STI set for firmer open

The main event will be F&N voting on its sale of APB to Heineken.

OCBC Investment Research said:

The positive showing on Wall Street and the modestly higher Nikkei index (now +0.2%) could keep local sentiments positive today; although pre-weekend profit-taking can’t be ruled out towards the close.

Moreover, the STI may already have priced in some of the positives, following its 0.4% higher close yesterday.

In any case, we note that the index managed to make a pretty good rebound off the key 3040 support (50-DMA and centre of Bollinger Band) over the past two sessions, suggesting that the immediate outlook remains somewhat positive.

So unless the STI triggers the parabolic sell signal at 3009, it should continue to inch higher towards 3088 (recent high), before being capped by the upper Bollinger Band at 3098 (also close to 3100 psychological barrier).

IG Markets Singapore meanwhile noted:

In Singapore the main event will be the F&N EGM to vote on its sale of APB to Heineken. There have been many twists in this saga and few would bet against one or two more until a deal goes ahead and the future of F&N is assured.

A Japanese business paper has reported that Kirin plans to sell its 15% stake in F&N to the Thais. Up to now, the Japanese drinks manufacturer has been pretty quiet as the F&N drama unfolds.

But it looks like Kirin will roll over and accept the turn of events while the final pieces of the jigsaw fall into place for the Thais. Although, this one isn’t over until the fat lady sings.

Thai tycoon Charoen has also hinted that he won’t be breaking up F&N as widely speculated and wants to be a long-term investor.

The futures market points to a firmer open for the STI this morning.