SG Market: Spore shares likely to remain sluggish as activity winds down in the last week of 2010. Support for the STI is seen at the 3118 neckline (almost breached y’day) of a potential head-and-shoulder formation with 3188 50-day MA providing resistance. The local bourse is currently experiencing the year-end holiday lull but the STI should soon resume its rising trend post Christmas & may test 3220 by year-end.
Commodity stocks may be in focus as Wilmar forms 2 JVs in Nigeria to set up a palm oil refinery & food ingredients business while Noble Group acquires 2 sugar cane mills in Brazil.
Stock ratings changes:
*SIA target price raised to $20.50 from $19.50 at Goldman Sachs
*STX PO downgraded to Sell from Neutral by Goldman Sachs, TP cut to $11.30 from $17.40
SMRT target price raised to $1.75 from $1.53 at Macquarie