Morning Highlights

Our Focus For Today Is Still On Bank Stocks.

It was a positive start to the week as the STI shot up 2.1% dod to break a new record close for 2009 at 2,783.9 (66-week high). Several stocks from different sectors hit new yearly highs in yesterday’s charge as they marched to the tune of the regional rally.

Today, STI has went flat at open and started coming down slightly, off 6 points from yesterday’s close. Let’s observe further on market performance.

  • China Farm broke high of 0.29, to wait for setups
  • China Essence increased in price range and volume. Currently we are waiting for setups. There is resistance seen at 0.315.
  • Olam pays A$160 million for almond orchards, water rights
  • CWT to invest up to S$100 million in its new logistics facilities

  • ST Engineering wins $44m contract from police force

Most of the Asian shares are mostly lower despite strong Wall Street lead. Hong Kong shares decline after hitting resistance at the key 23,000-point level, which it breaks briefly for the first time since July 2008.

On the other hand, Singapore market went into retracement during the 1st hour of morning session. Subsequently, there is a recovery of losses after 10:00. DBS plays last min catch up as its performance in yesterday’s trading lags behind both UOB and OCBC.

  • Bernanke sees moderate U.S. growth in 2010 despite 'significant challenges'‏
  • New York: Area factory-sector gauge retreats in November from 5-year high‏
  • U.S. retail sales rise 1.4% in August as car sales rebound‏

CapitaMall Asia IPO priced at 2.12 (This year largest IPO)

  • Trading Commencement: 25 November 2009
  • Underwriter: J.P.Morgan (S.E.A.) Limited, DBS Bank Ltd.,Credit Suisse (Singapore) Limited, Deutsche Bank AG, Singapore Branch
  • Issue Manager: J.P.Morgan (S.E.A.) Limited, DBS Bank Ltd.

Corporate Announcements

  • Capitaland will be on trading halt this morning. In an earlier announcement, the company announced that it has injected $0.8bn of the net proceeds from its rights issue into CapitaMalls Asia.
  • Keppel Corp has been awarded a bonus of $640,000 for delivering the KFELS B Class jackup rig, PV Drilling III, early to PetroVietnam Drilling & Well Services Corp.
  • First Resources announced a 3Q09 net profit of Rp 262.4bn, an increase of 38.6% year-on-year.

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 Yesterday>

Bullish Stocks (Singapore)

Symbol

Name

Entry

SL

TSL

TP

Remarks
1 STEG ST Engineering 3.08 2.94 3.05 3.18 Overnight, Current Price at 3.16 
2 OCBC Oversea-Chinese Banking Corp 8.19
8.32		 8.03 18.19 8.61 Overnight – Current Price at 8.45
3 UOBH United Overseas Bank 19.00
19.38		 18.66 19 20.1 Overnight, Current Price at 19.66
4 DBSM DBS Group 14.30
14.48		 13.96 14.24 15.00 Overnight – Current Price at 14.70
5 NOBG Noble Group 2.86 2.72 3.00 LOSS – Closed at 2.78
6 ANTE Anwell Technologies Ltd 0.73 0.67 0.79
7 TRAN Transpac Industrial 1.84 1.75 1.93 stock giving 40c dividend, ex date on 8 Dec

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

We are on the lookout for Noble. This stock has touched 2.80 today. As there are new setups formed, we are waiting for a throwback from the sudden drop and find an exit price for Noble. (We are queuing to sell at 2.79 for Noble)

Capitaland has lifted halt today at 14:00. Sales of CapitaMall Asia IPO starts tomorrow at 09:00 and close on 23 November 2009 at 12:00. (For more details, please click here)

Q & M Dental Group (Singapore) Limited is seeking listing on the exchange, prospectus has been registered, new shares priced at 0.27. The trading will commence on 26 Nov ‘09. The issue manager is Collins Stewart Pte Ltd.

(Reuters): Lehman Brothers Holdings Inc has filed a lawsuit against Barclays Capital Inc alleging the British bank took control of excess assets in collusion with Lehman executives when it bought its U.S. brokerage business a year ago, court documents show. (Read Full)

In Summary

Index close weak at 2764.95, down 18.90 points with 1.2783 billion traded. 

Winquote - pdfMachine from Broadgun Software, http://pdfmachine.com, a great PDF writer utility! Market Sentiment is still bullish. This is a pullback after yesterday’s rise.