SG Market

SG Market: Spore shares may rise with Wall Street's overnight gains fueling further upside for the STI after the 3120 key level was convincingly re-taken yday. RSI is on the verge of climbing back above the 50% mark & Stochastics is showing signs of a bullish reversal from oversold territory, suggesting the downside momentum may be waning.

Watch for action in Noble & Olam after broad gains in commodities prices last night; offshore & marine names SembMarine & STX OSV will also be in focus after both posted 1Q earnings. The STI is likely to face immediate resistance at 3156, followed by Apr peak near 3200.

Stocks in focus:
*SembMarine 1Q net profit +1.2% yoy to $150.6m, revenue -39% to $828.9m as new jack-up rig projects still in planning stage. Net order book stood at $5.2bn with deliveries stretching till 1Q14, including $1.5bn contracts clinched in 1Q11.
*STX OSV 1Q results beat expectations, net profit +28.1% yoy to NOK310m vs mkt est of NOK196m, revenue +20.7% to NOK3.19b boosted by delivery of 6 vessels & margin expansion. Expects order momentum to pick up in 2H11
*OUE 1Q net profit +23% yoy to $227.6m, revenue +42% to $68.2m. Earnings include a $249.2m fair-value gain on investment properties
*ASL Marine 3Q net profit -13.5% yoy to $8.0m, revenue -21.9% to $86m due to lack of large ship conversion jobs & thinner order book, comprising 41 vessels worth $218m, with deliveries till 1Q 2012.
*OKP 1Q net profit +49.4% yoy to $5.2m, revenue -3.1% to $32.84m as group benefited from cost-saving measures. End Mar orderbook sttod at $375.8m, with some projects due for completion in 2014.
*FJBen 3Q net profit +28% yoy to $3.2m, revenue +24% to $89.1m fuelled by strong consumer demand in all major mkts in Spore, Msia, HK, China & Taiwan.
*ST Eng secures a $68m contract for Spore's Ministry of Defense
*Noble plans to consolidate its Aust coal assets under 65% owned Gloucester Coal & is reportedly nearing a deal to sell Donaldson Coal to GCL. This follows earlier sale of its 50% stake in Middlemount Coal to GCL last yr.