SG Market: Wall Street's flat session overnight unlikely to inspire Spore shares in early trade. Any upside may be restrained by profit-taking, especially given recent hefty gains. Expect STI support at 3200, while resistance at Friday's 3285 high…
For the rest of the week, DMG expects market to take a breather post earnings season. Notes external factors to be key drivers, with prospect of additional China tightening measures & renewed concerns over euro-zone debt problems as risks. Beyond these hiccups, SG market is poised to continue uptrend as liquidity continues to flow in.
Stocks to watch:
* SembMarine: to sell a jack-up rig to Transocean for US$195m; delivery in 4Q11.
* Property: developers may be supported after URA data shows private home sales increased 16% MoM in Oct, despite the cooling measures introduced in late Aug. Morgan Stanley prefers Allgreen, Wingtai. Deutsche prefers CapitaLand, Keppel Land.
* SIA: May get lift following rival, Cathay Pacific’s positive profit guidance and sanguine 4Q outlook. Oct operating stats show sequential improvement in pax, cargo demand due to seasonality. Yoy pax load factor, demand saw mild yoy declines, but cargo load factor, demand continued to expand.
* Tiger Air: Oct operating stats indicate MoM decline and lower than expected YoY increase in pax numbers, due to lower capacity. Load factors remained at constant. We look forward to improvement from Nov onwards as previous pilot shortage, aircraft technical issues are resolved, and delivery of new aircraft.
* STX OSV: maker of oil-rig support vessels plans to double capacity in Brazil in anticipation for more orders, as the country makes significant invmts to develop its resources.
* Marco Polo Marine: to acquire 2 offshore support vessels for A$21m. The vessels come with existing chartering contracts which expire in end Sep 2011 and end Aug 2012.
* Sound Global: DMG raises target to $1.05 from $0.93. CS maintains Outperform, $1.20 target. Citi downgrades to sell, $0.76 target.
* Tat Hong: OCBC cuts target to $0.99 from $1.10
* Ying Li: KE upgrades to Buy from hold, raises target to $0.50 from $0.46.