SG Market (16 Nov 12)

SG Market: S’pore shares are on slippery path amid continued weakness on Wall Street although the grossly oversold nature of markets may limit losses. Concerns over Mideast tensions, European debt problems and US fiscal cliff will continue to weigh on sentiment. With no major news and results season over, there is little to excite markets with traders likely to stay on the sidelines to wait for clearer direction. The govt has also cuts S’pore’s 2012 growth forecast to 1.5%, from an earlier estimate of 1.5-2.5%, as 3Q GDP growth contracted more sharply than previously estimated. Next support level for STI is seen at 2920. The biggest news of the day will be surrounding F&N, OUE and ThaiBev. The F&N takeover saga is back in the spotlight, with OUE (backed by 2nd largest shareholder Kirin Beer) making a $9.08/share counter bid, trumping a $8.88/share offer from Thai group TCC Assets. Interesting to watch if there will be a takeover battle with TCC/ThaiBev sweetening its offer.