Singapore Stock Market Updates on 05/11/09
Morning Highlights
The STI opened near yesterday’s close and starts trading lower as weighed by Wall Street’s weak finish. Overall market is weak but downside movement is limited.
Despite the Federal Reserve's decision to leave interest rates unchanged, U.S. stocks lost most of its intraday gains and tumbled in the last half hour of trading. Investors now are looking toward October employment data due out Friday morning.
"The dynamic has shifted to where we're using good news to lock in profits before year end," said Art Hogan, chief market strategist, Jefferies & Co.
Corporate Announcement
SembCorp Marine announced a 3Q09 net profit of $145mn, up 2.8% YoY and the highest quarterly net profit ever attained.
Capitaland sold its Kallang Avenue Industrial Centre and Kallang Bahru Complex sites for S$68m. Capitaland will recognise the $19.2m sale gain in December.
Wednesday News Updates (Business Times)
- Synear Food, one of China's quick freeze food producers, reported on Wednesday net profit increased 23% to RMB34.6 million for the three months ended September 30, 2009. Revenue climbed 4.8% to RMB408.9 million.
- Fortune Reit has posted a 14.1% increase in Q3 distributable income to HK$81.2 million (US$10.5 million), from HK$71.2 million a year ago.
- F J Benjamin saw net profit fall 58% YoY to $459,000 for the Q1 ended 30 September 2009, as a result of weak consumer sentiment in key markets in Asia.
- Sing Investments & Finance said its Q3 net profit doubled to $4.31 million from $2.14 million a year earlier, as interest expenses fell faster than its interest income and hiring charges.
- Elec & Eltek reported its net profit rose 15.7% to US$14.16 million as shipments picked up along with the economy. Revenue however fell 15.2% to US$119.77 million.
- Hyflux reported a 5% rise in Q3 net profit to S$18.1 million from S$17.3 million a year ago. The increase came as revenue fell 29% to S$126.5 million, from S$177.4 million in Q3 2008. The decrease came as the company was hit by a slow down in the China market.
- Liang Huat Aluminium reported net profit for the Q3 ended September 30 tumbled 81.33% to S$604,000. Revenue took a hit, falling 50.43% to S$5.65 million.
- OCBC has agreed to subscribe to 146.32 million new shares instead of 192.42 million shares under Bank of Ningbo's planned private placement. The subscription price for the shares will remain unchanged at RMB11.63 per share.
Other Markets Updates
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Time Warner Q3 revenue $7.14B vs $7.58B; Q3 earnings 55C vs 89C; Q3 adjusted earnings 61C vs 65C
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XTO Energy Q3 earnings 86C vs 94C; Q3 revenue $2.29B vs $2.13B
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Susser Q3 revenue $882.1M vs $1.21B; Q3 earnings 38C vs 40C
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Tyco Electronics fiscal Q4 earnings 20C vs 43C; fiscal Q4 adjusted earnings 30C vs 65C
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Huntsman Q3 revenue $2.11B vs $2.73B; Q3 loss 29C vs 9C loss
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Malaysia Sept. Exports Down 24.2% On Year, Imports Fall 20.2%; Sept. Trade Surplus At MYR 9.27 billion
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Private sector employment continued to decrease in the month of October, according to a report released by Automatic Data Processing, Inc. (ADP) on Wednesday, although the pace of job losses slowed for the seventh consecutive month. The report showed that non-farm private employment fell by 203,000 jobs in October following a revised decrease of 227,000 jobs in September. Economists had expected a loss of 198,000 jobs compared to the decrease of 254,000 jobs originally reported for the previous month.
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Treasury to auction record $81 billion next week; $40 billion 3-yr notes; $16 billion in 30-year bonds; reintroduces 30-yr inflation securities and says that it could hit debt ceiling mid-Dec.
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Microsoft Corp, saddled with flagging software sales thanks to the lingering recession, made an additional, unexpected round of job cuts on Wednesday. It is cutting 800 more jobs in addition to 5,000 layoffs announced previously.
