Singapore Stock Market Updates on 16/10/09

Morning Highlights

To Practice Cautious Trading While Market Going Through Retracement…

STI opened higher after mild gains on Wall Street. However, as we mentioned in yesterday’s summary, market is now due for retracement. We have yet to identify any Sector that’s leading for the moment. Please do be nimble if you are in trades for any short term opportunities.

Bullish Stocks (Singapore)

Here’s Our Mid Term Holding Opportunities for property shares.

1. Fraser & Neave – Buy at 4.02, Stop Loss at 3.76
2. Allgreen Properties – Buy at 1.21, Stop Loss at 1.04
3. City Development – Buy at 10.50, Stop Loss at 9.55
4. Wing Tai Holdings – Buy at 1.75, Stop Loss at 1.55
5. Ezra – Buy at 2.08, Stop Loss at 1.66
6. Lookout for Keppel Corp

Afternoon Highlights

Asian share markets were mostly lower Friday with several markets reversing early gains as investors awaited fresh leads from major U.S. corporate earnings. (source from MarketWatch)

Biosensor broke high of 0.665 - wait for setups

Watch out for Sembcorp Marine

News Update From Warrant (Read Full)

Keppel Corp sees 8th straight daily gain
Rising 2.2% this week and 7.6% to $8.37 in the last eight days, Keppel Corp was the standout index performer last week and potentially this week. The company had announced on the SGX on October 9 that its equal JV with J Ray McDermott had secured a letter of intent for a P-61 Tension Leg Wellhead Platform (TLWP) with the Papa-Terra JV consisting of the companies Petrobas and Chevron. Keppel Corp’s run has also come on the back of rising crude oil prices, which finished at a new one-year high of US$77.98 last night and is headed for its third straight weekly gain.

Capitaland at new two-year high
Capitaland climbed 0.7% yesterday and 4.8% this week to finish at a new two-year high of $4.14 yesterday. Macquarie Equities Research (MRE) had in a report published on Saturday October 10 revised its rating from Neutral to Outperform and raised its target price to $4.00 from $4.15 previously, citing a strong balance sheet and regional focus.

DBS sits firmly above $13
After trading in the $12 region last week, DBS firmly traded above $13 this week (save its closing at $12.98 on October 13). The company had pulled out of the race to acquire ING’s Asian private-banking unit, which eventually went to rival OCBC who paid US$1.46bn in cash for it. With regard to its upcoming results, MRE in a note on October 14 stated that they do not expect loan growth and margins on all three banks to be significant and thus has a Neutral view on the sector. DBS however, is trading significantly below its historical mean and relative to its peers and may see some improvement post the entry of its new CEO and with clarity to his strategy.

In Summary,

Though STI dipped down 4.03 points to close at 2708.12 , it is well supported by 2700. As mentioned earlier, overall trade was subdued before the weekend with only 1.643 billion traded today.

Market is currently retracing back, which we deem as a healthy correction before it will resume its upward trend. As of now, high chance that we will see market oscillating between 2700 - 2739.55.

Based on the Weekly Chart, the overall market performance is not bad though Bank Stocks are still weak. However on the Daily Chart, market has yet to turn up, hence, we advise to be selective when trading.