SG Market: Spore shares could open lower as mkt sentiment is likely to be dampened by heightened tensions in the Mid-East & China's reserve ratio hike late Fri & lean towards flight to safety. Spore’s inflation focused 2011 Budget also viewed generous to individuals but not too helpful to corporates. On average, the higher foreign worker levies & CPF hike may increase overall labour cost by 2% by 2013 & impact the labour intensive land transport, construction, marine & service industries.
Speculation that China may cut its soyoil import tax to 1% from the current 9%, while keeping the palm oil tax unchanged at 9%, which may weigh on CPO stocks. Key levels for The STI remain 3040 support & 3120 resistance.
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