Singapore Stock Market Updates On 05/02/10

Morning Highlights

Overnight, equity markets in U.S and Europe plunged on concern an unexpected increase in U.S jobless claims and growing sovereign debt will derail the economic recovery…  US stocks suffered their worst losses in more than nine months on Thursday.

Singapore Market took cue on poor US overnight performance, with the Key STI tumbled down 50.73 points to open at 2694.25. Index is now trading below 2700.

Most of the Singapore Shares gapped down below our entry price, therefore, we have not entered our trades. We advise not to trade on days when US market experienced a wild swing as Singapore market tends to over-react to such poor performance.

Meanwhile, market will attempt to reclaim back to 2700; our sentiment has shifted from neutral to bearish for the time being. 

Corporate Announcement

1. DBS announced a 4Q09 net profit of S$493 million, up +29% year-on-year (yoy). This brings the bank’s full year net profit in 2009 to S$2.064 billion, unchanged from a year ago. The bank also declared a final dividend of 14 cents per share.
2. Keppel Corp’s subsidiary KSI Production has formed a JV with Ezra Holdings, PetroVietnam Transportation Corporation and EOC Limited to co-own a Floating Production, Storage, and Offloading vessel slated to serve the Chim Sao project in Vietnam. KSI will invest up to US$30 million in cash for a 20% interest in the joint venture company.

News Updates

1. US factories orders jumped by an unexpectedly large 1% in December despite a drop in transportation equipment orders, while inventories shrank, a government report showed on Thursday.
2. US non-farm productivity rose at a 6.2% annual rate after expanding at a 7.2% in the 3Q.
3. US Initial claims for state unemployment benefits increased 8,000 to a seasonally adjusted 480,000 in the week ended Jan 30, the Labour Department said.
4. MasterCard quarterly earnings rose 23%, as the world’s No. 2 credit card network was helped by a rebound in plastic-based spending and a weaker US dollar. 
5. Bank of England pauses 200 billion pound asset buy plan as rates kept at 0.5%‏.
6. New B. of A. settlement with SEC over Merrill bonuses calls for $150 million payment‏.

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)

Stock Prices last updated at 9.44 (Singapore Time)