Singapore Stock Market Updates on 25/11/09

Morning Highlights

Our Focus For Today Is On Commodity Sector

STI opens high at 2790.24 and continues to trade higher above resistance at 2785.94. However, index starts coming down after the first hour.

Investors were keeping a close eye on how Chinese markets perform later following the previous day's sharp drop, to see for any further reaction to Monday's call by China's main banking regulator for China's lenders to strictly comply with capital requirements or face sanctions. The Shanghai Composite index closed down 3.5% Tuesday.

News Updates

• U.S. economy books 2.8% growth in third quarter‏
• U.S. consumer confidence improves in November‏
• FDIC says number of troubled U.S. banks rises to 552 -- most since 1993‏

• Fed expects slow recovery to keep U.S. joblessness elevated‏

• Japan's exports grew in October for the third straight month thanks to robust shipments to Asia

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>

Stock Prices last updated at 17.13 (Singapore Time)

Afternoon Highlights

Index was hovering around the resistance at 2785 during the late morning session and is now climbing higher.

• Etika broke high of 0.445, to wait for setups
• Keppel Corp broke high of 8.57, to wait for setups

New Trade Opportunity for CapitaMall Asia (CMA), to BUY at 2.31, Stop Loss at 2.22 and Take Profit at 2.40. (The price is coming down, we are watching closely. )

CMA gapped up to close at 2.30

Corporate Announcements
Cosco Corp’s Nantong Shipyard subsidiary has delivered its new build Sevan Driller to Sevan Marine ASA on 23 November 2009. The Sevan Driller has completed sea trails off the coast of China and has started its voyage to Brazil for commencement of a six-year contract with Petrobas S.A.

News Update On CMA (Largest IPO In 16 Years)
CapitaMalls Asia Ltd (CMA), a unit of CapitaLand, will be listing this morning after being offered at $2.12 apiece, raising $2.47bn with 1.165bn shares sold. CMA is Singapore’s largest IPO since SingTel in 1993 that raised more than S$4 billion, and comes amid resurgence in share sales in Asia where economic growth is forecast to outperform the U.S. and Europe. CMA’s offering price of $2.12 represents about 1.55 times its September book value, a premium to CapitaLand’s 1.3 times. (Read More on Warrants)

In Summary,

Market has recovered back above the resistance at 2785.94 after 14:15. Subsequently index traded in a tight range and eventually close up 12.86 points to 2792.84, with 1.3523 billion traded. Look out for the next resistance at 2803.85.

There are new setups formed for Yangzijiang today, hence, we have closed our position at 1.18.

Our focus is still on Commodity Shares. There is a resistance for Straits Asia at 2.34 and new setups formed for Indofood Agri.

Last but not least, Hock Lian Seng Holdings Limited is seeking listing on the SGX, prospectus is lodged to await for further information when it will be registered.