SG Market (11 Jun 12)

SG Market: S’pore shares are likely to open on a slightly more positive note as news the EU is willing to lend as much as €100b to help Spain shore up its banking sector, added to a slew of Chinese economic data that were less alarming than feared, which may offer reassurance to Asian markets. Trade data in China rose sharply in May, while inflation, industrial output and retail sales were less than forecast. The combination of falling inflation and weak industrial data may provide more room for the govt to loosen policy and stimulate the economy. S’pore non-oil exports also accelerated 3.2% yoy in May after a revised 1.7% growth in Apr, as electronics picked up the slack from the volatile pharmaceutical sector. However, the trade environment remains tepid as economy still faces headwinds from weakness in key markets Europe and US. For the STI, overhead resistance is tipped at 2784 with 2700 standing in as support. Among stocks likely in focus, Olam kick-start its share buyback with a puchase of 3.2m shares on 8 Jun @ $1.6271. ST Engrg acquired a Tampa aerospace maintenance facility while KepLand is seeing a changeover of its CEO.