Archive for the ‘Uncategorized’ Category

GBPUSD
The GBP/USD pair rallied during the initial hours on Monday, but took a U-turn and formed a negative candle. We have a negative omen with the shooting star appearing at the bottom of the down trend and as a result, we arrive at the conclusion that any break down below the bottom of the range will continue to push this market down towards 1.45 level. We are not entering long position until we are above the 1.50 level, Which seems highly unlikely in the present scenario. 3 Days Free  Trail Signals
EURUSD
The EUR/USD pair got whipsawed on Monday and generated an outside day with a closing below the previous days low. The exchange rate felt the heat due to pressure despite a minor increase in the Eurozone manufacturing PMI numbers as the traders grabbed US dollar for safety from the rapid decline in the Chinese Equity market. We have a Resistance in the neighborhood of 20-day Moving Average at 1.0918, while a support is present at 1.0780. The MACD(Moving Average Convergence Divergence) indicator is signalling negative momentum.
AUDUSD
The AUD/USD pair slipped on Monday, and checked the depth of the ascending triangle we have been exploiting till now. At the present moment, we are not sure when the buyers might enter, hence our hesitation in taking short positions. Short positions would be tempting if cross 0.71 level and then we might as well enter them the Australian Dollar is not getting any help from the old markets which is an anomaly and as a result a breakdown may occur.
USDJPY
The USD/JPY pair fell during the course on Monday as Asian problems continued to pester. The Chinese lost 7% during their stock market training day, and that would have had people running towards the Japanese yen, due to it being considered a “safety currency” due to the fact its normally used as a proxy for Chinese market.
We fell below to test the 118.50 level that happens to be the bottom of the consolidation for the moth of August; however resistance in the zone forced us to turn back and form a hammer. Hence, we would be taking a long position as soon as we cross the top of the hammer.
On the flip side, if we break down below to118.50 level, that could attract the sellers and things might heat up as we reach the 116 zone. At present we are pitching for the buyers and hope for a upside breakout.

STI MARKET REVIEW:
Singapore’s benchmark Straits Times Index (STI) opened 0.2 percent or 4.91 points higher at 2882.53 on Monday and ended lower to -0.08 percent or points at -2.30. STI came off from its intra-day peak of 2889.14 and low of 2869.69. 3 Days Free Trial Signals
The Singapore market appears to be stuck in holiday mood because of many traders are still in leave.
LOCAL BOURSE
Singapore will provide advance estimates of GDP for the fourth quarter and for 2015. A quarterly survey by the Monetary Authority of Singapore (MAS) earlier this month showed that economists expect GDP to expand by 1.4% on a year-on-year basis in the fourth quarter, down from 1.9 per cent growth in the third quarter. The survey showed that full-year growth for 2015 was expected to be 1.9%.
MARKET FORECAST
STI is expected to consolidate in its next trading session. It has its support at 2857 and resistance at 2903. The RSI level is near the center line at 49.521 and if it crosses the center line then the market is expected to move up-to the level of 2910. The volume might be on the lower side due to the thin year ending and cautiousness of the investors over the high fluctuation in oil prices.
STI COUNTER SPECIFIC NEWS

  • Coal-mining group Geo Energy Resources has entered into a conditional sale-and-purchase agreement to buy the remaining 34 per cent shareholding interest in Borneo International Resources Pte Ltd that it does not already own for US$25 million.Borneo International Resources indirectly holds an effective equity interest of 98.96 per cent in PT Sungai Danau Jaya (SDJ), which holds coal-mining concession in South Kalimantan, Indonesia.
  • Xyec Holdings units Neutral Co and ACLOX Co will be merged with effect from 1 April 2016.The merger was proposed because both subsidiaries offer similar activities in the provision of experienced engineers to customers in major manufacturing industries, primarily IT Services.Xyec believes that the merger would lead to the more effective use of facilities and resources as well as better execution of operation currently performed by leveraging economies of scale.
  • Wee Hur Holdings has acquired an office building and an adjoining piece of land in Brisbane, Australia, for A$63 million ($64.2 million).With a net let table area of about 14,000 sqm, the property is located in the Central Business District of Brisbane.

