Singapore Stock Market Updates on 23/10/09

Morning Highlights

In response to Wall Street strong earnings overnight, Singapore Market opened higher at 2698.55.

Our Focus For Today is On Commodity and Offshore Marine 

Ramba has on 22 October 2009 entered into a term sheet (the “Term Sheet”) with Mr. Heng Yew Khiang (“Vendor”) to acquire 50% (fifty per cent) of the total issued shares (“LSP Shares”) in the capital of LSP Pte. Ltd. (“LSP”) for a total aggregate purchase consideration of S$2,508,086.25 (the “Purchase Consideration”) upon the terms and subject to the conditions of the Term Sheet.

Capitaland and SembCorp Marine are the latest stocks to feature in the afternoon rally story, and finish at new 52-week highs. While both stocks had already been trading in the positive territory in the yesterday’s morning session despite an under-water benchmark STI, the stock price bursts only came later in the day. Capitaland saw a sudden wave of buying interest that took it to an intra-day high of $4.23 shortly after 3p.m. while SembCorp Marine’s rally took place an hour earlier with the stock traded up to an intra-day high of $3.69. The stocks respectively closed up 3.5% day-on-day (dod) at $4.20 and 2.3% dod at $3.62. (Warrants)

CapitaCommercial broke high of 1.07, to wait for setups

Singapore and Bulgaria have concluded an Open Skies Agreement after a two-day air services consultation that ended on Thursday. (Update 11:15)

Corporate Announcements
Keppel Corp announced a 3Q09 net profit of $319mn, up 17% year-on-year. For the first nine months of 2009, net profit grew 11% to $922mn.

Noble Group’s U.S dollar fixed rate senior notes due 2020 have been fully placed to institutional and/or accredited investors. The issue size of the notes is US$850m and will yield investors 6.875% per annum.

News Updates:

• Delta Air Lines Inc, the world's biggest airline which merged with Northwest Airlines last year, reported a quarterly net loss of US$161 million on Thursday due to special charges (US$212 million), but operating earnings beat Wall Street expectations. Excluding the charges, the company reported a profit of 6 cents per share.(REUTERS)
• U.S. home prices fell by a seasonally adjusted 0.3% in August, bringing the 12-month decline to 3.6%, the Federal Housing Finance Agency said on Thursday. The regulator's monthly index is calculated using purchase prices of houses financed with mortgages that have been sold to or guaranteed by mortgage finance companies Fannie Mae or Freddie Mac. (REUTERS)
• Nokia sues Apple for patent infringement. Ten patents in the case - filed in Delaware, United States - relate to technologies fundamental for devices using GSM, UMTS and/or local area network (LAN) standards, Nokia said. Apple Inc shares trading in the US briefly dipped on the news and were 0.5% up at US$206.04 by 1455 GMT.(REUTERS)
• McDonald’s Q3 net income rose to US$1.26 billion from US$1.19 billion a year earlier. (REUTERS)
• Amazon posts 69% spike in net income; sales also exceed estimates‏
• Palm oil for January delivery climbed 1.9% dod to 2,210.0 ringgit a ton on the Malaysia Derivatives Exchange, a highest price in six weeks as oilseed processors in India, one of the world’s biggest buyers of cooking oils, said imports may increase because local output was unprofitable.
• Chartered Semiconductor Manufacturing, the world's third-largest maker of customised chips said its third- quarter loss narrowed to US$4.7 million, compared with a loss of US$24.4 million a year earlier

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	4.28	4.16	4.22	4.40	Triggered, Current Price at 4.34 to enter with small risk
2	SPRM	Singapore Press Holdings	4.00	3.88		4.12	lookout near breakout pt
3	SIAT	Singapore Airport Terminal Services	2.59	2.44		2.74	Cancelled
4	LIAS	Lion Asiapac	0.38	0.345		0.415
5	NOBG	Noble Group	2.71	2.59		2.83	Triggered – Current Price at 2.76 Watch out for historical high at 2.87
6	RAMB	Ramba Energy	0.755	0.685		0.825
7	NOHL	Novena Holdings	0.22	0.18		0.26	Near Breakout
8	SLVX	Silverlake Axis	0.375	0.31		0.44
9	TAIS	Tai Sin Electric	0.30	0.26		0.34
10	SCOF	Supper Coffeemix	0.71	0.63		0.79
11	VENM	Venture Corp	9.68	9.31		10.05
12	SCMN	Sembcorp Marine	3.62	3.38	3.53	3.86	Overnight – Current Price at 3.71
13	IFAR	Indofood Agri Resources	1.82	1.71		1.93	Overnight – Current Price at 1.80 Watch out when price reach 1.91

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

STI is holding up well at above 2700 points.

Novena was trading near to breakout but dropped again in the afternoon session. Nonetheless, the setups are still intact.  

Goodpack is performing, but we have yet to get familiarize with the trading pattern of this stock, hence, we still prefer to KIV first and wait for the next setup.

On the Top Gainer List so far, we have the 3 Jardine Groups, Parkway, UOB, SGX and Yanlord.

UOB to BUY at 17.52, STOP LOSS at 17.14 and Take Profit at 17.90

Noble Group Ltd has completed a US$2.4 billion three-tranche financing, the largest syndicated loan in Asia ex-Australia so far this year, with a whopping 63 banks joining, banking sources said.

Prices of private homes in Singapore rose in the Q3 of this year with the URA index measuring such residential properties rising 15.8% over the preceding quarter.

In Summary,

The market close up by 33.37 points to 2715.34. The volume is still relatively low with only 1.5595 billion traded. Traders remain cautious, hence, buying momentum is not strong. In addition, China stocks are rather weak too.

With reference to the Daily Chart, the market is able to decisively clear resistance and build on the current rally this week. Though on Wednesday and Thursday, we have STI ended at the negative territory, today has brought the market back into positive following an upbeat Wall Street strong earnings. The prior resistance area is now a support level, should market pullback to test these levels again (refer to charts)

Evidently, according to the technical picture, market is pointing higher, with the moving averages turning upside. Reference to the weekly chart, though the bar is not widen, upside is still intact, with prices trading above the 50SMA.

The bottom line is, do expect volatility to increase and it is important to remain focus on the mentioned support & resistance levels. We advise to trade with only strong stocks and strong sectors for now.

COPORATE RESULTS