SG Market (21 Aug 12)

SG Market: S’pore shares are likely to drift down in the absence of overseas leads and market-moving corporate news following the end of the earnings results season. The STI appears overextended with Stochastics and MACD indicators losing momentum. Support for the index is tipped at 3040, as represented by the 20-day moving average, while resistance is capped at 3100. Among stocks in focus, F&N and APB may rise on resuming trade at the market open after Heineken raised its bid for F&N's entire APB holding to $53/share, countering Kindest Place's $55/share bid for part of APB. Tiong SEng secures a $137m contract to build a building extension at SIM, while Chip Eng Seng won a $138m HDB contract to build 7 blocks of flats in Bukit Panjang.