Singapore Stock Market Updates on 12/10/09

Morning Highlights

Market Sentiment is Neutral

STI gapped up to open at 2671.81. The Asian stock markets were mixed today as investors remain cautious before the release of the U.S. earning reports this week.

We advise to enter all trades with small risk and be nimble as market is shifting from bearish to neutral sentiment. To wait for clearer direction before resuming to normal trades.

Below are the U.S companies reporting their 3Q09 results this week:

14 Oct: JP Morgan Chase
15 Oct: Goldman Sachs, Citigroup, Google
16 Oct: Bank of America, General Electric

There is no trading for the U.S. Market tonight. Apart from the earnings, the week ahead is also loaded with the release of U.S data concerning Mortgage Applications and Advance Retail Sales for September on Wednesday 14th October 09; the Consumer Price Index for September and Initial Jobless Claims on Thursday 15th October 09;September’s Industrial Production and U. of Michigan Consumer Confidence Index on Friday 16th October 09.

Europe also follows the U.S in releasing their August Industrial Production numbers on Wednesday 14th October 09 and Consumer Price Index for September on Thursday 15th October 09.

In Japan, investors will be interested to see if the Bank of Japan will make any changes in target rates on Wednesday 14th October 09following Australia’s recent hike in interest rates. August Industrial Production data will also be out on Thursday 15th October 09.

In Singapore, Retail Sales figures for the month of August on Thursday 15th October 09 as well as Non-oil Domestic Exports for the month of September on Friday 16th October are potential headliners this week.

(source from Warrants)

Singapore News Released

• Singapore’s GDP expanded by a seasonally adjusted 14.9% in the third quarter of 2009 compared to the previous three months, the Ministry of Trade and Industry said on Monday. That was better than analyst expectations for a 14.5% quarterly increase following the revised 22% surge in the second quarter.
• On an annual basis, GDP was up 0.8% – again beating forecasts for a 0.5%  gain after the 3.2% decline in the previous three months.
• The manufacturing sector expanded by a seasonally adjusted 34.9% on quarter following a spike of 58.5% in the previous three months.
• Construction eased 0.6% on quarter, while services producing industries added 9.5%.

• On year, manufacturing was up 8.3%, while construction surged 12.4% and services producing industries declined 2.4%.

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)

Bearish Stocks (Singapore)

Stock Prices last updated at 17.10 (Singapore Time)

Afternoon Highlights

For Trump Dragon, to shift the stop loss to 0.635 at the end of day.

Singapore Airlines broke high of 13.86 – to wait for setups

ST Engineering broke high of 2.82- to wait for setups

In Summary

STI closed at 2680.47 with 1.471 billion traded, lower than that of Friday’s volume of 1.879 billion. With reference to the Daily Chart, there is a 1st resistance at 2681.69 and we are now close to that point. If STI manage to break through that resistance and hold it up well, likely we will see another attempt by the index to break 2700 points. However, market might not break 2700 so soon. Instead, it is likely to consolidate even further. 

For now, our focus is on Mid and Small Caps. Till we see a firm note on the index’s performance, all trades are to remain as small risks.

Quote of the Day

“We are what we repeatedly do. Excellence, then, is not an act, but a habit.” – Aristotle