Spore market: likely to take cue from the strong US performance last night to open higher today. Regional markets are up as well, with Nikkei 225 and KOSPI up 1.9% and 2.3% rptvely (as at 8.17am). Nevertheless, expect volatility to persist, as sentiment continues to be tied to macro news flow.
Overnight news flow largely positive.
In Europe, 16 of the 17 Euro-led nations have agreed on the European Bailout Fund, leaving Slovakia as the only holdout.
On strategy, Citi notes that the bottom is near for China stocks, after the recent deep sell-off. Tips the market to rebound if current concerns over external recession, EU default and illusion on hard landing in China prove overdone, and positive policy reactions may extend rebound to a rally.
PIMCO sees emerging market stocks as “cheap” and is buying in China.
And China’s sovereign wealth fund has started buying shares of the 4 main banks in China (ICBC, BOC, ABC, Construction Bank) lifting stock prices. It plans to buy more in the coming year.
In local news,
Lian Beng reports strong 1QFYMay12 results, as expected.
Ezra may get a boost from Vietnam’s Chim Sao offshore oil project hitting first oil, with its exposure to a FPSO vessel charter JV, potentially worth US$1b over 12 yrs btwn the 4 JV parties.
Ryobi Kiso signs another $3.2m piling contract with Saigon Dev and Invmt Corp in Vietnam.
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