Pre-Market Open Commentary for 03 February 2010
DJIA: 10296.85 +111.32
Nasdaq Composite: 2190.06 +18.86
Wall Street staged another rally with the Dow posting a second straight triple-digit gain as investors welcomed better-than-expected corporate results of UPS and Emerson Electric, both of which reported YoY weaker revenue and earnings that surpassed expectations while homebuilder D.R Horton benefitted from big tax gains and reported quarterly earnings, which again surged past expectations of losses. Sign of stability in the housing sector also lifted the market, with pending home sales index rising 1%, in line with expectations, from a drop of 16.4% in the previous month. Auto sales figures were also strong with Ford Motor, General Motors and Nissan all reporting improved January sales.
All the major indices ended higher, with the Dow Jones Industrial Average gaining 1.09% and S&P 500 rose 1.30% to close at 1,103.32. Nasdaq composite surged 0.87%.
On Wednesday, the market will likely take cues from the two employment sector reports and ISM January reading on the services sector that are due out in the morning as well as the government’s latest report on crude inventories. The corporate results of Time Warner, Pfizer and Cisco System are also due on the same day.
US light crude oil for March delivery added US$2.80 to settle at US$77.23 a barrel.
In Singapore today:
Overnight gains on Wall Street ensuing from strong US manufacturing data and a bout of exuberant bargain hunting of local blue chips helped the STI jump a hefty 31 points in early trading. However, buying momentum stalled in the afternoon as nervousness set in again on the back of economic concerns and negative trading of US futures. Dealers reported that jittery clients were using any bounce opportunities in the market to lighten up and the upside remains capped in the short term. At the closing bell, the STI was down 15.3 points at 2720.87. For every stock that rose, 1.68 fell. Turnover was low with 1.6bil shares with a value of $1.32bil traded.
Chine Environment shares tumbled 26.8 per cent or 11 cents at 30 cents on rumours that the company was facing some accounting irregularities issues. From their respective rebound highs, shares of Marco Polo, Epure, IndoAgric, China Animal Healthcare and PSL shed between half and 1 cent. Maintaining their upside were shares of Jardine Strategic, APB, Jardine Matheson, Haw Par, Venture Corp, and Keppel Land which rose between 8 and 24 cents.
Expect the local bourse to take cues from overnight gains on Wall Street. However, we will not be surprised if the market reverses its course in late-day trading as investors may again take upside opportunities to unwind their portfolio positions.
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Mid Day February 3. Asian markets played catch up.
Wall Street rose for the second day helped by good corporate earnings, registering its best 2 day gain in four months. Asian markets played catch up in a weary fashion for the fear of Wall Street being put to the test on Wednesday (after a 2 day gain) made most conservative. `It's easy to say buy low and sell high cause when it's really low, no one buys' a dealer mused. The STI index rose 26.49 points at 2747.36 points. For every stock that fell, almost 3 rose. Turnover was 812mil shares with a value of $701mil traded.
Ezra scored with investors today after a broker upgraded the stock to a buy with a target of $2.54. The burst of buying momentum triggered some short covering and nudge the stock 14 cents higher to $2.14. Associate Ezion rose 2 cents at 71 cents while others like Marco Polo, Swiber, Otto Marine, Cosco Corp, Ausgroup and Swissco rose between 1 and 5 cents. The US dollar's pullback was a boost for commodities and resources stocks. Shares of IndoAgric, Straits Asia, Noble Group, Olam and Golden Agric that rose between 1 and 7 cents. New listing Sin Heng Machinery made a good debut today at 33.5 cents and ended at 34 cents for a gain of 8 cents above its 26 cents offering.
On the balance, shares of Jardine C&C, Hyflux, Trump Dragon, Wilmar and Hong Kong Land eased between 1 and 24 cents.
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Market close Feb 3. STI up 43,9 points
Asian markets were more confident today after Wa ll Street‚s second day of gains. The STI index rose 43.97 points at 2764.84 points. For every stock that fell, almost 3 rose. Turnover was 1.7bil shares with a value of $1.5bil traded.
New listing Sin Heng Machinery made a good debut today at 33.5 cents and ended at 36 cents for a gain of 10 cents above its 26 cents offering. The stock alone saw 152.7m shares changing hands.
Ezra scored with investors today after a broker upgraded the stock to a buy with a target of $2.54. The burst of buying momentum triggered some short covering and nudge the stock 21 cents higher to $2.28 on 25.5m shares changing hands. Associate Ezion rose 3 cents at 72 cents.
Marco Polo, Swiber, Otto Marine, Cosco Corp, Ausgroup and Swissco rose between 1 and 5 cents. The US dollar's pullback was a boost for commodities and resources stocks.
Shares of IndoAgric, Straits Asia, Noble Group, Olam and Golden Agric that rose between 1 and 7 cents.
On the balance, shares o f Hyflux, UIS and Sim Lian eased between 4 and 7 cents.
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