SG Market (18 Jun 12)

SG Market: S’pore shares appear set for a relief rally after Greece's conservative New Democracy party looks set to form a pro-bailout coalition government, with the local market likely to track regional markets' gains although the election results would not solve deep-rooted debt problems. The psychological boost coupled with hopes of further Fed stimulus are expected to turn on the risk appetite for the moment with high-beta stocks Olam, Noble, YZJ, NOL likely to be in play. The STI is tipped to break above 2830 and head towards next resistance at 2880 with 2773 standing as firm support. Among stocks likely in focus, high-beta Olam may outperform after buying back another 3.4m. Otto Marine secured a US$7.6m time charter for its new work-maintenance vessel. SIA saw its passenger carriage improve 7.1% yoy for May outpacing growth in capacity which grew 3.9%, lifting passenger load factor 2.2ppt to 75.8%. Novo and Avi-Tech issued profit warnings.