GLOBAL FACTORS AND WORLD INDICES:

  • Asian stocks dipped on Monday amid a lack of immediate directional cues in light year-end trade, although Japanese shares managed to rise following a rebound in crude oil prices from multiple-year lows.Investors across asset markets were without some of the usual leads as markets in Europe and North America and many in Asia were closed on Friday for Christmas.MSCI’s broadest index of Asia-Pacific shares outside Japan gave up earlier modest gains.
  • China stocks tumbled more than 2 per cent on Monday, their biggest loss in a month, as weak industrial profit data and a looming revamp of how companies will be listed, weighed on the market.The blue-chip CSI300 index tanked 2.9 per cent, to 3,727.63, while the Shanghai Composite Index lost 2.6 per cent, to 3,533.78 points.
  • Tokyo stocks snapped a five-day losing streak in a quiet trading session Monday as bargain-buying and a weaker yen lifted the market in the last trading week of 2015.The benchmark Nikkei 225 index at the Tokyo Stock Exchange advanced 0.56 per cent, or 104.29 points, to close at 18,873.35.
  • Hong Kong stocks fell on Monday, pulled lower by a slump in mainland shares on the first trading day after last week’s Christmas holiday.The Hang Seng Index fell 1.0 per cent, to 21,919.62, while the China Enterprises Index lost 1.7 per cent, to 9,789.46 points.
  • Malaysian shares closed higher on Monday, with the Kuala Lumpur Composite Index gaining 7.22 points to 1,670.73.Some 1.91 billion lots, valued at RM1.72 billion, were traded. Gainers outnumbered losers 493 to 418.
  • Japan’s industrial output fell 1.0 per cent in November from the previous month, data showed on Monday, suggesting that sluggish emerging market demand continues to cloud the outlook for the economy.The fall compared with a median market forecast of a 0.6 per cent drop.
  • Gold held a weekly gain as investors weighed the outlook for inflation in the US for clues on the likely pace of interest rate increases by the the Federal Reserve in 2016.The metal gained 0.9 per cent last week.
  • Oil prices fell on Monday after the long Christmas weekend, with US crudes defending a newly gained premium over internationally traded Brent contracts.Front-month US West Texas Intermediate (WTI) futures were trading at US$37.91 per tonne, down 19 cents from their last settlement.Brent was down 18 cents at US$17.71 a barrel, meaning that US crude defended a premium it gained over the globally traded benchmark last week.
  • The dollar inched away from a two-month low against the yen on Monday, while a resumption in falls in oil prices took linked currencies including the Australian and Canadian dollars around a third of a percent lower.Australia and the key London market in currencies were among those still closed for local holidays.

STI MARKET REVIEW :
Singapore’s benchmark Straits Times Index (STI) opened 9.91 points lower or 0.35% lower at 2805.13 on Monday after a mixed showing of overseas markets overnight with Wall street and European stocks and ended higher to 2815.52.
ahead of the US Federal Reserve’s Open Markets Committee (FOMC) meeting this week at which an interest rate hike is expected to be announced.
3 Days Free Trial Signals
STI came off from its intra-day peak of 2833.92 and low of 2800.71. The Straits Times Index (STI) traded between 2,800.71 and 2,833.92, after opening 0.23% lower at 2,808.63.
LOCAL BOURSE
Singapore Exchange (SGX) was named “Global Exchange of the Year” for the first time at the recent Futures & Options World (FOW) International Awards ceremony, as well as “Exchange of the Year – Asia, Australasia and MEA.”
FOW cited SGX’s strong volume growth through 2015 with trading levels up more than 60% year-on-year, as well as continued innovation across the risk management portfolio.
MARKET FORECAST
STI is expected to take side ways trend. Its suport level is at 2801 and resistance level is at 2832, if breaks this level it is expected to go up to level of 2850. However, market sentiment still remains bearish due to widely expectation of increase in US interest rate at the end of the two-day meet on 15-16 december.

