower end of the 3085-3146 breakdown gap set in Jun 08. Technical indicators suggest that the uptrend is still intact with both RSI, MACD indicators trending up steadily although market is hovering in overbought territory.
Small caps may continue to outperform blue chips while Genting Spore may still draw interest. Biosensors also likely to remain in focus ahead of the HK IPO of China stent rival Microport on Sep 24. Both Nomura & DBSV have a $1.20 target on the stock. Nomura also highlights that conditions are ripe for another wave of M&A in Asia-Pac ex-Japan & cities Biosensors & M1 as potential acqn targets.
On stock ratings, Citigroup has issued an Asian banking report listing OCBC & UOB as top sells. ST Engrg has been upgraded to a Buy by OCBCS with a higher target price of $3.66 vs $3.28 prev while YZJ has been downgraded to a Hold but target price raised to $1.90 from $1.76.