SG Market

SG Market: Spore shares expected to take negative cues from Wall Street decline as investors continue to fret over European debt problems. Last week's low-volume trade in narrow ranges expected to flow into this week. But there may also be some relief as there has been no major altercation on Korean Peninsula over weekend while Ireland successfully completed its rescue deal. Downside for STI tipped at 3118.

Rig builders facingsome uncertainly pending likely outcome of Petrobras 28-rig tender after pricing details released which saw both KepCorp & SembMarine submitting higher bids than Brazilian consortiums. All is not lost for the local yards as technical evaluation of the bids are still in progress but SembMarine appears to be fighting losing battle. KepCorp still stands a chance as all 3 groups that submitted bids for Package 3 (Lot B) intend to build the 2 semi-submersibles at KepFels Brazilian yard.

Noble may come under selling pressure following the suspension of its China soy crushing plants till Dec 28 as the Chinese govt’s moves to roll back agricultural prices cut into crushing margins. At the same time, Nigeria has also halted all subsidies to all oil trading activities associated with Noble due to discrepancies in its reporting of deliveries. Serial Systems may fall after its TDR bid was rejected by TSE.

Stock ratings changes
*SGX upgraded to Buy from Neutral at Goldman Sachs; TP raised to $10.37 from $8.22
*KepCorp TP raised to $13.00 from $11.30 by RBS
*Mermaid Maritime downgraded to U/P from Neutral at Cimb, TP cut to $0.46 from $0.52
*Foreland Fabritech initiated as Buy by Cimb with TP of $0.16