Morning Highlights

Our Focus For Today Is On Mid Caps, Oil & Gas, China, Healthcare and Property Sector

Singapore Market started on a steady note with STI up 4.45 points at 2805.20. Index tried to test resistance at 2808.18, but failed and is now going sideways.

  • Lookout for HIP, SC Gobal and CapitaRetail China.
  • Q & M broke high of 0.36, to wait for setups.

Index did a sudden spike up from 12:15 onwards and closed at 2799.60 for morning session. 

Corporate Announcements 
Capitaland announced that it aims to grow its China business to between 35% and 45% of the total business in the next three to five years, which will amount to approximately S$10 billion. Its asset size in China as at 30 September 2009 stands at S$6.7 billion, which is 28% of the Group’s total business.

News Updates:

  1. AXA Asia Pacific Holdings Ltd said on Monday that it will “carefully consider” a revised conditional scheme proposal from AMP Ltd and AXA SA. AXA and AMP raised the cash component of the joint offer by 54 Australian cents to 1.92 Australian dollars ($1.745) and also continue to offer 0.6896 AMP shares for each AXA APH share. This implies an offer price of 6.22 Australian dollars per AXA APH share, a 53% premium over AXA APH's closing price on Nov. 5 and 16% better than the original proposal of Nov. 6.

  2. The Commerce Department reported that sales at U.S retailers increased 1.3% in November, more than double the median economist estimate in a Bloomberg survey. The Reuters/University of Michigan index of consumer sentiment rose to a preliminary 73.4 for December from 67.4. ((Bloomberg)

  3. Federal agency operations got a boost Sunday as the Senate approved a $1.1 trillion spending bill that Republicans said will cost too much as the country continues to grapple with tough economic times.

  4. The Bank of Japan's quarterly tankan survey sent mixed signals Monday on the outlook for the fragile economic recovery, showing better-than-expected sentiment but deteriorating capital-outlay expectations among Japanese companies. (Market Watch)

  5. Japan's business confidence up for 3rd straight quarter: BOJ

  6. Japan business mood up more than forecast

  7. Citi near deal to pay back part of bailout: WSJ (FORBES)

  8. UK employment not fallen as much as expected: BOE's Dale

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>

Bullish Stocks (Singapore)

Symbol

Name

Entry

SL

TSL

TP

Remarks
1 FORT Fortune REIT 2.98 2.84 3.12
2 PEC 0.725 0.685 0.765 CANCELLED
3 UIC United Industrial Corporation 2.24 2.06 2.42
5 PSLL PSL Holdings 0.29 0.225 0.325
6 GUOC Guocoland 2.13 1.94 2.32 Triggered, Current Price at 2.16
(Small Risk)
7 KSTL KS Energy Services 1.24 1.17 1.31
8 ATVE Asiatravel.com 0.72 0.655 0.785
9 ADFP Asia Food & Properties 0.65 0.575 0.725
10 PNHG Pan Hong 0.64 0.60 0.68
11 SINO Sinomem Technology 0.61 0.57 0.65
12 SCPS Sky China Petroleum 0.235 0.20 0.27  
13 PARM Parkway Holdings 2.97 2.87 3.07
14 CTDM City Development 11.06 10.46 11.66  
15 SERO Seroja Investments 0.74 0.68 0.80 Touches 0.74 and come down.
16 EPIL Epure International 0.72 0.665 0.775
17 Synear 0.35 0.32 0.38
18 HGUO Hongguo International 0.36 0.31 0.41
19 CHNM China Milk 0.365 0.31 0.42
20 MMPC Mermaid Maritime 0.865 0.795 0.935
21 CSES CSE Global 0.875 0.825 0.925
22 LHCF Li Heng Fibre Technology 0.30 0.255 0.345
23 WPSL Wheelock Properties 1.92 1.83 1.94 2.01 Overnight, Current Price at 2.02
(Small Risk)

Stock Prices last updated at 17.05 (Singapore Time)

Afternoon Highlights

Asian markets rebounded after Dubai’s news, lifting sentiment and spurring buying in resource shares.

STI has also reversed its early losses and broke the strong resistance. Now, we will have to see if index can hold above 2808.18.

Singapore November bunker sales fell to its 2nd lowest level this year, down 7.7% vs Oct

News Updates:

  • Dubai said Monday that it has received $10 billion in financing from fellow emirate Abu Dhabi, which $4.1 billion will be used to repay Nakheel's Islamic bond maturing Monday, while the rest will be used to finance Dubai World's obligations through the end of April 2010. (MarketWatch)
  • The United Arab Emirates' central bank will back local banks who have exposure to debt-laden Dubai World, the central bank said in an emailed statement on Monday.
  • Cadbury reiterates Kraft Foods bid rejection

In Summary,

Market made a high of 2812.14 today, but was not able to hold above the resistance and eventually closed down 1.21 points at 2799.54, with 1.2036 billion traded.