SG Market (24 Jul 12)

SG Market: S’pore shares face a weak open in the wake of the steep drops in Wall Street on the deepening debt crisis in Europe with Spain and Greece living on borrowed time. The local bourse is likely to track the modest declines in regional peers with HK market halted due to typhoon alert and focus will be on China's flash PMI data due around 0230 GMT. The 2950 on the STI will act as support with 3000 resuming as resistance. Among stocks likely in focus, F&N and Asia Pac Breweries may extend gains amid talk that 15% F&N stakeholder Kirin, is in early discussions with bankers for a potential APB bid, setting up a battle with Heineken. KepCorp is also in limelight as its shipyard unit secured 3 conversion contracts totaling $103m. Commodity plays will face a tough time with commodity prices down 3.3% yesterday.