STI COUNTER SPECIFIC NEWS

  • XMH Holdings , recorded a 69.3% increase in 1H16 ended October of $3.57 million from a year ago.The increase came on the back of a 10.1% increase in revenue to $49.56 million, primarily supported by the increase in the projects segment, following the inclusion of ZPA’s results.XMH had acquired an 80% stake in ZPA in March for $12.8 million.
  • Sinarmas Land has revealed its plans for Nuvasa Bay development project on the beachfront of Nongsa on Batam island.Batam’s first luxury integrated residential and mixed-use development will integrate an exclusive residential area with a full suite of resort facilities surrounded by an 18-hole international golf course along the 1.2km-long beachfront.
  • VALLIANZ Holdings Limited said its subsidiary, Rawabi Vallianz Offshore Services Limited (RVOS), intends to enter into a refinancing exercise for the bulk of its bank loans amounting up to 1.1 billion Saudi riyal (US$293.3 million).These loans are currently secured on RVOS’ fleet of 20 vessels comprising mainly anchor handling tugs and platform support vessels with an aggregate net book value of about 1.52 billion Saudi riyal.

GLOBAL FACTORS AND WORLD INDICES:

  • Asian shares firmed on Tuesday as recently volatile crude oil prices showed some stability, though gains were limited by caution ahead of a widely anticipated U.S. interest rate increase by the Federal Reserve.
  • hina’s yuan, weakened against the dollar after the People’s Bank of China (PBOC) set its official midpoint rate at its lowest level in more than four years for a second day.
  • hina stocks ended slightly lower on Tuesday, with a correction in banking and resource shares countering a surge in property firms that was triggered by hopes of more support measures for the real estate market.The CSI300 index of the largest listed companies in Shanghai and Shenzhen fell 0.5 per cent to 3,694.39 points.
  • okyo stocks fell on Tuesday as investors booked profits ahead of a US Federal Reserve meeting where policymakers will decide on whether to announce a long-awaited interest rate rise.The benchmark Nikkei 225 index at the Tokyo Stock Exchange dropped 1.68 per cent, or 317.52 points, to close at 18,565.90, while the Topix index of all first-section shares was down 1.66 per cent, or 25.33 points, to 1,502.55.
  • ustralian shares gave up early gains to hit a 2-1/2-year low led by a late sell-off in banks and resources shares after the government forecast its budget deficit would swell to A$37.4 billion (S$38.2 billion).
  • ingapore employment growth fell sharply from a year ago in the third quarter, bringing growth in the first nine months of this year down to the lowest since the recession year of 2009.Total employment rose 12,600 in the third quarter – against an earlier estimate of 16,400, and 33,400 for the same quarter a year ago.
  • he People’s Bank of China set its official midpoint rate at 6.4559 per dollar prior to the market open on Tuesday, its weakest level since July 2011, and 0.1 per cent weaker than the previous fix of 6.4495.Guided by a series of weaker PBOC fixes, spot yuan hit its lowest level in 4-1/2 years.
  • he US dollar edged lower on Tuesday as “nervous” markets focus on a Federal Reserve meeting this week where policymakers are expected to decide on a long-awaited interest rate rise.After months of speculation, the US central bank is widely seen as all but certain to give the green light to a small increase in borrowing costs for the first time in nearly a decade – usually a plus for the dollar.
  • Oil prices were mixed in Asian trade on Tuesday after rebounding from sub-US$35 levels in New York, but traders were braced for more downward pressure ahead of an expected hike in US interest rates,with global oversupply still dictating price trends.
  • old was hurting from overnight losses on Tuesday and the metal looked vulnerable to a drop back to multi-year lows on expectations of a US rate hike later this week.The Federal Reserve will kick off its last policy meet of the year later on Tuesday.

The FBM KLCI index lost 6.05 points or 0.36% on Friday. The Finance Index fell 0.21% to 14090.33 points, the Properties Index dropped 0.05% to 1191.64 points and the Plantation Index down 0.56% to 7430.38 points. The market traded within a range of 5.97 points between an intra-day high of 1673.11 and a low of 1667.14 during the session.

