Morning Highlights

Our Focus For Today Is Still On Small – Mid Caps 

Asian share markets were on the rise with technology stocks leading after reassuring earnings reports in the U.S. from Apple and Texas Instruments.

STI opens up 13.98 points, at 2725.68.  

The property arm of the world’s largest oil rig builder – Keppel Land will be announcing its 3Q09 results tomorrow. The stock has rallied 3.8% in the last five days and trade steadily above $2.70 since Wednesday. The stock’s performance in the last week has outperformed the FTSE ST Real Estate Index (a measure of 30 developers and property trusts in Singapore) which climbed 2.2% in the last five days to reach a new 52-week high of 630.87 yesterday. Keppel Land’s last achieved a 52-week high of $2.85 on September 10. (Warrant)

  1. FrascerCT broke high of 1.23, to wait for setups
  2. Silverlake Axis broke high of 0.33, to wait for setups
  3. Ascendas India Trust broke high of 0.915, to wait for setups
  4. Supercoffee broke high of 0.675, to wait for setups

Local stocks drifted with little direction this morning with the index ending a nondescript session a nett 3.10 points higher at 2714.80 but with the broad market excluding derivatives chalking up 172 rises versus 154 falls.

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 CATL Capitaland 4.18 4.00 4.36 CANCELLED
2 SPRM Singapore Press Holdings 4.00 3.88 4.12 lookout near breakout pt
3 SCMN Sembcorp Marine 3.62 3.38 3.86
4 TRSU.SI Transcu Group 0.215 0.17 0.26 Cancelled due to huge retracement
5 UEL United Engineer 1.82 1.69 1.95 Resistance at 1.88
6 SIAT Singapore Airport Terminal Services 2.59 2.44 2.74
7 LIAS Lion Asiapac 0.38 0.345 0.415
8 HYFL Hyflux 3.17 3.09 3.25 CANCELLED
9 NOBG Noble Group 2.71 2.59 2.83  
10 STEG ST Engineering 2.89 2.73 2.82 3.03 Overnight – Current Price at 2.90
11 RAMB Ramba Energy 0.72 0.655 0.785 CLOSED at 0.72 due to new setups formed
Stock Prices last updated at 17:20 (Singapore Time)

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

The STI continues to drift further... So far, none of the Quick Picks are close to the breakout point. Please note that if Ramba Energy fails to trade to 0.755 in today’s session, there will be new setups formed. 

We did not entered the position for Hyflux as the stock merely touches the breakout point, failed to hold and come down. We have also exited our position for Ramba due to new setups formed today.

Market starts coming down at the last hour.

No interference for SingTel
SingTel was the strongest gainer yesterday with a rise of 2.3% dod to $3.17. Mr Lui Tuck Yew, acting minister for Information, Communications and the Arts, said in parliament today that the government will not interfere in the award of broadcast rights for the English Barclays Premier League (Bloomberg)

Other News Updates

  • Apple posts higher profit of $1.67 billion; more than 3 million Macs are sold in quarter‏
  • Morgan Stanley sells investment management arm to Invesco for $1.5 billion in stock, cash‏
  • LONDON - Qatar is selling a 1.3 billion pound (US$2.1 billion) stake in British bank Barclays, stoking talk it will use a big profit to make a move on UK food retailer J.Sainsbury.
  • U.S. stocks rose, sending benchmark indexes to a one-year high, on better-than-estimated earnings and speculation the economy is healthy enough for policy makers to unwind efforts to shore up the financial system. The dollar fell, while commodity prices and 10-year Treasuries advanced.

In Summary

The STI gapped up early in the day but last-minute selling pushed the index down 0.61 points to close at 2711.09. The volume picked up slightly, higher than that of yesterday with 1.9818 billion traded. Investors remained cautious ahead of the release of third quarter earnings reports by listed companies.

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Buying on dips for blue chips
With some banks and property blue chips sinking at the open, buyers were drawn in and lifted the stocks from their day’s lows. Capitaland surged 3.5% from its day’s low of $4.01 to $4.15 (+1.5% dod), DBS rose from a $13.14 low to close at $13.34 (unchanged dod) and UOB was up 1.8% from an intraday low of $16.90 to $17.20 (+0.2% dod).

Straits Asia back in action
Straits Asia (+2.5% dod, $2.09) spiked yesterday after news was out that the company has resumed its Jembanyan operations (Bloomberg). The Jembanyan mine has earlier been affected by significant erosion along the Mehakam river foreshore due to continuous rain 2 weeks earlier.

Corporate Earnings Announcement Dates

  1. Wed 21 Oct 09: Keppel Land 3QFY09
  2. Thur 22 Oct 09: Keppel Corp 3QFY09
  3. Tue 27 Oct 09: Capitaland 3QFY09
  4. Wed 28 Oct 09: OCBC 3QFY09
  5. Thur 29 Oct 09: NOL 3QFY09
  6. Fri 30 Oct 09: UOB 3QFY09
  7. Tue 3 Nov 09: Cosco3QFY09
  8. Fri 6 Nov 09: DBS 3QFY09
  9. Fri 12 Feb 10: NOL 4QFY09