Morning Highlights
There are 2 weak sectors – Property and China
STI rises 10.6 points at open. The price of gold soared to another new record yesterday to US$1043.30 an ounce and triggered a rally in a gold fund listed here too. Metals and mining shares were well bid after aluminum giant Alcoa posted a surprise quarterly profit after U.S. market hours.
On the hand, Japanese stocks are dropping as exporters such as Sony lose further ground on the yen’s strength. Australia’s resource-heavy market is aided by stronger commodities.
Watch out for Wingtai. It seems like it’s going to breakout soon. Meanwhile, the market is retreating back below 2634.91. Will have to see how’s the afternoon session goes… (update 12:30)
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.
Bearish Stocks (Singapore)
|
Name |
Entry |
SL |
TSL |
TP |
Remarks |
||
| 1 | FRNM | Fraser & Neave | 3.81 | 3.93 | 3.69 | Triggered – Current Price at 3.85 | |
| 2 | STAR | Starhub Ltd | 1.93 | 2.04 | 1.82 | ||
| 3 | CTDM | City Development | 9.69 | 9.99 | 9.39 | ||
| 4 | UTOS | UOL Group | 3.24 | 3.36 | 3.12 | ||
| 5 | WTH | Wing Tai Holdings | 1.56 | 1.21 | 1.91 | Watch out | |
| 6 | AGRN | Allgreen Properties | 1.06 | 1.21 | 0.91 | Cancelled due to big throwback, might lose the downside momentum | |
| 7 | HIPI | Hi-P International | 0.645 | 0.695 | 0.595 | Cancelled… big throwback… | |
| 8 | OSIL | OSIM International | 0.365 | 0.41 | 0.32 | Cancelled… big throwback… | |
| 9 | SWBR | Swiber Holdings | 0.785 | 0.865 | 0.705 | ||
| 10 | RLSE | Raffles Education | 0.46 | 0.495 | 0.425 | Cancelled… big throwback… | |
| 11 | CXLX | China XLX-Fertiliser | 0.41 | 0.465 | 0.355 |
Stock Prices last updated at 17.05 (Singapore Time)
Afternoon Highlights
The market is drifting aimlessly. We have yet to identify which is the weaker sector, though it seems slightly more on the property shares.
Today, it seems that Wingtai has formed a Doji, which signifies indecisiveness on the stock. Will have to continue to observe further in tomorrow’s session.
News Updates: (source from Warrants)
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The following warrants have exercise prices close to the last traded prices of their respective underlyings. Genting Singapore last traded at $1.10 (+3.8%) while Noble Group closed at $2.50 (+4.2%).
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Apart from Genting Singapore and Noble Group which has risen 160% and 140% respectively year-to-date, other names that made it into the Top 10 performers list in 3Q09 include Capitamall Trust (+32% QoQ), Wilmar (+25.9% QoQ) and NOL (+20.3% QoQ).
In Summary,
Singapore Stocks showed a lack of direction throughout the session, but managed to close up 16.32 points to 2650.95, tracking Japan Market. From here, we can see that index is rather resilient to drop and a support at 2603.20 is seen. There is a possibility of market pullback and then a reattempt to break 2700 again.
On the overall, the recent market volume traded have dropped significantly from 3 billion to approximately 2 billion for the day.
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On the other hand, we are also observing closely on the Commodity Sector. Should the market turns around and goes up, they might be the lead. The first on our Watch List is Noble. To wait for a breakthrough at 2.60. Next, Indoagri to watch out for price when near 1.81 and 1.91. Olam is near high of 2.65 and Straits Asia to wait for a breakthrough at 2.34. |
Japan ended in positive territory led by gains in shipping stocks after brokerages upgraded the sector. Unexpected positive results from Alcoa after the market in the U.S closed for trading in the previous session also lifted market sentiment on increasing confidence of recovery and better corporate earnings for the recently concluded quarter.
Hong Kong stocks closed up 1.18% today, its fourth day of gains, as HSBC rose 1.83% after it resumed talks with Royal Bank of Scotland over the purchase of RBS units in Asia.
London – Lloyds Banking Group PLC is considering raising 15 billion pounds (US$24 billion) in what would be the biggest rights issue in UK history to keep the government’s stake in the company below 50 per cent, the Financial Times reported on Thursday.
U.S. News Release Notice:
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US will be releasing Jobless claims at 8.30 am (Eastern time)
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Wholesale inventories at 10am (eastern time)
Quote of the Day
“Success is the sum of small efforts, repeated day in and day out.” – Robert Collier
