Our Focus For Today is on Mid Caps – Property Sector

Morning Highlights

Market opened at 2625.24 and dropped subsquently by 10.19points.Nonetheless, it has managed to recover the drop and breached the resistance at 2618.99. The next resistance is at 2647.64.

Property Sector is on the run. HPL has a breakthrough at high of 2.17. We are waiting for set up. Following up next is Hobee and then Hong Fok.

Next, we spotted a trade opportunity with Amara. To BUY at 0.575, STOP LOSS at 0.50 and TAKE PROFIT at 0.65 (NOTE: Trailing STOP LOSS at 0.52!!)

The pending order from Last Friday is still on the Quick Pick List for Today. Please watchout for them… AusGroup, EZRA and MediaRing

“APOLOGIES.. having some problems with the updating — unable to install the Table Properties for Quick Picks.. will try to fix that asap.. “

Afternoon Highlights

On the overall, Market isgoing sideways… But we do see the Property Sector on the run, with HPL, Hobee, Hong Fok, Soilbuild and SC Global in the game.

Capitaland lookout for 3.82 —> close at 3.84, wait for setups

M1 broke high of 1.80, wait for setups

City Development lookout for 10.50

Last but not least, Tiong Woon –> To BUY at 0.84 STOP LOSS at 0.80 and TAKE PROFIT at 0.88

News Highlights

  • Selloff in Singapore Banks –> Banks were hit by poor July loan growth data (out last Monday) which slowed down to a 2.3% Year-on-Year (YoY) versus a 4.2% YoY in June. Singapore banks such as DBS (-0.6% wow, $12.82), UOB (-0.4% wow, $16.98) and OCBC (-3.8% dod, $7.89) ended the week lower.
  • Trend Bucking Genting –> Genting (+9.8% wow, $1.12) was truly a star last week as it outperformed the STI by a large margin on speculation its $6.6 billion resort casino in the city-state will open ahead of schedule. (source from Bloomberg)
  • Macquarie Research Equities (MRE) raised its target price for Genting Singapore from $0.70 to $1.14 in a note published on 1st September ’09
  • Capitaland, a Large Cap Survivor –> Capitaland (+0.3% wow, $3.77) beat its property-developers peers and was one of the very few large cap names to escape from closing in red last week. The Straits Time reported last Thursday that the government may release more land for sale because demand for private housing is on the rise as the economy recovers (citing from Development Minister Mah Bow Tan)
  • This week, numbers on Chinese Industrial Production, Retail Sales and the Producer Price Index for the period August will all be out on this Friday, 11th September ’09
  • China raises QFII limit quotas –> On Friday, Asian markets, and Hong Kong H-shares in particular, staged a mid-afternoon rally on China’s announcement on new draft rules on inbound portfolio investments, increasing the amount some institutions can invest in the country’s stock market. The Chinese State Administration of Foreign Exchange said that it plans to raise the limit on foreign currency quotas for investors under the Qualified Foreign Institutional Investors (QFII) program to $1 billion from $800 million. The lockup period for some medium and long-term QFII funds such as pension funds and insurance funds will also be shortened to three months. The move comes after a sharp drop in Shanghai shares in August amid growing concerns about a drop in Chinese bank lending. (source from Business Times)
  • U.S jobless rate hits 9.7% after 20th straight month of non-farm payroll contraction.
  • Iowa, Illinois bank closings to cost FDIC $234 million — higher

Quote of the Day

“If a business does well, the stock eventually follows.” – Warren Buffet