SG Market: Spore shares are in for a tough start after declines in Wall Street and regional markets on a possible economic slowdown in China. With technical momentum starting to ease from overbought levels, the STI appears to be struggling to hold above the 3000 level, drawing some profit-taking, which is expected to continue today. Support is tipped at 2955 with 3030 acting as resistance.
Cyclicals especially the commodity firms as well as China-related plays are expected to take a slight hit today amid concerns over China’s growth following comments from BHP Billiton that suggest Chinese demand for iron ore is "flattening out." Airline stocks such as Singapore Airlines and Tiger Airways may also be in focus, after the Iata revised down its industry profit guidance for 2012 to US$3b from the earlier US$3.5b forecast in Dec, citing higher fuel costs.
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