Singapore market (07 Dec 12)

Singapore market: may ride on the gains in the US overnight, to open higher this morning. In the US, fiscal concerns appear to have calmed for now, while the jobless claims data came in better than expected. Apple, a bellweather component for the major US indices, rebounded from its worst drop in 4 yrs. In the region, KOSPI and Nikkei are +0.4% and +0.1% at 8.24 am. Technically, the STI continues to trade firm, though the 3,087 resistance may remain a near term cap. The indicators are nearing overbought levels, which suggest that upside momentum may start to slow. Nevertheless, stay nimble, and a break above the resistance could see the index move quickly to test the 52 wk high at 3,111. Near term support at 3,050, which is in the middle of the late Nov gap. Stocks in focus: * SMM: has secured 2 orders worth US$434m to build 2 jack up rigs for Mexico’s Oro Negro. * OUE / FNN: the consortium led by OUE sets a 3 Jan deadline for its $13.1b offer to buy FNN, as it waits out an 11 Dec deadline for a rival bid from Thai group, TCC/ Thai Bev. * Telco: all three telco firms in Spore, SingTel, Starhub, M1 have been fined $10k each for failing to meeting the regulator’s new standard for outdoor 3G coverage. * Tee Intl: secures 3 projects worth a combined $30.4m. Orderbook stands at $300m.