Monday, June 25, 2012
SG Market (25 Jun 12)
SG Market: S’pore shares unlikely to make much headway amid the unconvincing recovery on Wall Street following the steep plunge on Thur. Stochastics indicators appear overbought and may be heading south following a robust 150-point run-up since early Jun. The STI is likely to remain stuck in a 2800-2850 range Corporate news is very dry with only the resignation of CapitaLand’s CEO taking the market by surprise last Fri evening. With Keepel Land also seeing a recent changing of guard, we wonder if these reshuffling is part of Temasek’s grand plan to re-align the business interests of the GLCs, namely the Keppel, Sembcorp and Capitaland group of companies. In other news, bankers highlighted Aussino’s $60m Myanmar RTO deal may hit a snag as RTO vehicle Max Myanmar group is linked to a Myanmar businessman on a US blacklist. Ntegrator clarified role about contract from Huawei was a limited one and not a managed service contract to manage SingTel's copper-based voice and data network infrastructure. Olam and Noble may face fresh cotton concerns as ICE futures limit down on Fri for a 3rd session. Star Cruises owner Genting HK may face pressure from peer Carnival's sharp profit drop.