Morning Highlights

The STI  edged higher in opening trade on Wednesday after a positive lead from Wall Street on reports of help for indebted Greece. Dow posted its largest one-day percentage gain in three months. However, Singapore market starts pulling back within minutes.

  • CapitaLand Limited will be announcing its 4Q09 results this morning. 

Index is drifting aimlessly now, support is seen at 2665.97. We are watching closely on the recent IPO China Hu An. Though the stock is pretty sleepy now, it has potential on the upside.

Cogent Holdings Ltd Registered IPO, IPO price at S$0.22
Commence trading: 25 Feb 2010 on main board
Issuer Manager: Kim Eng Corporation Finance Pte Ltd
Underwriter: Kim Eng and UOB Kayhian
Offering:  92 million

 Corporate Announcement:

  1. CapitaLand’shigh-end residential project in Beijing, Beaufort, saw strong buyer response when it was launched in end-January 2010. An entire block, comprising 467 units, was launched for sale and to-date about 95% of the units have been sold.
  2. CapitaMalls Asia has, through its wholly-owned subsidiary Clarke Quay Pte Ltd, entered into a sale and purchase agreement today for the sale of Clarke Quay at a price of S$268 million in cash to CapitaMall Trust.
  3. Noble’s subsidiary Gloucester Coal has negotiated a coking coal contract for coal destined for use in an emerging market in North Asia. The contracted price for the 25kt sale has been agreed at $US164 (less commission) which represents a significant premium to the current contracted prices.

News Updates

  1. Japan Jan Wholesale prices +0.3% On Month, -2.1% On Year.
  2. Japan Dec Core Machinery Orders +20.1% On Month, -1.5% On Year.
  3. Dubai tower shut after visitors stuck in elevator 

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>

Bearish Stocks (Singapore)

Symbol

Name

Entry

SL

TSL

TP

Remarks
1 HSEN Hiap Seng Engineering 0.57 0.64 0.50
2 UTOS UOL Group 3.65 3.81 3.49 CANCELLED
3 YNLG Yanlord Land Group 1.54 1.69 1.39 CANCELLED
4 GENS Genting Singapore 1.03 1.19 0.87 CANCELLED
5 BANY Banyan Tree 0.66 0.695 0.625 CANCELLED
6 SCIL Sembcorp Industrials 3.39 3.56 3.22 CANCELLED
7 IFAR Indofood Agri Resources 1.91 2.12 2.02 1.70 LOSS – CLOSED at TSL

Stock Prices last updated at 17.05 (Singapore Time)

Afternoon Highlights

We are expecting index to trade btw 2665.97 - 2755.54. Market will remain choppy and we need to observe for at least 1 week to see if the support at 2665.97 will be broken. If the support is broke down, downward trend will resume. Otherwise, market is likely to go through a sideway consolidation.

On the upside, we are focusing on recent IPOs. In our personal opinions, we feel that the chances for the market to experience another drop, somewhat similar to the period when AIG is being bailed out and the bankruptcy of Lehman Brothers, are rather low.   

  • Pacific Andes Resources has announced a 15.2% increase in Q1 net profit to HK$100.4 million from a year ago.
  • The Hour Glass returns to the black for Q3
  • Technics' Q1 net profit jumps 65%, expects better FY2010.
  • Chip Eng Seng's Q4 net profit surges, proposes higher dividend.
  • SBS full year net profit up 35% to $54.6 million.
  • ComfortDelgro's FY09 net profit up 9.7%.

News Updates

  1. China’s trade balance logged a surplus of $14.2 billion in January, compared with the $18.4 billion surplus in December, the General Administration of Customs said on Wednesday. On a monthly basis, exports dropped 16.3% in January while imports were down 15.1%.
  2. Nordea profit drops 30% in Q4

In Summary,

Index drop 10.63 to close at 2734.39, with 1.3148 billion traded.

Hong Kong shares rose 0.67 per cent on Wednesday following a rally on Wall Street on hopes for a way out of the debt problem in Europe.