Morning Highlights
Most of the shares have stopped dropping and start turning.
Our Focus for Today is on China Stocks and Industrial Related Stocks.
Quick Picks: Here is a quick pick screen that we have designed to pick out potential stocks, both Bullish and Bearish. These are measured with emphasis on larger changes in price and volume.
Bullish Stocks (Singapore)
|
Name |
Entry |
SL |
TSL |
TP |
Remarks |
|
1 |
CHEL |
Chemoil Energy Ltd |
0.51 |
0.455 |
|
0.565 |
USD Counter – Overnight, Current Price at 0.485 |
2 |
EZHL |
Ezion Holdins |
0.76 |
0.695 |
|
|
Overnight, Current Price at 0.735 |
3 |
HFYL |
Hyflux |
2.68 |
2.44 |
|
2.92 |
Cancelled!! |
4 |
IFAR |
Indofood Agri Resources Ltd |
1.64 |
1.50 |
|
1.78 |
Triggered – Current Price at 1.65 |
5 |
KPLM |
Keppel Corp Ltd |
|
|
|
|
|
6 |
SCMN |
Sembcorp Marine Ltd |
3.42 |
3.12 |
|
3.72 |
Forming a “V” shaped chart pattern indicates interest are building up |
7 |
WLIL |
Wilmar International Ltd |
6.29 |
6.01 |
|
6.57 |
|
8 |
GENS |
Genting |
|
|
|
|
Activity is building up |
Stock Prices last updated at 17:56 (Singapore Time)
Afternoon Highlights
“LOOKOUT FOR COMMODITY SHARES FOR TODAY TOO!!”
2572.19 is a good short term support. Banks had a good kick start with OCBC leading follow by UOB and then DBS. Today’s run could be a new beginning of an upward trend.
Though we have no idea which sector will outperform first, we do have a rough idea that banks, property, industrial and china stocks are on the move. So just keep out a look out on the mentioned sectors…. Nonetheless, in our observation, commodity sector seems likely to be the first to lead
For commodity, we have positions in Wilmar and Indofood Agri. Currently looking for Straits Asia to break out at 2.24
In Summary
STI close at 2597.3 which is higher than previous day high of 2596.32; with a trading volume of 2.15 billion which is higher then previous day volume of 2.01 billion. This is a good sign of buying strength coming back. There is a short term resistance at 2626.84. High chance that this resistance shall be broken based on today’s market performance.
Additional Information:
1) Banks – sell the news
The three local banks were sold off last week, with DBS (-7.5% wow, $12.84), UOB (-7.9% wow, $16.28) and OCBC (-2.0% wow, $7.43) closing sharply in the red.
All three banks reported their 2QFY09 results last week. DBS reported net profits of S$552 million which fell 17% year-on-year (yoy) and declared a net interim dividend per share of S$0.14.
UOB announced net profits of S$470 million, falling 21.7% yoy. The bank declared a net interim dividend per share of S$0.20.
OCBC reported net profits of S$466 million that rose 10% yoy and declared a net interim dividend per share of $0.14
2) Offshore & Marine a mixed bag
Offshore & Marine counters closed mixed, with Keppel Corp (-6.8% wow, $7.82), Cosco (-5.3% wow, $1.24) and Ezra (-2.6% wow, $1.50) closing in the red while SembCorp Marine (+2.6% wow, $3.20) bucked the downtrend and closed higher after it reported 2QFY09 net profits of S$138.1 million, rising 7.6% year-on-year (yoy). The company declared a net interim dividend per share of $0.05.
3) Yanlord sold down on real estate bubble fears
Yanlord plunged 9.3% wow to close at $2.43 last Friday. The stock has seen heavy selling amidst news that Shanghai will take steps to cool the city’s real-estate market as housing prices in China’s financial capital are too high (Bloomberg).
The stock tumbled despite the Chinese high end developer announcing on the SGX that it sold over 99% of apartment units at inaugural launch of Tianjin Yanlord Riverside Plaza Phase 1, with an average selling price of approximately RMB 15,950 per square metre.