SG Market (26 Dec 12)

SG Market: S’pore shares may stay firm as Asian stocks advanced y’day with Shanghai Composite surging 2.5% on speculation new leaders will do more to spur growth and reform the financial system, while the Nikkei 225 Stock Average jumped 1.4% as incoming Japanese PM Shinzo Abe pressured the central bank to raise its inflation target. After closing the breakdown gap set in Aug 11, the next resistance for the STI is seen at 3227, while immediate support is at 3150, followed by 3110. Stocks with China exposure such as CapitaLand, CMA, Yanlord, Ying Li may play some catch-up following the strong move by Chinese property stocks. SC Global may continue to draw interest as traders are betting on a sweeter takeover offer from CEO Simon Cheong. Meanwhile, City Dev is expected to launch Echelon, its 99 yr leasehold private condo project next to Redhill MRT Station, this week with indicative sales price of ~$1,700psf. Marco Polo may also be in focus after 49% owned tug and logistics operator PT Pelayaran Nasional Bina Buana Raya (BBR) secured approval for its IPO on Indonesia Stock Exchange, with listing planned for a 9 Jan 13 listing.