SG Market: Spore shares may open a little higher after US stocks bounced back from sharp declines in earlier trade, though gains could be capped as the STI had risen for 3 straight days and may be due for a correction ahead of the weekend. Resistance for the STI is tipped at 2735 with support at 2640.
Daiwa highlights in a strategy report that the Spore market appears inexpensive relative to the period prior to 2008, trading currently at a 2012 PER of 12.1x (2003-08: 13.1X) and a P/B of 1.2x (2003-08: 1.8x) but valuations appear to be reflecting a poor earnings outlook.
Chinese shipbuilder Cosco may be in focus after announcing a US$220m contract. SIA may also feature after revealing it repaired minor cracks on 2 of its Airbus A380s.
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