SG Market (17 Dec 12)

SG Market: S’pore stocks are expected to consolidate their gains following soft close on Wall Street and almost uninterrupted 223-point rally on the STI since mid Nov. The market advance may also be capped by the steeper-than-expected 2.5% contraction in non-oil exports for Nov after a 7.9% rise in Oct as electronics shipments remained in the doldrums. Momentum indicators are also heavily overbought with RSI entering the 80 zone and stochastics pushing above the 90 mark. Immediate Supports for the STI is seen at 3140 followed by 3110 with resistance at Aug 11 peak of 3227. Focus will likely be on stocks with exposure in China following signs that China's economy may found a bottom. CapitaMalls Asia, CapitaLand, Global Logistic Properties and Yanlord may continue to see follow-through interest from last week. Sound Global may see further buying interest after nagging a jpint bid with China Railway Bureau to build a 500,000m3/day water treatment plant in Changchun, Jilin in China costing Rmb2b.