Singapore Stock Market Updates on 30/11/09

Morning Highlights

The STI opened lower on Dubai’s debt woes at 2754.02, down 0.3% from previous close.

Please note that today is end of month window dressing, future settlement!

Dubai World had requested last Thursday for a six-month delay in repaying a US$59m debt. The news has sparked off a regional selldown on last Friday.

The United Arab Emirates central bank on Sunday said that it was providing banks with extra liquidity, stressing its support to the banking sector.

Asian stock markets are then seen trading higher today as markets reacted to reassuring news over the weekend that suggested contagion from Dubai World's debt crisis will be limited.  Financial stocks are rebounding in Australia, Korea and Japan after last week's sharp selloff on the Dubai news.

Coming back to Singapore Market, we have just broke down morning’s low at 2740.40. High chance that market will be range bounded today.

Corporate Announcements
Yangzijiang will be included in the MSCI Singapore Index after market close today.

News Updates

• Morgan Stanley, Bank of America Corp. and Goldman Sachs Group Inc. lost more than 3.4%. They helped send financial institutions to the biggest drop among 10 industries in the Standard & Poor’s 500 Index after Dubai World, the state- controlled company with $59 billion of liabilities, said it’s seeking to delay debt payments. Alcoa Inc. slumped 3.6% as the Reuters/Jefferies CRB Index of commodities fell for the fourth time in five weeks. (Bloomberg)
• Dec. gold falls $3 to $1,171.20/oz on Globex
• Japanese industrial output rose 0.5% during October, official statistics showed Monday, with the result far less than a 2.5% forecast rise reported by Dow Jones Newswires. Compared to October 2008, industrial output was down 15.1%, the Ministry of Economy, Trade and Industry. The sub-sectors mainly contributing to the increase were general machinery, fabricated metals, and information and communication electronics equipment, according to the ministry.
• Japan plans extra stimulus of at least US$31 billion
• China has launched a new body for the settlement and clearing of financial products exchanged among the nation's banks, a step that could accelerate development of China's derivative markets and help spur innovation in financial products. The centralized clearinghouse is to be based in Shanghai

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 Last Week>

Stock Prices last updated at 18.22 (Singapore Time)

Afternoon Highlights

Hiap Tong Corporation IPO priced at 0.26

• Trading Commencement: 3 December 2009

• Placement Agent: CIMB Bank Berhad (Singapore Branch) and CIMB-GK Securities Pte Ltd

Hiap Tong Corporation Ltd. and its subsidiaries (the “Group”) is a leading provider of hydraulic lifting and haulage services primarily to the marine, petrochemical, and construction industries in Singapore. In addition, the Group also derives income from the trading of lifting and haulage equipment.

Hafary Holdings IPO priced at 0.20

• Trading Commencement: 7 December 2009

• Issue Agent & Underwriter: Collins Steward Pte Ltd

The Group is a supplier of tiles to customers in the Singapore market. The Group has two categories of customers, namely, (a) General; and (b) Project. General customers include retail ″walk-in″ customers who purchase their requirements from the Group’s showrooms or customers (such as architecture, interior design and renovation firms) who make ad-hoc purchases for small projects such as home renovation or small property development. The quantities purchased are typically small. Project customers are usually customers who are involved in major property development projects and may make bulk purchases from the Group, usually for specific major property development projects, whether residential, commercial, public or industrial. Project customers include architecture firms, property developers and construction companies.

In Summary,

Market dropped further in the afternoon session. STI closed 30.10 points lower at 2730.00, with 1.7291 billion traded. This is considerably high volume traded so far.

As of now, we have switched our stand from bullish to neutral. There is a market gap formed between 2762.22 - 2757.64. This is a bearish sign that signifies that market stands a chance to retest support at 2700.

With reference to the recent IPOs:

• SinoGrandness to lookout for high of 0.45
• CapitaMall Asia to lookout for high of 2.39
• Q & M to lookout for high of 0.36