Morning Highlights

Singapore Share prices edged up in opening trade today with STI up 5.35 points at 2917.31. However, the other Asian shares traded mixed as investors await key earnings reports from the U.S., such that  profit-taking in banks are seen weighing on Australian shares and Japanese shares headed lower as financial stocks weakened.

  • Lookout on Capitaland 

Market is going sideway.

Singapore News Updates:

  1. Budget airline Tiger Airways said on Monday it had raised $247.7 million (US$178 million) in its IPO to help fund its ambitious plans in the growing Asian market. The IPO, the first by an Asian carrier in five years, was priced at $1.50 per share and means the Singapore-based carrier will have a market capitalisation of $781.3 million, Tiger Airways said in a statement.

  2. Sky One Holdings plans to to issue 40 million new shares at 3 cents each to certain investors. The issue price of 3 cents a piece represents a 40% discount to the weighted average price of 5 cents for trades done on the SGX-Catalist on 15 January 2010, the date the subscription agreement is entered into.

  3. CapitaLand’s wholly-owned subsidiary CapitaLand China Holdings has acquired a 100% stake in Orient Overseas Developments Limited for US$2.2bn. (Trading resumed today)

  4. Midas won a RMB353mn high-speed train contract to supply 80 train sets, equivalent to 1,120 train cars, for the “CRH1” EMU high-speed train project in the PRC.

  5. SGX announced a 2Q10 net profit of $74.7mn, down 4% year-on-year (yoy). The company declared an interim dividend of 3.75 cents per share.

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 WTHS Wing Tai Holdings 2.14 2.04 2.24
4 MIIF Macquarie International Infrastructure Fund Ltd 0.53 0.475 0.585
5 BRWY Broadway Industrial Group 0.95 0.875 1.03  
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 HIAP.SI Hiap Hoe Limited 0.63 0.57 0.69
10 SHDS Sing Holdings 0.455 0.385 0.525  

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 8.71
2 UTOS UOL Group 4.06 3.20 3.74 4.92 Overnight, Current Price at 4.04
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 3.28
5 NOBL Noble Group 3.29 2.95 3.63 PROFIT – CLOSED 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 Triggered, Current Price at 1.29

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

Afternoon Highlights

We decided to close our position for Noble as the stock is likely to go through a period of consolidation though upside trend is still intact.

  • Ryobi Kiso IPO registered - offer price at $0.26; commence trading on 27th Jan 2010.
  • Tiger Airway commence trading on 22nd Jan 2010

News Updates:

  1. Japan Airlines Corp (JAL) will file for bankruptcy protection at the Tokyo District Court at 5:00 pm Tokyo time; the airline's shares will be delisted from the Tokyo Stock Exchange (Source from MaketWatch)
  2. Japan December Consumer Confidence deteriorates again, 37.9 vs 39.9 last month.
  3. Kraft Foods and chocolate maker Cadbury said Tuesday they are finalizing the terms of a friendly takeover likely to be worth around 11.5 billion pounds ($18.9 billion) after months of animosity between the companies.

In Summary,

Index ended the session up 0.90 points to 2912.92, with 1.8962 billion traded. It seems that both the Small Cap and the China Shares are retreating. We will have to keep an eye on which are the coming shares to lead.

Genting has broke its previous high of 1.31. Hotel Sector might be promising; we are on the lookout for Guocoleisure.