SG Market (06 Jul 12)

SG Market: S’pore shares are likely to stumble after the EBC disappointed investors hoping for more aggressive efforts to fight the European debt crisis despite concerted support coming from PBOC and BOE. Market may also be reading the better-than-expected US private-sector jobs data as “good news is bad news," as it may put the dampener on QE3 pump-priming. Expect the STI to struggle towards the 3000 hurdle as technical indicators are deep in overbought territory. Any meaningful pullback should find support at around the 2910-2920 zone. Among stocks in focus, ST Engrg’s electronics arm landed $210 million contracts in 2Q12, while SGX said it is ready to trade Rmb securities.