SG Market (17 Sept 12)

SG Market: S’pore shares may move higher on improved sentiment generated by the Fed and ECB but investors should be watchful for unexpected storm clouds in the horizon with the China-Japan spat over Senkaku/Diaoyu islands worsening and an armada of British naval power massing in the Persian Gulf as Israel prepares for an Iran strike. S’pore’s non-oil exports also came in sharply lower than expected in Aug with NODX -10.6% vs -3% forecast. The STI may challenge for the recent 3088 peak with support at ~3030 level. Commodity-related stocks Noble, Olam, palm oil plays and offshore service providers are likely to continue to be in focus. Among other stocks, F&N has sold 56% stake in Fraser Property China for $260m. Olam raises usd500m via 5 year note issue, while Capitaland issues usd400m bonds due 2022.