Archive for January, 2015

Market Review for STI 29th Jan

Posted: January 29, 2015 in Stock Tips

Share prices opened lower with the Straits Times Index down 15.50 points to 3,403.65. Singapore shares pulled back on concerns the US Federal Reserve will proceed to raise interest rates this year despite increasingly uncertain global economic conditions, which have prompted a number of other central banks to ease monetary policies. High of the day was marked.STI
STI Day Performance
Open: 3402.37
High: 3428.39
Low: 3402.18
Close: 3415.17
Change(Points):b -3.98
% Change: -0.12%
Volume: 1136.8M
Rise: 174
Fall: 224
Unch: 392
Market forecast for STI: In US market to much volatility that’s why STI market is in consolidation face. We may expect same trend.
STI Levels
Support 1: 3373
Support 2: 3350
Support 3: 3330
Resistance 1:b 3430
Resistance 2: 3450
Resistance 3: 3480
Technical Indicators: RSI is at 64 and CCI is at 131.
Top Gainers: comfortdelgro.sg, sia.sg, keppel corp.sg, genting sing.sg, noble.sg
Top Losers: capitamall trust.sg, jsh usd.sg, hongkonglandusd.sg, golden agri-res.sg, olam intl.sg
Important Factor for today:-

  • The surprise announcement yesterday by Singapore’s central bank to slow down the appreciation of the local currency will bode well for shares of companies in the services industry as well as banks, but spell bad news for property developers, says Credit Suisse.
  •  The surprise announcement yesterday by Singapore’s central bank to slow down the appreciation of the local currency will bode well for shares of companies in the services industry as well as banks, but spell bad news for property developers, says Credit Suisse.
  •  Standard Chartered has appointed Aaron Russell-Davison as head, debt capital markets, with immediate effect.
  •  TEMBUSU Systems, a Singapore startup which in February 2014 unveiled Asia’s first Bitcoin ATM in Singapore, announced on Thursday that it has raised S$1.2 million in bridge funding for its TRUST platform.
  •  The surprise announcement yesterday by Singapore’s central bank to slow down the appreciation of the local currency will bode well for shares of companies in the services industry as well as banks, but spell bad news for property developers, says Credit Suisse.
  • The Singapore dollar continued to weaken against the US dollar following the Monetary Authority of Singapore’s (MAS) surprise easing of its monetary policy on Wednesday to slow the appreciation of the local currency.
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Market Review for STI: Share prices opened lower on Wednesday with the Straits Times Index down 4.87 points to 3,407.33.Singapore shares pared gains as investors booked profits while waiting for fresh leads, including a statement from the Federal Reserve early tomorrow morning after the end of its two-day policy meeting. Shares rose earlier after the Monetary Authority of Singapore sprang a surprise by saying it will slow down the appreciation of the local currency.sti
STI Day Performance
OpenL: 3405.07
High: 3427.19
Low: 3404.17
Close: 3419.15
Change(Points): +6.95
% Change: +0.20%
Volume: 1338.8M
Rise: 213
Fall: 162
Unch: 415
Market forecast for STI: STI was consolidation face today. We may expect same trend in STI.
STRAITS TIME LEVELS
Support 1: 390
Support 2: 3370
Support 3: 3350
Resistance 1: 3460
Resistance 2: 3500
Resistance 3: 3550
Technical Indicators: RSI is at 63 and CCI is at 146.
Top Gainers: NOBLE.SG, WILMAR INTL.SG, KEPPEL CORP.SG, SPH.SG, GLOBAL LOGISTIC.SG
Top Losers: JMH USD.SG, CAPITAMALL TRUST.SG, THAIBEV.SG, ASCENDAS REIT.SG, GOLDEN AGRI-RES.SG
Important Factor for today:-

  • Singapore shares pared gains as investors booked profits while waiting for fresh leads, including a statement from the Federal Reserve early tomorrow morning after the end of its two-day policy meeting.
  • Singapore’s central bank has downgraded its inflation forecasts amid lower oil prices and weaker global economic prospects.Core inflation, which excludes private road transport and accommodation costs, is now expected at 0.5% to 1.5% this year, down from a previous projection of 2% to 3%, the Monetary Authority of Singapore said in a statement today.Its 2015 forecast for headline inflation now ranges from minus 0.5% to 0.5%, compared with 0.5% to 1.5% previously.
  • Interest rates here are expected to increase in tandem with those in the United States, regardless of the Monetary Authority of Singapore’s (MAS) surprise policy announcement.
  • The Singapore dollar on Wednesday hit its weakest in nearly four and a half years, driving losses among emerging Asian currencies, as regional central banks may follow the city-state’s unexpected monetary policy easing to tackle deflation.
  • The Fed is widely expected to raise interest rates sometime in the second half of 2015 as the US economy improves and inflation remains benign. As interest rates rise, property prices in Hong Kong and Singapore may fall by as much as 5 percent this year, according to a report on prime residential real estate in the region by property consultant Knight Frank.

