Morning Highlights

Our Focus For Today Is On Oil & Gas and Commodity Sector

Singapore market inched up in opening trade on Monday with the key STI rising 10.75 points at 2933.51, approaching short term resistance at 2945.06.

  • Indofood Agri broke high of 2.46 (new trade opportunity, refer to Short Term Quick Pick 13)
  • Ezra broke high of 2.49
  • Hong Leong Asia broke high of 3.12 (new trade opportunity, refer to Short Term Quick Pick 14)

This morning, China released its trade balance figures that showed exports surged in December and imports rose to a record in a stronger-than-forecast trade rebound that may lessen the case for governments to sustain stimulus programs this year.

Singapore News Updates:

  1. Singapore’s Retail Sales for November on Friday 15th January 2010.
  2. Keppel Corp’senvironmental engineering arm ofKeppel Integrated Engineering has secured two contracts worth US$53m to supply waste-to-energy solutions in China.

News Updates:

  1. U.S. nonfarm payrolls drop 85,000 in December as jobless rate holds at 10%; interest rate near zero.

  2. U.S stocks also gained as inventories at U.S wholesalers unexpectedly jumped in November by the most in five years, a sign that companies are picking up the pace of orders as sales climbed 3.3 percent, the biggest gain since January 2008 (Bloomberg).

  3. U.S’ November’s Trade Balance figures and along with surveyed optimism figures through the IBD/TIPP Economic Optimism will be out tomorrow on Tuesday 12th January 2010; the ABC Consumer Confidence on Wednesday13th January 2010.

  4. The Fed will be publishing their own commentary on current economic condition through the Fed Beige Book on Thursday14th January 2010. Advance Retail Sales figures will also be made known on the same day, while December’s Consumer Price Index will be released on Friday 15th January 2010.

  5. The European Central Bank will be announcing any change in interest rates on Thursday 14th January 2010, and the Euro-zone CPI on Friday 15th January 2010.

  6. Japan’s November Machine Orders and December’s Domestic Corporate Goods Price Index out on Thursday 14th January 2010.

  7. Chinese banks made about 600 billion yuan (US$88 billion) in new loans in the first week of 2010, the Economic Information Daily reported on Monday.

  8. Troubled Japan Airlines Corp is set to cut about 15,600 jobs, a third of its work force, and reject billion-dollar cash offers from Delta and American Airlines, as it files for bankruptcy and embarks on a government-led turnaround, reports said on Monday

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 SCNB Sembcorp Marine 3.92 3.68 4.16
2 KLAN Keppel Land 3.79 3.56 4.02
3 UTES United Engineers 2.10 1.98 2.22 Trigged, Current Price at 2.17
4 WTH Wing Tai Holdings 2.06 1.96 2.16
5 BIOS Biosensors International 0.845 0.79 0.90
6 SWBR Swiber Holdings 1.20 1.10 1.26 Triggered, Current Price at 1.29
7 CY6U Ascendas India Trust 1.03 0.96 1.11  
8 DBSM DBS Group 15.82 15.24 16.40
9 VENM Venture Corp 9.29 9.10 9.48 Triggered, Current Price at 9.29
10 AGRN Allgreen Properties 1.32 1.26 1.38
11 JAYA Jaya Holdings 0.67 0.62 0.72  
12 STTS Stats ChipPac 1.16 1.03 1.29 LOSS – CLOSED at 1.15 (Small Risk)
13 IFAR Indofood Agri 2.51 2.45 2.57 PROFIT – CLOSED at 2.55
14 HLAA Hong Leong Asia 3.17 3.11 3.23 Triggered, Current Price at 3.25

Here’s Our Mid Term Holding Opportunities:

Symbol

Name

Entry

SL

TSL

TP

Remarks
1 OCBC Overseas Chinese Banking Corp 8.83 8.15 8.55 9.51 Overnight, Current Price at 8.80
2 KLAN Keppel Land 3.38 3.14 3.62 Overnight, Current Price at 3.69
3 UTOS UOL Group 4.06 3.20 3.74 4.92 Overnight, Current Price at 4.17
4 DBSM DBS Group 15.48 14.34 14.40 16.96 Overnight, Current Price at 15.34
5 STEG Singapore Technologies Engineering 3.27
3.00		 3.12 3.54 Overnight, Current Price at 3.25
6 IFAR Indofood Agri Resources 2.20 1.94 2.05 2.46 Overnight, Current Price at 2.54
7 NOBL Noble Group 3.29 2.95 3.63 Overnight, Current Price at 3.39
8 PARM Parkway Holdings 3.02 2.74 3.30 Overnight, Current Price at 3.11

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

Afternoon Highlights

The STI is holding well. Singapore inflation will be seen at 2.5% – 3.5% this year as said by Ministry of Trade and Industry. (Business Times)

  • Osim broke high of 0.575

In Summary,

Index close up 10.77 to 2933.53, with 3.0941 billion traded. Though index managed to break the resistance at 2945.06, it is unable to hold and subsequently retreat back to below the resistance. Nonetheless, it managed to hold up above 2930, indicates this is a fairly strong support.