SG Market

SG Market: SG shares may inch up on hopes after worse-than-expected US Nov nonfarm payrolls data could help prolong existing measures by Fed to spur ailing US economy; although overall interest may remain subdued given traditional yr-end lull. On charts however, OCBC notes picture for STI not promising in near term, as Friday’s pullback potentially sets the stage for the formation of a head and shoulders bearish reversal pattern. Support at 3120, resistance at 3220. STI -0.8% at 3172 Friday.

#Stock ratings:
* Keppel Corp: Phillip initiates at Buy with $12.52 target
* Straits Asia Resources: Nomura cuts target to $2.21 from $2.80. Downgrades to Reduce from buy, on valuation grounds.
* Olam: HSBC rates at Neutral with $3.63 target, says need to watch equity raising risks. KE maintains Buy with $3.88 target, positive on Africa investments.
* Ziwo: Polaris Sec maintains Outperform with S$0.47 target. Notes counter the cheapest among peers.

#Stocks in focus:
* CapitaLand: sells stake in Spore office-cum-retail property The Adelphi for $218.1m for $16m profit. Buyer is a JV owned by Guthrie.
* Keppel Land: Positive tax ruling on divestment of MBFC to result in $72.5m tax savings, to lead to 6.3cts EPS improvement vs initial guidance.
* OCBC: 64%-owned Msian subsidiary, PacificMas, to sell its entire insurance arm Pacific Insurance Berhad for RM219.1m, for a gain of RM70.5m.
* PT Berlian Laju: to restructure and resell US$48.8m worth of Zero Coupon Guaranteed Convertible Bonds due 2012 to undisclosed investors.
* Serial Systems: enters into MOU to buy Contract Sterilization Services for $3m.
*AusGroup: restarts A$12m contract for building 2 twin cell car dumpers and 2 positioners for Fortescue Metals.
*CDLH Trust: Fitch maintains BBB- rating, with a Stable Outlook.
* Beyonics: profit warnings for 1Q11 due to lower HDD shipments to customers.