SG Market

SG Market: Spore shares may catch up with y’days weakness in most Asian markets on renewed concerns over euro-zone debt problems, prospect of more China tightening measures. STI down 0.8% at 3212 Tuesday, may slip below 3200 for first time in more than 2 wks, with current Nov 3150 low eyed as support. Just-released Spore 3Q10 final GDP data not expected to sway market as performance already expected when initial figures last month showed sequential 19.8% contraction vs -18.7% actual.
Moves by China to rein in inflation, such as imposing temporary price caps on “important daily necessities” and pdtn mat’l likely to weigh on commodity plays like Wilmar, fresh vegetable processors like China Minzhong.

Stock ratings:
* Global Logistic Properties: JPM starts at Overweight with $2.90 target. To be included in MSCI Spore from Dec ’10.
* Olam: Nomura upgrades to Buy from neutral, raises target to $3.90 from $3.40. Views US$1.5b Gabon investments as long term positive.
* SGX: Deutsche upgrades to Buy from hold, raises target to $10.50 from $8.55.
* China Animal Healthcare: KE initiates at Buy with $0.48 target. Recent approval by the PRC govt to commence commercial pdtn and sale of its animal foot-and-mouth disease vaccines to underpin earnings growth.
* SIA: Nomura raises target to $18.25 from $16.85. Rates as Buy.

Stocks to watch:
* Bund Center: 1-to-2 stock split to take effect today. Last traded $0.545 (prior to split).
* Offshore & Marine: Rising rig rental rates and industry consolidation spur Maersk Drilling to expand, to order 1 new rig every 6 months. Positive read through for SembMarine, Keppel Corp.
* Keppel Corp: may underperform SMM as the Philippine court rejects Keppel Cebu Shipyard's appeal. The shipyard has to pay 33m pesos (S$9.7m) in damages to its insurer, due to negligence in a fire incident resulting in the destruction of a vessel 10 yrs ago
* Ezra: to purchase a 650k sqft fabrication facility in Houston. Deal was concluded at ‘distressed prices’ and allows fabrication of customized cranes which meet the requirements of the offshore O&G, but no price or closing date disclosed
* DBS: opens branch in Ho Chi Minh City to meet the rising demand for banking services as companies expand in Vietnam. This marks the bank's next phase of growth in the country.