Singapore Stock Market Updates on 06/11/09

Morning Highlights

The STI opened up 42.50 points to 2671.85, following the rise in Wall Street.  Market breakthrough 1st resistance at 2657.57, the next resistance is at 2681.69.

All the 3 banks are performing strongly. UOB open above our entry price, we are waiting for signal to enter. Hwa Hong has triggered, we will enter our order when the stock clears 0.52.

U.S. stocks rallied on Thursday as another bout of upbeat economic data and positive results from Cisco Systems Inc. lifted the DJIA back above the 10,000 level with its biggest daily rise in points since July 15.

Genting Berhad is on track to open the “Resorts World at Sentosa” in Singapore by early January 2010, said its chairman and chief executive Lim Kok Thay.

Corporate Announcement

DBS announced a 3Q09 net profit of $563mn, up 40.0% YoY with net interest income reaching a record. The company announced a net interim dividend of 14 cents per share

News Updates

1. NEC Corp, Japan's biggest PC maker, said it plans to raise up to 133.9 billion yen (US$1.5 billion) in a share offering.

2. Nvidia Q3 net income 19c vs 11c a share; Q3 rev $903.2 million vs $897.7 million –> Nvidia shares rise 6% after release of Q3 result and sees Q4 gross margin of 40% to 42%

3. Starbucks reported Thursday afternoon its fiscal Q4 profit jumped on lower operating costs as store-traffic trends improved. For the quarter ended Sept. 27, net income was $150 million, or 20 cents a share, compared with net income of $5.4 million, or 1 cent a share, in the year-earlier period. Sales fell 4% to $2.42 billion. Excluding restructuring charges, Starbucks said it earned 24 cents a share. Analysts had forecast Starbucks to earn 21 cents a share on sales of $2.4 billion, according to FactSet Research. Same-store sales fell 1% during the quarter, compared with a 5% decline in the June-ended quarter and an 8% decline for the March-ended quarter. For fiscal 2010, the company increased its earnings growth target, excluding charges. Starbucks shares closed at $19.70 ahead of the report.

4. Citigroup Inc. said late Thursday that its Primerica Inc. unit has filed plans for an IPO, the latest step in a break-up of the struggling financial giant. Primerica has roughly 100,000 licensed sales representatives who sell term life insurance, underwritten by the company, as well as mutual funds, variable annuities, loans and other financial products, Citi explained. "Today's announcement represents an important step in simplifying our organization," said Michael Corbat, chief executive of Citi Holdings, which houses Citigroup's non-core businesses. "This is the best separation alternative for this franchise."

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	HWHS	Hwa Hong	0.515	0.465	0.495	0.565	Entered, Current Price at 0.53
2	UOBH	United Overseas Bank	17.72	17.4		18.04

Stock Prices last updated at 17:05 (Singapore Time)

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

1. Allgreen Properties – Buy at 1.21, Stop Loss at 1.04
2. City Development – Buy at 10.50, Stop Loss at 9.55
3. Wing Tai Holdings – Buy at 1.75, Stop Loss at 1.55
4. Ezra – Buy at 2.08, Stop Loss at 1.66 

Afternoon Highlights

The STI is flat throughout the session, holding up above the 2657.57 level.

Singapore's Ministry of National Development on Friday announced its biggest ever land sales program for the first half of 2010, following very strong demand for private homes seen in the past eight months.

Bank of England expands asset purchase plan by 25 billion pounds ($41 billion)‏.

Weekly U.S. first-time jobless claims drop to 512,000, lowest since January‏.

In Summary,

Market gapped up at open on US strong performance overnight and hopes on governments around the world would remain committed to stimulus measures were supporting sentiment. The early gains were eased during the later part of the morning session and a sideway consolidations continued towards the end of the afternoon session. The laggard performance could be due to investors awaiting key US jobs data that will be released later.

The STI ended up 28.86 points to close at 2658.21 with financials leading, though gains were not as strong as those on Wall Street. Total volume for today is 1.2327 billion traded.

OCBC swing up during closing auction to 7.85; DBS at 13.38, which is close to today’s high of 13.42 and UOB at 17.76 which is also close to today’s high of 17.78.

Hong Kong stocks also ended up 1.63% on Friday, as local developers and banks rebounded from a recent selloff, while Greens Holdings rose on its trading debut.

European shares muted ahead of jobs data. The U.S. unemployment rate is expected to hit 9.9% when the Labor Department report on nonfarm payrolls is released today at 8:30 a.m. Eastern time

Bottom Line…

We advise to trade selectively and be cautious. Market opened above 2657.57 at early moves, and went back to test support at 12:30. Subsequently traded in tight range and eventually close above the support.

Should 2657.57 display as a good support in the next few trading session, this would imply more strength for upward momentum. Till then, we will have to look for more cues on how market is going to trade in the coming week.

Hwa Hong dividend 0.12 going ex on 13 November 2009