SG Market (06 Nov 12)

SG Market: S’pore shares may drift slightly lower despite mild gains on Wall Street as local PMI signals a contraction for the 4th straight month. The markets will be sidelined as traders await the outcome of the US elections to see who will be best positioned to tackle the impending fiscal cliff. We expect the STI to remain trapped between the 3020-3060 band. Among stocks in focus, Sembcorp Marine may take a hit after the rig builder reports a 48% dip in 3Q earnings, well below the $172m consensus forecast. Meanwhile, KepCorp may gain back favour after announcing a string of contracts. UOB and OCBC may be in focus ahead of their earnings reports later this week.