Wall Street results should help.
OCBC Investment Research said:
Good start on Wall Street overnight should provide some positive boost to the local market this morning, especially after yesterday’s lackluster session.
While the index is likely to head for another test of the key 3230 resistance, failure to convincingly clear that hurdle could spark profit-taking once again.
Our sense is that the market is waiting for clearer indicators from the bellwether stocks like banks and property firms which should be releasing results over the next few weeks.
Meanwhile, penny stocks and situational plays should remain in the limelight; but we would advise caution as liquidity could dry up pretty fast – this as market volume has nearly halved yesterday to 3.9b from the previous day’s 7.6b.
IG Markets Singapore meanwhile noted:
In Singapore, as the dust settles on the final straight in the battle for control of Fraser & Neave, many questions still remained unanswered. While Thai tycoon Charoen has said he has no plans to break up the conglomerate others are not so sure.
Things also look cloudy for Japanese drinks manufacturer and rival Kirin which could still approach the Thais for the soft drinks business, but this seems unlikely to happen given that ThaiBev would equally benefit from the synergies with this part of the F&N portfolio.
In addition they would need to significantly improve the low ball offer that they had made as part of rival OUE’s takeover offer.
In fact things are so open one couldn’t rule out something strange playing out, such as OUE now approaching Charoen for another slug at some part of F&N’s property empire.
The STI slipped a little yesterday but based on the futures market this morning it looks set to open in positive territory.
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