SG Market (07 Jun 12)

SG Market: S’pore shares appears set to extend its rebound following the biggest rally on Wall Street ytd on growing expectations that policy makers will take steps to revive the global economy. But gains may be limited given the ineffectiveness of previous QE efforts and with the Jun 17 Greek election looming. There is unlikely to be an immediate resolution for Greece, while Spanish news continues to be a concern. After closing the breakdoen gap at 2738, the STI may be headed for the next resistance at around 2792, where the 20-day moving average lies. Among stocks likely in focus, Sembcorp Industries signed a JV for a wastewater treatment plant in Jiangsu, China, while United Envirotech landed a Rmb104m contract to upgrade a China wastewater treatment plant