Archive for December, 2014

Singapore SGX Trading Analysis 31 Dec

Posted: December 31, 2014 in Stock Tips

Share prices opened flat with the Straits Times Index down 0.35 points to 3,365.76.Oil Falls in Worst Year Since 2008 as Asian Stocks Gain. US crude touched a low of US$53.55 a barrel in early Asian trade, remaining near 5-1/2-year lows, hit by concern over surplus supply as the United States decided to permit more oil exports and on an unexpected build-up in U.S. crude inventory last week. High of the day was marked at 3373.080 and low was 3364.640sti. Trading Signals

STI Day Performance
Open: 3366.99
High: 3373.08
Low: 3364.64
Close: 3365.15
Change (in Points): -0.960
%Change: -0.03%
Volume: 580.3M
Rise: 175
Fall: 125
Unch: 897
Market forecast for STI: Singapore’s Stock Exchange Looks to Make Trading More Attractive for Individuals.SGX is looking to individual investors to boost Southeast Asia’s biggest stock market after trading volume this year tumbled the most since the 2008 global financial crisis. STI will be positive for next year.
Technical Indicators: RSI is at 61 and CCI is at 132.
STRAITS TIME LEVELS
Support 1: 3340
Support 2: 3320
Support 3: 3300
Resistance 1: 3420
Resistance 2: 3440
Resistance 3: 3460
Macroeconomic factors:

  • Singapore’s economy grew 2.8 per cent in 2014, but the “moderately well” performance was dimmed by a “disappointing” minus 0.5 per cent productivity growth in the first three quarters of the year.
  • The Singapore Exchange (SGX) has reprimanded New Lakeside Holdings, which has been renamed Zhongxin Fruit & Juice since Mar 2013, its former director and former group chief financial officer (CFO) for breaching listing rules and corporate governance failures.
  • On a year-on-year basis, Singapore’s manufacturing output contracted 2.8% in November 2014. Excluding biomedical manufacturing, output declined 3.1%. On a seasonally adjusted month-on-month basis, manufacturing output fell 1.4% in November 2014. Excluding biomedical manufacturing, output increased 1.6%.
  • Wealthy investors are poised to put at least US$90 billion into hedge funds next year, even after returns have largely been lackluster this year.
  • Bank lending rose 0.6 per cent in November, following two straight months of no growth, data from the Monetary Authority of Singapore showed.
  • Total bank lending in Singapore increased in November from the previous month, on the back of more loans to housing, building and construction as well as the business.
  • China developer Ying Li International Real Estate and China Everbright has teamed up to invest in a mixed-use development project in Beijing’s Tongzhou District, China.
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The benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) was up 0.93 of a point to 1,769.34 after opening 2.61 points lower at 1,765.8. Shares on Bursa Malaysia were almost flat in early morning trade today with year-end window dressing activities, interspersed with profit taking. Stocks To Pick
Index lost 1.58 points or 0.09% on Tuesday. Finance Index fell 0.04% to 15714.98 points, Properties Index dropped 0.45% to 1289.26 points and Plantation Index down 0.16% to 7838.12 points. Market traded within a range of 16.57 points between an intra-day high of 1770.52 and a low of 1753.95 during the session.
The day ended lower with the KLCI inched down 1.58 points at 1766.83, after being weighed down by blue chips, led by SapuraKencana and FGV. Meanwhile, market breadth was weaker, amid continuous concern over the decline in oil prices to the lowest level in more than five years coupled with political instability in Greece.
FBMKLCI Day Performance
Open: 1765.80
High: 1770.52
Low: 1753.95
Close: 1766.83
Change (in Points): -1.58
%Change: -0.09%
Volume: 1634.8M
Rise: 382
Fall: 402
Unch: 1827
Market forecast for KLCI: KLCI Trend is more in sideways, We are seeing light volume in Asian trading, oil prices have once again touched new lows over longer term concerns about US production levels. Investors winding down for the end of the year. Technically buyers & sellers challenge combined to form a Bearish Harami candlestick pattern which may reverse the trend.
Technical indicators: RSI stood below the center line at 52.629 with its CCI at 78.633. Difference line of MACD performed at -10.406 above its signal line which performed at -19.278.
KLCI LEVELS
Support 1: 1720
Support 2: 1700
Support 3: 1670
Resistance 1: 1748
Resistance 2: 1765
Resistance 3: 1790
ECONOMIC FACTORS:

