Morning Highlights

Our Focus For Today Is On Property & Financial Sector – Short Selling

The STI opened at 2741.26 and inched up slightly. Most of the other markets were lower. Australian market falling sharply on losses in financial and materials shares. U.S stocks slip into red as financials decline and worries over China tightening.

Corporate Announcements

Keppel Corp announced a 4Y09 net profit of $343mn, up 30.4% year-on-year. This takes Keppel Corp’s total profit for the year of 2009 to $1.63bn.The company also announced a final cash dividend of $0.23 per share and a special dividend…

The special dividend will be paid in the form of 326mn K-Green Trust units (comprising approximately 50.5% of the KGT Units to be issued) which will be separately listed and traded on the SGX-ST. This translates into an implied value of approximately S$1.16 per KGT Unit. Accordingly, the distribution value per Share is approximately 23 cents (on the basis of 1 KGT Unit for 5 Shares).

Noble’s 87.7% owned Gloucester Coal released its second quarter 2009/10 sales figures which showed coal sales down 9% year-on-year (yoy) to 444,000 metric tons but coking coal sales was up 73% yoy to 149,000 tons. Gloucester Coal said the outlook for coking coal is strong and augurs well to achieve a substantial price increase in the coming financial year.

News Updates

  1. The US budget deficit for the current fiscal year will come in at US$1.3 trillion, down slightly from the record US$1.4 trillion deficit posted last year, the nonpartisan Congressional Budget Office said on Tuesday.
  2. The Conference Board, an industry group, said its index of consumer attitudes rose to 55.9 in January from an upwardly revised 53.6 in December.
  3. The S&P composite index of home prices in 20 metropolitan areas slipped 0.2% in November after a revised 0.1 per cent October dip, for a 5.3 per cent annual drop.
  4. U.K. economy barely escapes recession with 0.1% rise in fourth quarter‏.
  5. S&P warns it may downgrade Japan sovereign ratings‏.
  6. Yahoo swings to profit, posts sales decline; CEO cites improving market for display ads‏.

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)

Symbol

Name

Entry

SL

TSL

TP

Remarks
1 LKH Low Keng Huat Singapore 0.51 0.43 0.59
2 ZOBE Z-Obee Holdings 0.41 0.34 0.48
3 ARAM ARA Asset Management 1.02 0.94 1.10  
4 TAHL Tiger Airways Holdings Limited 1.62 1.48 1.76  

Bearish Stocks (Singapore)

Symbol

Name

Entry

SL

TSL

TP

Remarks
1 HKLD Hong Kong Land 4.60 4.75 4.45 Open gapped down below entry price, waiting for next setup.

Stock Prices last updated at 9:05 (Singapore Time)

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