Sigh :)
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Pre-Market Open Commentary for 10 March 2010
DJIA: 10564.38 +11.86
Nasdaq Composite: 2340.68 +8.47
Following a choppy trading session, US stocks gained moderately on Tuesday as investors weighed corporate deals and news on corporate profits. Merck and Sanofi-Aventis merged their animal healthcare businesses to create a combined entity with a global market share of about 29% worth around US$19 bil while Cisco System introduced a new Internet router that will power the most heavily-trafficked parts of the web at twelve times the speed of its competitors. Further, Texas Instruments updated upwards its first quarter profit estimates to between 48 cents and 52 cents per share on revenue of US$3.07 bil to US$3.19 bil but investors took a “sell on news” approach which sent the share 2% lower.
Despite positive corporate news, the market was wary after stocks were pushed higher for three of the last four weeks. All the major indices ended only modestly higher with the Dow Jones Industrial Average gaining 0.11% while S&P 500 rose 0.17% to 1,140.44. Nasdaq composite gained 0.36%.
A host of economic news scheduled for this week will start releasing on Wednesday with the readings of January unemployment rate on a state-by-state basis, wholesale inventories and weekly crude oil inventories.
US light crude oil for April delivery dipped US$0.38 to settle at US$81.49 a barrel.
In Singapore today:
Following a lackluster performance on Wall Street on Tuesday, which coincided with the first anniversary of major stock indices falling to the lowest level in 2009, investors returned to the sidelines awaiting fresh leads. The STI traded within a tight range before ending 4.97 points higher at 2839.54. For every stock that gained, 1.22 fell. Overall market volume fell to a two-week low of 1.17 bil shares worth $1.21bil traded.
Shares of Straits Asia bounced 5 cents at $2.12 on talks of short covering in spite of the recent spate of downgrades and weaker coal prices. China Animal Healthcare rose 1.5 cent at 27cents on speculations that it may announce a contract win. Yanlord Land rose 6 cents to $2 on institutional demand as concerns about fresh measures to curb speculative demand ease.
Expect the local bourse to trade modestly firmer taking cues from overnight positive close on Wall Street. Reports of Japan’s core machine orders falling less-than-expected in January from the previous month which signaled that capital expenditure will continue to grow slowly in 2010 as manufacturer increase spending, supporting economic growth, will further underpin the market.
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Mid Day March 10. Asian markets in lethargic range bound trading.
Asian markets traded in a lethargic range bound fashion as US markets locked modest gains overnight. Traders while less pessimistic about the near term were still lacking conviction in a big way, judging from the volumes traded. `No one is being greedy, if you make money, just sell' a dealer enthused. The STI index rose 21.86 points at 2861.40 points. For every stock that fell, 2 rose. Turnover was 876mil shares with a value of $834mil traded.
Stocks are not dropping; but they are not surging either. `We have probably settled to normal trading patterns. There may be some resistance now but people need to ask, `what if we take out these resistance' a dealer mused.
Then again, investors who had sold and waiting for their `elusive lower entry levels' may soon run out of patience. Tiger Airways got another boost (recent buy call from a foreign broker) when a local broker recommended buy with a target of $2.10. The stock rose 9 cents at $1.71.
Yanlord Land rose 8 cents at $2.08 on institutional interest as concerns about further monetary tightening in China eased. Palm Oil issues rose on media reports that demand will outstrip supply this year due to El Nino effect and Asian consumption. Shares of Wilmar, IndoAgric, Golden Agric and First Resources rose between 2 and 14 cents. Rotational play here boost shares of Z-Obee, China Environment, Pac Andes and Otto Marine between 1 and 3 cents.
On the balance, shares of OUE, STX Pan Ocean, UOL, Leeden, Kim Eng and Amara eased between 1 and 90 cents.
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Market close March 10. STI continued upward climb
The STI index continued its upward climb, closing 22.75 points higher at 2862.29 points. For every stock that fell, 2 rose. Turnover was 1.65bil shares with a value of $1.55bil traded.
While stock valuations appear rich, investors who had sold earlier and are waiting for lower entry levels may find themselves frustrated.
Tiger Airways got another boost (recent buy call from a foreign broker) when a local broker recommended buy with a target of $2.10. The stock rose 8 cents at $1.70.
Yanlord Land rose 4 cents at $2.04 on institutional interest as concerns about further monetary tightening in China eased. Palm Oil issues rose on media reports that demand will out strip supply this year due to El nino effect and Asian consumption. Shares of Wilmar, IndoAgric, Golden Agric and First Resources rose between 2 and 14 cents. Rotational play boost shares of Z-Obee, China Environment, Pac Andes and Otto Marine between 1 and 3 cents.
On the balance, shares of OUE, Sp Land, STX Pan Ocean, Cortina a n d SIA Engg, eased between 4 and 18 cents.
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