  • The shipping industry is expected to see further merger and acquisition (M&A) activities in 2015, particularly with owners who are generally trampers in nature and with smaller fleets.
  • Asian markets slipped Tuesday following the previous day’s healthy gains, while the euro struggled against the dollar as Greece plunged back into crisis, rekindling fears of a possible exit from the euro zone.
  • The ringgit extended yesterday losses to open lower against the US dollar this morning on continued selling .
  • Bursa Malaysia posted its best weekly gain year-to-date last week, after its benchmark FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) rose 2.8%.
  • Solid Auto-motive Bhd’s net profit doubled to RM3.13 million in the Q2 ended October 31 from RM1.43 million a year ago on the back of lower finance costs. Its revenue surged 16.3% to RM36.4 million compared with RM31.31 million in the same period, driven by higher contribution from both domestic and export markets.
  • Malaysian Industrial Development Finance Bhd (MIDF) is offering a special financing scheme worth up to RM100,000 each under the SME Emergency Fund (SMEEF) for the flood-affected small and medium entreprises (SMEs).
  • The insurance industry is likely to be stable next year despite the uncertainties in the global economy affecting Malaysia.
  • Gunung Capital Bhd’s unit, GPB Corp Sdn Bhd, has secured a RM165 million service contract from the Defence Ministry to provide transportation services for the National Service (NS) trainee programme.

Share prices opened flat with the Straits Times Index up 0.72 points to 3370.77. Asian shares got off to a lacklustre start, as a sharp sell off in commodities and political uncertainty in Greece made investors less willing to take risks in the final trading days of 2014. stiHigh of the day was 3373.93 and low was 3359.29. Stocks to Pick
STI Day Performance
Open: 3370.77
High: 3373.93
Low: 3359.29
Close: 3366.11
Change (in Points): -1.58
%Change: -0.5
Volume: 924.8M
Rise: 181
Fall: 174
Unch: 434
Market forecast for STI:
Asian stocks are falling down as oil hits risk sentiment, from last three days STI was in bullish so now it is in correction mode. We may expect STI will be in consolidation face.
Technical Indicators:
RSI is at 59 and CCI is at 115.
STRAITS TIME LEVELS
Support 1: 3340
Support 2: 3330
Support 3: 3320
Resistance 1: 3360
Resistance 2: 3370
Resistance 3: 3380
Macroeconomic factors:

  • Net demand for office space in Singapore in 2014 was slightly lower at 1.36 million square feet in 2014, as compared to 1.45 million sq ft for 2013.
  • A second ex-president of Singapore Technologies Marine Ltd (ST Marine) has been charged in court, in a corruption scandal that has implicated six of its former high level executives.
  • SBI Offshore has bagged a procurement contract for drilling equipment systems of a semi-submersible offshore rig to be built in China.
  • Oil prices have halved this year, dragging on firms involved in Asian energy projects as costs remain high amid dwindling revenues, yet equity analysts continue to have a largely positive industry outlook.
  • Gross domestic product was seen expanding 2.0 per cent in the fourth quarter from a year earlier, moderating from 2.8 per cent year-on-year growth in the third quarter, according to the median forecast in the poll of 12 economists.DBS Group
  • Holdings made a clean sweep of all three Singapore awards at the recent IFR Asia Awards 2014.

Share prices opened higher with the Straits Times Index up 6.43 points to 3,360.11.Asian markets mostly rose the first full day of trade after the Christmas break, with confidence boosted by Chinese easing measures and another Wall Street record and Oil prices rose , after dropping for the past two sessions, as escalating clashes in Libya stoked worries about supply from the OPEC member. High of the day was 3,367.710 and low 3,356.620.sti.2
STI Day Performance
Open: 3293.72
High: 3367.71
Low: 3356.62
Close: 3367.69
Change (in Points): +14.01
%Change: +0.42%
Volume: 873.3M
Rise: 201
Fall: 164
Unch: 832
Market forecast for STI:
STI crossed its major resistance we may expect bullish trend in next trading session.
Technical Indicators:
RSI is at 61 and CCI is at 122.
STRAITS TIME LEVELS
Support 1: 3350
Support 2: 3340
Support 3: 3330
Resistance 1: 3375
Resistance 2: 3385
Resistance 3: 3395
Macroeconomic factors:

