Singapore Stock Market Updates On 10/03/10

Morning Highlights

U..S stocks rose last night, which marked the anniversary of the 2009 bear market low for the S&P 500, but surrendered most of the gains in the last hour of trading as investors took profits.

Nonetheless, Singapore market started firm STI up 8.01 points at 2847.55. Index is going further up. Other Asian stock markets opened mixed today, with stocks drifting as investors looked to cues later in the week.

• In yesterday’s  Straits Times, it was reported that the government will not introduce more measures relating to the property market for now, and will reduce the deposit for tenders under the reserve list from 5% to 3% of the minimum price, capped at S$5 million.
• Sembcorp broke high of 3.84.
• If entry for Tiger Airway missed at 1.60, another entry opportunity at 1.73, Stop Loss at 1.68 and Target Profit Level at 1.78 (small risk)
• New Trade Opportunity with Golden Agri, to Buy at 0.595, Stop Loss at 0.565 and Take Profit at 0.625 (small risk) – Triggered, Current Price at

1. US airlines cite recovery signs, would consider charging additional fees while cutting costs to increase their profits.
2. AIG surged 13% on speculation the insurer will sell more assets after raising US$51 billion through deals.
3. China loans fall to 700 billion yuan in February, around half the 1.39 trillion yuan worth of loans issued in January. China is officially targeting to slow bank lending in 2010 to 7.5 trillion yuan, after record loan disbursals of 9.6 trillion yuan in 2009.
4. QuEST Global Engineering a provider of engineering services said on Wednesday that it would be making Singapore its International Headquarters effective April 1, 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. <The Quick Picks referred herein contain overnight positions from Yesterday>

Bullish Stocks (Singapore)

Stock Prices last updated at 17.05 (Singapore Time)

Afternoon Highlights

Market is trading steady. 

• Koon Holdings said its subsidiary M/s Koon Construction & Transport Co.  has been awarded a $8.116 million contract by DSTA, Ministry of Defence.
• Singapore’s economy is forecast to grow 6.5% in 2010, faster than the previous estimate of 5.5%, a quarterly survey of professional forecasters conducted by the Monetary Authority of Singapore showed on Wednesday.
• Singapore GDP To Expand 9.5% In Q1: MAS Survey
• Yang Zi Jiang broke high of 1.16
• Good Pack touched 1.58

News Updates:

1. Both China’s exports and imports grew at a higher-than-expected rate, with the value of Imports climbing 44.7% and Exports jump 45.7% from February 2009.
2. China’s trade surplus narrows in February to $7.6 billion from $14.2 billion in January because of soaring imports.
3. Philippine exports rise 42.5% in Jan
4. Cathay Pacific H2 net returns to profit at US$503 million 
5. Thai Central Bank holds interest rate at 1.25%

In Summary,

Singapore shares traded modestly higher in today’s session, finding support from commodity stocks and airline shares. The key STI rose 22.75 points to 2862.29, with 1.6542 billion traded. Support range is between 2800 – 2820. There is a resistance at 2900.

Uptrend is seen coming from Airline Sector:

• Tiger Airway continued to strengthen, up 8 cents to $1.72.
• SIA which has been pulling back for the past 2 days, surged 54 cents to $15.96

Commodity shares that have notable gains include Indofood Agri, First Resources and Golden Agri Resources.

As for China Sector, we have China Fishery, Hong Leong Asia and Yanlord.

The lagging sectors as of now are Financial and Property.

Bottom-line: Index might be due for a pullback soon. We will trail any open positions accordingly…