SG Market: Spore shares likely to slip further following the retreat on Wall Street over renewed European worries as France & Germany rejected the sale of common Eurobonds & proposed a financial transaction tax. Ominously, the STI is displaying a bearish engulfing black candle after yday’s 42-pt drop. Underlying support is at 2780 followed by 2720 & 2650. Market could also be disappointed by the 2.8% contraction in Spore’s July non-oil exports, which saw shipments to EU & US falling by 11.2% & 3.2% respectively. The data highlights the risk of a technical recession in 3Q given the close relationship between NODX & GDP growth. The 12% rise in SGD against the USD is also a factor depressing exports, apart from the sluggish demand in electronic goods.
Among stocks in focus, CapitaLand may draw interest after it buys a residential site in China for $213.3m, while supermarket chain Sheng Siong makes its debut today.
No comments:
Post a Comment