SG Market (29/ 5/ 12)

SG Market: S’pore shares are likely to mark time as investors are expected to remain on sidelines watching developments in Europe. The STI has slumped 7.3% since the start of May and short term technical indicators are pointing towards a rebound from the 2750 support area. Both stochastics and RSI appear to be finding a bottom with the STI exhibiting an engulfing bull candlestick yday. Overhead resistance is at 2812, which represents the top end of a recent breakdown gap. On the corporate front: *Tat Hong 4Q12 net profit soared almost 4-fold to $11.2m from $3.8m yoy, revenue +19% to $182m as all 4 core businesses recorded sales growth. Proposed final dividend of 1.5¢ *Boustead 4Q12 net profit came in at $32.43m, turning around from $1.0m loss, revenue +20% to $131.8m. Secured $400m in new contracts during FY12 coupled with healthy enquiry pipelines, the company is in a strong position in FY13. Proposed final dividend of 3¢ *Wilmar sold its 42.5% stake in sugar trader Czarnikow to Macquarie in an unexplained move. *Sembcorp Industries has completed its final test for its 60% JV, US$1bn Salalah water and power plant in Oman, which is ready to start ops *Sunpower secured a Rmb25.3m contract to supply two dry gas-holders and provide accompanying services for the production of magnesium. *Telecoms: IDA drops plans for standardised set top box, which comes as a blow to M1, which had hoped to use the platform to advance its Pay TV plans