Morning Highlights
The STI gapped down to open at 2702.03 after an overnight sharp fall on Wall Street. However, it is too early for any comments on market performance. We will need to observe further for clearer directions.
Palm oil dropped from a seven-week high after Malaysia, the world’s second-largest producer, said production next year would rise 4.9% to a record. Sellers in Indonesia withheld tenders in response to the drop (Bloomberg).
Palm oil for January delivery dropped 0.9% to 2,218 ringgit a ton on the Malaysia Derivatives Exchange.
Share prices of crude palm oil: First Resources (-1.1% dod, $0.94); Indofood (-1.1% dod, $1.78); Golden Agri (-2.2% dod, $0.45) were beaten in trading while palm oil trader Wilmar ($6.43) emerged unchanged.
The Singapore banks will report their 3Q09 results this week and next, beginning with OCBC tomorrow and DBS the last on November 6. Macquarie Research Equities (MRE) published on October 14 a note of their view on the sector and the upcoming earnings results… such as expecting margins to shrink and maintaining a neutral view on the bank sector with no Outperform recommendations. (Read Full from Warrants)
Corporate Announcement
Capitaland announced a 3QFY09 net profit of $281.3mn, up 127% from the previous quarter but down 33% year-on-year. No dividends were declared.
News Updates
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U.S. stocks slid, erasing an early rally, on concern lawmakers will phase out a tax credit for homebuyers and Bank of America Corp will have to sell shares to pay back its government bailout. The dollar rebounded from a 14-month low against the euro and oil wiped out an early advance.
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All 12 shares in a gauge of homebuilders dropped as senators discussed reducing an $8,000 tax credit for first-time buyers. Bank of America sank 5.1% on speculation the government will force the bank to raise more capital, while Fifth Third Bancorp, SunTrust Banks Inc. and U.S. Bancorp lost at least 3.2% on downgrades from analyst Dick Bove. Treasuries fell, with 10-year yields touching a two-month high. (Bloomberg)
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Japanese and South Korean shares also retreated at the open, in consequences to Dow’s fall and correction in commodity prices overnight, with resource name such as Mitsubishi Corp and and banks leading the fall in Tokyo. (MarketWatch)
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)
|
Name |
Entry |
SL |
TSL |
TP |
Remarks |
||
| 1 | UOBH | United Overseas Bank Ltd |
17.52 |
17.14 |
17.90 |
Near Breakout | |
| 2 | NOHL | Novena Holdings | 0.22 | 0.18 | 0.26 | ||
| 3 | TAIS | Tai Sin Electric | 0.30 | 0.26 | 0.34 | ||
| 4 | IFAR | IndoFood Agri Resources | 1.84 | 1.73 | 1.95 | ||
| 5 | VENM | Venture Corp | 9.68 | 9.31 | 10.05 | Still observing for further confirmation | |
| 6 | SCOF | Supper Coffeemix | 0.71 | 0.63 | 0.79 | Overnight, Current Price at 0.69 | |
| 7 | CATL | Capitaland | 4.28 | 4.16 | 4.22 | 4.40 | Overnight, Current Price at 4.32 to enter with small risk |
| 8 | NOBG | Noble Group | 2.71 | 2.59 | 2.61 | 2.83 | Overnight – Current Price at 2.73 Watch out for historical high at 2.87 |
Bearish Stocks (Singapore)
|
Symbol |
Name |
Entry |
SL |
TSL |
TP |
Remarks |
| 1 | STAR | Starhub Ltd |
1.87 |
1.96 |
1.78 |
Stock Prices last updated at 9:17 (Singapore Time)
Here’s Our Mid Term Holding Opportunities for property shares.
- Fraser & Neave – Buy at 4.02, Stop Loss at 3.76
- Allgreen Properties – Buy at 1.21, Stop Loss at 1.04
- City Development – Buy at 10.50, Stop Loss at 9.55
- Wing Tai Holdings – Buy at 1.75, Stop Loss at 1.55
- Ezra – Buy at 2.08, Stop Loss at 1.66
- Lookout for Keppel Corp
