SG Market: Spore shares expected to take cue from Wall Street's overnight rally triggered by better-than-expected US Sep ISM data, hopes for more economic stimulus measures from central banks worldwide. STI rose to new year high of 3162.36 yday, may test 3200 for 1st time since Jun 08 with stiffer resistance at May 08 peak of 3268.
* Sembcorp Marine expected to attract keen interest after bagging 2 jack-up rigs (worth US$364m) plus 3 options (up to US$200m each) for nearly US$1b from Atwood Oceanics, its 1st jack up rig order in 2 years.
* Midas Holdings & China Taisan may also be in focus as both are making their debut in HK & Taiwan respectively
* Commodity stocks Olam & Noble will continue to be in play as likelihood of competitive quantitative easing across the world drives up commodity prices.
* Genting Spore remains a market favourite, watch for the break of $2.10 for stock to re-test $2.18.
* O&M sector may be re-rated as crude soars to 5-month high & laggards KepCorp & SembMarine start to see some order backlog. Smaller offshore providers such as Ezra, Ezion, Swiber, Falcon Energy, Kruez may come to life.
* IDT will get a lift after receiving delisting offer of $0.54/share or 15% premium from HK parent.
On the stock ratings front:
* Cosco rated a Buy at DB; target price raised to $2.25 from $1.77
* Yangzijiang rated a Buy at DB; target price raised to $2.40 from $1.90
* SembMarine rated a Conviction Buy at Nomura with target price of $4.73
* Midas started as Buy at Nomura with target price of HK$6.40 or $1.08
* Sound Global started as Outperform at Stanchart with target price of $1.15
* Hyflux started as Outperform at Stanchart with target price of $3.80
* Raffles Medical started as Buy at OCBC with target price of $2.32
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