SG Market

SG Market: Spore shares likely to see some profit taking following mixed session on Wall Street. Investors expected to take cues from economic data with surprise fall in US Sep private sector payrolls keeping sentiment guarded ahead of Spore's earnings season starting next week. STI expected to hold above 3136 with resistance tipped at 3268.

* OUE could see some interest as controlling Lippo group plans to place out up to 120.5m shares at $2.80 each, lowering its stake to 67.1% from 79.4% in a move that may improve trading liquidity.
* Tech stocks may come under pressure after Morgan Stanley downgraded semiconductor companies on concerns over slower Asian demand.

On the stock ratings front:
* China Fish initiated as Buy at DB with target price of $2.60
* Genting Spore downgraded to Underweight at Morgan Stanley but target price raised to $2.00 from $1.60
* SGX target price raised to $10.50 from $9.50 at UBS
* ARA Mgmt target price raised to $1.53 from $1.30 at Macquarie

#Genting Spore: Morgan Stanley downgrades to Equalweight from Overweight on valuation grounds, risk of 3Q10 earnings disappointment. Notes stock trading at higher multiples than Macau peers after rising more than 60% since release of 2Q10 results. Expects 3Q10 EBITDA to fall 33% on quarter to $347m as 2Q10 results boosted by Resorts World Sentosa's monopoly gaming status & higher win rates.

3Q is seasonally weaker as it marks the end of summer holidays & the normally quiet Hungry Ghost month in Aug. Still, lifts target price to $2.00 from $1.60 to reflect 3% annual increase in medium-term free cash flow. Topside resistance for the stock is at previous peak of $2.18.