SG Market (04 Sept 12)

SG Market: S’pore shares are expected to consolidate within a tight band as investors hold tight to their seats to see whether ECB president Mario Draghi can walk the talk this Thu. Immediate resistance for the STI is seen at 3030, followed by 3050, while downside sits at the key psychological 3000 level. Among stocks likely to be in focus, Nam Cheong secured contracts worth US$59m for the sale of 2 work barges, while Chip Eng Seng bagged a $210m contract from HDB to build 5 blocks of flats. Meanwhile, GSH has signed a MOU for 60% stake in China property venture to develop 3 vacant land plots into high-end commercial properties and residences in Chongqing. The company will also be removed from SGX's watch-list from today after meeting full-year profit and market cap requirements. Separately, the long-delayed Asean trading link between SGX and Bursa will finally kick off on 18 Sep, which will allow traders in M’sia and S’pore to directly trade stocks on both exchanges. Thailand is expected to be the next in line.