Market Review for STI: Share prices opened flat on Thursday with the Straits Times Index down 2.39 points to 3,352.07. Singapore shares are likely to head higher on news that the European Central Bank will proceed with a massive bond buying programme to shore up the flagging euro zone economy. A surprise move by the Bank of Canada to cut interest rates, its first reduction in almost six years, is also expected to bolster expectations among investors that central banks worldwide will continue with efforts to help boost economic activity.  TRADING TIPS
Market forecast for STI: We may see bullish trend, if STI cross the level of 3385.
Technical Indicators: RSI is at 56 and CCI is at 103
Important Factor for today:-

  • Oil prices dipped early on Thursday ahead of the expected announcement of a bond-buying programme by the European Central Bank (ECB) later in the day that could push the dollar to new highs and put downward pressure on commodities
  • Singapore Exchange Ltd, Southeast Asia’s biggest bourse, plans to start trading Chinese equity-index options as investors seek ways to hedge risks in the world’s most volatile stock market
  • Two Singapore companies have made it to the ranks of the world’s 100 most sustainable companies again in a global ranking.
  • Weak global market conditions have caused food and beverage company Del Monte Pacific to defer an international offering of up to US$360 million worth of preference shares.
  • Shares of Singapore Exchange slipped as much as 2.3% despite a decent set of December-quarter results from the bourse operator, as investor sold into strength amid concerns that growth may not be sustainable.
  • Singapore’s prime office rents are set to extend gains this year as the number of new properties coming onto the market is limited, according to Capita Commercial Trust Management (CCTM).
Market Review for STI: Share prices opened higher with the Straits Times Index up 4.93 points to 3,338.95.Singapore stocks held on to modest gains, getting a lift from an uptick in most Asian markets. Investors preferred to wait for more developments, including the Bank of Japan’s monetary statement today and the outcome of the European Central Bank’s policy meeting tomorrow. Stocks Tips
STI Day Performance
 Open- 3336.58
 High- 3354.46
 Low- 3331.27
 Close- 3354.46
 Change(Points)- +20.44
 % Change- +0.61%
 Volume- 1982.4M
 Rise- 222
 Fall- 173
 Unch- 396
 Market forecast for STI: STI may go up after the level crosses 3370 as we can see a bullish movement in the market.
 Technical Indicators: RSI is at 55 CCI is at 42
 STRAITS TIME LEVELS
 Support 1- 3340
Support 2- 3320
Support 3- 3300
Resistance 1- 3360
Resistance 2- 3370
Important Factor for today:-
  • The Infocomm Development Authority of Singapore (IDA) on Wednesday challenged the San Francisco Bay Area tech community to come out with innovative solutions to analyse the more than 8,000 open government data sets as the country strives towards becoming a Smart Nation.
  • Auditing firm KPMG has joined the host of voices from the business community calling for government productivity schemes to be enhanced in the upcoming Budget.
  • KEPPEL Land and parent Keppel Corp have postponed their post-results analyst and media briefing, according to a media advisory email sent out on Wednesday morning. The email mentioned that more details will be provided shortly.
  • Asia Pacific investors are expected to increase their global real-estate allocation this year, with an estimated US$58.5 billion ($78.2 billion) of capital is set to flow into global real estate.
  • CAPITACOMMERCIAL Trust, a real estate investment trust (Reit) holding central business district (CBD) offices, reported on Wednesday morning before trading hours a distribution per unit (DPU) of 2.15 cents for its fourth quarter ended Dec 31, 2014, up 2.9 per cent from 2.09 cents a year ago.
  • investors preferred to wait for more developments, including the Bank of Japan’s monetary statement today and the outcome of the European Central Bank’s policy meeting tomorrow.

