SG Market (05 Jun 12)

SG Market: S’pore shares may get a little breather in cautious trading and possible short covering as investors take to the sidelines following the mixed close on Wall Street despite a surprise fall in US factory orders. All eyes are fixated on Europe with confidence remaining low that things will be sorted out soon. Any dead cat bounce on the STI is likely to top 2700 with the gap at 2738 offering stiff resistance. Underlying supports are at 2680, followed by 2650. Among stocks likely in focus, Tiger has finalized its deal to acquire 40% of Philippines-based SEAir. OKP secured drainage contracts worth $7.5m, bringing the total orderbook to $336m. Noble, Olam and Wilmar are all faced broker downgrades.