Trade Singapore Shares on 9th September 2009

Our Focus for Today is on Property Sector

Morning Highlights

Singapore Stock Market is exhibiting weakness, retracing backwards at the present moment.

The global forecast for the Asian Stock Markets features a touch of upside, with strength among the commodity markets – oil, in particular – expected to support the regional bourses. Steel stocks are also expected to rise, although perceived weakness among the financials is forecast to limit the gains. (RTTNews)

On the other hand, Hong Kong's main index pulls lower, despite initial gains in Shanghai, as heavyweights China Unicom and HSBC lead losses.

Wall Street closed notably higher on Tuesday, extending its gains for a third straight session on hopes of an economic revival. The Dow managed to breached previous resistance at 9437.71 which has now turned into a support.

  A double bottom is seen on Dow’s Daily Chart and high chance for the Dow to test 9630.20

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)

Stock Prices last updated at 17.21 (Singapore Time)

Afternoon Highlights

Please note that despite the entry signal for Tiong Woon has triggered, we did not enter the trade as only a handful traded 0.86 and it quickly retraced. We have cancelled the pending order, shall lookout for new setups!

Venture broke high of 8.95 – waiting for setups

NOL breakout at 1.82 in yesterday’s trading... Today it traded high of 1.98 but closed poorly at 1.90… to watch for setups

So far, the STI is holding relatively well. Ideally, we hope to see index trading between 2663.14 – 2647.64. However, during the retracement, STI might pullback to retest the support at 2618.99.

In Summary,

STI dropped 10.43points, or 0.39%, and closed at 2650.48. We will be expecting to see the index going through sideway consolidations, before a possible breakout at 2667.82. We believe it will soon test 2700…

  On daily chart, it is good to see STI close high, near to the resistance point at 2667.82.

Following up next, we have Genting Rights Issue Announcement for today.

--> Genting is undertaking a renounceable underwritten rights issue (the “Rights Issue”) of up to 2,043,716,094 new ordinary shares in the capital of the Company (the “Rights Shares”) at an issue price of Singapore Dollar $0.80 for each Rights Share (the “Issue Price”), on the basis of one (1) Rights Share for every five (5)existing ordinary shares in the capital of the Company (the “Shares”) held by the Shareholders (as defined below)

In normal circumstances, rights issue is deem not a favourable news as there are now more shares floating around. According to the news released, the rights should be trading around Singapore Dollar $0.30 (+/-). By using mother shares, the rights’ price should be approximately Singapore Dollar $0.80. Therefore, if there is any difference, it may encourage arbitrage trading (risk free profit). However, in our opinion, the probability to push forth such situation may only stand 10% chances.

In addition, Sinomem Technology Limited has today entered into a placement agreement with CIMB-GK Securities Pte. Ltd.

--> CIMB has agreed to use its best efforts to procure the subscription and payment for the Placement Shares, at an issue price of Singapore Dollar $0.62 per Placement Share (the "Issue Price"), amounting to an aggregate consideration of up to approximately S$31.0 million, and on the terms and conditions of the Placement Agreement.

Quote of the Day

“Chains of habit are too light to be felt until they are too heavy to be broken” – Warren Buffet