  • SGX said it will upgrade its derivatives trading and clearing platforms.The upgraded platforms, SGX TITAN, will strengthen SGX’s risk controls and system safeguards to help market participants manage their trading and clearing positions on a 24-hour basis, SGX said. They are expected to be rolled out around the end of calendar year 2016.
  • Price of completed non-landed private homes in Singapore dipped 0.3 per cent in November over October based on flash estimates from the National University of Singapore for its Overall Singapore Residential Price Index (SRPI) .
  • Singapore’s JTC Corporation has launched a site at Tuas South Street 7 (Plot 53) for sale by public tender under the second half 2014 Industrial Government Land Sales (IGLS) Program. 
  • Small medium enterprises (SMEs) in Singapore are citing a lower growth momentum and a more conservative outlook for the first-half of 2015.
  • HITACHI Ltd plans to acquire Singapore engineering company Aqua Works and Engineering Pte Ltd, which specializes in water related installations for commercial facilities, public spaces and residential properties in Singapore. The purchase price was not disclosed. Aqua Works made sales of S$9.07 million in fiscal 2013.
  • Sheng Siong Group has signed a conditional joint-venture (JV) agreement with Kunming LuChen Group Co Ltd to operate supermarkets in China.
  • As online shopping booms, M1 and Rakuten Singapore are pairing up in a deal that is the first of its kind between the Japanese e-commerce firm and a local company.

Market Review for KLCI:
The FBM-KLCI was at 1,742.90 up 26.91 points. There were 572 gainers, 203 losers and 214 counters traded unchanged on the Bursa Malaysia.
FBMKLCI Day Performance
Open: 1723.87                               High: 1746.39                         Low: 1722.67                      Close: 1744.05
Change (in Points): 28.06          %Change: 1.64%                   Volume: 1584.1M
Rise: 695                                        Fall: 203                                  Unch: 1703
Market forecast for KLCI:
Market may rebound this week as MACD showing cross over.
Technical indicators:
RSI stood below the center line at 46.634 with its CCI at -30.762. Difference line of MACD performed at -27.764 below its signal line which performed at -26.911.
KLCI LEVELS
Support 1: 1720                 Support 2: 1700                  Support 3: 1670
Resistance 1: 1748          Resistance 2: 1765           Resistance 3: 1790
ECONOMIC FACTORS:

  • Malaysia’s real gross domestic product (GDP) growth is likely to expand by 5.8 per cent year-on-year (y-o-y) in 2014 and 5% next year.
  • The government may introduce new measures next year to boost its coffers and improve expenditure to meet the 3.0 per cent fiscal deficit target for 2015.
  • Standard and Poor’s (S&P) expects the top 41 banks in the Asia-Pacific region, including three Malaysian banks, to enjoy stable prospects next year even as the slowdown in China remains a hot spot.
  • It’s been a rough year for Bursa Malaysia so far, but things fared better as we approach the second last week of the year. A host of factors, including a sharp sell down in the United States markets, siege in Sydney and the persistent downtrend in crude oil prices last week, hammered investor sentiment across Asia, and Bursa was equally affected.
  • Crude oil prices have dipped to the lowest level since the global crisis. The 50% slump in prices which set in since July was not seen in most of economic forecast reports as most of the noise was focused on locations like Iran, Iraq, Russia and Ukraine and sanctions.
  • The blue-chip benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) gapped down and sold off to a fresh four-month low last week, depressed by heavy falls in emerging markets and oil prices that slumped to fresh five-year lows. Extreme oversold conditions then sparked a technical rebound mid-week as crude oil prices stabilized above a five-year low of US$53.60 (RM186.53) a barrel and the United States Federal Reserve signaled patience in keeping interest rates low.
  • Saudi Arabia’s oil minister defended the Organization of the Petroleum Exporting Countries (Opec) decision to keep output steady despite the biggest market slump in years yesterday, saying current prices would help global economic growth and petroleum demand, while Arab states would escape major damage.

Market Review for STI:
Share prices opened higher with the Straits Times Index up 19.37 points to 3,298.90.Oil prices rose in early trading as Asian markets opened strongly into a holiday-shortened week and as consensus spread that Brent crude prices would likely remain above US$60 for the rest of the year. High for the day was marked at 3328.35 and low at 3291.49.STI
STI Day Performance
Open: 3293.72
High: 3330.96
Low: 3291.49
Close: 3330.96
Change (in Points): +51.43 %
Change: +1.57%
Volume: 1459.5M
Rise: 259 Fall: 114
Unch: 822
Market forecast for STI:
STI gave good opening, we may see bullish rally in next trading session.
Technical Indicators:
RSI is at 55and CCI is at 44.
STRAITS TIME LEVELS
Support 1: 3280
Support 2: 3270
Support 3: 3260
Resistance 1: 3340
Resistance 2: 3350
Resistance 3: 3360
Macroeconomic factors:

  • Singapore’s headline inflation rate in November may turn negative for the first time in five years due partly to sliding oil prices, and a few economists see scope for the central bank to ease tight monetary policy to support economic growth.
  • THE Singapore government is proposing new policies to enhance credit co-operatives’ (credit co-ops) financial prudence, governance, and management capabilities, with changes targeted for full implementation by 2018.
  • China is willing to help Russia if needed but believes that the country has the ability to overcome its current economic problems
  • Canon has become the latest founding partner and official printing & imaging partner of the Singapore Sports Hub, following its signing of a three-year agreement.
  • Jason Holdings on Monday said that its chief executive officer will fully indemnify the group’s wholly-owned subsidiary, Jason Parquet Specialist (Singapore) (JPSS), against all legal costs and damages that may arise out of a S$1.23 million suit.
  • Capitagreen has obtained its Temporary Occupation Permit (TOP) on Dec 18, and has secured leases for 50.4 per cent (352,800 square feet) of its net lettable area as at December.

