Morning Highlights

Our Focus For Today Is On Palm Oil

We place more emphasis on  Noble and Indofood Agri.

After due consideration, we decided to include Capitaland in the Quick Picks instead of removing it. If the share manages to breakthrough 4.18 and hold there, you may consider to enter the position. Likewise, if it only touches but fails to hold, please do not enter.

Olam had a sudden drop in the first 15mins of trading. It opened at 2.81 and went to a low of 2.71. Currently, the share is trading more stability but likely to start drifting from here.

During an announcement yesterday that more money will be pumped into the economy through the 2010 government budget, Finance Minister Tharman Shanmugaratnam said that the underlying problems have not been resolved and thus confidence has not returned to normal (The Business Times).

Most of the stocks in the commodity sector were still holding strong despite the weak market yesterday. The Reuters/Jefferies Commodity Price Index has been rallying for 6 days and was up 1.3% day-on-day (dod) on Monday’s close.

Corporate Announcements
Genting Singapore’s rights shares will begin trading this morning. The company had announced a 1-5 rights issue on September 9.

News Updates

  • U.S. stocks fell and the dollar rebounded from a 14-month low against the euro as a disappointing report on housing starts overshadowed better-than- estimated earnings at companies from Apple Inc. to Caterpillar Inc. Treasuries gained, while oil dropped from a one-year high.
  • Pulte Homes Inc. and Home Depot Inc. led builders and retailers lower as the Commerce Department report signaled the housing market may slow once tax incentives expire. Coca-Cola Co. lost 1.3% after sales trailed estimates, while Boeing Co. slid 2.9% on Morgan Stanley’s recommendation to sell the shares. Apple and Caterpillar rose at least 3%. (Bloomberg)

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 Please watch out on how share is going to trade.
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 Lookout
4 UEL United Engineer 1.82 1.69 1.95 Resistance at 1.88
5 SIAT Singapore Airport Terminal Services 2.59 2.44 2.74
6 LIAS Lion Asiapac 0.38 0.345 0.415
7 NOBG Noble Group 2.71 2.59 2.83  
8 GPAK Goodpack 1.14 1.06 1.22 Not Entered due to light volume. Will observe further. Resistance seen at 1.21
9 IFAR Indofood Agri Resources 1.82 1.71 1.93
10 5NL Tritech Group 0.31 0.25 0.37  
11 STEG ST Engineering 2.89 2.73 2.82 3.03 Overnight – Current Price at 2.96
Stock Prices last updated at 17:05 (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

Ezra broke high of 2.06. New entry signal for Ezra, to Buy at 2.11, Stop Loss at 2.05 and Take Profit at 2.21.

Goodpack has appeared to be sluggish and went flat at 1.15 throughout the entire afternoon.

ST Engineering to trail at 2.85 at the end of the day. The stock is doing a runaway.

News Updates

  • Airport operator BAA on Wednesday announced the sale of Gatwick, Britain's second busiest hub, to US investment fund Global Infrastructure Partners for £1.51 billion.
  • KUALA LUMPUR - Malaysia's finance ministry has delayed the issue of its annual economic report, usually made public prior to the annual budget submission, it said in a brief statement on Wednesday.
  • The fund management arm of United Overseas Bank will list a China A-shares exchange traded fund on the Singapore Exchange on Nov 12, allowing retail investors to invest in China's top 50 companies.
  • BANGKOK - The Bank of Thailand left its key interest rate unchanged at 1.25% for the fourth straight meeting on Wednesday, as expected, and said the rate level was appropriate and supportive of the country's economic recovery.

In Summary

Index breakdown the support at 2700 and closed at 2692.55. The total drop of 18.54 points, or 0.68%, is largely brought about by Jardine C&C during the last 30mins. The total volume remains rather low with  1.4948 billion traded. Nonetheless, the moving averages on Daily Chart are starting to move up, hence, upside is still intact.

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In its latest World Economic Outlook, the IMF projected the Asian economies to grow 2.75% this year and 5.75% next year. Moreover, the region’s three fastest growing economies, China, India and Indonesia are expected to grow 8.5%, 5.5% and 4%, respectively this year. Although many economists and policy makers were of the view that Asia’s remarkable recovery represents a decoupling from the rest of the world, Lipsky noted that the rebound so far largely reflected a return to normalcy of trade and finance flows. (Read Full)