And I am the only one in Singapore that is losing money as the market goes higher and higher. And did you see Rotary today ?
It went up 15.5% to reach $1.02. What a great day for the share. Less than 1 month ago, I bought 12,000 shares at 0.71 cents and sold it at 0.75 cents. When I bought it, it was through technical analysis. Accordingly, to my teachings, I was NOT to sell it as the indicators did not say so :)
If I kept it, it is now worth $3,670. AMAZING. What a waste
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Pre-Market Open Commentary for 30 July 2009
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DJIA: 9070.72 -26
Nasdaq Composite: 1967.76 -7.75
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Wall Street also got a drubbing overnight following the sell-off in Shanghai earlier yesterday on concerns that the government might take steps to tighten credit. As has been acknowledged, it was largely Chinese investible funds that appears to have sparked the recent liquidity rally. This served as a reality check on valuations.
The Commerce Department also said durable goods orders fell 2.5 per cent in June, not entirely unexpected, but also another reality check.
On the earnings front, ConocoPhillips announced a 2Q loss in its downstream business, Still, some bargain hunting helped the Dow Jones Industrials close off the day’s low where it was down more than 80 points.
Cautious expectations for the economic recovery also led to further easing in crude prices, especially since inventories rose some 5.1m bar r els in the latest week. Crude oil for September delivery fell US$3.88 or nearly 6 per cent to US$63.35 per barrel.
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In Singapore today:
The sell off in Shanghai, down nearly 5 per cent, also affected regional bourses yesterday though the STI also managed to close off the day’s lows on some bargain hunting. The Straits Times Index shed 19.98 points to 2,604.06. Turnover was nearly 2.96 billion shares worth $2.39bn changed hands. Breadth, however, was negative with losers outpacing gainers nearly 2.5 to 1.
Profit taking was evident in the banks as valuations had priced in a better than expected 2Q while analysts were concerned the worst is not over.
CapitaLand announced a loss for the 2Q this morning, due to writedowns on investments and said the outlook for 2009 was uncertain. It reported a net loss of $156.9m due to writedowns and impairment charges at Australand, as well as the drop in the value of assets under CapitaCommercial Trust and CapitaMall Trust. Excluding revaluations and impairments, it made a ne t profit of $124m for the quarter.
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Mid day July 29. STI surged to a 10 month high but closed lower at half time
Weak consumer confid ence numbers pulled Wall Street lower and zapped some momentum out of the current rally. Asian markets opened lower in sympathy but still managed to put up a good fight, aided by overnight momentum buying. The STI index surged to a 10 month high at 2642.79 points before easing to end 5.07 points down at 2618.97 points. `Every pullback has been a buy opportunity' a dealer quipped. Market breadth deteriorated through the morning with 2 declines to every stock that rose. Turnover was 1.5bil shares with a value of $1.2bil traded.
Shares of Trump Dragon jumped 25 per cent at 32.5 cents after 2 blocks of shares (7 mil shares) were crossed at 26 and 27 cents, sparking talks of a `new player'. A trader said the counter has been inactive in the last 6 months until a few days ago when talks of dual listing of S chips rekindled interest. Another dealer believed Trump Dragon may report a better set of results. `The Chinese stock indices has risen over 1000 points in the few mont h s. Improved consumer confidence in China may boost sales of its liquor'. Indeed, the dual listing talk also boosted shares of Sinotel and Yanlord that rose 1.5 and 3 cents at 28.5 and $2.71 respectively. Ezra rose 3 cents at $1.40 after a foreign broker reiterated its buy call with a target of $2.10. IndoAgric rose 8 cents at $1.50 on speculations that company may improved a significant improvement in its quarterly results.
Other issues that rose were Jardine Matheson, Great Eastern, Creative Technology, Hyflux, Parkway, STX Pan Ocean, SingTel, MCL Land and ST Engineering that rose between 3 and 78 cents.
On the balance, shares of UOB, DBS, SGX, SIA Engineering, OUE, Keppel Corp, M1, F&N, Noble Group, Haw Par, SPH and Olam slid between 5 and 30 cents.
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Thursday 30 July 2009
Regional market sentiment likely to be subdued on higher risk aversion
GLOBAL EQUITIES
* Global stocks fell on Wednesday, following a steep 5% correction in the Chinese stock markets, on news that the Chinese government will curb inflows and hit the brakes on lending.
* Market players adopted a defensive stance as they worried that the Chinese central bank will order lenders to set aside larger reserves.
* This in turn raised further concerns that such a move that could curb demand in China, the world's third-largest economy and biggest consumer of metals and other commodities, and even hinder a global economic recovery further down the road.
* Concerns about slower growth in China's economy hurt commodity prices and hit shares in the energy and raw materials sectors.
* On the US economic front, a 2.5% drop in US durable goods orders in June also weighed on sentiment.
* In its collection of economic anecdotes known as the Federal Reserve's "Beige Book", regional conditions showed that overall US economic activity remained weak.
* At market close, the Dow Jones Industrial Average fell 26.00 points, or 0.3%, to 9070.72 amid declines in energy components such as Chevron and manufacturers such as General Electric. The S&P 500 declined 4.47 points, or 0.5%, to 975.15 as its energy sector sank 2.3% and its basic-materials group fell 2.1%.
* The Nasdaq Composite Index slid 7.75 points, or 0.4%, to 1967.76, hurt by a 12% slide in Yahoo after it struck a deal with Microsoft to partner for ad sales and search technology.
