Singapore Stock Market Updates On 07/01/2010

Morning Highlights

Our Focus For Today Is On Property, Oil & Gas And Commodity Sector

Singapore market firmed up in opening trade today with STI advancing 13.16 points to 2943.65. UOB spiked up during the first hour of trading but is unable to hold on to gains and starts pulling back. Nonetheless, the stock broke high of 20.08.

• Keppel Corp broke high of 8.54, next resistance at 8.70
• NOL broke high of 1.81 next resistance at 1.98

The property sector has started to soften. Index is also facing a pullback. As of now ,the stronger sector seems to be the Financial Sector where most of the financial shares are able to trade strong.

Singapore News Updates:

1. The Singapore Exchange (SGX) is proposing allowing the listing of cash companies, alongside a broadening of its mainboard admission criteria - in what market observers believe is an attempt to secure more listings at a difficult time. (Business Times)
2. UOB entered into a Sale and Purchase Agreement yesterday with Prudential Singapore Holdings Pte. Limited for the sale of all the interests in UOB Life Assurance Limited for a total of S$428mn in cash. The sale is expected to complete on January 31.
3. SembCorp Marine has upsized its current multicurrency, multi-issuer debt issuance programme from S$500mn to S$2bn.

News Updates:

1. Japan shares mixed; shipping stocks up whereas JAL open down 8.3% on bankruptcy fears. JAL debt-reduction target reported at 7.9 billion.

2. Samsung Electronics Q4 estimate swing to Q4 operating profit, with sales rising about 18% to a record high, outlook bright.

3. Jetstar & AirAsia resource tie-up announced. (e-Travel Blackboard)

4. U.S. services-sector gauge rebounds less than anticipated in December

5. U.S. private sector shed 84,000 jobs in December, ADP survey data show

6. Slow recovery still most likely scenario for economy: FOMC minutes‏

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>

Here’s Our Mid Term Holding Opportunities:

Stock Prices last updated at 17:05 (Singapore Time)

Afternoon Highlights

Index makes a  new high of 2945.06 and subsequently pullback after successive up days. Market is likely to undergo a period of consolidation before moving higher.

• Singapore’s United Fiber System, its construction unit, wins S$191 million (US$137 million) contract.
• SGX listed Epure seeks dual listing in HK

News Updates:

1. Indonesia's consumer confidence weakened slightly in December partly due to higher food prices in Southeast Asia's biggest economy, a central bank survey showed. (Reuters)
2. Japan's new finance chief pledged on Thursday to revive the economy and shake up his powerful ministry, after his predecessor quit due to poor health in a fresh setback to the government.
3. U.K. house price rose by 1% to 169,042 pounds ($270,433) in December, mortgage lender Halifax, part of Lloyds Banking Group, reported Thursday. That's a rise of 1.1% from the same month last year

In Summary

Singapore shares closed lower today with STI down 17.24 points to 2913.25, with 2.7734 billion traded.

Stats ChipPac broke out at the last 10 minutes of trading. As the market is doing a pullback, we trade with small risk and will observe how the share performs tomorrow.