Morning Highlights

Our Focus For Today Is Still On Bank Stocks.

The STI opened up 8.72 points at 2773.67 as supported by continued firmness for the US stocks.

After 2 months of upward momentum – up 1.2% in August and 2.9% in September – Singapore’s non oil domestic exports stumbled in October and fell sharply. The drop has caused the STI  to back off from its 66-week peak yesterday with profit-taking setting in.

U.S. News Updates 

U.S. stocks gained for a third day as a rebound in metal prices boosted commodity producers, overshadowing a smaller-than-forecast increase in industrial production. The Dollar Index rose for the first time in three days and Treasury 30-year bonds climbed for a fourth.

Wal-Mart Stores Inc. and Exxon Mobil Corp. gained at least 0.8% after Warren Buffett disclosed buying their shares. Sprint Nextel Corp rallied for a second day after saying it paid down $1 billion in debt. Caterpillar Inc. and ITT Corp. declined as the Federal Reserve said industrial output was restrained in October by less auto manufacturing and demand for business equipment. (Bloomberg)

  • U.S. producer prices rise 0.3% in October; energy and food costs cited‏
  • U.S. factory output edges upward in October‏
  • U.S. residential builders remain downbeat, place some blame on appraisals‏
  • Citi CEO's annual pay to stay at $1; 2 senior execs get raises‏
    Hershey, Ferrero mull joint offer for Cadbury to trump Kraft bid: WSJ‏
  • Home Depot net drops 9% as it sees 'some positive signs of stabilization'‏
  • Retailer Target's shares advance 1% after third-quarter revenue and earnings rise

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 PROFIT – Closed at 3.12
(new setups formed)
2 OCBC Oversea-Chinese Banking Corp 8.19
8.32		 8.03 18.19 8.61 PROFIT – Closed at 8.38
3 UOBH United Overseas Bank 19.00
19.38		 18.66 19 20.1 PROFIT – Closed at 19.56
4 DBSM DBS Group 14.30
14.48		 13.96 14.24 15.00 PROFIT – Closed at 14.72
5 ANTE Anwell Technologies Ltd 0.73 0.67 0.79
6 BIOS Biosensors International 0.75 0.715 0.785
7 YAZG Yangzijiang Shipbuilding 1.19 1.12 1.26
8 CEGL China Essence 0.32 0.25 0.39 china stocks, small risk
9 CNGR CNA Group 0.435 0.40 0.47 china stocks, small risk
10 NOBG Noble Group 2.90 2.75 3.05 watch out when near breakout

Stock Prices last updated at 17.35 (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

Hong Leong Asia broke high of 2.28, we are waiting for setups. New trade opportunity, to Buy at 2.35, Stop Loss at 2.23 and Take Profit at 2.47 (small risk).

Index slipped from 10:45 onwards and tested support at 2746.73 at 12:30. Subsequently, STI manage to rebound, thereby affirming that 2746.73 is a strong support.

In Summary,

Singapore shares closed weaker on Wednesday with the blue-chip Straits Times Index down 19.91 points to 2745.04.

Market is likely to turn choppy for the coming sessions. Hence, we advise to stay at the sideline, or to trade cautiously. Nonetheless, market outlook is still bullish.