Morning Highlights

Singapore market kicked off the week on a soft note as dragged by weakness on Wall Street, with the STI down 9.82 points to 2898.60.

  • CapitaCommercial Trust requested a trading halt, pending the release of an announcement.
  • Numbers on the Non-oil Domestic Exports in December will be released today. (Nodx grew 26% in December last year as the Republic shipped more electronics, drugs and chemicals, latest data from International Enterprise Singapore)

With U.S. markets closed Monday (Martin Luther King Jr. Day), many investors are likely to be on the sidelines, and awaiting earnings from major financial firms due this week.

Our Analysis on the local market: Long Term Trend is on the upside; Mid Term Trend is flat whereas, the Short Term Trend is downward biased.

Announcement News This Week:

  1. In China, all major figures for December relating to Retail Sales, Industrial Production, the Producer and Consumer Price Index will be released together on Thursday, 21/01/2010. On the same day in Hong Kong, the December CPI Composite Index will also be out.
  2. In Japan, the report card on the country’s economic output will be measured by November’s Industrial Production will out this morning on today 18/01/2010; December Machine Tool Orders on Wednesday 20/01/2010, and November’s All Industry Activity Index in Friday 22/01/2010.
  3. In United States, November Net Long-term TIC Flows, which measures the demand for U.S long-term securities such as U.S Treasury bonds and notes, will be released on Tuesday 19/01/2010; December Producer Price Index, Housing Starts and MBA Mortgage Applications on Wednesday 20/01/2010; Initial Jobless Claims and December Leading Indicators will be the main data to watch on Thursday 21/01/2010.

News Updates:

  1. Toyota to double global hybrid output in 2 years

  2. S Korea KDB to bid for US$850m Siam City Bank stake.

  3. JPMorgan's weaker-than-expected revenue, with losses in its card services prompted worries about the recovery pace of (U.S.) consumer spending.

  4. U.S. consumer prices edge up 0.1% in Dec.; energy rises just 0.2% after 4.1% spike in Nov.

  5. U.S. industrial output rises in January for sixth straight month.

  6. U.S. stocks' early decline steepens as U. of Mich. consumer-sentiment rise misses forecast‏‏.

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 WLIL Wilmar International 7.30 6.97 7.63
2 HLAA Hong Leong Asia 3.36 3.18 3.54  
3 SCMN Sembcorp Marine 3.92 3.68 4.16
4 MIIF Macquarie International Infrastructure Fund Ltd 0.53 0.475 0.585
5 ADFP Asia Food & Properties 0.685 0.61 0.755  
6 ADFP ARA Asset Management 0.99 0.91 1.07  
7 DESS Design Studio 0.72 0.66 0.78  
8 RVHL Riverstone Holdings 0.705 0.625 0.785  
9 OSIL OSIM International 0.65 0.605 0.695 CANCELLED
10 HIAP.SI Hiap Hoe Limited 0.63 0.59 0.67
11 SHDS Sing Holdings 0.455 0.385 0.515  

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 4.05
3 DBSM DBS Group 15.48 14.34 14.40 16.96 Overnight, Current Price at 15.14
4 STEG Singapore Technologies Engineering 3.27
3.00		 3.12 3.54 Overnight, Current Price at 3.22
5 NOBL Noble Group 3.29 2.95 3.63 Overnight, Current Price at 3.30
6 PARM Parkway Holdings 3.02 2.74 3.30 Overnight, Current Price at 2.86
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

Index traded higher in the afternoon session.

  • Tiger Airports IPO registered - share commence trading on 22/01/2010, maximum IPO price at 1.65.
  • Ryobi Kiso Holdings, an eco-friendly engineering firm, is launching its IPO of 192 million new shares at 0.26 each.

News Updates:

  1. Singapore and Kenya signed an air services agreement on Monday that will give air carriers from both countries the flexibility to operate unlimited air services between and beyond both countries.
  2. Orient Overseas selling US$2billion China property
  3. Dubai's US$10 billion aid from Abu Dhabi in December, which helped the emirate avoid default on a state-linked developer's bond, included US$5 billion previously lent by two Abu Dhabi banks, a Dubai government spokesman said on Monday.

In Summary,

STI closed up 3.6points to 2912.02, with 1.7156 billion traded.

We expect to see market quiet for the next few days. For the mean time, before activities pick up once again, we are on the lookout for shares that break out first, for indications of potential Sectors that might lead the trend.