SG Market (19 Dec 12)

SG Market: S’pore shares may move higher to track the improved sentiment on Wall Street on growing optimism about the baby step progress of the fiscal cliff negotiations and the surprise upgrade of Greece’s credit rating but gains are likely to be capped as technical indicators remain grossly overbought. Resistance for the STI is tipped at 3227 with supports at 3140 and 3110. Commodity and oil-related plays may come into focus on firmer oil prices ahead of US supply data. In other news, the joint bid by SMRT/NTUC Fairprice to manage the retail space in the new S’pore Sports Hub could be the first venture by the transport operator outside MRT stations. Commodities stocks Olam, Wilmar and Golden Agri may also be watched as risk appetite in the region picks up.