Morning Highlights

Our Focus For Today Is On Property, Commodity & Financial Sector – Short Selling

Singapore Share prices fell across the board in opening trade on Friday with the STI gapped down 21.13 points to open at 2736.55.

  • Singapore Q4 jobless rate at 2.1%
  • Total lending in Singapore rose to $281.3 billion (US$200.4 billion) in December from $278.2 billion in November and from $275.4 billion in October, central bank data showed on Friday.

Corporate Announcements

  1. Noble Group has entered into an agreement to sell its interests in Middlemount Coal to MacArthur Coal while it will not proceed with the sale of Donaldson Coal. Noble also proposed an acquisition of 82.9mn shares in Macarthur Coal.

  News Updates

  1. Procter & Gamble revises fiscal-2010 targets higher on heels of strong second quarter.
  2. 3M raises 2010 profit expectations; blue chip reports broad-based growth in fourth quarter‏.
  3. Amazon posts 71% higher net and $9.5 billion in sales (strong Q1 revenue); its board plans to buy back $2 billion in shares.‏
  4. Microsoft’s fiscal 2Q net income rose to $6.66 billion or 74 cents a share, from $4.17 billion or 47 cents a share, in the year-earlier period. Revenue rose 14% to $19.02 billion.
  5. U.S. first-time jobless claims still elevated, off 8,000 to 470,000 last week‏.
  6. Federal Reserve chairman Ben Bernanke won approval from the Senate on Thursday for a second four-year term.
  7. Weak tech checks U.S. stocks; Qualcomm and Motorola lower after results‏; Dow closes down 116 points.
  8. Japan’s jobless rate falls to 5.1% in December and the availability of jobs improved for the 4th month in a row.
  9. Japan Manufacturing PMI falls 1.3 points to 52.5.
  10. Malaysia Minister said to achieve 5% GDP growth in 2010

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. 

Bearish Stocks (Singapore)

Symbol

Name

Entry

SL

TSL

TP

Remarks
  YNLG Yanlord Land 1.70 1.91 1.49 LOSS – CLOSED at 1.74
1 STEG Singapore Technologies Engineering 3.09 3.20 2.98 CANCELLED
2 GUOC Guocoland 2.17 2.29 2.05 CANCELLED
3 SIAT Singapore Airport Terminal Services 2.42 2.64 2.20
4 UOBH United Overseas Bank 17.88 18.40 17.36
5 DBSM DBS Group 13.98 14.38 13.58
6 CTDM City Development 10.48 10.96 10.00 CANCELLED
7 OCBC Oversea-Chinese Banking Corp 8.07 8.37 7.77
8 CATL Capitaland Ltd 3.73 3.89 3.57
9 SCMN Sembcorp Marine 3.30 3.44 3.16
10 KLAN Keppel Land 3.19 3.40 2.98 LOSS – CLOSED at 3.24
11 NOBG Noble Group Ltd 3.84 3.06 2.62
12 OLAM Olam International 2.36 2.50 2.22 LOSS – CLOSED at 2.42
13 STRL Straits Asia Resources 2.09 2.25 1.93
14 HPPS Hotel Properties 2.05 2.14 1.96 CANCELLED
15 IFAR Indofood Agri Resources 1.90 2.09 1.71
16 AGRN Allgreen Properties 1.14 1.22 1.06 CANCELLED
17 YAZG Yangzijiang Shipbuilding 1.03 1.12 0.94 CANCELLED
18 GENS Genting Singapore 1.02 1.15 0.89 CANCELLED
19 ROTE Rotary Engineering 0.955 1.03 0.88
20 BANY Banyan Tree 0.695 0.735 0.655
21 AUSG AusGroup Ltd 0.585 0.63 0.54
22 SITT Sinotel Technologies 0.54 0.60 0.48
23 TION Tiong Woon Corp 0.515 0.565 0.465
24 ADFP Asia Food & Properties 0.52 0.56 0.48
25 SINO Sinomem Technologies 0.465 0.52 0.41
26 PNHG Pan Hong Property Group 0.465 0.52 0.41
27 DMXT DMX Technologies 0.34 0.385 0.295 CANCELLED

Stock Prices last updated at 17.05 (Singapore Time)

Afternoon Highlights

Market is way too choppy. If you do not wish to be caught up in the day’s emotions, it would be better to stay out for the time being.

News Updates

  1. Samsung Electronics expects rapidly recovering demand for its premium computer memory chips and flat screen TVs to drive growth this year, with the unwinding of global stimulus measures the key risk for sales.
  2. The Republic's trade ministry said that Singapore and Costa Rica have concluded talks for a free trade agreement.

In Summary,

After a choppy session, STI eventually closed down 12.33 points at 2745.35, with 1.7639 billion. Losers led Gainers 345 to 153.  Majority of the shares dropped as growing worries about debt-laden European countries shook investor hopes for a quicker world recovery.

There were also quite a number of shares that broke out today, but managed to reverse fast, hence we did not trade these counters. We have removed them from the picks and will continue to observe further to decide our next course of action.  These include our open trades that were closed today, namely, Olam, Keppel Land and Yanlord.

Current market outlook is unclear. We are on the neutral stand. On weekly, market fell 74.36 points with 10.6312 billion. The statistics are as follow:

  • 1st week of Jan 10, market is up by 25.14 points with 13.4028 billion traded.
  • 2nd week of Jan 10, market dropped by 14.34 points with 12.2611 billion traded.
  • 3rd week of Jan 10, market tumbled 88.71 points with 10.8941 billion traded.

On the overall, volume has dried up significantly over the weeks. This could indicates that the selling pressure might have been reduced.

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2763.38 is a short term resistance. We would like to see market able to clear this resistance. It is normal for market to start moving sideways after steep correction. Most importantly is to watch out for double bottom formation. If this formation is formed, we can therefore conclude that the correction from 2940 is healthy instead of trend change.

Since most sectors are very badly sold down. We will concentrate more on recent listed IPOs, particularly Tiger Airway with high of 1.61 created since listing. Last but not least, another stock that is very resilient from recent sold down is Hong Leong Asia. 

Till market gives a clearer confirmation, we will watch closely and trade with cautious.