SG Market (27 Dec 12)

SG Market: S’pore shares are expected to pull back slightly on softer close on Wall Street as the clock ticks nearer the fiscal cliff deadline. Technical indicators for the STI have not corrected from their overbought levels, suggesting it may be a stretch for the market to push much higher. Above 3170, the next resistance for the benchmark index stands at 3227, while the immediate floor is tipped at 3150. In corporate news, the independent financial advisor highlighted the $1.80 cash offer by Simon Cheong as fair and reasonable and recommended shareholders to accept the offer or sell their share in the open market. This is in direct contrast to recent comments by Wheelock, which views the takeover price as being too low. Meanwhile, CapitaLand’s The Ascott has secured contracts to manage 3 more properties in Shanghai and Suzhou, while Darco Water may face some selling pressure after initiating legal action to terminate a $79m to build and operate a wastewater treatment plant in Taiwan after Taoyuan County govt breached terms of contract.