Share prices opened higher with the Straits Times Index up 6.56 points to 3,314.26.Singapore shares opened higher and held on to gains. Official data just released showing China’s economy expanded 7.3% in 4Q 2014,Asian markets rallied in relief  after China reported its economy had not slowed as far as many had feared, a rare glint of brightness amid gloom over the global outlook.STI Stock Signals
STI Day Performance
Open 3315.57
High 3338.69
Low 3311.59
Close 3334.02
Change(Points) +26.32
% Change +0.80
Volume 1208.0M
Rise 249
Fall 135
Unch 409
Market forecast for STI: We may expect bullish trend in STI in range of 3334 to 3373.
Technical Indicators: RSI is at 52 and CCI is at -26.
STRAITS TIME  LEVELS
Support 1 3300
Support 2 3277
Support 3 3240
Resistance 1 3350
Resistance 2 3371
Resistance 3 3404
Important Factor for today:-

  • Singapore’s sovereign wealth fund GIC is investing 10.2 billion rupees (US$165.5 million) in India’s Bandhan Financial Services, which is setting up one of the country’s two newest banks.
  • JTC Corporation (JTC) has awarded the tender for an industrial site at Tuas South Street 9 (Plot 52) to the highest tenderer, Asiaone Logistics & Warehousing Pte Ltd, for S$7.04 million.
  • Rolls-Royce has unveiled the first made-in-Singapore Trent 1000 engine, which will be used in local budget carrier Scoot’s new Boeing 787 aircraft.
  • Some 33 per cent of Singaporeans expect their standard of living to fall when they retire, far above the global average of 23 per cent who said so, a global survey has found.
  • Water treatment firm China Everbright Water Limited is placing out 120.7 million new shares at S$0.94 each to raise S$113.4 million for growth and expansion purposes. The firm said in an announcement early morning that the money came from International Finance Corporation (IFC) and Dalvey Asset Holding (DAH).
  • The war for Singapore talent has heated up with Fair Consideration Framework, and the private and public sectors are looking overseas to lure them back home, a new survey found .

Share prices opened higher with the Straits Times Index up 20.67 points to 3,321.35.Asian equity markets mostly rose following a rally on Wall Street and a strong pick-up in oil prices, Market breadth was positive, but volume was thin, suggesting the change in lot trading sizes from 1,000 shares to 100 has yet to make an impact.STI Trading Signals
STI Day Performance
Open-3318.59
High-3324.34
Low-3297.89
Close-3307.70
Change(Points)– +7.020
% Change-+0.21%
Volume-1157.4M
Rise-172
Fall-227
Unch-396
Market forecast for STI: Market is consolidation range we can’t predict anything right now. STI is not in stable mode.
Technical Indicators: RSI is at 46 and CCI is at -73.
STRAITS TIME LEVELS
Support 1-3275
Support 2-3250
Support 3-3230
Resistance 1-3340
Resistance 2-3355
Resistance 3-3371
Important Factor for today:-

  • Singapore handled 33.9 million 20-foot containers last year, according to a statement posted on the Maritime & Port Authority of Singapore’s website dated Jan. 16. Last month, Shanghai said it expects to process about 35.2 million boxes in 2014. A year before, the gap between the two ports was about 1 million boxes.
  • SLIDING oil prices and uncertain global growth have sent inflation expectations plummeting in Singapore to their lowest levels in three years.
  • The Singapore economy will benefit from lower oil prices since it is a net importer of oil.
  • Efforts by the Singapore Exchange to grow its derivatives business may have yielded positive results, with average derivatives trading volumes up 53% y-o-y in 4Q2014, but the recent strength may not be sustainable, says UBS.
  • JTC Corporation (JTC) has awarded the tender for an industrial site at Tuas South Street 9 (Plot 52) to the highest tenderer, Asiaone Logistics & Warehousing Pte Ltd, for S$7.04 million.
  • Singapore remains a gateway to Asia, but not when it comes to raising equity. The city-state’s annual share of equity issuance in local markets including Malaysia, Indonesia, the Philippines and Thailand averaged 45 per cent between 2004 and 2009. That has fallen to 37 percent over the last five years.

