DJ MARKET TALK: Goldman Cuts SPC Target To S$8.65 From S$9.20

STOCK CALL: Goldman Sachs cuts Singapore Petroleum (S99.SG) target price to S$8.65 from S$9.20; maintains Buy rating. Broker says new refinery capacity coming on stream is likely to depress refining margins; "we believe that Reliance Petroleum's new refinery, representing almost 50% of our estimate of global oil demand growth in 2009, is likely to have ramifications for refining margins globally." Broker adds gasoline spreads likely to be particularly affected as Reliance's gasoline and diesel output expected to be entirely exported out. Cuts FY08, FY09 earnings estimates by 15.8%, 23.4%, respectively to account for lower assumed refining margins, which leads to lower earnings target price. But says Singapore Petroleum remains one of broker's preferred oil refining plays globally with stock still on conviction Buy list. Share closed down 1.6% at S$6.79 yesterday