Singapore Stock Market Updates On 05/05/10

Morning Highlights

Singapore stocks fell after European and U.S. market were hit overnight by fears that the fallout from Greece’s debt turmoil would spread.

Index gapped down 37.91 points (1.3%), below support level of 2900, to open at 2863.27. Might be retreating further to test next support at 2850. Cautious trading is advised.

Watch out for U.S. economic data to be released today: ABC Consumer Confidence for the week, ADP Employment Change in April.

• Singapore’s manufacturing economy expanded for the 12th consecutive month in April on the back of higher orders; PMI at 51.9, an increase of 0.8 point over the previous month.

Corporate Announcements

1. Olam incorporated a new subsidiary in Mexico, Outspan Mexico SA de CV for businesses related to farming, processing, sales, distribution, import or export of agricultural products.
2. Keppel Corp’s US subsidiary (Keppel O&M) has delivered the first of four EXL rigs to Rowan Drilling Co., on time and within budget.
3. After market closed, it was announced on the SGX that the upcoming IPO over a major Chinese shipyard New Century Shipping has been cancelled.

4. SATS’s Q4 net profit up 10.2% at $46.5 million.

5. China Everbright Bank IPO could be sooner than AgBank.

 News Updates:

1. U.S. stocks tumbled, with benchmark indexes slumping the most since February, as concern grew that Europe’s government debt crisis will spread beyond Greece. The euro slid below $1.30 for the first time in more than a year.

2. U.S. factory orders unexpectedly rose in March and more Americans signed contracts to buy previously owned homes. Signed home-purchase agreements, or pending sales, rose 5.3% in March, according to the National Association of Realtors. (Bloomberg)

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)

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Stock Prices last updated at 17.05 (Singapore Time)

Afternoon Highlights

Index headed higher in the afternoon session, attempted to break 2900, but failed. So far, 2850 is a strong support.

• OCBC Q1 profit up 24% at $676 million

 News Updates:

1. China’s Xinjiang to get nearly US$1.5 billion, boosting its economy in hopes of reducing ethnic tension.
2. BMW swung to first-quarter profit of 323 million euros ($419 million) from a loss of 153 million euros in the year-ago period.
3. European shares extended sharp losses from the previous session Wednesday as sovereign debt worries continued to weigh on the banking sector, offsetting gains from BMW and Prudential.
4. Prudential said Wednesday that it will delay the pricing and launch of a $20 billion stock offering whilst it talks to the Financial Services Authority about its transaction with AIG’s AIA Group.

In Summary,

Market closed weaker; STI tumbled 40.87 points to close at 2860.31 with 2.026 billion traded. Gainers led Losers 85 to 452.