Weekly wrap of STI:
STI gave a gap down opening for the week by losing 16.7 points to 3312.48. 2nd day of week STI broke its record it was 70 point downs.STI Then gave good opening and filled its previous gap at 3201. Oil prices sank further to new multi-year lows; sinks deeper to 7-year lows in Asian trade, Crude prices have plunged roughly 50 per cent since June, weighed down by plentiful supplies, the stronger dollar and weak demand arising from the struggling global economy. Federal Reserve indicated interest rates would not be hiked until the middle of next year. Wall Street has best 2-day gain since 2011 on Fed optimism about the US economy. Equities rally followed the Fed’s upbeat assessment of the U.S. economy on Wednesday and a commitment to take a patient approach toward raising interest rates. Closing for the week was observed at 3279.53. With a change of points. Get Signals
Strait Times Weekly Wrap
Open: 3312.48        High: 3314.3       Low: 3200.63        Close: 3279.53
Change (in Points): -44.6 %              Change: -1.35%
Market Forecast for week ahead:
The trend of market is expected to be bearish for next week. Currently we have seen unusual volatility in markets due to oil prices crisis and global economic tensions. But the Federal Reserve has decided that not to raise interest rate so it may be good for all Asian market. We may see bullish really in next week trading session. STI may trade in the range of 3220-3300.
Technical Indicators:
RSI is above the centre line which is supporting the bearish trend for the week at 49.23 and CCI is also supportive and at the level of 51.3.
Weekly Technical view on STI
Support 1: 3240           Support 2: 3220             Support 3: 3200
Resistance 1: 3340     Resistance 2: 3360      Resistance 3: 3385
Macroeconomic factors:

  • Singapore’s non-oil domestic exports probably grew in November from a year earlier, when sales of pharmaceuticals were poor, with the comparison against a low base helping shipments recover from October’s contraction.
  • Lower oil price could boost demand in Asia in 2015, with spot interest for diesel, Asia’s most widely used fuel, picking up in countries like Vietnam, Philippines and Indonesia.
  • Asian stocks rose before a Federal Reserve policy decision as gains in energy and utility shares
  • A subsidiary of The Straits Trading Company is proposing to acquire a retail development known as Times Midtown in Chongqing, China for approximately 668.4 million yuan (S$141.65 million).
  • Japan’s exports rose 4.9 per cent in November from a year earlier, Ministry of Finance data showed on Wednesday, rising for a third straight month in a sign of a gradual pick-up in global demand .
  • Singapore’s non-oil domestic exports (NODX) grew 1.6 per cent in November from a year earlier, as a jump in pharmaceuticals exports outweighed the fall in electronic shipments, figures by trade agency IE Singapore showed on Wednesday.
  • Market cap of 23 Offshore Marine firms falls 15.7% in a month amid oil rout .Offshore support services firms listed in Singapore have seen their returns decline by more than one-tenth over the year, in line with falling oil prices, with some of the larger companies among these losing more than half of their returns during the same period.
  • Singapore’s listed companies may miss critical timelines in adhering to the country’s Code of Corporate Governance, particularly in the area of board independence, at the current rate of progress.

Sector Allocation Chart by VOLUME

Sector Volume Values($) Rises Falls Unchanged
Properties 155,752,000 223,687,061 22 35 26
Multi-Industry 16,930,000 86,848,875 7 5 5
Construction 47,045,000 6,250,244 11 11 19
Commerce 91,959,000 63,963,079 21 21 57
Hotels/Restaurants 1,517,000 903,585 2 3 12
Transport/Storage/Communications 118,689,340 225,807,296 16 17 17
Finance 23,452,640 227,665,551 13 8 25
Manufacturing 183,576,250 114,458,769 63 48 143
Services 534,528,820 174,426,224 57 24 77
Agriculture 84,532,011 37,973,080 2 4 3
Mining 26,601,000 7,530,358 7 3 3
Electricity/Gas/Water 1,132,000 626,805 1 1 0
Shares in Foreign Currencies 19,627,530 56,820,708 28 10 112
Total 1,305,342,591 1,226,961,635 250 190 499