Actively traded stocks include INSTACO, GENETEC, XOX, INSTACO-WB, BORNOIL-WC, HIBISCS, WINTONI, BORNOIL, EFFICEN and APFT. Trading volume decreased to 1572.50 mil shares worth RM1597.07 mil as compared to Thursday’s 2041.00 mil shares worth RM1837.02 mil.

Leading Movers were RHBCAP (+8 sen to RM6.00), KLCC (+6 sen to RM7.04), TM (+3 sen to RM6.60), PETCHEM (+2 sen to RM6.75) and DIGI (+1 sen to RM5.07). Lagging Movers were SIME (-19 sen to RM7.72), YTL (-3 sen to RM1.51), HLBANK (-18 sen to RM12.80), BAT (-72 sen to RM57.88) and GENM (-5 sen to RM4.30). Market breadth was negative with 347 gainers as compared to 424 losers.

The KLCI ended the week on a negative note, closed lower at 1667.87 points amid overnight losses in Wall Street after Federal Reserve Chairman Janet Yellen signaled the economy is ready for higher borrowing cost.

Source: JF Apex Securities Bhd

STI MARKET REVIEW :
SINGAPORE stocks opened flat on Monday morning, with the Straits Times Index(STI) up 0.03 per cent, or 0.97 point, to 2,918.88 and ended lower to 10.1 points or 0.35% to 2907.80.
STI came off from its intra day peak 2925.16 of and low of 2904.80.
LOCAL BOURSE
Singapore equities initially climbed up but the market ended on a low as a result of sluggish growth of asian economy. The market was on lower side due to the increase in risks in real estate investment trusts in 2016 because of weak economic fundamentals weighing on demand, while new supply is added into most sectors.Singapore REITs is expected to come back stronger to do more acquisitions in 2016.
MARKET FORECAST
STI is expected to consolidate in next trading session. Investors are still waiting for positive trend , but market is not showing positive trend. If it breaks the level of 3018 then the market is expected to go up.As fed is likely to increase its rate and also the slowing economic growth of asia will lead towards the sidewards or downwards movement of the market for now.
STI COUNTER SPECIFIC NEWS

  • Citic Envirotech Ltd (CEL) has secured a Public-Private Partnership project in Liaoyang City, Liaoning Province, China worth $122 million.The project involves an investment into four wastewater treatment plants and its associated pipe network in Liaoyang City.

  • Singapore container shipping firm Neptune Orient Lines has entered into exclusive talks for acquisition with France’s CMA CGM SA, the world’s third-largest shipper by capacity.

  • KS Energy Group announced that a joint venture between PT Atlantic Oilfield services and PT Java Star Rig has won a contract for KS Java Star jack-up drilling rig worth US$2.8 million ($4 million).

GLOBAL FACTORS AND WORLD INDICES:

  • China stocks ended lower, with the telecoms sector leading declines and as investors remained cautious ahead of a fresh batch of listings.The largest listed companies fell 0.6 percent, while the Shanghai Composite Index lost 0.5 per cent.
  • Oil extended its decline as Venezuela predicted prices may drop as low as the mid-US$20s a barrel unless the Organization of Petroleum Exporting Countries (Opec) takes action to stabilize the market.
  • The yuan fell to a three-month low as the central bank weakened the currency’s reference rate amid a dollar advance and on concern China will allow a decline to help its economy.
  • The euro weakened toward a seven-month low after futures traders added to bearish bets and European Central Bank encouraged speculation.
  • Malaysia’s ringgit led losses in Asia on speculation as rally was overdone given that oil prices remain depressed and China’s economy is still slowing.The ringgit climbed 2.1 per cent in the five days through ,rising along with other regional currencies after the Federal Reserve indicated it will increase interest rates gradually.
  • Growing confidence that the US will raise interest rates next month boosted the dollar in Asia.US stocks capped their best week this year as investors digested growing signs the Federal Reserve thinks the world’s top economy is srong enough to handle a rate rise next month.
  • Iron ore price will drop below U$40 a metric ton before year-end, and trade in the US$30s in 2016 as demand in China sputters.
  • Europe’s main stock markets fell at the start of trading, with London’s benchmark FTSE 100 index down 0.7 per cent to 6,293.27 points, awaiting regional data.
  • Hong Kong shares fell, taking cues from weak mainland markets and as investors braced for a likely rise in US interest rates next month.The Hang Seng index fell 0.4 per cent, to 22,665.90, while the China Enterprises Index lost 0.7 per cent, to 10,229.43 points.
  • SINGAPORE inflation eased at -0.8 per cent, mainly due to the lower costs of oil-related and retail items.This meant core inflation, which excludes the costs of accommodation and private road transport, moderated as well to 0.3 per cent – lower than the previous month’s 0.6 per cent.

