SG Market (15 Jan 13)

SG Market: S’pore shares are primed for a consolidation as Wall Street struggled to maintain its footing awaiting clearer guidance from the 4Q results season. Meanwhile, the technical picture of the STI is showing signs of deterioration despite the index holding out at the 3200 support. Below this level, the next line of defence is at 3180, followed by 3150 with overhead resistance at 3240. Early indication from first batch of results is not sanguine with Ezra, Lian Beng and SPH all reporting weaker quarterly earnings. Meanwhile, the F&N saga continues with the OUE consortium extending its offer till 21 Jan and the bidding war attracting another hedge fund looking to profit from potentially higher bids. Sin Heng may also be in focus after its CEO indicated that it is ready to secure business and is in advanced negotiations for several ports, power plants and O&G projects in Myanmar. Property stocks are likely to stay weak in the light of the latest govt intervention. But there was was positive news for retail developer CapitaMalls Asia, which secured a site for in Wuhan, China for Rmb660m.