Morning Highlights

STI opens at 2749.69. High chance that market is going to be choppy, thus, we advise to trade with small risk. Otherwise, it would be good to remain at the sideline for the time being.

The banks are weak. Do avoid trading the bank shares. Currently, OCBC is the strongest, follow by DBS and then UOB.

This week, all the markets are behaving rather independently on their own. Do trade selectively and avoid Property, China, Oil & Gas Sectors.

  • US leading economic index up at 2 year high, indicating that economic recovery is finally setting in. Conference Board Economist Ken Goldstein said that we can expect slow growth through the first half of 2010.
  • Initial jobless claims unchanged last week at 505,000, U.S. reports
  • Japan's central bank gives a broadly upbeat outlook for the economy, citing better exports and an improved financial environment. But it keeps its policy interest-rate target unchanged, just in case.

Updates on Noble Group:

There is a strong resistance at 2.89. We advise to wait for a breakthrough at that point and then with a pullback before trading the counter. Currently the stock is trading at historic high, it would be good to watch for the breakout on the upside.

Updates on ST Engineering:

There is a resistance seen at 3.17. The stock tends to halt at 3.17. Do wait for a breakout at this point, and then with a pullback before trading the counter. The next resistance is spotted at 3.56. New Trade Opportunity to Buy at 3.20, Stop Loss at 3.11 and Take Profit at 3.29.

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 OCBC Overseas Chinese Banking Corp 8.54 8.35 8.73  
2 STRL Straits Asia  2.24 2.13   2.35  
3 PSLL PSL Holdings 0.25 0.225 0.295
4 YAZG Yangzijiang Shipbuilding 1.19 1.06 1.49
5 CEGL China Essence 0.32 0.25 0.39
6 CWTD CWT Limited 0.75 0.715 0.785 CANCELLED
7 OTTO Otto Marine Ltd 0.40 0.365 0.435 CANCELLED
8 SCIL Sembcorp Industrial 3.65 3.55 3.75 Triggered – Current Price at 3.68

Stock Prices last updated at 18.20 (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

The market is oscillating between 2746.73 - 2785.94 and the volume traded so far is very low.

Despite the poor performance from overnight Dow Jones, Singapore market still manage to hold well above the support line at 2746.73. Index has recovered some of the losses from yesterday’s last hour sell down. 

In Summary,

Index close up 2.75 points after a volatile session at 2761.54, with 1.1481 billion traded. The total volume traded for this week is 7.0329 billion.

Dealers said the market remained subdued following overnight weakness on Wall Street. There were 229 declining stocks to 197 risers, with 828 unchanged.