SG Market (25 Sept 12)

SG Market: S’pore shares are likely to go into consolidation mode following the feeble close on Wall Street amid the stalemate over the European debt crisis and global growth concerns. However, any correction is not expected to be too severe given the anticipated liquidity tide unleashed by the Fed and ECB. Support for the STI is seen at the 3040 level, which also marks the convergence of the 20 and 50-day moving averages with topside resistance at around 3080. No much corporate news to drive markets today with Ausgroup undergoing a corporate reorganization together with a planned ASX listing and Rotary issuing a profit warning due to problems faced by a Mid-East project. Wilmar inked a joint venture with Kellogg to make, sell and distribute cereal and snacks in China, while DBS signed an MOU with the Export Import Bank of Korea to cooperate on infrastructure and project financing. Palm-oil plays may be eyed after CPO touched a 2-year low on rising inventories and lower demand for biofuel. Jason Parquet makes its debut on Catalist after setting its IPO price at $0.225.