Singapore Stock Market Updates On 08/12/09

Morning Highlights

Our Focus For Today Is On HealthCare, Mid Caps and REITS

Singapore stocks started firm despite comments by Federal Reserve Chairman Ben Bernanke that sparked jitters about economic recovery. The STI opens up, testing resistance at 2808.18.

However, most of the Asian shares are mostly lower after Wall Street's uninspiring performance provided few strong cues for investors, with bank stocks weighing on some markets. Volumes were thin across the region as investors counted down to the upcoming holiday season.

• City Development broke high of 10.60
• China XLX broke high of 0.59

Corporate Announcements
NOL announced its operating performance for the 4 weeks (Period 11) from 17 October 2009 to 13 November 2009 which showed that container shipping volumes increased 23% while average revenue per FEU (Forty-foot Equivalent Unit) declined 28%.

News Updates:

1. U.S. stocks finished nearly flat on Monday as investors took away a mixed message from Federal Reserve Chairman Ben Bernanke's reiteration that the economic recovery remains fragile. DJIA rose 1.21 points to 10,390.11. The S&P 500 Index fell 2.73 points to 1,103.25, which the Nasdaq Composite declined 4.74 points to 2,189.61.
2. The Japanese government has increased actual fiscal spending in the economic package by 100 billion yen to 7.2 trillion yen ($80.8 billion) in an effort to appease demands for more public assistance, according to a media report published Tuesday.
3. Philippine central bank Governor Amando Tetangco reiterated on Tuesday there was no pressure on the monetary authority to withdraw stimulus given to the economy, with the inflation outlook expected to remain favourable.

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 17.05 (Singapore Time)

Here’s Our Mid Term Holding Opportunities:

1. OLAM – Buy at 2.88, Stop Loss at 2.42

Afternoon Highlights

Currently, STI edges up at mid-day and is recovering from low of 2796.46.

Our new trade opportunity for Novena, to Buy at 0.24, Stop Loss at 0.21 and Take Profit at 0.27.

Our new trade opportunity for City Development, to Buy at 10.76, Stop Loss at 10.58 and Take Profit at 10.94.

Market is going sideways again. Midas broke high of 0.92.

News Updates:

1. Esmart Holdings Limited on Tuesday said it will buy Solar Silicon Resources Group Pt. Ltd for $307 million from Auzminerals Resource Group Pte Ltd.
2. FedEx Corp raised its outlook for 2Q earnings after increased demand for its international shipping services as well as the company's cost-cutting efforts.

In Summary,

After a day of sideway consolidations, STI closes up 8.52 points at 2805.50 with 1.7491 billion traded.

Our market outlook is on the bullish side. The volume has picked up significantly in today’s session. We hope to see market achieving 2 billion in daily volume and also an increase in index range.

The Oil & Gas Sector surged today where the sector’s index is close to high of 631.82. We are keeping a close look on this sector.

With reference to the other sectors,

• REITs: Still trending
• Financial: Resting
• Basic Material: Surged today, index close to 338.89
• China: Surged today, index close to 303.55. It will be good to watch out for china stocks.
• Healthcare: Consolidating
• Industrial: Near breakout of high at 610.69
• Mid Cap: Trending