SG Market (02 Nov 12)

SG Market: S’pore shares are set for a bounce, tracking buoyant cues from Wall Street on more positive US economic data. Some analysts believe that global growth (particularly in China) is showing signs of bottoming out and there could be a modest pickup in 4Q12, barring downside risks on the fiscal front. The STI has held its 2020 support well so far but the 3050 level, where both the 20 and 50-day moving averages are about to meet, offers stiff resistance. Among stocks likely in focus, Global Logistic Properties plans to raise about ¥Y100b by spinning off 30 of its 68 Japanese properties to a J-Reit. Hi-P reported a 54% yoy plunge in 3Q12 net profit to $3m but reverses a 2Q12 loss; the results may be well-expected after flagging a profit warning. SC Global reported flat 3Q12 earnings. Hyflux 3Q12 earnings came in below consensus, impacted by higher raw material and consumables costs. OKP, Ausgroup, BBR and PEC may all see some interest after announcing contract wins.