SG Market (12 Sept 12)

SG Market: S’pore shares may open higher on a firmer Wall Street close on expectations of another round of US asset purchases and a hassle-free German court ruling. The large infrastructural boost by China over the weekend also contributed; a buy on dips strategy ahead of tonight's risk events. But there are longer-term concerns that QE3 will have diminishing impact on the markets as leaders have hidden behind the Fed and delivered nothing on a fiscal level. Support for the STI remains at 3000 level with topside resistance at 3040. F&N will likely remain in focus as players await developments after ThaiBev disclosed it is exploring a possible joint F&N bid with an unnamed investor, potentially complicating Heineken's bid for F&N's APB holdings. Plantation stocks may be in focus after the EU proposed sharply limiting the use of biofuels derived from food crops.