SG Market: Spore shares are likely to open weaker after Wall Street tumbled Wed on increased fears about contagion of Europe's debt woes after a German 10-year bond auction met with weaker-than-expected demand, sending eurozone bond yields higher across the board. With the benchmark STI down 1.5% yday to its lowest level since Oct 12, there are renewed fears that the index is poised to revisit the recent low of 2521. However, we see some support kicking in around the 2600 level, which corresponds roughly with the 78.6% Fibonacci retracement of the rally from 2521 to Oct's peak at 2905.
In corporate news, construction company TA Corp secured 2 condo development contracts worth $271m. Watch for weakness in cyclical plays such as rigbuilders KepCorp and Sembcorp Marine, especially after crude oil's 2% slide, and commodities traders Olam and Noble.
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