SG Market: Spore shares have a positive lead from Wall Street after US markets snapped back after the Fed pledged to keep interest rates near zero for another 2 yrs. However, local investors are expected to take their cues from regional markets, following the Nat’l Day holiday yday, thus missing out the US/Europe equity rout on Mon.
The local bourse will probably start off cautious today & will be looking for more direction from regional markets esp HK, in line with recent trading trends with heightened volatility expected to remain the dominant feature. The STI has shed more than 10% since Aug 1 to a 13-mth low of 2884 & technical indicators are starting to enter oversold territory with RSI showing a reading of 23. STI may attempt to test the support-turned resistance at 2920; no firm support seen between 2750-2900.
Latest MTI figures show 2Q GDP grew 0.9% yoy vs 0.5% est but cuts 2011 growth forecast to 5-6% from 5-7% & revises down growth in non-oil domestic oil exports to 6-7% from 8-10%. Views recent global oil price declines as positive for inflation. Oil sensitive stocks may be in play after oil prices briefly breached the US$80/bbl mark before rebounding back. GLP may attract interest after acquiring a 49% stake in a China logistics firm in a US$54m deal.
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