SG Market (27 Sept 12)

SG Market: S’pore shares look set to have entered a corrective phase as the spotlight turns to Europe where protests over austerity measures are flaring up in Spain and Greece and Wall Street is recoiling from the prospects that central bank support may not have the desired effects. Most technical indicators (ADX, Stochastics, RSI, MACD) are exhibiting clear signs of weakness, which may trigger a short term sell-off. For now, the STI is till holding above the 3040 immediate support but if this gives way, we could see a further drop to the psychological 3000 level or below. Very little market moving news to push markets as negative overseas news expected to take charge. Local stocks in focus will include F&N, after ThaiBev announced it will vote against a proposed capital reduction program. K-Reit will also be one to watch, after it announced it is in a deal for a 50% stake in a new office tower in Perth. Meanwhile, Ryobi Kiso secured contracts worth $24m.