Spore market

Spore market: likely to open lower, taking cue from the weak close in the US overnight, and lower open in the regional mkts (KOSPI, Nikkei down 1.8% and 1.7% at 8am).

News flow from Europe impacting sentiment, as to be expected. Investors were spooked after the ECB damped speculation that it will buy more govt bonds to stem the region’s debt crisis. This overshadowed the ECB’s cut in interest rates matching a record low of 1% ( expected) and loosening of collateral requirements for banks that need dollars. This caused the euro to fall more than 1% at one stage, to its lowest level in more than a week.

Technically, the STI chart has begun to turn negative, with the key indicators starting to hooking down. Price patterns suggest possible near term weakness as well, with the STI having cut below the 20 and 50 day MA, and the 20 day MA poised to do a negative cross over the 50day MA.
First support at 2700, followed by 2650. Resistance at 2800.


Property stocks may extend yday’s fall, after the govt announced a 5th round of cooling measures on Wednesday night. The Business Times highlighted how Sentosa properties might be hard hit, given the high level of foreigner purchases there. Ho Bee has the highest concentration of property exposure to Sentosa. SC Global, City Dev also have some Sentosa exposure.