* Emerging markets: Brazilian stocks tumbled as falling commodities and speculation that China, the country's biggest trading partner, will curb inflows spurred concern that an equity rally has outpaced growth prospects. The Bovespa index fell 1.4% to 53,734.53. Russia's RTS index trimmed 28.02 to end at 973.78.
* Still, Templeton's Mark Mobius said in an interview yesterday that he plans to double Templeton Asset Management's emerging-market assets to $50 billion within two years.
* The veteran fund manager reiterated that emerging markets will be the first to climb out of the crisis, as authorities in those countries have the chance to act more promptly and decisively.
GLOBAL BONDS
* US Treasury prices fell after a disappointing sale of notes drew higher-than-forecast yields for a second straight day, renewing concern a deluge of US debt will overwhelm investor demand.
* The $39 billion auction of 5-year bonds, the largest such sale ever, wasn't bid heavily enough to prevent the Treasury from paying a higher rate on its borrowing.
* Treasury prices fell across the board after the auction, leaving stock investors skittish, though prices in longer maturities did rebound later in the afternoon
* Demand from an investor class that includes foreign central banks declined at each of the auctions from last month, when those sales attracted the most interest in at least six years, said analysts.
COMMODITIES
* NYMEX crude oil prices extended losses after as US government data showed a surprisingly large increase in crude inventories last week in the world's biggest energy consuming nation.
* Oil futures fell $3.88, or 5.8%, to settle at $63.35 per barrel after the Energy Dept. reported crude oil inventories rose by a more-than-expected 5.1 million barrels in the week ended 24 July.
* There were mounting concerns that the US and China, the world's two biggest users of most major natural resources, may see demand stay weak longer than previously expected.
* Comex gold futures fell $12, or 1.3%, to $929.70 an ounce as the US dollar's rebound reduced the appeal of the precious metal as an alternative investment.
HONG KONG
* A broker who spoke to Dow Jones Newswires said he expects the index to stay above the psychologically important level of 20,000 in the near term on ample liquidity.
* The selling pressure was modest compared with the market's recent gains, given the strong liquidity in the market, he said.
* Profit-taking after the Hang Seng Index's recent strong gains, and sharp falls on mainland China's bourses led the HSI lower Wednesday, though ample liquidity kept the index above the key 20,000 level.
* The blue-chip Hang Seng Index fell 489.04 points, or 2.4%, to end at 20,135.50 after trading between 19,787.48 and 20.542.61
SINGAPORE
* Analysts said that strong liquidity is likely to continue to provide support to the market, and second-quarter earnings should keep the bullish sentiment alive.
* The Straits Times Index closed down 0.8%, or 19.98 points, at 2, 604.06 points Wednesday, as investors digested bearish news from the US and China.
* The index lost some ground on cues from Wall Street, which was hit by poor consumer confidence data. The STI got a further hit after the Chinese market saw a sell-off later in the day.
CHINA
* Concerns about slowing credit growth and profit warnings from domestic companies led China shares to post their biggest single-day percentage decline in more than eight months Wednesday
* Analysts say the market will become more volatile after the plunge, but they remained positive over the long-term perspective, as flush liquidity is likely to persist in the coming months.
* In extremely volatile trade, the Shanghai Composite Index plunged as much as 7.7% in afternoon trading before ending down 5.0% at 3,266.43.
* The decline is the biggest percentage drop at market close since 18 Nov, when the index ended down 6.3%.
* China's two biggest lenders said they would sharply slow credit growth in the second half, Caijing Magazine reported Tuesday.
CURRENCIES
* The US dollar posted strong gains against its rivals Wednesday after weak economic data and declines in stocks boosted demand for the currency as a safe haven.
* The euro fell sharply against the US dollar Wednesday, declining to a two-week low after nearly reaching its highest rate this year just a day earlier
* Wednesday afternoon in New York, the euro was at $1.4034 from $1.4172 late Tuesday
* The New Zealand dollar dropped the most in three weeks after the central bank said it may cut borrowing costs as a rising currency threatens the nation's recovery from recession.
* The Reserve Bank of New Zealand left its benchmark rate unchanged at a record low 2.5% today and said the "forecast recovery is based on further easing in financial conditions
* New Zealand's dollar slid 1%, the most since 7 July to $0.6512 Thursday morning in Wellington, from $0.6574 before the statement.
* Australia's currency also fell, slipping 0.1% to $0.8168 this morning in Asia, from $0.8175 in New York trading yesterday.
* Meanwhile, a marginally higher dollar-yuan central parity rate pushed the Chinese yuan down against the US dollar Wednesday.
* On the over-the-counter market, the US dollar ended at CNY6.8316 Wednesday afternoon in Asia, up from Tuesday's close of CNY6.8309.
* The dollar-yuan central parity rate was set at 6.8314, up slightly from 6.8310 Tuesday.
* Dealers played down the fixing's smaller range, saying it is merely an extension of Beijing's measures for dealing with the global financial crisis.
* The Singapore dollar was trading lower in Asian trade late Wednesday as investors saw little reason to take risk after worse-than-expected US consumer confidence for July. USD/SGD was higher at 1.4428 yesterday.
* According to analysts, however, expectations that global stock markets will continue to rise on bullish 2Q results should push the US dollar down in the near term.
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