SG Market (03 Jan 13)

SG Market: S’pore shares are expected to see further gains, toasting the relief rally on Wall Street following the approval of a US budget deal, which temporary avoided the fiscal cliff. While the market may enjoy the positive sentiment in the short term, traders caution that there are still tough battles to be fought over spending cuts and the US debt ceiling over the next 2 months. On the local front, the STI has cleared the 3200 level and may be headed towards the next resistance at 3227. In focus will be F&N after TCC Assets declined to raise its offer and instead extended the deadline. OUE may now have little reason to improve its offer, which expires on Thu. Capitaland will also be watched following a pre-market open announcement it will streamline its corporate structure.