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 |
|
|
|
| CANCELLED | ||
| 2 | CANCELLED |
Bearish Stocks (Singapore)
| Symbol | Name | Entry | SL | TSL | TP | Remarks | |
| 1 |
|
|
|
| CANCELLED | ||
| 2 | CANCELLED | ||||||
| 3 | PROFIT – CLOSED at 2.88 | ||||||
| 4 | CANCELLED | ||||||
| 5 | CANCELLED | ||||||
| 6 | CANCELLED |
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
Market Movement in the Morning Session
Market is holding up well despite an early sold down during 1st hour of trading. If market manages to breakthrough today’s high of 2643.52, high chance that we will see a gradual recovery from that point. Will have to observe how market trades in the afternoon session.
St. Engineering broke high of 2.99, to wait for setups
Afternoon Highlights
Market broke down 2630.22, today’s low created in the morning session, during the last hour of trading. Though 2630.22 is broken, market shortly recovered to trading above the point.
Japan's Nikkei average fell 1.3% on Thursday to hit its lowest close in a month, with Sony Corp and other exporters slipping as investors locked in profits on caution ahead of US jobs data.
Toyota Motor Corp posted a net profit of 21.8 billion yen ($241 million) for the July-September period, down from a net profit of 139.8 billion in the year-ago quarter. However, analysts polled by Thomson Reuters had expected an average loss of 24.95 billion yen. Revenue for the quarter fell 24% to 4.542 trillion yen from 5.975 trillion yen in the year-earlier period.
The Bank of England and the European Central Bank are due to announce interest rate decisions later today.
Separately, the European Central Bank on Thursday is expected to stand pat on rates when its rate-setting Governing Council meets in Frankfurt. The decision will be announced at 7:45 a.m. Eastern, followed by ECB President Jean-Claude Trichet's monthly news conference at 8:30 a.m.
In Summary,
Wall Street hangover continues to afflict local stocks, eventually leading market to close the day at 2629.36 with index down a total of 19.29 points. Total volume of 1.4074 billion traded. Till now, index can be seen moving in a tight range on Monday – Thursday from 2616.49 – 2657.57. We are watching for a breakout from either side.
We are removing Hwa Hong (new setups formed) and Biosensor (big retracement) from Quick Picks. In addition, all bearish picks will also be removed. We will continue to observe in tomorrow’s session for new trade opportunities.
New IPO coming up, listing on Catalist.
Company Name : SBI offshore limited
Start trading Date: 11th November 2009
Established in 1994, SBI Offshore Limited (“SBI Offshore”) is a Singapore
home-grown company supplying equipment to shipyards and rig builders in
Asia’s offshore and marine industry.
Offer price : 0.27
New IPO placement agent by DBS Vickers Securities
For further details on IPO, click here
A comparison of FOMC Message made on September and November –> not much changes since Sep ‘09
- FED RELEASES FOMC STATEMENT IN WASHINGTON
- FED KEEPS BENCHMARK RATE TARGET RANGE UNCHANGED AT 0% TO 0.25%
- FED KEEPS MBS PURCHASE PROGRAM UNCHANGED
- FED SAYS U.S. ECONOMIC ACTIVITY HAS `CONTINUED TO PICK UP'
- FED TO KEEP RATES `EXCEPTIONALLY LOW' FOR AN `EXTENDED PERIOD'
- FED SAYS ECONOMIC SLACK, SUBDUED INFLATION WARRANT LOW RATES
- FED SAYS ECONOMY LIKELY TO BE `WEAK FOR A TIME'
- FED SAYS FOMC VOTE TODAY WAS UNANIMOUS
- FED TO COMPLETE AGENCY, MBS PURCHASES BY END OF MARCH
- FED SAYS INFLATION TO REMAIN `SUBDUED FOR SOME TIME'
- FED SAYS REDUCTION REFLECTS LIMITED AGENCY-DEBT AVAILABILITY
- FED SAYS FINANCIAL MARKETS `ROUGHLY UNCHANGED' SINCE SEPT.
- FED CUTS AGENCY-DEBT PLAN TO `ABOUT' $175 BLN FROM $200 BLN
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