Singapore Stock Market Updates on 05/10/09
Morning Highlights
There are NO QUICK PICKS for today…
Singapore Market broke down Friday’s Low of 2599.69 and open at 2599.95. As Market is currently undergoing a transition state, we advise to stay on the sidelines for these few days. During the transitional state, market is going to be very choppy and drift aimlessly. In short the bulls are fighting the bears now. Till we see a definite winning from either side, we advise to stay out of the market and simply observe for the time being. Do watch out for the critical support at 2560.15, and 2521.36.
Meanwhile, do lookout for Starhub. The charts appear to be bearish and on the fact that investors react very negatively to the news that they have lost the rights to the Barclays Premier League matches for three years from August 2010. If the stock ever breakdown support at 1.94, there might be a shorting opportunity.
Local News Updates
More capital-raising for banks – including Singapore banks – is on the cards as global regulators look to strengthen the banking system, according to Monetary Authority of Singapore (MAS) managing director Heng Swee Kiat.
The Business Times on Saturday quoted Mr Heng that global regulators are considering a minimum global liquidity standard that includes a stressed liquidity coverage requirement underpinned by a longer term structural liquidity ratio, to address liquidity concerns.
Earlier, Mr Heng said that while confidence has returned to the financial markets with more recent forecasts for global economic growth revised upwards, much remains to be done.
He also mentioned that the MAS is keeping a close watch on the property markets and the upcoming monetary policy review will continue to focus on maintaining price stability.
On a separate note, numbers on the Purchasing Managers Index and the Electronics Sector Index for the month of September today Monday 5th October 09. (Warrants)
Following next, we can see that Stocks in the commodities space were battered despite crude oil (+5.8% wow, $69.84) and the Reuters/Jefferies Commodity Price Index (+0.9% wow, 252.9) closing up week-on-week.
Commodities supplier - Noble (-4.1% wow, $2.34), coal miner - Straits Asia (-9.1% wow, $2.00) and CPO plays -First Resources (-6.3% wow, $0.885); Indofood (-7.1% wow, $1.57); Wilmar (-9.5% wow, $6.11) were all underperformers of the index. (Warrants… read more)
Other News Released
- Michigan's Warren Bank is 96th failure of 2009
- U.S. stock indexes finish Friday in red as Dow industrials cap worst week since mid-June
- U.S. factory orders dip in August
- U.S. stocks slump early Friday after disappointing payrolls report
- U.S. nonfarm-payrolls decline accelerates; 263,000 jobs lost in September
- In the U.S, the ISM Non-Manufacturing Composite for September will be published on the third business day of the month on Monday 5th October 09 – The ISM Factory Gauge for September released last week had disappointed forecasts that it would rise, as it dropped for the first time this year to 52.6 from August’s 52.9; Following that will be the customary MBA Mortgage Applications on Wednesday 7th October 09, Wholesale Inventories and Initial Jobless Claims on Thursday 8th October 09. Initial Jobless Claims climbed to 551,000 last week, more than economists forecast.
- In Europe, Retail Sales figures for the month of August will be announced on Monday 5th October 09, followed by the Euro-zone Q2 GDP on Wednesday 7th October 09,after which the European Central Bank will announce interest rates on Thursday 8th October 09.
- In Japan, Machine Orders for the month of August will be out on Friday 9th October 09. Orders, an indicator of capital spending in the next three to six months, had plunged 9.3% month-on-month in July to a record low of 665bn yen.
Afternoon Highlights
Investor sentiment in Asia was weakened by data Friday showing U.S. employers cut a larger-than-expected 263,000 jobs in September, while unemployment rate rose to 9.8%, matching economists' forecasts, from 9.7% in August.
The pan-European Dow Jones Stoxx 600 index rose 0.1% to 234.23 as shares started the week on a choppy note following three straight sessions of losses.
On a regional level, the U.K. FTSE 100 index declined 0.1% to 4,985.64, the German DAX index lost 0.1% to 5,461.01 and the French CAC-40 index lost 0.3% to 3,639.67.
Asian equity markets were mixed but U.S. stock futures were higher with Dow Jones Industrial Average futures up 18 points.
'The path of least resistance for the Nikkei 225 is going to be down -- way down. This is the time to be a seller.' <Quoted From Tony Sagami, Asia Stock Alert>
In Summary,
A throwback is seen during the afternoon trading session where most of the losses incurred in the morning are recovered. The recovery could be due to the fall of crude oil. Overall, the market is choppy, similar to that of the European Market.
The market is down 20.80 pts, of which index swing down 15points during closing auction. The swing down could be contributed by DBS, Sembmar or Genting. But the majority impact is due to Singtel since it has the heaviest weighting.
Here’s a summary of the Shares Performance for Today:
- Keppel Corp gapped down and close at at 7.76
- DBS closed day low at 12.60
- Genting closed day low at 1.05
- Sembmar closed day low at 3.04
- Singtel's share has been swing down 0.03, closing at 3.17 with only 1x transaction at the close of 2.685 mil
Trading Halt for Capitaland and CapitaMall from 9:00 and lifted on 17:12
Singapore 5 October 2009 — CapitaLand Limited (“CapitaLand”) today announced that CapitaLand Retail Limited, its wholly-owned subsidiary, has obtained a letter of eligibility-to-list to list its shares on the Main Board of the Singapore Exchange Securities Trading Limited (“SGX-ST”). CapitaLand Retail Limited will be renamed CapitaMalls Asia Limited (“CapitaMalls Asia”).
Upon the successful Listing, Mr Lim Beng Chee will remain as the Chief Executive Officer of CapitaMalls Asia and will relinquish his role as the Chief Executive Officer of the Company. Mr Ho Chee Hwee Simon who is currently the Deputy Chief Executive Officer of the Company will be appointed as the Chief Executive Officer of the Company.
The Company will make further announcements pursuant to Rule 704(7) of the Listing Manual. Ipon Mr Lim stepping down, and Mr Ho being appointed, as Chief Executive Officer of the Company at the appropriate time.
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