Singapore Stock Market Updates on 16/11/09

Morning Highlights

STI opens up 8.5  points at 2,735.73, after a higher finished on Wall Street.

Our Focus For Today is On Bank Stocks.

All the 3 banks opened above our entry price. We are looking at new setups to re-enter. We have re-entered position for UOB at 19.38

Capitamall Asia IPO price will be determined by today. The IPO commencement trading is on 25 November 2009.

Global Investment broke high of 0.245, to wait for setups

Keppel Land broke high of 3.03, to wait for setups

Index broke through resistance at 2746.73 in the early minutes. It manages to hold well above and move even higher. This is a good sign that index might move up from here to 3000.

Property sector is relatively weak. We would advise to trade with small risk for property counters.

1. Japan July-Sept. real GDP rises better-than-expected 4.8% annualized‏
2. U.S. consumer-sentiment gauge weakens in November‏
3. U.S. trade gap widens significantly in September‏

Ex-div Dates

• Tue 8 Dec 09: Straits Asia (net interim dividend per share of USD$0.0205)
• Wed 18 Nov 09: DBS (net interim dividend per share of $0.14)
• Fri 18 Dec 09: SingTel (net interim dividend per share off S$0.062)

Dividend Paid Dates

• Fri 4 Dec 09: DBS (net interim dividend per share of $0.14)
• Thur 14 Jan 10: SingTel (net interim dividend per share off S$0.062)

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 Last Week>

Bullish Stocks (Singapore)

	Symbol	Name	Entry	SL	TSL	TP	Remarks
1	STEG	ST Engineering	3.08	2.94	3.03	3.18	Overnight, Current Price at 3.12
2	OCBC	Oversea-Chinese Banking Corp	8.19 8.32	8.03	18.19	8.61	Triggered – Current Price at 8.50
3	UOBH	United Overseas Bank	19.00 19.38	18.66	19	20.1	Triggered, Current Price at 19.94
4	DBSM	DBS Group	14.30 14.48	13.96	14.24	15.00	Triggered – Current Price at 14.56
5	NOBG	Noble Group	2.86	2.72		3.00	Triggered – Current Price at 2.86
6	ANTE	Anwell Technologies Ltd	0.73	0.67		0.79
7		SBI Offshore	0.35	0.27		0.43	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

SINO GRANDNESS FOOD INDUSTRY GROUP LIMITED (new IPO) – A China Company

• Underwriters and Placement Agents: Collins Stewart Pte Ltd & UOB Kay Hian Pte Ltd
• Commence Trading: 23 November 2009 on main board, priced at 0.29
• Background: Sino Grandness Food Industry Group Limited (“Sino Grandness”) is a manufacture and export-oriented supplier of canned fruits and vegetables, serving reputable distributors and retailers across three continents, in countries such as Germany, France, Spain, the Netherlands, the Czech Republic, Russia, Mexico, Singapore, Turkey and China. 95% of our revenue in FY2008 was derived from Europe and North America (namely Mexico). In 2008, Sino Grandness was the top exporter of canned asparagus and long beans and one of the top three exporters of canned mushrooms in the PRC(1). Its other canned products include bamboo shoots, sweet corn, chillies and fruits like lychees, pineapples and peaches.

There is a good chance for STI to trade over 2 billion today, since market has already traded more than 1 billion in the morning session.

There are several resistance levels to take note for the 3 bank stocks:

1. UOB: 1st resistance at 20.22, 2nd resistance at 21.74, 3rd resistance 22.96 and 4th resistance (historic high) at 24.30
2. OCBC: 1st resistance at 8.56, 2nd resistance at 9.10, 3rd resistance at 9.40 and 4th resistance (historic high) at 9.81
3. DBS: Resistance at 19.98

Singapore Post broke high of 0.965. However, the stock is defensive, hence, is not suitable for trading, but can be an investment stock.

News Updates:

British Airways faces a strike ballot among cabin crew over proposed changes to working practices, just days after it announced a merger deal with Spanish carrier Iberia.

Malaysia's CIMB Group Holdings plans to raise about 4.5 billion baht (US$136 million) from a public offering in the Thai market by the middle of 2010, the Thai bourse said on Monday.

In Summary,

After 3 months of consolidation, index has finally breakthrough with high volume and close well.

STI close high of the day at 2783.85, up 56.62 pts with 1.8537 billion traded, mostly brought about by financial stocks.

The critical level at 2746.73 has now turns into a support level for index.