Morning Highlights

U.S equity markets rebounded more than 1% overnight as manufacturing reports in the U.S, Europe and China showed the global economic recovery is accelerating. Singapore market followed suit the rise and broke above short term resistance at opening trade, with the key STI gapped up 26.29 points to 2762.46.

Market is trading aimlessly but unable to trade above resistance broke. Subsequently market reversed its early gains after 11:00.

Corporate Announcement

  1. Wilmar International’s listing application of its subsidiary Wilmar China Limited on the Hong Kong Exchange has lapsed. Wilmar said that it has no intention to submit a fresh listing application…
  2. Keppel Corp’s JV with J. Ray McDermott has secured a US$1 billion contract from the Papa-Terra JV, consisting of Petrobras & Chevron, to build and operate the P-61 Tension Leg Wellhead Platform.
  3. CapitalMalls Asia has acquired a 100% stake in CapitaRetail China Developments D18 (HK) Limited.

News Updates

  1. Obama proposed US$4 billion to capitalise an infrastructure bank that would help finance priority transport, water, communications, and other big-ticket construction projects
  2. The US manufacturing sector grew in January and at a faster rate than expected, highest since August 2004. The Institute for Supply Management (ISM) said its index of national factory activity rose to 58.4 in January from 54.9 in December.
  3. The Commerce Department said U.S. Construction Spending dropped 1.2% to US$902.5 billion, falling for a second straight month. November's construction spending was revised down to show a 1.2% decline, instead of a 0.6% fall.
  4. US consumer spending rose slightly less than expected; up 0.2% after increasing by an upwardly revised 0.7% in November.
  5. Obama projected the U.S. budget deficit fiscal year to 30/09/2011, would soar to record US$1.56 trillion, challenging his push for fiscal responsibility while driving to defeat double-digit unemployment.

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
1 SIAT Singapore Airport Terminal Services 2.42 2.64 2.20
2 DBSM DBS Group 13.98 14.46 13.50
3 OCBC Oversea-Chinese Banking Corp 8.07 8.37 7.77
4 STRL Straits Asia Resources 2.09 2.25 1.93
5 IFAR Indofood Agri Resources 1.90 2.09 1.71
6 SITT Sinotel Technologies 0.54 0.60 0.48 NOT ENTERED
7 SINO Sinomem Technologies 0.465 0.54 0.39
8 SIAL Singapore Airlines 13.42 14.02 12.82
9 HKLD Hong Kong Land 4.55 4.70 4.40
10 EZRA Ezra Holdings 2.03 2.25 1.81
11 HBEE Ho Bee Investment 1.60 1.75 1.45  
12 HSEN Hiap Seng Engineering 0.57 0.64 0.50  

Stock Prices last updated at 17.30 (Singapore Time)

Afternoon Highlights

We have just revised our Quick Picks. Added a few new stocks in our list from 9-12. We have also removed some other picks. As mentioned before, the Quick Picks is our watch list. We may not enter positions even if the stock breakout during this market uncertainly. Right now, we will observe the individual stock performance in real time to determine and should we proceed with our entry, we will trade with small risk. (Update 13.30)

  • After three rate hikes in a row, the Reserve Bank of Australia unexpectedly keeps its policy rate on hold, citing in-target inflations

In Summary,

Despite U.S. strong finishing overnight, our market is unable to hold onto its gains, and eventually ended the session down 15.3 points to 2720.87, with 1.6003 billion traded.

One thing to note, 2700 used to be the support that is broken down since the start of subprime crisis. Trading might be violent when market trades near to 2700, hence, we advise to be extremely careful when entering positions.

There is a short term resistance at 2767.43 (today’s high). We are on the lookout for the 3 bank stocks, china stocks and Tiger Airway. Currently, Tiger Airway appears to be fairly weak and might start to trend downwards.