Spore market

Spore market: Spore shares are expected to trade with an upward bias, following gains on Wall Street Monday, though upside for the local market is likely to be light following Monday's strong rise and amid frayed nerves over a Europe bailout deal ahead of a meeting of EU leaders Wednesday. The Spore market is closed for the Deepavali holiday tomorrow.

The benchmark STI surged 1.8% to close at 2760.95 Monday in a broad-based rally. "I think it looks like we'll test the 2789 to 2800 region, just above last week's high, but I doubt we'll see a strong break above that area, and we're likely to just hover around below it," says an analyst at a local brokerage. He tips support for the index at the 2700 level.

In Asia, both the Nikkei 225 and KOSPI are marginally higher, as at 8.27am.

On corporate earnings,
FCOT posted inline FY11 results, with full year DPU at 5.75cts.
CDLH Trust reported 3Q11 results. NPI +13% yoy, DPU +9% yoy.
GMG posted a good set of 3Q11 results, above estimates. Revenue was up 183% yoy, and net profit was up 49.3% yoy.
OKP posted 3Q11 revenue that fell 30% yoy, and fell 11% qoq. Net profit was up 8.3% yoy and down 29% qoq. Still largely within expectations.


CMA is likely to be in focus after it announces more investments in China; it will invest Rmb3.37b (US$529m) to develop a shopping mall in Suzhou, with an expected total project cost of ~Rmb6.74b (US$1.1b); CMA will own 50% of the project.

Water names, Hyflux, Sound Global and Leader Environment may see interest following new orders announcements, as well as a water sector report by Deutsche today.

Construction names, Chip Eng Seng, Yongnam, Sim Lian, PEC also announced new order wins overnight.