Morning Highlights

Our Focus For Today Is On Small Cap

Singapore stocks started higher Thursday on Wall Street's rally, with the STI opened up 14.28 points to 2902.66.

Singapore News Updates:

  1. Natural Cool Holdings Limited's unit has entered into a Memorandum of Understanding (MOU) with Emirates Tarian Capital (S) Pte Ltd to sell the group's building at 29 Tai Seng Avenue for S$53 million.
  2. Federal Hardware Engineer, a unit of Federal International (2000) Ltd, has been awarded additional US$8.9 million contract by Saipem Spa.
  3. SPH said on Wednesday its Q1 net profit nearly doubled yoy.
  4. Novo seeks to place 88 million shares to raise S$20.2 million. The placement will raise its public float to 25%, which the company says is to prepare it for a possible dual primary listing in Hong Kong.
  5. Yanlord buys China Land for 309 million. The acquisition marks Yanlord’s maiden foray into Hainan’s tourism and hospitality sector.

News Updates:

  1. The Australian stocks lifted by stronger-than-expected jobs data; unemployment rate decreased by 0.1% in seasonally adjusted terms to reach 5.5% in December.

  2. The Sydney market received a boost from news December jobs rose by 35,200, beating market expectations for a 10,000 rise while the jobless rate was a tad lower at 5.5% from 5.6% in November.

  3. U.S. stocks lifted by health care, financials; Dow industrials finish up 54 points

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 WLIL Wilmar International 7.30 6.97 7.63
2 HLAA Hong Leong Asia 3.36 3.18 3.54  
3 SCNB Sembcorp Marine 3.92 3.68 4.16
4 SWBR Swiber Holdings 1.22 1.15 1.29
5 ATVE Asiatravel.com 0.805 0.74 0.785 0.87 Triggered, Current Price at 0.795
6 MCPP Marco Polo 0.61 0.55 0.67 Triggered, Current Price at 0.625 
7 DESS Design Studio Furniture Manufacturer 0.71 0.645 0.775
8 MIIF Macquarie International Infrastructure Fund Ltd 0.53 0.475 0.585
9 RVHL Riverstone Holdings 0.65 0.565 0.735 Triggered, Current Price at 0.655
10 PPFH Peoples Food Holdings Ltd 0.725 0.665 0.785  
11 ADFP Asia Food & Properties 0.685 0.615 0.755  
12 HIAP.SI Hiap Hoe Limited 0.60 0.515 0.685 Broke out too fast, waiting for next entry at 0.62
13 NVGP.SI Novo Group 0.28 0.215 0.345 CANCELLED
14 QMDT Q & M Dental Group 0.63 0.575 0.685  
15 JAYA Jaya Holdings 0.67 0.615 0.725 CANCELLED

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 8.78
2 UTOS UOL Group 4.06 3.20 3.74 4.92 Overnight, Current Price at 4.16
3 DBSM DBS Group 15.48 14.34 14.40 16.96 Overnight, Current Price at 15.12
4 STEG Singapore Technologies Engineering 3.27
3.00		 3.12 3.54 Overnight, Current Price at 3.21
5 NOBL Noble Group 3.29 2.95 3.63 Overnight, Current Price at 3.32
6 PARM Parkway Holdings 3.02 2.74 3.30 Overnight, Current Price at 2.94
7 HYFL Hyflux 3.81 3.42 4.20  
8 SIAT Singapore Airport Terminal Services 2.80 2.53 3.07  
9 OCGL Oceanus Group 0.475 0.34 0.61  
10 GENS Genting Singapore 1.32 1.05 1.59  

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

Afternoon Highlights

STI is holding well to gains.

  • ARA broke high of 0.93
  • Wingtai broke high of 2.05 
  • Miyoshi Precision Limited net profit for the fiscal 1Q10 to end November 2009 rose 57% to S$4.69 million after a boost from a one-off gain.
  • Novo has reduced placement shares. Trading resume 15:30
  • Ezra trading halt, pending release off announcement on the unaudited results for the financial 1Q10 ended 30 November 2009 of EOC Limited and Ezra Holdings Limited.

News Updates:

  1. The U.K. economy expanded 0.3% in the final three months of 2009 after shrinking for six straight quarters, the National Institute of Economic and Social Research said Thursday.

In Summary,

Shares closed lower Wednesday, in tandem with the regional bourses as investors digested the news regarding China’s plan to raise reserves requirement of banks.

Today, after a choppy session, market has managed to recover partially from yesterday’s losses, with the STI closed up 21.14 points to 2909.52, with 2.379 billion traded.

The gains are mostly contributed by Small Caps, and the Financial shares slightly higher than yesterday.

On the overall, market is still doing its correction. Our market outlook remains bullish.