Beyond this short-term rebound, STI should resume its

correction trend. We maintain our view for the index to trend

down towards 2540 once the current rebound ends. Only a

close above the key resistance level at 2900-2910 invalidates

the 2540 view.

Investors who want to ride out the current Eurozone

uncertainty and global slowdown should stick to defensive and

yield plays. Our yield picks have been CMT, Cache Log,

Mapletree Log, CDL HT, Hutchison Port Trust, SIA Engineering

and China Merchant.

For traders going for the oversold bounce, we prefer stocks

with good earnings visibility in the current uncertain

environment. These can be found in the O& M sector and our

picks are Keppel Corp, Ezion and ASL Marine.

Keppel Corp has secured orders in excess of SGD14bil

(includes LOI) Ezion has 86% of FY12F and 92% of FY13F

earnings backed by secured contracts while ASL Marine has

around 90% of FY13F shipbuilding revenue secured by