One of the major contributors to STI movement this couple of days had been due to a highly traded Genting Singapore. The stock closed at $1.17 last Friday and ran up to $1.24 at the start of this week, and prices show no sign of abating.
The Business Times today talked about Genting and once again, a not too surprising 'Buy' call was issued with target price of $1.30. If I recall, this had been the target price for a couple of broker houses for the past month or so.
This is hardly unexpected, given all the hype surrounding the opening of Genting's RWS during first quarter of next year, probably just in time for the influx of CNY punters. The delay in the opening of Marina Bay Sands by LVS supposedly caused by bad weather and bankruptcy of some of its construction firms probably also contributed to the optimistic outlook for Genting.
Too much hype I must say. Prices are likely to hit $1.30 into the first week of January, but any growth will be muted as short term investors would probably start to cash out. Prices would probably continue moving upward, but much slower than what's happening now. Hence I would probably hold back my horses rather than going in at $1.24.
Oceanus, on the other hand, would be a potential counter coming into 2010. Would look more into this tomorrow.
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