Morning Highlights

The STI opened higher again today at 2718.01 However, investors are cautious ahead of a slew of Chinese data. Chinese industrial output, retail sales, fixed asset investment, inflation and trade numbers are among the raft of data due later.

Our Focus For Today Is On Bank Stocks

SIA on Tuesday reported the airline remains in the red for the fiscal 2Q with net loss of S$158.8 million for the three months. However, this was an improvement of $148 million from the 1Q’s net loss of $307 million. (Read SIA’s News Release) (Financial Statements)

A series of data from China show better-than-expected industrial output (rises 16.1%) and retail sales (up 16.2%) but October CPI  is lower than expected (down 0.5%) and PPI (down 5.8%).

Singapore market is going sideways so far. The trading range for Hwa Hong is getting smaller. If the stock touches 0.575, we will close our position. If the stock manages to hold above 0.575, we will move our TSL to 0.575 at today’s closing.

Corporate Announcements

  • Indofood: 3QFY09 net profits of Rp 316.5 billion rose 8.2% year-on-year (yoy).
  • Midas: 3QFY09 net profits of S$9.4 million rose 17.4% yoy. Company declared a net interim dividend per share of S$0.0025.
  • SingTel: 2QFY10 net profits of S$956.0 million rose 10.1% yoy. Company declared a net interim dividend per share of S$0.062.
  • Yanlord: 3QFY09 net profits rose to S$91.1 million, compared to S$8.8 million the same period last year.

News Updates

  1. AIG posted its second straight quarterly profit last week. With the government now likely to recoup its investment, it has incentive to continue supporting AIG and its various creditors, Moody's said. The agency affirmed AIG's long-term rating of A3, the seventh-highest investment grade, with a negative outlook. (REUTERS)
  2. British bank Lloyds to cut 5,000 jobs by the end of 2010
  3. Ericsson to axe 700 jobs from UK facility, expected to be implemented by the middle of 2010
  4. Vodafone said on Tuesday that net profits soared 125% during its first half, adding that it planned to double annual cost savings to two billion pounds. It had launched a major cost-cutting program in November to reduce costs by 1.0 billion pounds by March 2011. (AFP)

  5. Investor's Business Daily and TechnoMetrica Market Intelligence said their IBD/TIPP Economic Optimism Index slipped to 47.9 in November from 48.7 in October – indicating that the upcoming holiday shopping season could see better consumer spending

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 HWHS Hwa Hong

0.515

0.465

 0.575

0.565

 Overnight, Current Price at 0.585
2 STEG ST Engineering 3.02 2.94 3.10
3 Centraland 0.56 0.52 0.60 CANCELLED

Stock Prices last updated at 17.20 (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

STI trends up nicely in the afternoon session, breaching its resistance at 2728.98 and 2739.55 respectively. 

Anwell broke high of 0.665 - to wait for setups

The head of the World Bank warned that Asia's rapid recovery from the economic crisis carries new risks of overheating, and that governments must carefully unwind their huge stimulus injections. (Business Times)

  • Golden Agri's Q3 net profit slips 3% to US$70.56 million.
  • Hyflux Water Trust Q3 DPU up 27.5 pct to 1.15 cts
  • Centillion Q1 net loss narrows to $2.09m

In Summary

Market went up 32.83 points to close at 2740.43 with 1.1425 billion traded. The gains are mostly lead by bank stocks. Nonetheless, we advise to trade cautiously as the volume traded is significantly lowered.