Morning Highlights

Our Focus For Today Is On Mid Caps and REITS

STI edged down lower 18.32 points to open at 2787.18. Index is testing resistance at 2808.18. We are watching out on China Sector too.

  • SIA Engineering broke high of 3.08
  • Sinotel broke high of 0.64

New Trade Opportunity with Midas, to Buy at 0.96, Stop Loss at 0.92 and Take Profit at 1.00.

New Trade Opportunity with Sinotel, to Buy at 0.655, Stop Loss at 0.635 and Take Profit at 0.675.

New Trade Opportunity with PEC, to Buy at 0.725, Stop Loss at 0.685 and Take Profit at 0.765.

News Updates:

  1. US consumer confidence eases in December to 46.8 from 47.9 in November as reported by Investor’s Business Daily and TechnoMetrica Market Intelligence, indicating consumers’ concern about the economy and labor market.
  2. Stocks endured their steepest daily loss Tuesday since the Dubai debt crisis erupted as comments from credit-rating agencies rekindled worries about the emirate and other sovereign borrowers. Trading volume was light.
  3. Sweden's Ericsson said on Tuesday it would give notice to 946 staff in Sweden as it looks to pare costs to compete with rivals in a market squeezed by the global downturn.
  4. The emirate's finance chief said on Tuesday that six months is not enough time to restructure indebted state-controlled conglomerate Dubai World, adding that it had enough assets to meet its obligations.
  5. Obama proposes small-business tax cuts
  6. ‏CCB International (Holdings) Ltd, China Construction Bank Corp.'s (0939.HK) investment arm, plans to set up a US$1 billion private-equity fund in Hong Kong whose main target will be a 15% stake in Hong Kong's Shanghai Commercial Bank Ltd., CCB International Chief Executive Hu Zhanghong said Wednesday.

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 PARM Parkway Holdings 2.96 2.79 2.89 3.13 Triggered, Current Price at 2.95
2 FORT Fortune REIT 2.98 2.84 3.12
3 EPIL Epure International 0.70 0.65 0.68 0.75 Triggered, Current Price at 0.70
4 IFAR Indofood Agri Resources 2.17 2.07 2.27
5 YAZG Yangzijiang Shipbuilding 1.28 1.20 1.36 CANCELLED
6 FCL Frasers Centrepoint 1.34 1.27 1.41 Liquidity Issue
7 AGRN Allgreen Properties 1.21 1.14 1.28 CANCELLED
8 MIIF Macquarie International Infrastructure Fund 0.48 0.435 0.525  
9 EZRA Ezra Holdings 2.23 2.14 2.32 LOSS – CLOSED at 2.22
10 WTH Wing Tai Holdings 1.79 1.73 1.85 LOSS – CLOSED at 1.76
11 IFAR Indofood Agri Resources 2.14 2.03 2.07 2.25 LOSS – CLOSED at TSL

Stock Prices last updated at 17.30 (Singapore Time)

Here’s Our Mid Term Holding Opportunities:

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

Afternoon Highlights

The STI has tested the resistance several times and is making another attempt. We will avoid Commodity Sector for the time being.

  • Aqua Terra broke high of 0.345, to wait for setups
  • Pacific Andes broke high of 0.295, to wait for setups
  • Wingtai has formed new setup today

Market pullback after failed attempt at resistance. Index is now drifting sideways. We advise to avoid trading shares listed on Catalist.

Japan's Suzuki Motor said on Wednesday it will sell a 19.9% stake to Volkswagen for US$2.5 billion and use half the proceeds to buy shares in the German automaker, as the two firms form a formidable force in the auto industry.

In Summary,

Index close down 8.29 points to 2797.21, with 2.1314 billion traded. STI has managed to climb up to a high of 2808.38 but failed to hold. We hope to see a firm breakout of 2808.18 in these few days.

We are watching closely on Property, China and Healthcare Sectors. Avoid Commodity, especially Basic Material. There are new setups formed for Ezra.


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Dec. 9 (Bloomberg) -- China XLX Fertiliser Ltd. shares rose 82 percent in their first day of trading in Hong Kong yesterday compared with the company’s close thet  previous day in Singapore, and an executive said not enough shares were on the market.

Stephan Yao, director of investor relations at China XLX, said there was “an insufficient quantity” of the company’s shares available to Hong Kong investors. “It takes time for the company’s shares to be transferred from Singapore to Hong Kong,” Yao said by phone yesterday. He expects trading conditions to “return to normal” within two weeks.

China XLX was listed by introduction, meaning the shares were moved to the Hong Kong market from another exchange without being initially sold in Hong Kong. China XLX’s debut was the first such listing in Hong Kong since Asian Citrus Holdings Ltd.’s last month, which prompted Hong Kong Exchanges & Clearing Ltd. to tighten disclosure rules for candidates.

China XLX’s explanation of the situation “suggests they should have delayed the listing until the shares are here,” said David Webb, a Hong Kong-based shareholder activities.

To contact the reporter on this story: Mark Lee in Hong Kong at wlee37@bloomberg.net
Last Updated: December 8, 2009 20:26 EST