STI MARKET REVIEW :
SINGAPORE shares opened higher on Thursday.The benchmark Straits Times Index rose 26.91 points or 0.93 per cent to 2,912.99. following Wall Street’s gain on expectations the Federal Reserve would be confident enough about the US economy to raise rates in December. STI closed33.8 points or 1.17% higher and came off from its intra-day peak of 2932.78 and low of 2906.86.STI Chart
LOCAL BOURSE
Singapore equities climbed in line with gains seen in most other Asian bourses.The US Federal Reserve has also signalled a potential interest rate hike in December following which the market had mixed sentiments towards gaining.
MARKET FORECAST
STI is expected to consolidate in next trading session. Investors are still waiting for positive trend , but market is not showing positive trend. If STI break 2940 then it may take positive side.
STI COUNTER SPECIFIC NEWS

  • Sembcorp Marine announced last evening that it has won a contract from a unit of Modec Inc. to build a floating storage and offloading vessel.It reported earlier that one of its customers has announced the cancellation of a US$214 million ($304 million) contract for a drilling rig.
  • Linc Energy revealed that it has entered into a confidentiality, due diligence and exclusivity agreement with an Australian company in relation to its shale oil assets.The counter party has commenced due diligence in accordance with the agreement but no formal negotiations regarding the sale of the SAPEX assets have been held at this time.
  • Viva Industrial Trust announced plans to raise a total of $110 million through a private placement and preferential offering of its units.It will sell 101.1 million new stapled securities to its existing holders at $0.715 each in a ratio of one new unit for every seven held. The preferential offer is expected to raise $72.3 million.
  • First Reit is about to acquire stake in Indonesian hospital and mall for S$70m.

GLOBAL FACTORS AND WORLD INDICES:

  • Federal Reserve officials continued to flag December as a likely time for interest rates to rise after seven years near zero, with two expressing confidence they will be able to pull off a rate hike smoothly despite fears of an abrupt market reaction
  • Wall Street stocks marched higher, greeting US Federal Reserve meeting on minutes that suggested a likely interest rate increase in December.
  • US dollar dipped against the euro after the minutes of the Federal Reserve’s October policy meeting reinforced expectations of an interest rate hike next month.Most participants of the Federal Open Market Committee anticipated the US economy would be strong enough in December to weather the first rate hike in over nine years.
  • Asian stocks and emerging market currencies rallied after minutes from the Federal Reserve showed growing confidence in the US economy, ramping up the chances of a December interest rate hike.
  • Commodity markets are in worse shape than in 2009, and is trading with more risks.Oil, copper and coal are trading around their lowest levels since the global financial crisis.
  • Oil prices rose in Asian trade on Thursday as Europe struck back against the Islamic State (IS) group after the Paris attacks and after a mild rise in US stockpiles.US economy also lifted confidence, with most markets in Asia advancing following a rally on Wall Street.
  • Gold may become a three-figure commodity once again after holding above US$1,000 an ounce ($1,420 an ounce) for the past six years.Bullion may slide below the level in the first half of 2016 after the Federal Reserve raises rate and the dollar gains.
  • China stocks ended higher with a sharp rebound in small-caps offsetting the drag from property shares and investor caution ahead of a flurry of new listings.The blue-chip CSI300 index rose 1.6 per cent, to 3,774.97, while the Shanghai Composite Index gained 1.4 per cent, to 3,617.06 points.
  • Tokyo stocks rose 1.07 per cent as investors weighed the Bank of Japan’s decision to keep its monetary easing programme unchanged, pushing up the yen against the dollar.The Nikkei 225 at the Tokyo Stock Exchange rose 210.63 points to 19,859.81.
  • Shares in Hong Kong climbed more than one per cent in opening trade after minutes from the Federal Reserve’s October policy meeting showed board members had greater confidence in the US economy.The benchmark Hang Seng Index rose 1.06 per cent, or 234.31 points, to 22,422.57.

