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Here's daily updates on SGX Warriors...

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It hasn’t been a smooth sailing period for us. Indeed, we suffered from the uncertainties and have yet to fully recover from the drawdown.

Life is not a bed of roses. Everyone has barriers and obstacles, and indeed, the journey of investment is full of hurdles. Nonetheless, we take setbacks in our stride…

“Real optimism is aware of problems but recognizes solutions,; knows about difficulties but believes they can be overcome; see the negatives, but accentuates the positives; is exposed to the worst but expects the best; has reason to complain, but chooses to smile.” - Quoted from William Arthur Ward

Singapore Stock Market Updates on 03/11/09

By sgxwarriors

Morning Highlights

Hi Everyone,

We are back from our short vacation trip over the weekend. It was indeed too short for a rest and relax session. Nonetheless, we had our fun and many thanks to Jolene who stayed behind to continue with the daily updates via the shout-box. Let’s get started with today’s market updates….

The STI dipped down at open to 2641.72, down 3.71 points, but starts going up shortly as investors are picking up some shares. However, market remains choppy and we advise to stay on the sideline till further market indication. There is a support at 2617.88.

Broadway broke high of 0.63, to wait for setups

On the DJIA chart, U.S. market is also experiencing choppy session. We will need to observe in the next few trading sessions, that is, if DJIA manages to breakdown 9684.54, high chance that the U.S. market will drop further and Singapore market might be implicated by the fall as well.

Hong Kong shares moved in a narrow band around the break-even zone early today, with property developers dropping further on concerns about government measures to cool prices, though Swire Pacific Ltd rose on news it was considering a listing of its property division. The Hang Seng Index fell 0.1% to 21,595.74, and the Hang Seng China Enterprises Index slid 0.1% to 12,734.84. Swire jumped 4.7%, while Sun Hung Kai Properties Ltd lost 0.9% and Cheung Kong Holdings Ltd dropped 0.9%. Gains in mainland China were supporting the market, with the Shanghai Composite rising 1.2% on top of Monday's 2.7% jump. (MarketWatch)

Corporate Announcement

Yangzijiang’s wholly-owned subsidiary Jiangsu New Yangzi Shipbuilding, has entered into an agreement with several strategic partners to incorporate a new company, Jiangsu Huayuan Metal Processing Co. Ltd in China with a registered paid-up capital of RMB 300mn.

Corporate Earnings Announcement Date

Tue 3 Nov 09: Cosco Corp 3QFY09
Wed 4 Nov 09: SembCorp Marine 3QFY09
Fri 6 Nov 09: DBS 3QFY09
Wed 11 Nov 09: Noble, Yanlord, IndoFood 3QFY09, SingTel 2Q09
Fri 12 Feb 10: NOL 4QFY09

News Updates

U.S. stocks make early gains, as Ford's profit surprise sets positive tone‏
U.S. purchasing managers index increase for October much stronger than forecast‏
Following a 5-day decline, Straits Asia made a comeback yesterday as it surged 3.8% dod to $1.90. The company reported after market close last Friday its 3Q09 net income of $38.6 million, up 64.8% YoY and 80.1% QoQ
After slipping off to a 20-week low of $2.94 last Friday, SingTel mustered a small gain of 0.7% dod yesterday at $2.96. Latest news is that SingTel has bought additional 1.52% stake in Indian telecom major, Bharti Airtel, and will pay up to 30.084 billion rupees (about US$600 million) (Bloomberg)
On Oct. 6, Australia became the first country in the Group of 20 nations to raise its policy interest rate, raising it by a quarter-point to 3.25%. Today, the reserve bank has raised its key policy rate for a second month in a row, hiking it by a quarter of a percentage point to 3.50%

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	SCOF	Super Coffeemix	0.725	0.675		0.775	NOT ENTERED lookout on today’s trading. If today fails to enter, cancel the pick
2	BIOS	Biosensors International	0.735	0.69		0.78	China Sector is weak, be cautious when it breakouts

Bearish Stocks (Singapore)

	Symbol	Name	Entry	SL	TSL	TP	Remarks
1	CMLT	Capitamall Trust	1.53	1.66		1.40

Stock Prices last updated at 10:30 (Singapore Time)

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

Allgreen Properties – Buy at 1.21, Stop Loss at 1.04
City Development – Buy at 10.50, Stop Loss at 9.55
Wing Tai Holdings – Buy at 1.75, Stop Loss at 1.55
Ezra – Buy at 2.08, Stop Loss at 1.66
Lookout for Keppel Corp

Our Thoughts… (update: 12:50)

Market is holding steadily during the morning session. We deduce that there could be 2 possible scenarios for the afternoon session:

1st case : market continues its tight range and eventually close with either slight positive or negative.
2nd case : market did a rally upwards, breaking the high of 2657.57 made so far and close well

Judging at the current situation, the 1st scenario is more likely to happen. It is somewhat similar to what we have experienced before on the 26th Oct 2009 where we have the market traded steady the whole day, but heavy sell down on the following day. Hence, please do practice cautious trading.

Afternoon Highlights

Market has broke down today’s low and is now drifting aimlessly.

CapitaLand is seeking up to $2.78 billion from the listing of its retail arm CapitaMalls Asia (CMA). Some 1.165 billion shares are being offered at $1.98 to $2.39 apiece, according to e-mails sent to potential investors. (Business Times)

News Updates

Lloyds down 0.9% after rights issue plan
European shares declined on Tuesday, with banks among the worst performance as Royal Bank of Scotland shares fell 4.6% after it outlined revised terms under which is expects to participate in the U.K. government's asset protection scheme and also asset sales required by the E.U.
Jobless claims in Spain rose by 2.6% in October and 35.1% on an annual basis, the Ministry of Labor and Immigration said on Tuesday. In October, another 98,906 people were added to the overall jobless total, which now exceeds 3.8 million.
China non-manufacturing PMI at 18-month high in October 2009.
Raffles Education posted a net profit of $14.05 million for the 1Q ended Sept 30 - down 55% from a year ago
Baker Technology’s Q3 net profit up 120%
St Engineering’s Q3 net profit falls 7%

In Summary,

Despite positive cues from Wall Street, where stocks edged higher overnight amid some encouraging economic reports, Asian stock markets are exhibiting a mixed trend on Tuesday.

In Singapore, selling pressure accelerate during the last hour of trading. Small caps and shares in the Oil & Gas Sectors have drifted lower after a steady start. Among the sell down, SGX is one of the worst performers that dropped 0.14 to close at 7.85 and Keppel Crop dropped by 0.21. Following next is Jardine C&C dropped by 0.50.

Property shares are also badly affected; Hong Kong Land dropped 0.11 to close at 4.61, Capitaland dropped 0.10 to close at 4.13 and City Development dropped 0.08 to close at 9.81.

All in all, market has dipped down 23.88 points to close at 2621.55 with 1.2814 billion traded today. We will have to see how market reacts when it approaches 2600 point. Till then, we are more downside biased.