SG Market (14 Jan 13)

SG Market: S’pore shares are likely to open lower with property developers taking the knock after the government announced a fresh round of cooling measures on Friday. The latest move, the most comprehensive one to-date, may take the wind out of the property rally on margin concerns and slower transaction volumes, especially those developers who have bought land at elevated prices and planning to sell at significantly higher prices, as well as banks with large property loan exposure – UOB (29%), OCBC (26%) and DBS 921%). However, the steps may drive investors into Reits. Property developers including CapitaLand and City Dev are likely to be in focus. For the STI, overhead resistance remains at the 3240 zone while 3200 provides the underlying support level.