SG Market: STI may open tad lower, reflecting slight loss for DJIA on Fri, mostly weaker regional markets. Caution also likely to creep in after index's strong run to highest levels since May 08. Resistance tipped at May 2008 peak of 3,268, support at 3,136.
*All eyes will be on the mega listing of Global Logistics Properties this morning as subscription levels show hot demand given its undemanding valuations & exposure to high growth China market. Broad grey market range of betw $2.05-2.15 touted.
*SGX may underperform after releasing disappointing 1QFY11 results, which is ~10% below expectations but downside may be limited & even viewed as a buying opportunity as outlook remains upbeat with improving turnover & upcoming initiatives such as ADRs, dark pools, retail bond trading & clearing of OTC financial derivatives expected to drive higher revenues going forward. Support is at previous $9.60 resistance.
*Conglomerates KepCorp & SCI will continue to enjoy insti interest as sector seen as a market laggard with several foreign houses looking to upgrade the sector.
*Following the sharp rise in City Dev last week, rotational interest may switch to other property counters, which may play catch-up, such as OUE, Wing Tai, Ho Bee.
On the stock ratings front:
*KepCorp, KepLand, SCI & SembMarine all rated Buys at UBS with new target prices of $11.10, $5.05, $5.37 & $5.00 respectively.
*KepCorp rated Overweight, target price raised to $11.00 from $10.20 at Morgan Stanley
*SCI rated Equalweight, target price raised to $4.15 from $3.80 at Morgan Stanley
*SembMarine rated Overweight, target price raised to $5.15 from $4.80 at Morgan Stanley
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