The week started with FBM KLCI index gained 2.64 points at 1730.10. During the week, performance of our benchmark index was underpinned by strong gains in CIMB following news suggesting its mega merger with RHB capital and MBSB may be called off. Market sentiment was cautious amid further weakness in oil prices while investors remained concerned about the global economy after the World Bank has cut its global growth forecast on subdued performance in the EURO zone, Japan and some major economies. Yesterday KLCI ended higher after oil prices rebound the most in more than 2 1/2 years from close to six year low. This whole week index shown side way movement of almost 28 points.
The FBM KLCI index lost 1.43 points or 0.08% at 1743.57 on Friday. Finance Index fell 0.17% to 15366.83 points, Properties Index up 0.03% to 1286.28 points and Plantation Index down 0.40% to 7776.16 points. Market traded within a range of 13.89 points between an intra-day high of 1746.24 and a low of 1732.35 during the session.
The index went down following weighed down by selling in Petronas-linked and banking counters. Investor’s risk appetite were dampened by the weak lead from overnight US market due to drop in crop price and the surprise move of Swiss National Bank scrapping its three-year policy of capping the Swiss franc against the euro.
FBMKLCI Week’s Performance
Open: 1740.19
High: 1746.24
Low: 1732.35
Close: 1743.57
Change (Points): 11.13
% Change: 0.64%
Market Forecast for week ahead:
The global market tone came under fresh pressure from ongoing weakness in currency and commodity markets, highlighted by a huge overnight weekly decline in the euro and yen as well as oil and copper. It is anticipated that market will move upside in the coming week as technically there is a resistance at 1750.
Technical indicators:
RSI for this week is 38.801 with CCI at 98.804. Besides, difference line of MACD 29.310 overlapping its signal line (22.339).
Support 1: 1725
Support 2:1706
Support 3:1670
Resistance 1: 1750
Resistance 2: 1770
Resistance 3: 1789
ECONOMIC FACTORS:

  • SapuraKencana Petroleum Bhd signed a US$2.3 billion Islamic loan with 11 lenders – the largest Islamic facility till date. The loan will convert a portion of its existing conventional multi-currency facility (MCF) borrowings into a Shariah based facility with 11 local, regional and international banks.
  •  AirAsia Group to register stronger earnings in 2015, given the significant benefits from lower jet fuel price. It is assumed average yields (including surcharge) to drop 7.6 per cent in 2015 after an assumed decline of 5.8 per cent in 2014.
  •  The ringgit opened marginally lower against the US dollar this morning due to lack of buying support.
  •  Celcom Axiata Bhd will invest RM100 million in capital expenditure (capex) to ensure connectivity in flood-prone states in the east coast of Peninsular Malaysia. Its CEO said the telco recognised the importance of full connectivity in times of crisis – not only for residents within the affected areas, but also to the relief teams and organisations working round the clock to deliver aid.
  •  MISC Bhd’s share price on the Bursa Malaysia slipped after the company aborted the sale of its wholly-owned subsidiary, MISC Integrated Logistics Sdn Bhd (MILS).
  •  Asian currencies tend to depreciate against the US dollar in the 12 month period prior to a peak in oil prices and this time around, the peso is likely to be the worst performing Asian currencies, according to a study.
  •  The government should review the budget given the significant change in oil prices, said CIMB Group Holdings Bhd chairman. One of the targets that external observers are watching for is the budget deficit and the target of 3% budget deficit by 2015. And also here has to be clarity in terms of where Petronas dividends are going to be and what are the main drivers because the dividends are not just a function of oil price but also a function of the group’s capital expenditure plans.
  •  The Ministry of International Trade and Industry (Miti), which aims to see intra-Asean trade grow from 24% of total trade now to 30% to 35% in the next few years, said the harmonisation of rules and regulations for the Asean Economic Community (AEC) is still a work-in-progress. The challenge is because Asean is made up of 10 countries that can be divided into different tiers in terms of per capita income, population and economic development.
  •  Bright Packaging Industry Bhd has entered into a purchase-sale agreement with Zao Philip Morris Izhora, a multinational tobacco manufacturing company in Russia to supply aluminium foil worth US$15 million. Intra- Asian trade is likely to expand from 24 percent to 34 percent, spurred by zero-duty incentives on Asian Free Trade Area (AFTA).
  •  Bursa Malaysia Securities has issued an unusual market activity query to IFCA MSC Bhd due to the recent rise in the price and volume of its shares. The counter closed 4.5 sen lower at 95 sen, with 42.05 million shares changing hands.