Singapore Stock Market Updates on 28/10/09

Morning Highlights

The STI opened lower at 2684.12, attempting to test support at 2681.69. We will stay on the sidelines for the time being.

Capitaland broke its 3 week rally and fell from a 65-week high close of $4.43 to $4.30 (-2.9% dod). This came after the company announced 3QFY09 net income of S$281.3 million which fell 32.9% Year-on-Year (YoY).

Other Asian share markets were also mostly lower Wednesday after a choppy session on Wall Street, with National Australia Bank slipping in Sydney despite reassuring company comments but Honda buoyant in Tokyo after lifting its earnings forecast for this fiscal year.

"Investors need to find new upward momentum, which could come from a conviction about a further recovery in corporate earnings and the global economy, as many think current stock prices have mostly priced in positive data so far," said Lee Kyoung-min at Woori Investment & Securities in Seoul.

Market broke it’s first support. Lookout for the 2nd support at 2667.45.

Corporate Announcement

Ezra will be setting up a JV with KTL Global Limited to design, produce and supply mooring systems for the offshore oil and gas industry.

OCBC posted a net profit of $450 million for the 3Q ended Sept 30 - up 12% from a year ago.

News Updates

• U.S. consumers' confidence takes a turn lower, Conference Board data show‏

• U.S. home prices for August off 11.3% from year ago, up 1.2% from July: Case-Shiller‏

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. 

Bullish Stocks (Singapore)

	Symbol	Name	Entry	SL	TSL	TP	Remarks
1	UOBH	United Overseas Bank Ltd	17.52	17.14		17.90	CANCELLED
2	NOHL	Novena Holdings	0.22	0.18		0.26
3	FCL	Frasers Centrepoint	1.30	1.20		1.40
4	GPAK	Goodpack	1.25	1.14		1.36
5	CACT	CapitaCommercial Trust	1.18	1.08		1.28
6	TSHS	Tuan Sing Holdings	0.235	0.195		0.275
7	SCOF	Supper Coffeemix	0.715	0.675		0.755

Bearish Stocks (Singapore)

	Symbol	Name	Entry	SL	TSL	TP	Remarks
1	STAR	Starhub Ltd	1.87	1.96		1.78

Stock Prices last updated at 17:30 (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

Index has breached the 2nd support at the start of the afternoon session and continues to trade lower. The next support is at 2630.73.

China's Internet search market was worth two billion yuan in the 3Q, up 38%, as global search leader Google Inc continued to expand its market share in China, research firm Analysys International said today. (Business Times)

Japan’s Nikkei average hit its lowest close in 2 weeks as technology stocks fell after weaker-than-expected U.S. consumer data.

Australia’s competition watchdog on Wednesday began legal action against Thai Airways, accusing the carrier of price-fixing in its air cargo division.

In Summary,

STI slide down 45.52 points to close at 2648.98. Almost all sectors are affected today, dragging down the STI. Nevertheless, the volume is the highest for this week so far, with 1.5983 billion traded.

Stocks in the Commodity and Offshore Marine are badly hit, such as Sembcorp Marine dropped 0.13, Jardine C&C dropped 0.88, Jardine Matheson dropped 1.12 and Jardine Strategic dropped 0.50.

Out of the 3 banks, UOB tumbled the most with a drop of 0.48. 

Following next, local property shares are also affected by Hong Kong’s property weakness, resulting in Capitaland dropped further by 0.15 and City Development dropped 0.18.

As of now, market seems to be more downward biased. But we will have to see how market performs on Thursday and Friday before we conclude the possibility of trend reversal.

Last but not least, we are keeping a close tab on China-related stocks. Many of them have broke down support and rebound back. Should there be any shorting opportunities, we’ll post on blog.

Latest Updates on Wing Tai (Business Times)

Wing Tai Holdings said that Q1 net profit rose 42% to S$46.3 million, from S$32.6 million a year ago as a result of the higher operating profit achieved.

Revenue for the three months ended 30th September 2009 rose to S$277.2 million from S$134.3 million in the same three months last year.

The property group's net gearing ratio was reduced to 0.48 times as at 30th September 2009, as compared to 0.51 times as at 30th June.