SG Market (15 Apr 13)

SG Market: S’pore shares are likely to go into consolidation mode after Wall Street broke a 4-day winning streak following weak economic news and mixed bank earnings. Sentiment will remain cautious as traders look for direction from the start of results season with Reits and Keppel-related counters kicking off the reporting this week, Including SGX tomorrow. Markets will also keep an eye out for China’s 1Q GDP data, the ongoing bird flu situation and a possible North Korean missile launch to commemorate founder Kim Il Sung’s birthday today. The STI is expected to be range-bound between immediate support at 3280 and near term resistance at 3320. Stocks to watch out for: *DBS: DJ reported Bank Indonesia has given the green light for DBS acquisition of Bank Danamon, Indonesia’s 6th largest bank by assets but no details on the approved limit. *SPH: Turned in weaker-than-expected 2QFY13 net profit of $71.5m (-15% y/y) as revenue fell 5.5% due to declining adex and circulation sales and higher rentals and marketing expenses. Interim DPS of 7¢ maintained. *Hi-P: Guides for a marginally lower revenue but higher profit in 1Q13, reversing an earlier profit warning. *Technics O&G: Forms JV with Eversendai to provide engineering and construction services for O&G industry. The JV will acquire a plot of land in UAE to construct and operate a fabrication plant and facilities for offshore and onshore works.