SG Market

SG Market: S’pore shares are likely to trade higher, tracking gains in Wall Street and regional markets on improved sentiment from positive US economic data but gains are likely to be limited as investors continue to remain cautious over the debt crisis in the euro zone and absence of any major local leads. The convergence of the 20 and 50-day moving averages at around 2985 may prove to be a stiff resistance, followed by the 3000 level, with 2960 offering underlying support. Among stocks likely in focus, SMRT reported a shock 59% drop in 4Q profit to $13.9m on higher operating costs and on-off impairment charge, which raises questions over its future dividend payouts, while CapitaLand's 1Q12 net profit rose 31.3% yoy to $133.2m, largely in line with expectations. SingTel unit Optus plans to cut about 750 jobs. High-end residential-property company SC Global may take a hit after guiding a $10m 1Q12 loss. Sakari also posted a poor set of 1Q12 results with net profit plunging 65% to $14.5m as lower coal production and higher strip costs put pressure on margins.