Was allocated 1 lot (1000 shares) of CapitalMall Asia :)
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Pre-Market Open Commentary for 25 November 2009
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DJIA: 10433.71 -17.24
Nasdaq Composite: 2169.18 -6.83
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Wall Street continued to see profit taking on news that the 3Q GDP numbers were likely not as strong as earlier thought. The Commerce Department said the estimate of 3Q GDP has been lowered from 3.5% to 2.8%, though this is still the strongest quarterly growth in two years.
In another development, the Federal Deposit Insurance Corp. (FDIC) said the number of distressed US banks jumped to a 16-year high in the third quarter. The FDIC's Deposit Insurance Fund also fell to a loss of US$8.2 bn in the 3Q, making it imperative to tap its contingency fund. The FOMC, in its latest meeting minutes, also said it expects the jobless rate will remain high through 2011.
Wall Street will likely see another uncertain day today ahead of its Thanksgiving break tomorrow. The holiday shortened trading week will see a long weekend with just half a day of trading scheduled for Friday.
Crude futures also fell a little in line with the continued sober economic outlook. There was also some expectation that the latest inventory numbers to come will likely show an increase. Crude for January delivery fell US$1.54 to US$76.02 per barrel.
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In Singapore today:
Asian markets yesterday could not capitalise on Wall Street’s overnight rise, dipping instead throughout the day due to a lack of positive fresh factors as well as the negative trading of US futures. Traders appeared resigned to the volatility and warned of more in the days ahead during the holiday shortened trading week. Singapore will have a public holiday on Friday for Hari Raya.
The STI index failed to cling unto its 2800 level to ease 17.90 points at 2779.98 points. Market breadth was negative, with 179 gainers and 300 decliners. Turnover was light on 1.4bil shares with a value of $1.49bil traded.
The main highlight for today will be the trading debut of CapitaMalls Asia, which had a near 5 times subscription for its public tranche. The group raised some $2.8 bn in the offer. The shares were offered at $2.12 each, and is expected to make a healthy debut today though it remains to be seen if the price can sustain above offer price in the days ahead given the overwhelming size of the issue and the likely high number of subscribers looking for a quick turnaround.
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Mid day November 25. Asian markets locked in a moribund range
It was a weak US sessio n with its key indices closing between 0.05 and 0.3 per cent lower. US stocks managed to end off the lows of their session ; albeit on low volumes, after the US Federal Reserve raised its 2010 forecast. Asian markets were largely locked in a moribund range amidst low volumes. The STI index rose 2.84 points at 2782.82 points, giving back much of its earlier advance on profit taking. For every stock that rose, 1.3 fell. Turnover was 650mil shares with a value of $868mil traded.
Capitamalls Asia made its debut today, opening at $2.30 but closing the mid day at $2.24 on 106mil shares. This represented a premium of about 6 per cent over its $2.12 offering. Resources stocks were in demand with Noble Group rising 9 cents at $2.99 while Straits Asia rose 3 cents at $2.26. `This follows a global trend where investors were piling into resource companies given the weaker US dollars' a dealer noted. Shares that did well today were DBS, Jardine C&C, Ezra, Hyflux, SembCorp amd City Developments that rose between 2 and 26 cents.
On the balance, shares of Jardine Matheson, Jardine Strategic, SIA, SGX, Great Eastern and Starhub that eased between 2 and 54 cents.
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Market close Nov 25. Trading remains sluggish though STI closes higher
The local bourse managed to shrug off its earlier sluggishness and close higher albeit on low volumes. The STI index rose 12.86 points at 2792.84 points. Market breadth was positive, with 216 gainers and 188 decliners. Turnover was 1.35bil shares with a value of $1.71bil traded.
Capitamalls Asia made its debut today, opening and ending at $2.30 with 181.6mil traded for a gain over its $2.12 offering. It hit a low of $2.23.
Resources stocks were in demand with Noble Group rising 12 cents at $3.02 while Straits Asia rose 6 cents at $2.29. `This follows a global trend where investors were piling into resource companies given the weaker US dollars' a dealer noted.
Shares that did well today were STX Panocean, DBS, Jardine C&C, Ezra, and Olam that rose between 8 cents and $1.04.
On the balance, shares of Jardine Matheson, Jardine Strategic, Haw Par, SIA, and UOI declined between 7 and 88 cents.
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