Spore market: may take cue from the strong US performance on Friday to open higher. News that the G20 meeting in Paris endorsed parts of a plan to contain Europe’s debt crisis may also lift sentiment. In the region, Nikkei and KOSPI are up 1.5% and 1.2% at 8.33am.
The positive macro news flow may temporarily mask the surprise weakness in Spore’s Sep Nodex figures, at -4.5% yoy (vs consensus +2.1%) and -9.3% adj mom (consensus -3.1%). Electronics exports led the way, -13.6% yoy, though offset by Pharmaceuticals exports +12.5% yoy. Non-Electronics exports were up 0.9% yoy.
Technically, the downtrend in the STI hasn’t been negated yet, despite the strong bounce over the past two wks. Near term momentum is positive, but some caution may be advised as the fast Stochastic has just entered overbought territory. First resistance at the 50day MA (2,764) followed by the psychological 2.800 level.
On corporate news flow,
CRCT reported 3Q11 results in line with consensus. Still, JPM reduces DPU estimates for FY11-13E by 3-4% to take into account a higher cost base. Lowers TP to $1.20 from $1.30, but retains Neutral rating.
Guocoleisure reports 1QFY12 net profit of US$24.3m, +45.5% yoy, mainly due to exceptional income from reimbursement of expenses associated with a resolved royalty entitlement dispute.
More companies report being affected by the Thai floods, these include Chosen,
Beyonics, Innovalues, Thai Bev.
Beng Kuang says contracts for 2 crane barges worth ~$14.4m have been cancelled due to current economic conditions.
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