Morning Highlights

Our Focus For Today Is On Property Sector

Singapore shares enjoyed modest gains following a positive lead from Wall Street, with STI opened up at 2834.95.

Other Asian  markets also rises but volume was reportedly light, with Japanese markets closed for the Emperor's Birthday and with many other bourses set to close at week's end for Christmas.

Index gap down above resistance, testing whether resistance has turned into strong support

  • Suntec REIT broke high of 1.37

Corporate Announcements 

Noble Group announced that Macarthur Coal Limited has made a takeover offer to acquire all of Gloucester providing the latter’s shareholders 0.84 Macarthur shares for every Gloucester share. Macarthur has also made an all cash alternative to Gloucester’s shareholders at A$8.00 per share. Noble owns 87.7% of Gloucester.

Keppel Corp’s subsidiary Keppel FELS Brasil has won another contract from Noble Corporation to upgrade and repair a third Brazil-based drillship for US$152mn. This brings the total sum of drillship contracts secured in recent weeks from Noble to US$456mn.

CapitaLand’s subsidiary CapitaLand Financial Investments has acquired the remaining 80.33% in Mezzo Capital Pte Ltd.

News Updates:

  1. Stock market operator Dubai Financial Markets said Tuesday that it will buy its local rival Nasdaq Dubai for $121 million. The deal will enable the firm to combine back office functions, such as custody and clearing, but the two exchanges will continue to be operated separately. (Read More)

  2. CNA Group Ltd, an enabler of intelligent buildings said it has secured new contracts in Vietnam worth $18 million (US$13 million) which are expected to contribute to its FY2010 performance. (Business Times)

  3. Britain's economy shrank by 0.2% in the 3Q of this year, a smaller upward revision than expected after stronger construction output was offset by a weakening in the services and industrial sectors.

  4. Buyout activity targeting Singapore-based companies has slumped as much as 40% so far this year, latest figures from Dealogic show.(Business Times)

  5. Weaker growth as U.S. 3Q GDP revised down to 2.2%.

  6. U.S. existing-home sales jump 7.4% in November on tax-credit rush.

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 HWHS Hwa Hong 0.54 0.49 0.59
2 WPSL Wheelock Properties 2.05 1.96 2.14 Triggered, Current Price at 2.05
3 GENS Genting Singapore 1.20 1.14 1.26
4 IFAR Indofood Agri Resources 2.20 2.06 2.34
5 CTDM City Development 11.72 11.34 12.10 broke but unable to hold & came down.
Not entered, look for new setups
6 SIAT Singapore Airport Terminal Services 2.66 2.55 2.77
7 CDLT CDL Hospitality Trusts 1.76 1.67 1.85  

Here’s Our Mid Term Holding Opportunities:

Symbol

Name

Entry

SL

TSL

TP

Remarks
1 OCBC Overseas Chinese Banking Corp 8.83 8.15 8.36 9.51 Overnight, Current Price at 8.92
2 KLAN Keppel Land 3.38 3.14 3.62 Overnight, Current Price at 3.45
3 UTOS UOL Group 4.06 3.20 4.92  

Stock Prices last updated at 18:30 (Singapore Time)

Afternoon Highlights

Index is going sideways but holding on to gains.

  • Singapore November Consumer Prices Fall 0.2% Annually, Up 0.4% On Month
  • Allgreen broke 1st resistance at 1.20 and another resistance at 1.33. We are keeping a lookout on this stock though it  has yet to increase in price range so far
  • Wing Tai broke high of 1.82, do lookout for resistance at 1.94
In Summary

Index closed up 17.74 points at 2841.56, with 1.0525 billion traded. Do expect activity to slow in ahead of the Christmas and New Year holidays.