SG Market

SG Market: Renewed concerns over global recovery & a weak performance in US may weigh on SG shares in early trade. Cue expected to come from other Asian bourses as markets in Hong Kong, Japan, South Korea reopen after recent public holidays...

Support for STI at 3043 Aug peak, with ytd high of 3116 expected to cap any upside. STI closed down 0.4% at 3083 yesterday. Market watchers view recent pullback as healthy, following STI’s 4.5% rise this month. Note risk of market running ahead of expectations if share prices continue going up ahead of 3Q earnings results beginning next mth...

Stocks to watch:
#Commodities plays, such as Olam, Noble, Wilmar, on talks of possible business collaboration including a merger, btwn Olam and Louis Dreyfus Commodities.

#DBS: to invest $250m to upgrade its Treasury & Markets unit, with particular focus on China and India expansion.

#OCBC: to merge its two Indonesian bank units, into one single entity to achieve revenue, cost and operational synergies.

#Residential property: Recent data suggest recent property measure starting to take effect. Buyers, developers becoming more cautious, as transaction prices, volumes begin to come off. May erode near term sentiment.
Deutsche has the following ratings - City Dev as Sell with $10.44 target, Allgreen as Hold with $1.11 target, Wing Tai as Hold with $1.73 target.

#Office property: Street currently favors Office over Residential developers. Office leasing data also showing good momentum. Deutsche has Buy ratings on CapitaLand, Keppel Land, with $4.84, $4.74 targets respectively.

#Marco Polo: Kim Eng initiates at Buy, with $0.62 target. Charterer of tugboats and barges to benefit from the rising demand for coal transshipment within Indonesia to meet domestic electricity needs, as well as assess to the Indonesian cabotage trade.

#Biosensors: peer Microport to debut on SEHK today. SWS Research sees 20-40% further upside in Microport. If Microport runs, Biosensors may follow.

#DMX: may lose shine, as ADR debut on the US OTC last night received a flat welcome. Virtually no trades done.

#China Taisan, Sound Global: updates to TDR, HK dual listing.