SG Market

SG Market: Selling pressure on Spore shares may persist following Wall Street selloff, tension in Korean peninsula, Fed's lowering of 2011 US economic forecast, eurozone debt issues, China's tightening measures, HK property cooling measures. After penetrating below the 50-day MA to a 4-week low of 3,126, STI may test 3080 for 1st time since Sep, which represents the lower limit of its upward trend channel with subsequent support eyed at 3069 (Sep low).

Any upside likely to be capped at 20-day MA at 3211. With many fund managers closing their books for year-end, the lower volumes would amplify market volatility. Cautious market sentiment may take toll on new listing Mewah Int’l IPO priced at $1.10/share, merely 1.9X subscribed. Stocks held by Janus Capital such as SIA (1.2%), Capitaland (5%), Raffles Edu (5.9%) may come under spotlight following revelation that US hedge fund is facing FBI investigation for insider trading.

Medical devices maker LMA Int’l may see some buying support after announcing an off-market offer to buy back 10% of its shares at $0.36 or 28.6% premium to current market price. The buyback offer will be open till 29 Dec.

On the stock ratings front:
*China Minzhong initiated as O/P at Macquarie with TP of $1.80
*StarHub TP raised to $2.25 from $1.90 by Nomura
*Ezra downgraded to Hold from Buy at DB with TP slashed to $1.90 from $2.80
*Genting Spore reiterated as Conviction Sell by Nomura with TP of $1.01