SG Market

SG Market: Spore shares may inch up on hopes of more Fed stimulus measures following US’ disappointing nonfarm payrolls data. Local corporate earnings meanwhile will be closely watched in coming days, with SPH due to report tmrw. Resistance for STI expected at ytd high of 3197, while support tipped at 3132 (Oct 1 high). Blue chips likely to dominate today, although selective smaller caps might still be in play.

*Banks: Street has been calling for Buy on sector, citing Spore banks as laggards during recent STI rally, as well as compared to Asian peers. Favor DBS as valuation play, OCBC as best geared to take advantage of any improved global sentiments.

*Palm oil: CPO likely to see spillover interest, as US corn and soybean futures surged Friday, following a USDA report indicating prospect of tighter corn prices. The biofuel story may also begin to resurface, on the back of rising oil prices (now at US$83).

Indofood Agri (Buy, TP $2.80 ) as Deutsche’s top pick.
Wilmar (Buy, TP $7.20 ). Signs US$1.1bn syndicated term loan facility, and A$600m syndicated revolving credit facility to finance the acquisition and working capital of Sucrogen.

*SGX: beneficiary of recent strong pick up in trading velocity in the near term. Longer term prospects also bright as more companies join in the queue to list on SGX, with Singapore’s Park Hotel Group latest to indicate such intentions. Deutsche maintains Buy, raises target to $10.50 from $9.50.

*Property: Keppel Land’s real estate fund mgt arm makes foray into S Korea market with US$210m investment in Seoul Square. CapitaLand reaches out to retail investors at investor day event to celebrate 10th anniversary this year.

*Biosensors: Autumn Eagle enters into sale and purchase agreements (SPA) with 7 vendors to acquire 29.5% stake in Biosensors, just below the 30% level at which it would have to launch a general offer. The purchase price will be based on the avg traded px of Biosensors traded for the 45-day period prior to the date of the SPAs. Group has previously been tipped as a potential take-over target by DBSV.