Morning Highlights
There are NO QUICK PICKS for today…
Singapore Market broke down Friday’s Low of 2599.69 and open at 2599.95. As Market is currently undergoing a transition state, we advise to stay on the sidelines for these few days. During the transitional state, market is going to be very choppy and drift aimlessly. In short the bulls are fighting the bears now. Till we see a definite winning from either side, we advise to stay out of the market and simply observe for the time being. Do watch out for the critical support at 2560.15, and 2521.36.
Meanwhile, do lookout for Starhub. The charts appear to be bearish and on the fact that investors react very negatively to the news that they have lost the rights to the Barclays Premier League matches for three years from August 2010. If the stock ever breakdown support at 1.94, there might be a shorting opportunity.
Local News Updates
More capital-raising for banks – including Singapore banks – is on the cards as global regulators look to strengthen the banking system, according to Monetary Authority of Singapore (MAS) managing director Heng Swee Kiat.
The Business Times on Saturday quoted Mr Heng that global regulators are considering a minimum global liquidity standard that includes a stressed liquidity coverage requirement underpinned by a longer term structural liquidity ratio, to address liquidity concerns.
Earlier, Mr Heng said that while confidence has returned to the financial markets with more recent forecasts for global economic growth revised upwards, much remains to be done.
He also mentioned that the MAS is keeping a close watch on the property markets and the upcoming monetary policy review will continue to focus on maintaining price stability.
On a separate note, numbers on the Purchasing Managers Index and the Electronics Sector Index for the month of September today Monday 5th October 09. (Warrants)
Following next, we can see that Stocks in the commodities space were battered despite crude oil (+5.8% wow, $69.84) and the Reuters/Jefferies Commodity Price Index (+0.9% wow, 252.9) closing up week-on-week.
Commodities supplier – Noble (-4.1% wow, $2.34), coal miner – Straits Asia (-9.1% wow, $2.00) and CPO plays -First Resources (-6.3% wow, $0.885); Indofood (-7.1% wow, $1.57); Wilmar (-9.5% wow, $6.11) were all underperformers of the index. (Warrants… read more)
Other News Released
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Michigan’s Warren Bank is 96th failure of 2009
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U.S. stock indexes finish Friday in red as Dow industrials cap worst week since mid-June
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U.S. factory orders dip in August
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U.S. stocks slump early Friday after disappointing payrolls report
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U.S. nonfarm-payrolls decline accelerates; 263,000 jobs lost in September
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In the U.S, the ISM Non-Manufacturing Composite for September will be published on the third business day of the month on Monday 5th October 09 – The ISM Factory Gauge for September released last week had disappointed forecasts that it would rise, as it dropped for the first time this year to 52.6 from August’s 52.9; Following that will be the customary MBA Mortgage Applications on Wednesday 7th October 09, Wholesale Inventories and Initial Jobless Claims on Thursday 8th October 09. Initial Jobless Claims climbed to 551,000 last week, more than economists forecast.
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In Europe, Retail Sales figures for the month of August will be announced on Monday 5th October 09, followed by the Euro-zone Q2 GDP on Wednesday 7th October 09,after which the European Central Bank will announce interest rates on Thursday 8th October 09.
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In Japan, Machine Orders for the month of August will be out on Friday 9th October 09. Orders, an indicator of capital spending in the next three to six months, had plunged 9.3% month-on-month in July to a record low of 665bn yen.
