Morning Highlights

There Are No Quick Picks For Today

Overnight, the U.S saw a rally led by energy producers which surged the most in 14 months. BP’s U.S. shares gained 12% last night after plunging 46% since the April 20 explosion that triggered the worst oil spill in U.S. history. Exxon Mobil, the largest U.S. energy company, increased 3.1% after tumbling 15% since April 20.

Singapore market inches higher at open, with STI up 24.04 points 2803.62. However, index fails to hold on and slipped below 2800 shortly…

Lookout for Economic News Release For Today:

  1. The U. of Michigan
  2. U.S May’s Advance Retail Sales
  3. China’s PPI and CPI figures (China’s consumer prices up 3.1% in May)

Corporate Announcements:

  1. CapitaMalls Asia requested for trading halt for 9am 11th June. The company received approval to list CapitaMalls Malaysia Trust on the Main Market of Bursa Malaysia.
  2. Singtel’s subsidiary, NCS, was appointed as the ICT partner in the Ministry of Education’s S$850mn programme to provide infrastructure and computing services to Singapore schools.
  3. Tiger Airways said passenger numbers rose 33 percent in May from a year earlier. The airlines filled 82% of available seats in May 2010.

News Updates:

  1. U.S. stocks rallied even after more Americans than anticipated filed applications for unemployment benefits last week, a sign firings remain elevated. Initial jobless claims dropped by 3,000 to 456,000, Labor Department figures showed. Economists surveyed by Bloomberg News projected 450,000 claims, according to the median forecast. The number of people receiving unemployment insurance fell to the lowest level since 2008, while those getting extended payments climbed.
  2. Japan’s economy grew at an annualized 5% rate in the first quarter.

Afternoon Highlights

Index is drifting below 2800…

  • Armstrong had resume trading

News Updates:

  1. CapitaMall Asia to list Malaysian malls – CapitaMall Malaysia REIT spin-off may raise US$302 million. 
  2. M Stanley says subsidiary buys Parkway shares
  3. ST Marine consortium wins S$66.5 million Brunei job
  4. China May fiscal revenues rise 20.5%
  5. India’s April industrial output up 17.6%
  6. British manufacturing output unexpectedly fell on the month in April, suggesting Britain’s frail economic recovery may be struggling to gain traction, official data showed on Friday.
  7. U.K. May output PPI up 0.3%, up 5.7% on year; Total Manufacturing Output fell 0.4% in April

In Summary,

Index ended the session, up 16.71 points to 2796.29 with 903.11 million traded.

By week, index is down marginally by 10.22 points with 4.4568 billion traded. This is considerably a light volume as compared to last week of 5.516 billion traded.

Selling pressure has somewhat ceased and market is going into consolidation phase. We believe that it is just a matter of time for index to breakthrough 2800 and go higher from here. For the meantime, we do expect market to be less choppy in the coming weeks and opportunities to arise for long positions.

Do lookout for property sector.

  • The 3 component property stocks – Hong Kong Land, City Development and Capitaland
  • Mid Cap Property Stock – Keppel Land and HPL
  • Small Cap Property Stock – Stamford Land

Other stocks to lookout for includes, Osim, UOB, SIA Engineering and Indofood Agri.

Our Market Sentiment remains neutral, biased on the upside.

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