Morning Highlights

Singapore sells off in wake of U.S. overnight losses. Market broke down support at 2800 as STI gapped down 60.59 points (2.13%) to open at 2779.06. Market outlook is bearish.

We will avoid trading any stocks breakout for today to prevent being caught in market over-reaction. Will need to observe to see if market is able to reclaim back 2800 by end of the day.  

  • Sembcorp Marine broke down 4.01
  • Golden Agri broke down 0.54
  • OCBC broke down 8.45
  • Mann Seng underwater, open at 0.225
  • Ascendasreit broke down 1.85

Watch out for U.S. economic data to be released today: April Change in Nonfarm Payrolls.

Corporate Announcements

  1. Wilmar announced 28% growth year-on-year in 1Q10 net profit to US$115 million
  2. Cosco announced 4% decline year-on-year in 1Q10 net profit to S$32 million
  3. Midas announced 16.6% growth year-on-year in 1Q10 net profit to S$10 million
  4. DBS announced 8% growth year-on-year in 1Q10 net profit to S$532 million; Q1 net profit up 23%, above consensus

News Updates:

  1. Stock futures tugged lower on the heels of Target's reported sales drop for April‏.
  2. U.S. initial jobless claims fall by 7,000 to 444,000; data help trim premarket declines.‏
  3. Bernanke sees reason for optimism in U.S. bank-lending outlook‏.
  4. U.S. stock declines slashed as Wall Street explores possible suspect trades‏; Nasdaq to cancel some Thursday afternoon trades but sees no tech glitches‏.
  5. U.S. stocks end sharply lower; Dow industrials suffer worst loss in more than a year, down almost 1000 points (its biggest % loss since 1987) and major U.S. benchmarks shed 8%… (read more)
  6. European Central Bank President Jean-Claude Trichet held interest rates at a record low of 1% today and  said the bank didn’t discuss whether to purchase government bonds to stem the region’s debt crisis, defying market speculation that he would take such measures.
  7. Japan's Nikkei average fell more than 4% to a 2-month low, dragged down by exporters such as Canon after US stocks plunged as much as 9% as a wave of selling triggered by Europe's debt crisis gathered speed.
  8. Li & Fung plans to issue $400 million worth of notes with a maturity of 10 years and carrying a fixed interest rate of 5.25% per annum.

Afternoon Highlights

Singapore market recovered from early losses but shares remain weak… Currently holding up above 2800.

  • UOB Q1 net profit soars 71%, beats expectations

News Updates:

  1. British stocks, bonds and the pound tumbled with Germany due to vote on aid to Greece, early indications of a hung parliament in the U.K. and the ongoing worries over Greece.
  2. Gold futures up $5.90 at $1,203.40.
  3. BoJ Injects JPY 2 Trillion Into Domestic Financial Markets To Calm Worries Caused By Greek Debt Fears.
  4. Australia April Reserve Assets Rise To A$44.0 Billion From A$41.2 Billion In March

In Summary,

Index has pared early fall, eventually shed 18.54 points with 2.1387 billion traded.

By week, market is down a total of 153.50 points, with 9.4374 billion traded.

Amidst the heavy sell down during the entire week, Banyan Tree is resilient from the downtrend. This stock has been holding up firmly and not affected by the poor sentiment.