Wednesday, December 7, 2011

Spore market

Spore market: shares may continue to see rangebound trade in lackluster volumes as investors await key meetings in Europe starting Thursday for further direction, though shares may have an upside bias Wednesday after Wall Street's slight rise and after two sessions of losses for the STI; the benchmark index closed down 0.6% at 2749 yday, adding to Monday's 0.3% decline.
"Given there is still a huge amount of uncertainty over exactly what will be delivered by the European politicians, on the whole investors are happy to remain relatively flat, as there is significant risk whichever way you position yourself," says IG Markets.
In the region, KOSPI is up 0.2%, Nikkei is up 0.5% at 8.15am.
The STI may find support at 2730, then 2700 with resistance at 2800 then 2840.


On corporate news,

* CapitaLand may be in focus after it says it's selling 100% in its China unit, Shanghai CapitaLand Xin Chuang Real Estate Development to an unnamed party and expects to book net gains of ~$40m when the sale completes.

* City Dev: its JV was the highest bidder for the tender of the Alexandra Road residential site at $396m.

* UOL / SingLand: sells >100 units at their 99yr leashold Archipelago condo, out of the 190 units released last Friday at ASP of ~$1000 psf.

* Chip Eng Seng: awarded the 99yr land parcel at Jalan Bukit Merah/ Alexandra Road for $189m for a mixed development project.

* CCM Group: awarded a contract worth $2.58m for repairs and redecoration works.

* LionGold: makes loss provision of $1.8m due to a claim by the Chinese Society for Environmental Sciences.

* STATS Chippac: expets operations at its flooded Thai factory to remain suspended till Jan 2012.

* Food Empire: agreed to sell its stake in Vayhan Coffee for $3m

* Sunpower: received a $6.8m contract in the Middle East from CTCI Corp

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