Pre-Market Open Commentary for 26 November 2009
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DJIA: 10464.4 +30.69
Nasdaq Composite: 2176.05 +6.87
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After a minor correction, Wall Street recovered overnight as investors cheered news that initial jobless claims fell to a 14-month low last week. But it should be noted that volume was one of the lightest in the year, ahead of today’s Thanksgiving Holiday.
New homes sales also picked up pace in October, while consumer spending recovered 0.7 per cent last month after dropping some 0.6 per cent in September. This augurs well for the Black Friday shopping day tomorrow, traditionally seen as the start of the festive shopping period with retailers trying to outdo each other in launching good bargains.
The continued weakening greenback led to some strengthening in crude prices. The EIA also said inventories went up only 1m barrels in the last week, lower than expected while demand also appears to have been higher than projected. Consequently, crude for January delivery closed US$1.94 higher at US$77.97 per barrel.
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In Singapore today:
The local bourse managed to shrug off its earlier sluggishness and close higher yesterday 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.
Volume was boosted by the trading debut of Capitamalls Asia, which opened and ended at $2.30 with 181.6mil traded for a gain over its $2.12 offering. It hit a low of $2.23.
We expect the market to trade within a narrow range today despite Wall Street’s overnight rise. This is due to the long weekend in both Wall Street and our local market, which is closed tomorrow for Hari Raya. As such, investors are likely to remain sidelined and not take up fresh positions given recent volatility in equity markets.’
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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Mid Day November 26. STI lower at half-time
US markets had a firm close in a quiet pre-holiday trading session. The Dow Jones Industrials index finished at a 13 month high while the Volatility index neared 20. The low VIX number augured well for risk taking. US dollars weakened further yesterday and made a bull case for resource stocks. `Investors scorn at the weak dollars and prefer an asset of value like gold, properties or equities' dealers said. The STI index fell 14.18 points at 2,778.66 points. For every stock that fell, 0.8 rose. Turnover was 633.2mil shares with a value of $710.2mil traded. The stock market would be closed for the Hari Raya holiday tomorrow which was a reason for the lower than typical turnover.
Yesterday's listing Capitamalls Asia broke through that $2.30 barrier to reach an intra-day high of $2.39 before closing back down to $2.30 at half time. `I think lots of stag sellers were taken out yesterday, leaving behind the long term serious players' a trader reasoned. New listing Q&M Dental group finished at 34.5 cents, above its 27 cents offering. Resources plays were firm with shares of Noble Group, Indo Agric and Olam adding between half and 3 cents.
On the balance, shares of Venture Corp, UOB, Jardine Strategic, Keppel Corp, DBS, City Developments, ARA, Starhub and Yangzijiang eased between 2 and 58 cents.
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Market close Nov 26. STI saw profit taking ahead of long weekend
The STI index saw profit taking ahead of the long weekend and closed 30.62 points down at 2,762.22 points. Market breadth was negative, with 158 gainers and 291 decliners. Turnover was 1.1 bil shares with a value of $1.39 bil traded. The stock market would be closed for the Hari Raya holiday tomorrow which was a reason for the lower than typical turnover.
The continued weakening greenback also made a bullish case for resource stocks or other assets such as gold or properties.
Yesterday's new debutante, Capitamalls Asia broke through the $2.30 barrier and hit a high of $2.39 before it finished unchanged at $2.30 on 73mil shares. `I think a lot of stag sellers were taken out yesterday, leaving behind the long term serious players' a trader reasoned.
New listing Q&M Dental group finished at 31.5 cents on 59mil, above its 27 cents offering. Other busy issues were Golden Agri, closing on par at 50 cents on 68mil and Achieva, closing unchanged at 10.5 cents on 27mil.
On the b a lance, shares of STX Panocean, Jardine C&C, Jardine Strategic, Keppel Corp, UOB and DBS eased between 28 and 94 cents.
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