Monday, January 21, 2013

SG Market (21 Jan 13)

SG Market: S’pore shares are likely to recover some lost ground following the more positive tone from Wall Street on a solid start to the earnings season and prospects that lawmakers are prepared to kick the debt can a further 3 months down the road, and buy some time for the House to get its budget act together. Having pulled back from its overbought territory to more neutral levels, the STI is now sitting just above its 20-day moving average at 3200 and may test the overhead resistance at 3235 in the coming days. All eyes will now be on the F&N takeover battle after Thai tycoon Charoen Sirivadhanabhakdi raised his offer price to $9.55, forcing rival Kirin-backed OUE to either better its $9.08 bid by 6pm today or back down as SIC’s deadheat auction takes effect today. In other news, CapitaLand is reportedly tying up with Iskandar Waterfront to acquire RM1b land in Danga Bay in southern Johor, while Ezion has pulled out of a $75m perpetual bond offer. Property counters may face some pressure as several developers cut prices on their projects over the weekend in response to the severe 7th round of cooling measures.

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