SG Market: Spore shares are likely to start the yr on a cautious note following Wall Street’s listless close last yr & with several regional bourses still on an extended holiday. Immediate resistance for STI tipped at 3220 with near term 50-day MA support at 3172. Spore’s 4Q GDP growth of 12.5% unlikely to have much impact on the market as 6.9% qoq growth is below 9.4% consensus est.
Scarcity of some soft commodities that propelled prices to historic highs in late 2010 is expected to continue into 2011 & drive up the commodity-related stocks. Noble & Straits Asia may be in focus as the worst floods in Queensland, Aust have already led to firmer coal prices. Indonesia’s offer of 50 new oil & gas blocks this yr could also potentially benefit the offshore support services players.
Container throughput in Spore has also recovered, expanding 10.5% for Jan-Nov period & buoyed by the stronger demand in Asia & Latin America, some shippers have started raising rates, which may have a positive rub on shippers like NOL.
Stock rating changes:
*Midas upgraded to Buy at OCBC Secs with TP raised to $1.22 from $1.05
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