SG Market

SG Market: Spore shares likely to continue their recent rangebound trade in relatively low volume. While buying in blue chips towards the year-end is likely to support the index, upside may be limited amid weaker regional bourses and after yday's gain. The STI ended +0.8% at 3184 with 26 index members finishing higher; it has now advanced 1.5% over the last three sessions…

UOBKH expects the STI to drift upwards toward the 3200 resistance level, on the back of year-end window dressing and positive sentiment in global markets. Adds, in the absence of substantial volume, strong direction from the index is unlikely to emerge.
News flow again light this morning. GuocoLand may feature on reports it plans to start two Riets with assets of btwn $6-8b.

Stocks to watch:
* Genting SP: may see interest following today’s Business Times glowing feature on the Spore casino industry outlook. Stock jumped 7cts yday to close at $2.19.
* GuocoLand: to consider listing an office Reit and another trust holding retail assets. The two trusts, worth btwn $6-8b combined, could hold assets in Spore, China, Msia and possibly Vietnam, and may be listed over the medium term.
* Palm oil: Mar ’11 futures prices climbed to a 33-mth high at RM 3778/ton, on concern that a prolonged drought in regions of S America may reduce output of soybeans, boost demand outlook for veg oils made from other plants. Key beneficiaries are upstream players Golden Agri, Indofood Agri, First Resources.
* First Reit: the rights offer for the health-care property trust was 23% oversubscribed. Separately, the co’s existing portfolio has been revalued at $355.5m, or $0.57/unit, +4.3% ytd.
* Asia Water: won a contract to build a centralized water supply and waste water treatment station in Xinjiang, China, valued at Rmb 68.8m.
* Asian Micro: the mnftr of plastic components won a 5-yr contract to supply and transport compressed natural gas from Rolls-Royce Spore. The total gas contract amount is about $6.7m