Singapore market (25 Oct 12)

Singapore market: may open flattish to slightly weaker, taking cue from the US market overnight. While the Fed decided to keep things par for course at the latest FOMC meeting, its comments about slowing growth may lead to some cautiousness in sentiment. Singapore market sentiment may also be weighed by yday’s decision to suspend Dynasty REIT's $956m IPO due to weak market conditions, denting Spore’s ambitions to position itself as an alternative to Hong Kong in the growing offshore-RMB market. The dual RMB- and SGD-denominated REIT would have been the largest IPO in Spore this year. In the region, Nikkei and KOSPI open at -0.1% and -0.4% respectively. Nevertheless, moves are likely to be muted ahead of the holiday-extended wkend. Technically, the STI is trading range bound in the near term. The key indicators have flattened out, offering little guidance for near term direction. See support at ~3025 and resistance at ~3087.