STI MARKET REVIEW : Singapore share prices opened higher on Tuesday with the Straits Times Index (STI) up 11.13 points or 0.39 per cent to 2,890.11 and ended 12.58 points or 0.44% higher to 2869.69. STI came off from its intra-day peak of 2890.11 and low of 2862.72.
Singapore equities inched up at noon, with no clear direction to trading and little in the way of local new cues. STI rose 0.42% to 2,894.40. Market breadth was positive. However, later in the day STI was dragged in red through heavy selling in the market.
LOCAL BOURSE
Singapore’s GDP grew at a slower pace of 1.8% on-year in the second quarter, from 2.8% in the first quarter. On a quarter-on-quarter seasonally-adjusted annualized basis, the economy contracted by 4.0%, a reversal from the 4.1% growth in the preceding quarter.
Singapore is experiencing hazy conditions on Tuesday, with the Pollutant Standards Index (PSI) staying at the high end of the moderate range. PSI was 79 to 91. The three-hour PSI, which is not linked to any health advisory, had been rising since morning.
Market forecast: STI is expected to take side ways trend. It has support level at 2850, if it breaks this level it may down till 2830. It is trading within the range of 2830 – 2905. It has its resistance at 2905. If has its resistance at 2900. Investor sentiments are cautious as FED has shown some expectation to increase profit by the end of this year.
STI COUNTER SPECIFIC NEWS

  • A subsidiary of Magnus Energy is forking out A$1 million (S$1 million) in cash to subscribe for 8 million shares in a new Australian oil and gas company.
  • Neptune Orient Lines (NOL) on Tuesday said that besides reports that surfaced in July saying Singapore state investment firm Temasek Holdings has put it up for sale, it was not aware of anything else which might explain the trading in its shares.
  • DBS has ambitions to introduce cashless options through a first-of-its-kind mobile application to hawker centers and quick-serve restaurants in Singapore, a senior bank executive said on Tuesday.

GLOBAL FACTORS AND WORLD INDICES:

  • Shares in Hong Kong rose Tuesday following gains in New York after top Federal Reserve officials moved to reassure dealers about the US economy after being spooked by last week’s decision to hold interest rates. The Hang Seng Index climbed 0.18 per cent, or 39.65 points, to close at 21,796.58.
  • China stocks rebounded for the second day on Tuesday, in a further sign of improving investor sentiment that may help the market gradually stabilise after the rout since mid-June.
  • Asian shares rose on Tuesday and the dollar held steady as US markets bounced back and the European Central Bank said it was prepared to ease monetary policy further.
  • Taiwan stocks rose on Tuesday mostly following overseas markets and some bargain hunting after the previous day’s losses, but further gains were capped due to uncertainties ahead of the central bank’s policy meeting.
  • The introduction of a new accounting standard for financial instruments will be challenging for the banking industry, especially when it comes to modeling for expected losses, the European Central Bank’s supervisory chief said on Tuesday.
  • The dollar advanced against the euro and other leading currencies Monday on comments from US central bankers who continue to eye a 2015 interest rate increase.
  • US home resales fell more than expected in August, a cautionary sign for the US housing market which has recently looked on stronger footing. The National Association of Realtors said on Monday existing home sales dropped 4.8 per cent to an annual rate of 5.31 million units.
  • Gold steadied below a near three-week high on Tuesday, retaining overnight losses as Asian equities and the dollar edged higher and as investors worried over the possibility of a US interest rate hike later this year.
  • Oil prices rebounded on Monday , looked like a technical correction from heavy losses last week as the basic global oversupply picture remained intact.