Morning Highlights

Our Focus For Today is On Still on Small Cap

Most of the Asian Markets open in green today after a strong performance on Wall Street, with STI up 1.1% at open, Hong Kong shares up 1.9% and Nikkei rebounds 1%.  The support range is between 2631.48 – 2657.73.

We have quite a few new Quick Picks (10 – 21) today, but please watch them closely; do ensure the breakout is actively traded before you enter any positions should the signal be triggered. We will update on the potential of these stocks as the day continues…

Next, lookout for Cityneon Holdings and Advanced Holdings. Advanced cleared high of 0.325, to wait for setups…

News Updates:

  • Crude Palm Oil prices dropped the most since June - Wilmar (-5.0% dod, $6.41), Indofood (-3.0% dod, $1.64) and First Resources (-1.6% dod, $0.93) tumbled with CPO prices going off the rails yesterday. Palm oil for December delivery (-3.8% dod, 2,103 ringgit a ton) fell the most in more than three months. (Warrant)
  • SingTel (+1.6% dod, $3.19) was one of the rare outperformers as well as the top index mover as investors found solace in the defensive stock amidst the regional slump in stocks. (Warrant)
  • Xerox to buy Affiliated Computer Services for $6.4 billion‏. (Bloomberg)
  • A leading industry buyer, Dorab Mistry, director of Godrej International in India said prices must slump 13% from current levels to stoke demand for food and fuel applications and as crude oil fell. Godrej is the second-largest consumer of edible oils. (Bloomberg)
  • Asian Shares Higher; Japan Auto, Technology Stocks Up On Easing Yen (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.  <The Quick Picks referred herein contain overnight positions from Yesterday>

Bullish Stocks (Singapore)

Symbol

Name

Entry

SL

TSL

TP

Remarks
1 SINW Sinwa Ltd 0.495 0.44 0.55
2 CACT CapitaCommercial Trust 1.07 0.99 1.15
3 AEMN Ascendas REIT 1.95 1.79 2.11
4 MMPC Mermaid Maritime 1.26 1.10 1.42 CANCELLED
5 RAMB Ramba Energy Ltd 0.635 0.475 0.795  
6 MTXE Metax Engineering Corporation Ltd 0.24 0.165 0.315 Triggered, Current Price at 0.26
7 HUPS HupSteel Ltd 0.355 0.305 0.405  
8 CMIT Cambridge Industrial Trust 0.48 0.45 0.51
9 ASRT Ascott Residence Trust 1.02 0.99 1.05  
10 FEGL Falcon Energy Group Ltd 0.995 0.90 1.09 CANCELLED
11 SINO Sinomem Technology Ltd 0.735 0.685 0.785
12 EZHL Ezion Holdings 0.895 0.81 0.98
13 HSEN Hiap Seng Engineering 0.76 0.685 0.835
14 ASFP Asia Food & Properties Ltd 0.765 0.60 0.93 CANCELLED
15 COSM Cosmosteel Holdings 0.625 0.58 0.67 CANCELLED
16 BENK Beng Kuang Marine 0.405 0.365 0.445 CANCELLED
17 ASEN Asia Environment 0.385 0.315 0.455
18 FJBN FJ Benjamin Holdings Ltd 0.405 0.35 0.46
19 AZTS Aztech Group Ltd 0.37 0.275 0.465
20 SUPE Superior Fastening Technology 0.32 0.265 0.375 Trading Halt, Pending Announcement
21 BWRL Bright World Precision Machinery 0.235 0.155 0.315  
22 INTK Innotek Ltd 0.505 0.445 0.565 LOSS – CLOSED at 0.475
23 FNON.SI Financial One Corp 0.42 0.34 0.475 0.50 Took Half Profit at 0.51
CLOSED rest at 0.52
24 KPLM Keppel Corp Ltd 8.28 7.90   8.66 Overnight - Current Price at 8.17
25 DMXT DMX Technologies Group Ltd 0.53 0.45 0.61 Overnight – Current Price at 0.49

Stock Prices last updated at 17.50 (Singapore Time)

Afternoon Highlights

So far, only Metax is on the run. There is good volume and good range from the past and it manages to hold up yesterday despite the drop…

Advanced Holdings being issued query for activity while Poh Tiong broke high of 0.345, to wait for setups…

Market is trading well above the support range. This is a good sign of uptrend still intact, however, to clear 2700 is very hard. Currently, can only focus on Mid and Small Cap shares. Blue chip is completely out for now.

Regarding our position on Keppel Corp, seems like this share will go into consolidation and oscillate from now.. will have to hold on to position for longer period.

CapitaCommercial is also oscillating, but will still leave in pending till further notice. We notice there is movement with Trump Dragon but the volume is only 634k traded. The transaction is not healthy as there is very little volume traded for the share to raise and yet the share still raise…

Please note that there are new setups formed for INNOTEK and FINANCIAL ONE. We will look for exit point within today!!

INNOTEK cut loss at 0.475;  FINANCIAL ONE took profit at 0.52…

In Summary,

Market managed to reverse yesterday’s losses and close up 34.06points at 2663.31. Though weakness is shown during the last hour of trading, high chance that index will oscillate between 2623.01(yesterday’s low) – 2700. Our Focus is still on Mid and Small Caps.

Just some additional pointers: The volume traded today is 2513.2 million, which is even lower than yesterday’s traded volume. This is not healthy and gives telltales signs that market is not likely to resume its run anytime soon, but rather to continue to oscillate. High chance that there might be one more pullback before we can see how index reacts near 2700.

Based on Today’s charting, we have cancelled pending order for Mermaid, Falcon, Asia Food, Cosmosteel and Beng Kuang. Trump Dragon calls for trading halt, pending announcement.

Sinomen will have to wait for tomorrow’s performance for direction. And to watch closely on DMX. Both stocks have similar setups.

Winquote - pdfMachine from Broadgun Software, http://pdfmachine.com, a great PDF writer utility! There is a short term resistance at 2676.05, following next is at 2689.89.

News Updates

  • Malaysia’s second-biggest bank CIMB is launching retail banking business in Singapore on Tuesday and plans to hire an additional 110 bankers in the republic before the end of 2009. (Business Times)
  • HONG KONG (MarketWatch) -- Technology and automobile stocks paced a broad rebound in Asian markets Tuesday, encouraged by strong overnight gains on Wall Street and expectations of improving global demand.
  • Stocks in Europe are off, but not by a lot, as banks limit downside. European Markets pushed higher in the current trading session…
  • Surge in Jardine Stocks today; with Jardine C&C up by 0.20, Jardine Matheson up by 1.30 and Jardine Strategic up by 0.68

Quote of the Day

“Someone's sitting in the shade today because someone planted a tree a long time ago.” – Warren Buffett