SG Market (28 Sept 12)

SG Market: S’pore shares are back on the roller-coaster ride as Wall Street's rally on Spain's budget plan and China’s move to add banking-system liquidity has eased eurozone debt concerns and put the risk-on trades back on the market. With the ongoing speculation for Chinese stimulus, we can expect equities, commodities and risk currencies to remain bid, but should remain cautious as the troubles of Europe are never too far away. China's PMI data on Sat will be closely watched. The STI is expected to hug the 3040-3080 range in the immediate term. F&N's EGM to vote on Heineken's offer to buy its APB holdings will likely be a key focus, even as it's widely considered a done deal after the Thai group pledged to vote in favor of the sale, but to reject the capital-reduction plan and Kirin is reportedly looking to exit; F&N shares are halted. Ascott Residence Trust agreed to buy a 166-unit Hamburg property. Myanmar-related stocks will continue to be in play given the lifting of US sanction on Myanmar exports and the positive response to Thein Sein UN address. CPO and commodity stocks may also see interest with the overnight jump in commodity prices.