SG Market (25 / 5 /12)

SG Market: S’pore shares are likely to open flat following the lacklustre close on Wall Street as uncertainty about both the euro-zone outlook as well as US monetary policy keep investors sidelined. After such a sharp sell-off, some major indices have hit multi-month lows that have triggered technical buying but nothing material has changed for investors on the grim outlook for the global economy. The STI has just penetrated its near support at 2780 with the next line of defence possibly at 2750 with overhead resistance at 2820. Stocks in focus include Global Logistic Properties after its 4Q earnings came in generally in line with expectations and Yoma, which surprised with a rather strong set of FY12 results ahead of its rights issue. Uncertainty over Indonesian bank ownership rules could affect its DBS’ bid for Bank Danamon.