Morning Highlights

Our Focus For Today Is On Blue Chips And Commodity Sector

STI opens up at 2792.68 and is going higher. We will need to see if the resistance at 2785.94 will turn into support.

Market is now going sideways. New Trade Opportunity with Indofood Agri, to Buy at 1.99, Stop Loss at 1.90 and Take Profit at 2.08 (small risk)

  • Noble to lookout for 2.89
  • City Development to lookout for 10.60
  • SIE broke high of 2.98, to wait for setups
  • Indofood Agri broke high of 1.91, to wait for setups

Corporate Announcements
Keppel Corp’s Keppel FELS unit has secured contracts worth US$200mn to build a semi-sub rig in Vietnam for PetroVietnam. The formal rig contract is expected to be finalised shortly in December 2009. The rig is expected to be delivered by 4Q2011

News Updates

  • Gold hit exactly US$1,174 an ounce in late trading on the London Bullion Market on Monday as gold appeal as a safe-haven asset and a hedge against inflation
  • Sales of previously owned US homes rose in October at a faster-than-expected pace to the highest in more than 2-1/2 years as buyers rushed to take advantage of a popular tax credit, a survey showed on Monday
  • The Federal Reserve Bank of Chicago said its National Activity Index slid to -1.08 from a revised -1.01 in September. September's reading was originally reported at -0.81.

  • H-P reports 14% profit increase; PC, printer revenue falls‏

  • Former Thai prime minister Samak Sundaravej, who was forced from office in 2008 for appearing in television cooking shows, died of liver cancer Tuesday at the age of 74, associates said

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 OCBC Overseas Chinese Banking Corp 8.54 8.35 8.60 8.73 Took Half Profit at 8.69 
CLOSED at 8.60
2 DBSM DBS Group 14.92 14.52 15.02 15.32 Took Half Profit at 15.20
CLOSED at 15.08
3 YAZG Yangzijiang Shipbuilding 1.19 1.06 1.11 1.49 Overnight – Current Price at 1.17
4 SOGF.SI Sino Grandness Food Industry 0.41 0.37 0.395 0.45 PROFIT – CLOSED at 0.42
5 SCIL Sembcorp Industrial 3.65 3.55 3.75 3.75 Took Half Profit at 3.84
CLOSED at 3.78
6 UOBH United Overseas Bank 20.10 19.16 21.04
7 FRNM Fraser & Neave Ltd 4.03 3.90 4.16
8 PARM Parkway Holdings 2.72 2.61 2.83
9 STEG Singapore Technologies Engineering 3.21 3.11 3.31 LOSS – CLOSED at 3.14
10 STRL Straits Asia  2.24 2.12 2.36 watch out for resistance at 2.25 and 2.34
11 PSLL PSL Holdings 0.25 0.225 0.295  
12 IFAR Indofood Agri 1.99 1.90 2.08 LOSS – CLOSED at 1.91

Stock Prices last updated at 17.05 (Singapore Time)

Afternoon Highlights

Japan's Suzuki Motor Corp said on Tuesday it would build a factory in Thailand with the capacity to manufacture 100,000 small cars a year after receiving government approval for the project.

The bank stocks drop significantly in today’s trading, especially DBS.

CapitaMalls Asia (JS8.SG) likely changed hands at S$2.50-S$2.80 in gray market, according to dealing head at foreign brokerage; "the reception (tomorrow) should be quite good." Price range translates to 17.9%-32.1% premium over S$2.12 IPO price (1.55X P/. CapitaMalls offered 1.17 billion shares in Singapore's largest IPO in 16 years. (Dow Jones)

In Summary

STI drops 17.90 points to close at 2779.98, with 1.4135 billion traded. Index is unable to hold above the resistance at 2785.94 and succumb to the selling pressure.

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Market is going choppy lately. We advise to enter trades with small risk. Commodity sector is strong with selective counters running, which includes Indofood Agri, Straits Asia, Golden Agri and Noble.